Cryptocurrencies have been around for over a decade now, and their popularity keeps growing. These digital currencies are decentralized, meaning they operate independently of any central authority or government. As such, anyone with an internet connection can buy, sell, and hold cryptocurrencies.

However, there is a question that has been asked by many people: can under 18s invest in cryptocurrency?

Pros of Allowing Under 18s to Invest in Cryptocurrency

One of the main reasons why people are asking if under 18s can invest in cryptocurrency is because of the potential for high returns. Cryptocurrencies have seen significant price increases over the past decade, with Bitcoin, the most well-known cryptocurrency, reaching an all-time high of $64,879 on April 14th, 2021.

Investing in cryptocurrency can also teach children valuable financial skills. By allowing them to invest in crypto, they will learn about the importance of diversification, risk management, and long-term investment strategies. This knowledge can be invaluable for their future financial well-being.

Another benefit of investing in cryptocurrency is that it can provide a means of financial independence for young people. For example, a child who starts investing in crypto at an early age may be able to save enough money to buy their first car or pay for college expenses by the time they turn 18.

Cons of Allowing Under 18s to Invest in Cryptocurrency

While there are many benefits to allowing under 18s to invest in cryptocurrency, there are also some risks that need to be considered. The crypto market is highly volatile, meaning that the value of cryptocurrencies can fluctuate rapidly.

Another risk associated with investing in cryptocurrency is that it is an unregulated market. There are no government agencies or regulatory bodies overseeing the crypto market, which means that investors are relying on their own research and due diligence to make informed decisions.

Finally, there is a risk that young people who invest in cryptocurrency may become overly reliant on short-term gains rather than long-term financial goals. Crypto investments can provide quick returns, but they are also highly volatile and can lose value rapidly. This can lead to young people making impulsive decisions that could harm their future financial well-being.

Real-Life Examples of Young People Investing in Cryptocurrency

While there are risks associated with investing in cryptocurrency, there are also many real-life examples of young people who have successfully invested in crypto. For example, a young man named Tyler Winklevage started investing in Bitcoin when it was worth just a few cents per coin. Today, he is the co-founder of Gemini, one of the largest cryptocurrency exchanges in the world.

Another example is the story of Malachi Salazar, who started investing in cryptocurrency when he was just 12 years old. He quickly became obsessed with the crypto market and spent hours researching and analyzing different coins. Today, he has invested over $1 million in cryptocurrencies and is considered one of the most successful young crypto investors in the world.