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‘Cryptocurrency’ is a word that has been in talks since its launch. Its popularity is increasing every day.
With its popularity and potential, young teenagers are trying to get their feet wet in the huge world of cryptocurrency. But investing is a risky business, especially in digital currencies because of their volatile nature.
Due to this, countries around the world have made certain rules and regulations that are needed to be followed in order to invest in cryptocurrency. One of the rules that we are going to talk about in this article is the minimum age criteria.
You have to be at least 18 years old to start investing in cryptocurrency. But there are several “workarounds” you can follow to invest even under 18 years of age.
Read on to get more insights about not only the age requirements but also about how to get started with investing in cryptocurrency if you’re under 18 years of age.
What is a cryptocurrency?
A cryptocurrency is a virtual currency that can be traded, invested in, and used to buy & sell digital or physical products. It works on blockchain technology developed by Satoshi Nakamoto.
A blockchain is a decentralized network of computers that manage and store information about transactions made all over the world with cryptocurrencies.
Now let’s talk about why it is called “cryptocurrency”. Crypto stands for cryptography and currency is an entity used to exchange value in the form of physical or digital goods & services.
It works by encrypting the transactions using an encryption technique called cryptography. Miners decrypt these using one or more high-power GPUs to approve the transaction and put it on the ledger.
How old do you have to be to invest in cryptocurrency?
With the increasing popularity of Bitcoin and other such cryptocurrencies, teenagers from age 13 to 17 are trying to invest some money in Bitcoin as well. Even some 12-year-olds are also excited about crypto.
12 years old Erik Finman in May 2011 invested $1,000 that he got from his grandmother into Bitcoin when it was just $12 per coin. He also invested in other cryptocurrencies like Ether, Ethereum’s native token, and more.
As of writing this post, he is now 18-years old and also a self-made millionaire.
The age criteria for most crypto exchange websites is above 18.
Can you invest in cryptocurrency if you’re under 18?
Yes, you can invest in cryptocurrency if you’re under 18 but it is not going to be easy.
People can invest in cryptocurrency using online exchanges like Coinbase, Binance, etc. but they don’t allow users under 18 to create an account with them.
They do so because of the rules & regulations imposed by the government. They do not want to get into trouble with the law. They need to comply with the governing bodies so as to avoid getting into legal disputes.
Almost all of the exchange platforms ask users to comply with their Know Your Customer (KYC) norms in order to invest in any cryptocurrency.
But there are several ways to invest in cryptocurrency if you are under 18 years of age.
How to invest in cryptocurrency if you are less than 18 years old
Here are some ways to invest in cryptocurrency if you are less than 18 years old:
But before that, I would like to state that I do not encourage buying and selling of cryptocurrencies by a minor. The methods mentioned below are just for educational purposes. You are responsible for the consequences if any.
Now let’s look at the methods one by one:
Use crypto exchanges under your parent’s or older sibling’s details
This one is the most obvious and also the safest way to invest in crypto if you are under 18 years of age.
To get started you first need their permission to do so and then head over to a cryptocurrency exchange website like Coinbase or Binance.
Register for an account using your parent’s or elder sibling’s details. You will need to enter their card details as well to make a purchase on the platform.
Let’s say you want to invest $100 in Bitcoin, Ethereum, and Dogecoin. You’ll need to transfer the money to your parent’s or sibling’s account and ask them to fill in their card details on the exchange.
Go ahead and buy your favorite coins. Be sure to diversify your portfolio to reduce the risk.
Congratulations! You just invested in crypto as a minor.
Cryptocurrency ATMs
Cryptocurrency ATM is an Automatic Teller Machine for Cryptocurrencies. It is not exactly the same as a traditional ATM but works in a similar way. Some Crypto ATMs offer both buying and selling through the same machine.
Cryptocurrency ATMs are connected to the Internet that allows users to insert cash or credit card and then they can easily purchase Cryptocurrencies. Keep in mind that these ATMs have a higher fee than most of the other options out there.
