Are Cryptocurrencies secure for children?

The year 2021 saw several significant milestones in the global growth and adoption of cryptocurrencies. Bitcoin, the most popular digital coin, erupted like never before, propelling the crypto market to new highs. 

However, the market crashed abruptly due to several factors, which include China’s ban on cryptocurrencies and the Indian government’s near restriction on the utilization of private digital currencies by Indian investors.

Despite this, crypto assets have emerged as a decentralized replacement to fiat currencies. Their use cases progressed exponentially over time, and now, despite experiencing extreme levels of resilience, an increasing number of new investors are entering the market.

Astoundingly, the crypto market has embraced a new investor class, namely, young, college students and children who aspire to start earning early and assure their financial careers by venturing into the market’s most popular asset class.

This craze is especially popular among Indian teenagers and children. Their pocket money and desire to become young profit earners in the market are accelerating India’s growth in the crypto market space. 

According to experts, they are generally drawn to the promise of large profits offered by Bitcoin and other tokens and are quickly becoming acquainted with market ups and downs.

Furthermore, the mixing of easily attainable tools and continuous media attention to the market, cringing over every major dip or price increase, has piqued their interest. Even children under the age of 18 want to start investing now and gain the benefits of long-lasting investment opportunities.

The good news is that parents can open custodial accounts for their children. The assets are owned by their children, but the account is managed by the parents. They can purchase cryptocurrency on behalf of their children. 

This is since most crypto exchanges that offer the simplest way to obtain crypto require traders to be at least 18 years old to open an account.

This step is particularly important for crypto exchange authorities for ensuring security and fraud prevention. 

But, as cryptocurrencies become more popular among children and teenagers, are they safe?

Piggy Banks replaced by Cryptocurrencies?

Only a few years ago did cryptocurrency enter the mainstream. According to cryptocurrency analysts, the market will see an influx of new investors in 2022. 

While the elevated interest in cryptocurrency is notable, it is also raising concerns regarding its influence on those under the age of 18, as well as how they interact with digital assets.

There are currently no regulations designed specifically for children; however, experts expect that exchanges and crypto platforms should contemplate critical factors such as protecting children from frauds and scammers.

 Given the obscurity of cryptocurrency transactions, crypto leaders are well aware that anyone can set up and access a cryptocurrency wallet.

Furthermore, while there are no age restrictions when it comes to cryptocurrency, most significant cryptocurrency exchanges need KYC for ensuring that consumers are 18 years of age or older.

The only positive measure that parents can come up with is to ensure that cryptocurrencies are properly introduced to their children.

Is Cryptocurrency Investment necessary for Children?

It is a difficult question to answer because most children will not be able to manage their crypto wallets on their own.

 Given the risks connected with cryptocurrencies and mishandling blockchain in the context of minors, it is clear that not only parents but also community members will need to step forward for protecting these young crypto enthusiasts.

Experts believe that KYC requirements should be in-built in blockchain applications. Furthermore, having more educational tools for crypto may aid children and trends gain a better understanding of crypto investment, volatility, and scams in a more improved and efficient manner.

However, given the utmost volatility and other risks, such as the lack of any rigid crypto regulations, parents should contemplate other critical factors when introducing their children to crypto security concerns.

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