How Old Do You Have to Be to Buy Cryptocurrency
With the growth that cryptocurrency has seen in recent years it is no wonder that more and more people want to start investing in it. This has raised many questions about how old you have to be to start investing in cryptocurrency.
Many of you out there might be in your late teens or early twenties wondering whether or not you can start investing in crypto. If you are interested in investing in cryptocurrencies, but are not sure if you are old enough, then you should keep reading to find all the information you need.
Are There Age Requirements to Buying Cryptocurrency?
If you were looking for a straight answer about whether there are any strict age requirements to buying cryptocurrency, then you might be somewhat disappointed. The truth is that it all depends on the platform that you use to buy, sell, and store cryptocurrency.
For example, you will not need to show any proof that you are over the age of 18 in order to set up your Metamask digital wallet. This is one of the most, if not the most, popular digital wallets available right now. You can technically open your Metamask wallet at any age. However, the exchanges where you will buy your cryptocurrency do have age restrictions.
The most popular cryptocurrency exchanges like Coinbase and Binance will require you to submit some proof of ID such as a driver’s license, Social Security card, or passport to prove that you are over the age of 18. These same restrictions apply to other exchanges such as Pancakeswap and Uniswap.
Even though you can set up your digital wallet before the age of 18, you will not be able to buy any cryptocurrency until you turn 18.
Should There Be Age Requirements to Buying Cryptocurrency?
Many people wonder if there should even be any age restrictions for buying cryptocurrency. Most people would agree that you should be at least 18 to start investing your money in any sort of investment, whether it is cryptocurrency or the regular old stock market. In the U.S you are considered to be an adult whenever you turn 18. This means that you are considered responsible enough to vote, and be tried as an adult if you commit a crime.
The reality is that most people under the age of 18 are not responsible enough to know what they are buying into, so it is better to have restrictions in place. Like with any other form of investing, there are several risks involved with investing in cryptocurrency. This is why there need to be age requirements to prevent teens from making a mistake they may regret.
However, these restrictions should not be as strict as restrictions to drinking alcohol and driving. These age restrictions are not enforced by law. You will not be tried and put in jail for buying cryptocurrency under the age of 18. Most sites will just require you to submit a proof of ID to ensure that you are over the age of 18 and limit your account otherwise.
Is There An Age Requirement For Buying Stocks?
A lot of people like to compare investing in cryptocurrency with investing in stocks. These two methods of investing are very similar in many ways including the way that the investing apps for each one are designed. If you are familiar with stock investing apps like Robinhood or Fidelity, then you will find that cryptocurrency exchange apps like Coinbase are very similar.
Another similarity between cryptocurrency investing and stocks is that stocks also require you to be 18 before you begin investing. When creating an account to any stock exchange you will be required to submit a proof of ID such as a driver’s license, Social Security card, or passport to prove that you are over the age of 18.
The main difference when investing in cryptocurrency versus stock is that you can actually start investing in stock before you turn 18 with a parent or guardian. There are special types of stock investing accounts that allow you to familiarize yourself with investing in stocks with the guidance of a parent or guardian while you are underage.
Why Should You Interest Kids in Investing Early?
Even after many people turn 18, they don’t start investing because they never received financial education from their parents or from their school regarding the subject. Most schools don’t give their students any sort of education when it comes to investing in stocks or other forms of investment. It is for this reason that many people don’t start investing until after college.
One of the most important concepts when it comes to investing is the amount of time spent in the market. This is not to get confused with “timing” the market, which is really hard to do. What this concept of time in the market refers to is the fact that you will have more money if you start investing $100 a month from the age of 18 until you retire, than if you invest $500 a month from age 30 until you retire. As Bitcoin specifically has shown, it’s always better to enter the market earlier rather than later.
That is why it is so important to teach your kids to start investing early in order to guide them through the process and set them up for success later in life. Even if they can only afford to invest $50 a month when they first turn 18, that is much better than investing nothing at all until they are in their thirties.
For the most part you will not be able to start investing in cryptocurrency before you turn 18. However, that doesn’t mean that you can’t start getting educated in investing in cryptocurrency before then. If you are interested in investing in cryptocurrency before the age of 18, then you should take as much time as you can to learn as much as possible.
By taking the time to truly learn about this topic you will be able to start investing as soon as you turn 18. With the proper research or guidance, you will set yourself up for future success while you are still young. It is better to get a head start on investing than to wait until you are in your mid thirties.
