The cryptocurrency realm is not only ever-growing but also fascinating. Cryptocurrency has entered the mainstream as an investment asset with massive potential for growth. If you want to add some to your portfolio, it might be tough to know where to begin.
There is nothing such as an age barrier or learning limit for cryptocurrencies. If you know the market trends and essential framework, you are good to go.
Although digital currencies try to bring everyone on board, most crypto trading websites enforce government rules and prohibit anyone under 18 from owning or trading crypto.
So is there a way in which you can invest in crypto if you are younger than 18 years? Let’s find out.
The Current Trend in Crypto
A recent poll showed that the current generation is more well-versed in cryptocurrencies when compared to other age groups.
Many veteran crypto investors got involved in the crypto scene when they were 17 or younger. So we can say that some of the first crypto miners were essentially minors.
However, there are several methods to obtain crypto if you are underaged. Don’t worry; all these methods fall under the legal framework of finance and will not get you arrested.
This article will discuss all you need to know about investing in cryptocurrency, even if you are a minor.
Legal Methods to Trade Cryptocurrency Below 18
If you’ve been thinking about how to acquire Bitcoin as a minor without breaking the law, here are a few options.
1. Crypto ATMs
There are currently over 4000 ATMs globally, which continues to rise each day. Despite the high transaction fees, they are a secure way for minors to purchase and trade Bitcoin.
Unless you surpass a specific limit, you don’t need to verify your account while using an ATM.
The first thing you need to do is locate a Crypto ATM near you. You can easily do this by visiting ATMradar.
In this manner, you can initiate a transaction in one ATM and complete the transaction at another.
If a crypto ATM is inaccessible, keep reading. There are several other ways to purchase and trade crypto if underaged.
2. Check on Craigslist and eBay
One of the things you can do on Craigslist is purchase bitcoin. Go to craigslist.com, and it will direct you to the closest town. Look for your favorite cryptocurrency and the dealers who are offering it.
eBay merchants do not only sell shoes and stickers anymore but have also added cryptocurrency to their catalogs.
Using eBay and PayPal to buy small amounts of crypto is simple, but you might pay a high price for this comfort.
We advise you to verify seller reviews before giving up your parent’s hard-earned cash.
The best thing to do would be to meet at a public place like Burger King. Do not pay a single penny before the transaction appears on the blockchain.
3. Discuss With Your Parents
If you are under 18, you should probably discuss it with your parents first.
I’m sure your parents will be delighted to assist you in investing in your future.
If your father is unfamiliar with bitcoin, speak with a senior or confidante to persuade him.
I am sure your parents will be delighted to learn more about the concept and help you with your purchase.
4. Use a P2P Exchange
Aside from Crypto ATMs and Craigslist, there are portals like Solidi, whose terms state that “Minors who intend on trading must first contact us.”
Children under the age of 16 will be permitted limited purchasing limitations. At the same time, the portal has urged that minors seek a legal caretaker to set up an account in their name.
Bitcoin Prijzen in Holland is another portal where people under 18 appear to be allowed to buy cryptocurrencies using a platform called iDEAL.
5. Local Crypto Forums
You may discover crypto meetings in your region if you look on Instagram and other social media sites.
The administrators of these groups are eager to promote cryptocurrency adoption and will be more than willing to assist.
As usual, use care when meeting new individuals in the crypto world. Don’t hand over any money unless you can view the payment on the blockchain.
6. Check Out LocalBitcoins
Technically, the same rules that govern cryptocurrency exchanges also apply to sites like Localbitcoins.com.
However, primary verification is readily achievable. Once complete, you’re free to trade P2P and transfer funds directly from your bank account.
It’s also possible to meet local sellers and buy bitcoin with cash. Still, we advise caution, especially for first-time buyers reading this post. An adult should accompany buyers.
7. Custodial Accounts
Shares, mutual funds, and other capital instruments cannot be owned outright by anybody under 18.
If you are a minor, you can only invest through a custodial account with the guidance of your parents (or an adult).
Your parents must enrol you in a custodian account offered by an internet broker.
The funds in the custodial account would be yours. Still, your parents would handle the investments in it (ideally with your assistance) until you are no longer a child.
Essential factors to consider while selecting an online trading account include:
Look for no share trading costs – you should be able to discover online brokers who charge no fees to purchase and sell stocks.
Looking to reduce balance stock trading accounts – make sure the online broker does not need you to keep a significant minimum amount in a trading account.
Look for brokers who enable you to purchase fractional shares – if you wish to invest as little as $1 in respectable firms with high stock values. If the investment advisor permits you to acquire fractional shares, you can only do so.
9. Invest in Exchange Trading Funds
As a young investor, you generally want to keep your early investments as low-risk as possible. Even if it is the share price of a large corporation, purchasing one share of stock may put your money in danger.
Exchange-Traded Funds (ETFs) are assets that represent a diverse collection of firms and trade similarly to equities.
ETFs have been operating since roughly 1994, which is a brief period for an investment tool. Still, they have been quite effective in attracting consumers who want to lessen the risk of investing inequities.
Do Interest Rates Affect Crypto Trends
The crypto market is very volatile and subject to huge profits and losses. People often tend to lose out on significant market trends and changes to the market.
In times like these, the interest rates are also subject to change and vary from currency to currency. The interest rates differ a lot.
Dark Truths That You Should Know About Crypto
Cryptocurrency, like any other type of currency, has financial hazards.
Even the most popular cryptocurrencies, such as Bitcoin, have unpredictable prices, and collapses are not rare.
There have been reports of crypto trading addiction. Still, the most significant concern for young people is the growing number of cryptocurrency frauds.
● Crypto Scams
The most common type of fraud is when someone introduces a new cryptocurrency that appears to be legitimate and invites people to invest in it.
After they’ve gotten the money, the firm will close down, and those who started the fraud will walk away with the money.
This phenomenon is, in essence, a pyramid scam. One example is the corporation Theodex, which allegedly defrauded investors out of $3 billion.
Since cryptocurrencies are unregistered, victims of fraud have little protection. The FCA (Financial Conducting Authority) is working to regulate how cryptocurrencies work worldwide.
Suppose your child wants to begin investing in cryptocurrencies. In that case, there is plenty of financial guidance accessible on numerous social networks, but caution them to be aware of the advice that has a substantial basis.
Just because a person has a large following does not imply that their counsel is trustworthy.
● Environmental Costs
You might not consider cryptocurrencies an environmental hazard, but maintaining the blockchain does demand significant energy.
As bitcoin tokens become scarcer and more valuable, more individuals tend to use high-powered gear to mine their share, resulting in higher CO2 emissions.
Some cryptocurrencies employ a different type of blockchain with a lower environmental impact since it does not rely on the same mining algorithms.
Adults who are deeply rooted in the world of cryptocurrency will need no encouragement to spread an excellent idea of decentralization and crypto to their heirs.
Growing among crypto enthusiasts and not getting exposure to bitcoin is quite unlikely.
However, teaching the younger generation about the possibilities of cryptocurrencies should include a word of caution about its hazards related to volatility and market changes.
Whatever the law says, under-18s eager to purchase crypto will find a way by hook or crook.
Compared to some of the vices that teenagers may indulge in, the field of cryptocurrency seems to be completely harmless.