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Children and teens have found a new resort in digital tokens to park their piggybank coins.
Cryptocurrencies have achieved new milestones in the year 2021. It has seen a spike in its adoption the world over. Bitcoin, the most popular among the cryptocurrencies, has reached its zenith, taking the crypto market to new highs. Though the market collapsed due to factors like China’s ban on cryptocurrencies, and regulations placed by the Indian Government on cryptocurrency transactions, crypto-assets established themselves as an alternative to fiat currencies. Investors showing interest in cryptocurrencies are only increasing in spite of their volatility. And now it is inviting a new genre of patrons, i.e., kids, teenagers, and young adults who are as much eager as adults to explore the crypto market and start earning early on.
Indian kids are particularly at the forefront of this investment saga. With the pocket money they get, they are very much curious to become young profit makers. According to experts, they are attracted to the quick and huge profits that digital tokens promise. Kids are finding these channels convenient to hone their investment skills right from childhood by learning to wrestle with the ups and downs of the crypto market. In addition, the media attention the crypto market’s every move gets is responsible to some extent in enticing the kids to the dynamics of the market. Even children below the age of 18 years are showing interest in crypto investment because the millennials, particularly the tech-savvy generation don’t want to be left out.
For the kids who want to overcome their FOMO, here is the good news. Parents of minor kids can have access to open custodial accounts for their children. Parents can buy cryptos for their kids and manage the crypto assets on their behalf. This is necessary because most crypto exchanges stipulate a minimum age of 18 years to open an account. This step is primarily taken by crypto exchange authorities to ensure security and fraud prevention. Like any other speculative trading platform, the Crypto market to is vulnerable to scams. In view of this, one needs to think if the crypto market is really safe for children to invest their hard-earned money only to lose faith in their trading abilities?
Can Cryptocurrencies Replace Piggy Banks?
Crypto went mainstream only a few years ago. Crypto analysts believe that 2022 will witness an influx of new investors in the market. While the increased interest in cryptocurrency is quite noteworthy, it is also raising concerns about its impact on those under the age of 18, and how they are interacting with digital assets. Currently, there are no regulations specifically meant for children, experts believe that exchanges and crypto platforms should consider the important factors concerning the fact that children should be protected from frauds and scammers. Given the anonymity around crypto transactions, crypto leaders are quite aware of the fact that anybody can set up and access a cryptocurrency wallet.
Also, technically, there are no age restrictions when it comes to crypto, most major cryptocurrency exchanges require KYC to ensure that the users are 18 years of age or older. The only positive step that parents can take is to make sure that they introduce cryptocurrencies to their kids in a proper manner.
Are Cryptocurrencies for Kids?
It is quite a complex question to answer since kids generally will not be to take charge of their crypto wallets themselves. Given the risks associated with cryptocurrencies and mishandling blockchain in regard to minors, it is quite obvious that not just the parents but even the community members will have to step forward in order to protect these young crypto enthusiasts. Experts think that blockchain applications should have built-in KYC requirements. Besides, having more educational tools for crypto might also help children and trends get a grasp of crypto investment, volatility, and scams in a more enhanced and efficient manner.
However, considering the extreme volatility and other risks, like the absence of any rigid crypto regulations are also other critical factors that parents should consider while introducing their children to crypto safety concerns.