Crypto Legal Network Logo

Investing In Cryptocurrencies Under 18: Is It Possible For Teenagers?

investing in cryptocurrencies under 18 is it possible for teenagers 2

Bitcoin, Ethereum, and any mother altcoins are popular these days, despite the fact that they might be dangerous investments. Teenage investors are especially intrigued by cryptocurrency since it is novel and fundamentally different from how their parents spend and invest money.

Although previous generations considered the stock market as a tried-and-true financial enterprise, many teenagers see it as “old school” and prefer to invest in assets that, in their opinion, are the wave of the future and a more appropriate means of exchange, such as cryptocurrencies.

Additionally, unlike previous generations, today’s teenagers have no need for actual currency, and given the ease of use of Venmo, Apple Pay, and other electronic payment networks, it’s evident that digital currencies neatly correspond with how modern teenagers function and see the world.

Remember, if you are under the age of 18, you cannot purchase financial assets by yourself; someone (usually your parents) must open custodial accounts for you. They can handle the purchase of the assets on your account, but you won’t have ownership of the assets until you’re above the age of 18.

investing in cryptocurrencies under 18 is it possible for teenagers

How does the Custodial Account Work for Teenagers?

American investors under the age of 18 can only invest through custodial accounts, regardless of whether they are investing in stocks, mutual funds, or cryptocurrency. As the custodian, an adult (usually a parent or guardian) maintains these accounts, although the assets actually belong to the kid. Having said that, the child gets ownership of the account—and the assets included inside it—when they reach the age of 18 or 21, depending on where they live.

A parent would need to create a custodial account by entering their name, Social Security number, address, and date of birth as well as your name, Social Security number, and address. A  government-issued identity, such as a passport, driver’s license, or state ID, would also be required.

Read Previous

Crypto Pump-And-Dump Groups: What Are They & Why Are They Illegal?

Read Next

CryptoReels No Deposit Bonus Codes 2023 | Free Spins & Chips

Leave a Reply

Your email address will not be published. Required fields are marked *