One can make investments irrespective of age and financial status. It was a mere statement, even a few years back, but the invasion of crypto and blockchain technology has transformed that into reality.
Nowadays, even children can invest in crypto and NFTs. The rise of trading apps, straightforward user interfaces, and gaming features made investing in crypto attractive even to individuals under 18.
You, as a parent, can now open a Crypto account for your child. Not only that, if your child is interested in investing in crypto at a young age, they can do it themselves; you just need to guide them accordingly. But in such cases, the process can be tricky sometimes.
So, if you’re a crypto enthusiast wondering, “can I open a crypto account for my child”, here’s everything you have to know about opening a crypto account for your child.
How Can I Buy Cryptocurrencies for My Child?
If you are thinking about “can I buy Cryptocurrencies for my child? Unfortunately, you can’t directly buy crypto for kids or with their names. But some platforms are available in the market, making it possible to buy crypto for your child. An open source crypto wallet like Atomic Wallet, MetaMask, TrustWallet, etc. is the only way you can eventually build a crypto savings plan for your child. These transactions would allow you to open an account for your child and not call for Know-Your-Customer checks.
Minors can possess bitcoin once they reach adulthood if you buy it for them. It can be one of the ideal methods to save money for the future and the long term. However, to do so, you will need to register for an account on one of the well-known exchanges that allow you to purchase and sell cryptocurrency.
Buy A Secure Crypto Wallet
While you are planning to buy crypto for kids and want to keep it safe, start with having a secure crypto wallet for the same. Having an online platform for storing your cryptocurrencies can be a bit risky. So, a hardware wallet can be an ideal one for the same.
One option is to transfer your money to a hardware bitcoin wallet like the Ledger Nano. The most secure tools available on the bitcoin market are hardware wallets. They would not only help you to manage your funds, but they would also help you to safeguard them over time. Your private keys are kept and saved offline when you use a hardware wallet, so there will be no potential threats from online hackers.
A Hardware wallet will make you the actual owner of your money and allow you to save it for an extended period without worrying about your child’s crypto savings account. One of the best practices would be to provide your youngster access to the hardware wallet’s private keys as soon as he is 18.
A Paper Wallet Is Also An Option
A paper wallet can be your option when you’re looking for a secure crypto account or wallet to secure your child’s long-term investments and want cold storage. A paper wallet can be described as a paper in which you will have your public and private keys in printed form.
A scannable barcode generated by an app could also be included on some paper wallets. It is a method for offline storage and access to your bitcoin. The tokens exist after you print your keys, but they are inaccessible without them as they are no longer part of the cryptocurrency network.
So, your keys are often deleted from the network and your digital wallet when you opt to print them. Unless anyone physically steals the paper on which your keys are saved, no one can hack your paper wallet or get your keys.
Investing In Crypto Stocks
The good thing about crypto stocks is that most are not pure industry plays, which reward investors with a wide range of crypto holdings. Due to their high volatility, cryptocurrencies have the potential to drastically change the income and profitability of businesses with sector exposure. The use of cryptocurrencies by people is growing quite rapidly. As more businesses join the blockchain account revolution, it anticipates further momentum in the price of cryptocurrencies.
While the crypto market adjusts to the constantly shifting global economy, you must keep an eye on the expanding regulatory environment. The stocks are intelligent choices for investing for the long term in cryptocurrencies, and most of them have the advantage of also having sizable commercial activities outside the cryptocurrency industry.
Investing In Crypto-Related Securities In Finland & Europe
Investing in crypto is relatively easy nowadays, and you can even open a Crypto account for your child. One option to buy Bitcoin is through Nordnet, one of Finland’s most well-liked trading platforms, which provides XBT securities. These XBT investments track the price of bitcoin.
The drawback of Nordnet is that trading is only allowed when the exchange is open, which results in a constrained period. In the case of Europe as well, the hype of investing in crypto is relatively high. According to a study released in November 2021 by Pew Research, a nonpartisan think tank in Washington, 16% of respondents claimed to have directly used, traded, or invested in cryptocurrencies.
Can I Buy Cryptocurrencies For My Child: Consider The Costs
While buying crypto for kids, you need to consider the costs of the whole procedure. While estimating the cost, keep in mind several factors listed below:
- Size of the company
- The complexity of applications.
- Size of the crypto wallet.
- Design of the wallet.
Taxation Of Crypto You Buy For Your Children — Finland's Example
It’s not necessary to disclose gifts of cryptocurrencies on your tax return. Depending on the bitcoin’s value, you might need to submit an IRS Form 709 gift tax report. If the cryptocurrency gift is worth less than $15,000, you are not required to declare the transaction on your tax return.
You must submit a gift tax return for the crypto for kids if you give a single recipient more than $15,000 in cryptocurrencies during the tax year. However, as was already said, you probably won’t owe this tax. However, you must submit a gift tax return to enjoy the lifetime gift and estate tax exemption, which makes the gift tax-free.
While you aren’t always obliged to record bitcoin gifts, you should be aware that any transactions involving sales or exchanges of cryptocurrencies must be reported on your tax return. Talk to a tax professional if you face any queries concerning cryptocurrency taxes.
Can A 13-Year-Old Invest In Bitcoin?
The simple answer is no. You must be at least 18 years old to invest in crypto. But some platforms in the market offer investments in crypto for children if they are under parental consent and are above 13 years of age, not below.
Can I Open A Coinbase Account For My Child?
If you are wondering about “can I make a Coinbase account for my child,” you definitely can. You can open a coinbase account for my child and handle their account up to their adulthood. Making a concise purchase plan is a crucial step to take. A minor might get bitcoin on certain days or regularly. You are in charge of determining how quickly you acquire these coins and how you construct your portfolio.
Can You Get A Crypto Wallet As A Minor?
Yes, a minor may possess a cryptocurrency wallet. It might not be able to possess a wallet with a centralized exchange, primarily because of the KYC and AML regulations they must follow.
Over the past several years, cryptocurrency has gained a lot of popularity. You could have occasionally been curious about digital money and even considered if it would be a wise investment in a crypto account for your kids.
While the legal age to buy bitcoin is 18, you may give your child cryptocurrency in the future. There are several ways to buy a crypto savings account for your cryptocurrencies, some of which are safer than others. You may determine if cryptocurrency makes sense for your future and your kid’s future with a financial expert’s help.