Cryptocurrency, huh? It’s been more and more popular as time passes. A cryptocurrency or simply crypto is a virtual or digital currency secured by cryptography. That means it’s almost impossible to double-spend or counterfeit.
Unlike other payment methods, as we said, cryptocurrency is a digital-based system that does not need a bank to verify daily transactions. Since this is a peer-to-peer system, you can easily send and receive payments from anywhere if you hold any cryptocurrency.
It uses encryption to verify transactions, and that’s how “cryptocurrency” got its name. Encryption means that it uses more advanced programming in order to store and transmit data between cryptocurrency wallets and public ledgers.
Encryption is involved here in order to provide safety and security. It was back in 2009 when the first crypto was invented, the Bitcoin. It still remains the best and most popular today. And by best, we mean most valuable.
By the name of the article, you are probably wondering how old you have to be to buy cryptocurrency. Before we dig deeper into how old you have to be to buy cryptocurrency, we mentioned something about crypto wallets. Let’s take a look at what that is.
What is a Crypto Wallet?
Since you know what a wallet is, you can probably guess what a crypto wallet is just by reading the introduction in this article. However, unlike your regular wallet, the crypto wallet is much safer, unless you lose your private keys.
Private keys are passwords that can grant you access to your wallet, where cryptocurrencies can be bought or sold. Moreover, there are 82 crypto wallets available. The difference between each one of them is that they support various cryptocurrencies and come in different forms.
While your normal wallet can hold cash, crypto wallets don’t hold your cryptocurrencies. Every crypto you buy is on a blockchain. However, they can be accessed only with your passwords – private keys. That’s why it’s important to keep them safe at all times.
What is a Blockchain?
As we’ve mentioned above, your cryptos live on a blockchain. A blockchain is a database that stores all information in a digital format. Blockchains are famous because of their role when it comes to cryptocurrency systems. At Bitcoin, the blockchains are used to maintain a decentralized record and a secure way of transactions.
How Old Do You Have To Be To Buy Cryptocurrency?
Before we go on and discuss more about cryptocurrency, you are here to find out how old you have to be to buy cryptocurrency. The closest exact answer to this would be – it depends. Even though there is no specific age restriction for mining or trading in cryptocurrency, sites such as PayPal and Coinbase have a strict policy that users must be at least 18 years old before registering.
You need to know that there is a difference between crypto wallets and exchanges. While wallets use their encryption to store your cryptocurrencies, exchanges rely on a third party that doesn’t guarantee that your cryptos will be safe.
There is no age restriction to open up a crypto wallet. However, if the wallet requires funding via PayPal, you’d have to be 18 in order to have a PayPal account.
As for Coinbase, Coinbase is a USA company that operates a crypto exchange platform. The new policy for age at Coinbase was brought in on July 25, 2017. After July 25, you have to be at least 18 years in order to register on Coinbase. There is a new system in force that if you try to register under 18, it automatically informs the IT department, and your account will be banned.
So, as we said, it depends. How old do you have to be to buy cryptocurrency? It depends on the wallet, payment method, exchange service, and much more.
Why is Cryptocurrency Popular?
As we said, crypto is getting more popular each day. You can see new coins emerging on the market daily. Since Bitcoin made a huge difference in the crypto world, everyone wants a part of it.
Investing in Bitcoin now can be hard for some people because, at this moment, 1 Bitcoin equals around $41,000 USD. That doesn’t mean you can’t buy Bitcoins for under $41,000. However, the return on investment (ROI) would be minimal.
It’s getting more popular because people see this as an easy way to get rich. Many people made millions of Bitcoin. Even though some people see this as a one-time investment, others trade crypto every day. They buy and sell cryptos all the time to try to maximize their profit. It’s up to you how much you’d invest.
Benefits of Cryptocurrency
Since we now know how old you have to be to buy cryptocurrency, it’s time to talk about some of the benefits that come with crypto. In everything, you have pros and cons. Let’s take a look at some of the advantages of why you should invest in cryptocurrency.
While a wire transfer takes up to 24 hours, a simple transaction between 2 people using crypto takes minutes. You both need to have wallets, and the transactions can be made only in a few minutes.
One of the biggest benefits of crypto is the low fees. As we said above, not only do you get fast transactions, the fees are really low compared to other payment methods.
We already told you that security measurements are up to the highest level because everything is encrypted. Additionally, they are not tied to any banks, meaning that your money will be safe even if there is turmoil in your country. Just make sure you keep your private keys.
Instead of walking to the bank to make a transaction, all you need for a crypto wallet is a computer or a smartphone. Setting up a crypto wallet is easy and straightforward.
