How Old Do You Have To Be To Buy Cryptocurrency?

June 9, 2022

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Buying, selling and trading cryptocurrencies are on the rise, and it’s no wonder. The use of decentralized digital currency has many advantages. The most obvious and well known is the investment opportunity that crypto trading is known for. If you are a teenager, you might be seeing your friends or your favorite YouTuber talking about cryptocurrencies, and you are wondering if you can do it too. If you are a parent, you might have concerns about your teenager getting in over their heads.

Are there age restrictions for buying, selling, mining, and trading cryptocurrencies? Technically speaking, no. There aren’t any age restrictions. It doesn’t matter if you are 14 or 84, anyone can deal with cryptocurrencies. However, many of the trading tools and platforms that cryptocurrency owners use do have age restrictions. This can make it difficult for underage users to make a profit with cryptocurrency.

This most definitely hasn’t stopped teenagers from investing in cryptocurrency. In fact, teenagers have been finding their way around the restrictions for quite some time. Some of them have met with huge success since investing when they were quite young. It’s important to keep in mind that while you might see plenty of people who have made a successful living investing in and trading cryptocurrencies, people rarely show their losses.

Cryptocurrency is a volatile market. On top of that, it is important that you learn how to spot a scam in order to keep from suffering irreversible and significant losses. While some say that if a kid is old enough to appreciate cryptocurrency, they’re old enough to own it, others think that teenagers should definitely wait until they are 18.

Can You Use an Exchange Platform or Wallet if You’re Under 18?

Not everyone in the cryptocurrency space has adopted KYC (know your customer) laws, but many of them have. This prevents people from creating an account with exchange platforms without verifying their identity. Many exchange platforms require that your identity be verified for safety purposes on account of the user and for good reason. Many of these established sites require that you be 18. If you were to try and sign up, you wouldn’t be granted access to all functions of the platform because your identity would show that you weren’t old enough.

There are peer-to-peer marketplaces out there that don’t require proof of identity. These can be a lot more work, as you have to sort through dozens of sellers to find one that’s offering a reasonable price. They also tend to be more expensive and overall the prices vary quite a bit. With this type of exchange, you’ll need to have and manage your own wallet. The security of your funds is up to you.

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Ways To Buy Cryptocurrency

While many exchange platforms are off-limits to underage buyers and sellers, that hasn’t stopped teenagers from finding a way to purchase cryptocurrency. Investing in cryptocurrency can be a great choice or a terrible mistake. It all comes down to how hard you are willing to work at researching and getting to know your way around. It’s always a good idea to start learning about and investing money as young as possible, but when it comes to cryptocurrency, make sure you do your due diligence. That said, there are ways that an underage buyer can purchase cryptocurrency.

The first and maybe smartest way to go about buying cryptocurrency is to talk to your parents and see if they are willing to help you get started with investing. The second option is to find a peer-to-peer exchange or decentralized exchange to buy, sell and trade on. Some people have had success with purchasing on eBay or a cryptocurrency ATM. Another option is to freelance work and get paid with cryptocurrency.

What Parents Should Know About Cryptocurrency

If your child asks about cryptocurrency, take the time to have a conversation with them about it. Ask them what interests them and why they want to try it. Encourage them to do their own research. If their interest was sparked by someone on social media, remind them that a big following doesn’t equal legitimacy. If your child is genuinely interested and you’re willing to give it a try, it can be a great learning and financial opportunity for you both. With your help, your child could get a head start in saving for college or growing an investment account for future use.

Cryptocurrencies may or may not be taking over regular currencies, but there are still many benefits to understanding what the crypto space is all about. Along with learning to invest and manage money, the process of understanding the ins and outs of how crypto works is beneficial for everyone. Whether it becomes a way of life for you or just something you do for fun on the side.

The greatest risk your child faces with investing and trading crypto is the threat of crypto scams. The most common is the creation of new cryptocurrencies with the sole intention of pumping and dumping the coins or rug-pulling the investors. Because the company seems valid, people fall for it. Once the scammers have achieved a substantial amount of money, the company shuts down, and the scammer takes the money and leaves. Theodex is a good example of a cryptocurrency scam.

When getting started with cryptocurrency, it is a good idea to stick with the better known currencies like Bitcoin and Ethereum as you master the buying, selling and trading of these you’ll get to know the cryptocurrency space and feel more comfortable branching out.

Where To Start

If you are new to cryptocurrency, a great place to start is by educating yourself. There are tons of informational articles to read online. Learn about traditional money and the way it works and then dig into the crypto space. It can be a lot to take in and at times you might feel that one question leads to another. Stick with it and eventually, it all makes sense.