Digital currencies are a varied class of digital assets and money that seems safe when they are used by adults. But there are many interested teenagers and kids who are waiting to get their gains after they have invested in cryptos. The crypto space has a new sector of investors which is made up of teenagers and kids. In this article, we will have a look at the various cryptocurrency for kids that are safe for their use.
Ideal Cryptocurrency For Kids And Teenagers
While investing in digital currency looks a bit risky, these teenagers and kids think that it can help them to become a financially independent people and get used to the evolving market developments and financial technologies. Even though professional traders love the fluctuating digital currencies, new investors choose the stable ones, since it becomes challenging to keep up with the market. But if you are wondering, can I buy Bitcoin for my child, then yes you can, but in that case, your child will have to be an adult. In the case of minors, there are many custodial crypto accounts for minors that they can use. There are several types of cryptocurrency for kids. Here we have listed the top 10 cryptocurrency for kids and teenagers that they can invest in.
It is the first digital currency that is backed up by the US dollar. This stablecoin was released in 2014 and received popularity quite fast. Despite several legalities surrounding the developers of Tether, the crypto stayed afloat. Moreover, Tether’s share in the stablecoin market is above any other prevailing stablecoins. So this is an ideal cryptocurrency for beginners.
In this list, USD Coin is another stablecoin that is backed up by the US dollar on a basis of 1:1. The coin was released in 2018 and abides by the mantra of ‘digital money for the digital age.’ It is developed to promote more cashless transactions. Several cases of use that are based on USD coins have shown it as a safe haven for cryptocurrency traders in times of fluctuations.
Cardano in this case might be a riskier investment compared to the other two, but it can become a good way for novice investors to learn more about blockchain technology. This crypto has a steady and slow approach to development. The concept behind this digital coin is to offer alternate solutions to the disadvantages of ethereum. But the challenge relating to Cardano is that various other cryptos are also trying to offer solutions to the shortcomings of Ethers, making the contest for the crypto quite difficult.
In the case of young investors, LTC might be the best alternative to BTC. The transaction fee of this coin is lower and processes payments faster, and is considerably cheaper compared to Bitcoin. Litecoin also has a hard base as a project and has greater returns compared to BTC as well. The block time of Litecoin is of just 2.5 minutes making it highly suitable for any sort of point-of-sale payments and micro-transactions.
Dai is a stablecoin that is based on Ethereum whose development and issuance are handled by the MakerDAO decentralized autonomous organization and the Maker Protocol. Its value is soft-pegged to the USD and is affluent by a mix of other digital currencies that are stored in the smart contract vaults every time a new DAI is minted.
It is a 1:1 stablecoin that is backed up by dollars and is issued by Binance. Released in 2019, this stablecoin focuses on melding the stability of the dollar along with blockchain technology. Investors can trade BUSD on varied exchanges and Decentralized exchanges and can also deposit the coins to earn an interest. It can also be used as a loan asset and collateral, and also as cross collateral in the upcoming days.
Presently, Ripple is changing the banking industry and is creating itself as a leader in the digital payment sector. It is providing the fastest and lowest cost choices to financial institutions for bringing liquidity in cross-border payments. Ripple is more scalable and fast compared to any other digital asset. XRP assets and XRP are employed to power original technologies across the payments scenario.
Filecoin is a storage system that is decentralized. It is an open protocol and it is backed by a blockchain technology that records commitments that are made by the participants of the network, with transactions made via FIL. This crypto is based on both proof-of-spacetime and proof-of-replication.
Hedera is the best choice for investors who are looking for a more ideal option for digital currency. It is an enterprise-grade and sustainable public network for the decentralized economy that enables individuals and businesses to develop decentralized applications.
The technology of cryptocurrency has now reached the kids and teenagers as well. They have even started to understand the future prospects of digital currency. But not all currencies can be ideal for them as they are still beginners in this space. So in the above section, we have discussed the top 10 cryptocurrency for kids that they can invest in and enjoy the return that they get.
Frequently Asked Questions On cryptocurrency For Kids
1. Can I set up a crypto account for my child?
Unfortunately, kids below the age of 18 cannot have a crypto account nor can they purchase crypto with their own name or details.
2. What does cryptocurrency mean for kids?
The crypto space has a new sector of investors which is made up of teenagers and kids. Teenagers and kids have now started to understand the concept of digital currency and have also started to accept this development.
3. How do I gift a bitcoin to a minor?
You can of course gift Bitcoins to people, but you cannot gift that to a minor as they will not have any BTC or any other crypto account.