An article discussing the pros and cons of giving your child access to cryptocurrencies while they’re still a minor, the legal implications of protecting them, and methods of doing so.
What is a cryptocurrency?
Cryptocurrency is a digital currency which is designed to be a means of payment that enables the trades of assets without need for a central authority. This decentralized form of money is represented as currency owing value to cryptographic security rather than to so-called fiat currency, such as USD or EUR.
Issues for children dealing with crypto
For children who want to acquire crypto, there may be issues when dealing with their personal information. There is no doubt that the child has a right to privacy, but in order to store large amounts of money or earn some, users have the responsibility of making sure their family bank accounts remains private. Each account should start off with a “MyDadIsAnIdiot” email address so that the user is not only mindful of their information, but also sends alerts if a certain person tries logging into their account and believes they are an adult.
How to open a cryptocurrency account for your child
Cryptocurrencies such as Bitcoin can be used by children because they are unregulated. Your child can open an account with enough money to purchase a product or provide financial support for themself. It may take some time to get your child familiar with cryptocurrency terms, or it may not be necessary for your child to learn them at all. They will just need to input their public key and private key in the software that comes with the wallet that they create.
Helps for when the child is online having their wallet hacked
When it comes to cryptocurrency, it is easy for your child to get hacked. To prevent this from happening, you can set up a digital wallet and online account for them in order for them to store their cryptocurrency safely. You should also use a good password for these accounts as your last resort.
The first step to opening a crypt account for your child is finding out what crypto currency they want to use when you choose one of the two available options. The second step is signing up for an account with a website such as Coinbase or Mycelium. After creating an account, download the software which will allow them to store their cryptocurrency on the site and have access to it anytime; however if your child gets into trouble they can contact customer support directly through the site by submitting detailed information on their current device ID and its location.