Technology has made people’s lives more exquisite and risk-worthy. Innovations since the past decade have witnessed a whole transition in how people look towards the internet, gadgets, technological tools, etc.
Technology has various facets. It has led to the development in every industry. From digital payments to speedy network enhancement, it has given rise to more convenient ways of living life. One of the most unique and high-end unbelievable developments is cryptocurrency.
Since its inception in 2009, different digital currencies have risen to prominence. The buzz and trend of these currencies have provided a premium level of privacy and data protection. From bitcoin to dogecoin, the number of digital currencies has risen tremendously over the years.
Many people invest in these currencies without any prior knowledge and skills. There are various things to understand about cryptocurrencies and how they work. There are numerous apps and service providers that claim to provide a smooth platform for cryptocurrency trading. But, many apps either have hidden costs or are fake. Click here to end your search for the best and free crypto trading platform.
What Is Cryptocurrency & Minimum Age Requirement To Start Trading
Initially, most people involved in cryptocurrency only knew that cryptocurrency is a digital currency. They do not know what it means and how it works. In simple words, cryptocurrency means a digital currency that is authorized and controlled by a decentralized system.
The central bank of a country maintains the standard monetary system, but the cryptocurrencies and their system are not supported by the country’s government. Moreover, this currency is not present in tangible form but is stored in terms of data. The data is protected with high security through a well-established supercomputer network. This database is called a blockchain.
There are no age bars on cryptocurrency trading. However, established trading providers like Paypal have a minimum age limit for starting cryptocurrency trading. Most platforms set the minimum required age for crypto trading as 18 years, while some set the minimum age as 13. When bitcoin was launched, the required age was 16 years.
Therefore, the age criteria differ accordingly. However, an interested person can launch their trading process at any age. The only thing they will require for initiating trading is their guardian’s detail. They can open an account under their family name.
The reason for setting an age limit to crypto trading is the risks associated with it. As the child grows into a mature adult, they better understand how these cryptocurrencies must be kept and traded. They do not correctly understand the dynamic environment, market fluctuations, trends, investment choice, etc.
If a teenager or child below the age of 15 is entering the crypto trading world, they must be aware of several scams involved in the process. Some of these scams are shown below:
- As stated earlier, there are numerous websites that pretend to be the original website but are a copy of the actual trading website. These fake websites use customers’ personal information and money in different areas. Users must check the URL of the trusted trading platform and proceed with transactions and information sharing.
- Many children who are beginners in the cryptocurrency world fall into the trap of downloading fake trading apps. They trade using these apps until they realize severe repercussions. These scam apps can be put down quickly once found, but it takes time to identify the app’s authenticity initially and then bunk them. To prevent such errors, the user must cross-check the mobile app’s name with any of the other resembling app names.
- Social media sometimes acts as a vicious circle when cryptocurrency and its trading is concerned. There are risks that a person impersonating a celebrity or influencer advises the person to trade in XYZ currency. There are high chances of getting offers from a fake ID pretending to be someone else through apps like Twitter, Facebook, Instagram, etc.
- Since cryptocurrency works through the online web, scams and frauds mainly involve the internet and social media. People often get emails from seemingly reputable companies to invest in XYZ cryptocurrency. Many people fall into such emails and invest in currencies that do not reap the expected benefits. Traders must research these emails thoroughly to avoid these types of exploitation.
What Things Children Must Follow To Start Cryptocurrency Trading At Early Age
There are various things children should follow to launch their trading in digital currencies. These tips are given hereunder.
- Children must regularly read books related to financial literacy, the digital world, financial market trends, risk management, etc. These will hone the knowledge of the person in terms of theory. When they grow up and start trading, they will get to know its practical application.
- Parents must recite stories about cryptocurrencies to their children. This will give them an in-depth understanding of how cryptocurrency in the real world gets distributed and used. Moreover, real-life cases of cryptocurrency frauds will show them the ‘do’s’ and ‘dont’s’ of trading.
- They should also work with their close ones involved in financial or cryptocurrency trading. It will act as on-the-job training for future trading.
- They should focus on more research-oriented processes in the investment and trading world. This tip will help in knowing more stable currencies. It will give them ideas about the currency they should not invest in due to its volatility.
Many finance enthusiasts think of investing at an age that is generally unacceptable most of the time. Developments such as cryptocurrencies have enormous power to attract a large number of people who are below 18 years of age. It is legal in countries like the US to invest and trade at such an age because of the future benefits.
Starting trading at a pre-adult stage has several advantages: more experience, edge over late starters, more privacy, etc. But, people must be well informed of the age criteria to avoid any disputes with the trading providers.