As we already said and you already know, in everything, there are risks. While investing in cryptocurrency has its benefits, some risks come as well. Let’s take a look at some of the associated risks here.
One of the most common risks when investing in cryptocurrency is getting addicted to the system. It goes 24/7, and the crypto market is never off. If you tend to get addicted to other things, then cryptocurrency will definitely get you on the hook.
In this market, you don’t have anything stable. We’ve experienced crashes of thousands of dollars within minutes. It can either go up or down, so it’s not uncommon that the value of crypto changes over the minute.
If you get addicted, you’d probably find yourself investing thousands of dollars at some point. It’s similar to gambling. Once you start losing money, you’d give everything to get them back.
Is Cryptocurrency a Good Investment?
Well, as we said, everything has good and bad sides. And cryptocurrency is no different. So, now that you know how old you have to be to buy cryptocurrency, age does not matter if you want to start investing. Is cryptocurrency a good investment? In one word – absolutely. That’s if you decide to accept the risk that you could lose all your money within minutes. It’s similar to gambling, but it’s definitely different.
While Casinos set their slots on when to pay out, here, you can do deep research on each crypto to see what technology they are using and determine the probability of earning yourself. Not only can you see what the crypto team is working on, but you can also see what other people are saying about the crypto you want to buy.
You can either start actively trading, or you can simply find a few cryptos that you think they will eventually pay off and make a one-time investment. If you make a one-time investment, the next thing to do is wait. It may take a few years to see any profit, however, make sure you keep your private keys.
As we said, it is definitely a good investment if you accept the fact that you could lose all of your money in a minute.
Is Cryptocurrency a Safe Investment?
If you carefully read the above paragraph, then you’d know that cryptocurrency investment is never a safe option. That’s simply because there are more than 10,000 cryptos to choose from on the market, and each of them has its perks.
Additionally, we’ve experienced enormous crashes that led many people to lose their money within minutes. It’s not a stable market; however, it can definitely pay off if you are willing to take that risk.
Are Cryptocurrencies Legal?
Unlike the dollar or any other fiat currency that is backed by their governments, cryptocurrencies are not backed by any private or public entities. That doesn’t mean they are illegal. It means that they are not stable as fiat currencies.
In fact, El Salvador was the first country to allow Bitcoin from December 2021 to be a legal tender for money transactions. Moreover, cryptocurrencies are legal in the European Union. Companies that use crypto as value for their products must qualify as “financial instruments.”
Cryptocurrencies are also legal in the United States. However, taxpayers need to report to the IRS every transaction that is above $10,000.
How to Buy Cryptocurrency
Since we’ve answered your question of how old you have to be to buy a cryptocurrency and covered questions like “are they safe, legal, etc.?” we can now proceed with a short tutorial on how to buy them.
Decide Where to Buy Them
At this moment, there are tons of ways to buy cryptocurrencies. The most popular and easiest way for beginners is through Exchange sites.
They act as a third party that oversees transactions and gives confidence to users that they get what they are paying for. Some of the top centralized exchanges are Coinbase, Binance, and Whitebit.
If you are new to this, you’ll see that trades are made via fiat currencies. Fiat currencies are a term to distinguish cryptocurrency from regular money.
For example, the U.S. Dollar is a fiat currency along with the Euro. Once you sign up, you can fund your wallet with fiat currency, which you can later use to buy cryptocurrency. If you already have bought some crypto, you can use it to trade for another.
If you decide to invest in crypto via an exchange, most of them allow debit and bank transfers. Additionally, many of them allow users to fund their wallets directly with a credit card. However, this can prove as a wrong investment because of the high fees.
Choosing a Cryptocurrency
In today’s market, we now have more than 10,000 cryptocurrencies to choose from. The first one was created back in 2009, and you have probably heard of it – Bitcoin. It is now the most valuable coin on the crypto market.
Choosing the right cryptocurrency is essential as your revenue will depend on it. Some of the most popular choices right now are:
- Binance Coin;
Investing in the right coin could result in thousands of dollars in revenue, if not millions.
We’ve come to an end. We’ve covered not only how old you have to be to buy cryptocurrency, but also what it is and how you can benefit from it. As we said, in everything, you have pros and cons. Cryptocurrency is no different.
You can definitely make money from it either from actively trading or as a one-time investment. If you are opting for a one-time investment, our advice would be to do deep research on the coin. For example, you can see what technology they use to build up the coin and see what other people say about it.
As for the age, even though there is no strict age restriction, some exchanges, such as Coinbase, require users to be more than 18 years old. If you are less than 18, we strongly advise you to proceed with parental observation as you can easily get hooked on it and spend all of your/parents’ money.