Some of these ATMs may require verification if you try to buy or sell beyond a certain amount of threshold. To avoid the verification process, try to use different ATMs in your city. Also, trade in smaller amounts.
Use Paxful
On Paxful, you can use your Razer Gold Gift Card, Google Play Gift Card, Amazon Gift Card, Steam Wallet Gift Card, iTunes Gift Card, and more to buy cryptocurrencies.
The process is simple and does not require any age verification.
- You just have to create an account with Paxful and follow this link: https://paxful.com/buy-bitcoin?group=gift-cards.
- Choose from the listings and click on the Buy button.
- Follow the steps as prompted and buy the cryptocurrency of your choice using your gift card.
LocalBitcoins marketplace
LocalBitcoins is a marketplace that has people around the world who want to buy and sell among themselves. It is a peer-to-peer network of users just like you, who are willing to trade cryptocurrencies for cash or vice versa.
Since it is a method that deals with real humans and not some automated system, you need to be more careful about the process. It is advised to go through the process with a parent’s or guardian’s consent.
Here’s how to buy cryptocurrency using LocalBitcoins:
- Step 1: Sign up on LocalBitcoins.com
- Step 2: Go to the quick buy section and enter the amount, choose your currency, country, etc.
- Step 3: Browse through the listings and choose the one which looks legit and has a green dot beside their username
- Step 4: Go through the listing carefully and follow the steps necessary.
You won’t need to verify your age to buy and sell on LocalBitcoins.
Become a crypto miner
This one is not technically investing in cryptocurrency but it is another way to acquire some of it that can be later used for investing. Mining cryptocurrency can be a good source of getting your hands on some bitcoins, ethereum, or whatever you like.
Let’s take a look at how you can get some cryptocurrency without having to put down any cash, even when you’re under 18 years of age.
Before we start, I would like to tell you that it is not easy to get into mining. Mining is a complex process to learn if you’ve never done it before. Make sure you watch plenty of tutorials on YouTube before getting into it.
There are two ways to go about mining crypto:
Cloud mining
Cloud mining is the process of cryptocurrency mining by making use of a remote data center with shared processing power. It enables users to mine bitcoins or alternative cryptocurrencies without buying and managing the hardware, software, electricity costs, etc.
Cloud mining sure looks like a great option because you don’t have to buy expensive GPUs to make your own mining rig, but since cloud mining platforms are doing all of the things mentioned above, they charge fees to manage all those things.
Be sure to calculate your profits after the fees and the plan prices provided by the platform. You don’t want to be losing money doing cloud mining.
Here are some platforms you can use to mine cryptocurrencies:
- https://hashshiny.io/
- https://www.genesis-mining.com/
- https://miningbase.cloud/
- https://www.nicehash.com/
Make sure to read each platform’s policies, pricing, and other important information before choosing one.
Mining at home
The second way to mine cryptocurrencies is to build your own mining rig.
This method is more profitable than cloud mining. Though, it requires a significant amount of upfront investment for purchasing the required hardware to get started with mining.
The main component you will require to mine cryptocurrency is a high-power GPU.
Here’s a free tool to calculate your profits: https://www.nicehash.com/profitability-calculator
You can click on AUTO DETECT MY HARDWARE or ENTER HARDWARE MANUALLY.
Final Thoughts
In conclusion, let’s answer the original question – how old do you have to be to invest in cryptocurrency?
You would have to be at least 18 years old to be able to invest in cryptocurrencies but there are ways that you can use to bypass the age limit, as discussed in this article.
It’s better to start investing early, but always educate yourself before investing a single penny in volatile investment options like Cryptocurrency. Be sure to take the advice and consent of your parents or guardians before taking any big monetary actions.
With that said, I hope you liked the article. Please share your thoughts about the information I put together and share this article with your friends who would want to invest in crypto. See you in another article.
