Cryptocurrencies such as Bitcoin have become household names that even kids want to get associated with as they grow. Unlike the older generations, many young people today begin their financial journeys much earlier in life. That is mainly due to technologies like the internet, enabling young people to access information readily. Bitcoin is currently one of the most researched topics by young people online. Many people under the age of 18 years are increasingly seeking opportunities to invest in Bitcoin to reap its lucrative benefits. While investments are not open to kids, parents can create and manage custodial accounts for their children. EarlyBird’s UGMA is an excellent example of the custodial accounts for children that any parent can open for their kid. While the custodial account gives your kid ownership of the assets, the parent manages it. However, you may also hire a trusted broker to handle the custodial account on behalf of your kid. The following article explores some things you should first teach your kid when introducing them to Bitcoin.
Bitcoin is Not a Game!
Like video games, Bitcoin is a tech-based currency and asset, created and used digitally. Besides, some video games also use virtual currencies for purchasing gaming credits and rewarding players. However, those are just fantasies without any monetary value in the real world. You can lose in video games without real money, but investing in Bitcoin or other cryptocurrencies is not a game. Bitcoin is an investment with significant monetary gains and losses. Making your kids understand that distinction from the start will enable them to view Bitcoin as an important asset and not a fantasy.
Bitcoin’s Uses
Your kids would also want to know how to use Bitcoin and its role in the world. Bitcoin is a transaction currency that anyone can use to buy goods and services, like fiat money. Bitcoin enables you to send and receive money worldwide. It is also an asset that users can exchange for other investments. Bitcoin’s underlying blockchain technology is an open-source software where innovators can develop unique projects and products for global consumers. While Bitcoin serves similar purposes to local currencies, no individual, government, or institution regulates it. That is why it facilitates seamless cross-border payments. That means you can use it to send and receive money worldwide without going through a bank or money processor. However, Bitcoin is digitized, and users can only access it online.
Getting Started with Bitcoin
Multiple options exist for gaining exposure to Bitcoin. However, users must first set up an account to hold their funds. Unlike bank accounts, crypto users require wallets that anyone can download online to their smartphones, tablets, or desktops. Today, leading crypto exchange platforms such as the profit builder can provide free crypto wallets. The wallet is an app that stores the private keys for accessing your funds. Crypto exchanges will also allow you to purchase Bitcoin with traditional currencies through bank transfers, debit cards, and credit cards. However, other ways exist for obtaining Bitcoin, including affiliate marketing, Bitcoin mining, crypto trading, and Bitcoin faucets. Businesses can also get Bitcoin by accepting it as payment for their products.
Bitcoin’s Volatility
Many publications present Bitcoin as a lucrative asset, constantly rising in value. Bitcoin has undoubtedly experienced a meteoric rise in its prices, but it is not always glam and glitter. Bitcoin is a highly volatile asset, with rapid and enormous price fluctuations that could also impact huge losses, especially when the markets experience a sudden turmoil. Bitcoin investing for kids can be a fun and eye-opening adventure with potential benefits. However, educating your kids about the basics is essential to success.
