Age restrictions are nothing new. A specific age must be achieved to purchase alcohol, receive a driver’s license, enter the military, or drop out of school. There are numerous reasons why age limits exist. Some may claim that it is evident that children are not mature enough to handle responsibilities. Others contend that legal minimum ages are necessary to protect children from being used as commodities by governments and businesses.
So, what about digital currencies? Because the topics described above have been around for a long time, everyone is familiar with how they are handled. On the other hand, cryptocurrency does not have a similar history; they are new and have yet to acquire their own “customs,” so to speak. So, what exactly are the age restrictions for investing in digital assets?
Are There Age Limits For Cryptocurrencies?
Because cryptocurrencies are new creations, interacting with them necessitates trial and patience. Nonetheless, given that cryptocurrencies are a financial tool, it’s no surprise they’ve duplicated typical activities in the traditional financial sector, Exactly what the crypto community has done regarding age limits.
There is no age limit for investing, and the same is valid for purchasing cryptocurrency – anyone may do it. However, to create an account with an investing firm (a brokerage), a cryptocurrency exchange, or a traditional bank, an individual must be 18 years old; those under 18 require parental approval. This is because the legal age for entering into a contract is 18 years old.
So, What Age Is Required to Purchase Cryptocurrency?
Let’s take a look at international crypto industry practices. Many US-based cryptocurrency exchanges allow customers above 18 to register an account. Anyone between the ages of 13 and 18 with parental approval is eligible, but anyone younger than 13 is not. Many other popular exchanges also require users to minimum age of 18 years old.
Of course, there are issues regarding how successfully these policies are implemented. After all, setting the minimum age at 18 is a Western norm mostly seen in anglo-countries (the United Kingdom, Canada, the United States, Australia, and so on) and is thus not universal.
It can circumvent Facebook’s age restrictions. Facebook doesn’t allow users under 13, yet everyone knows they can lie. Unlike Facebook, banks and cryptocurrencies have additional security measures to prevent policy infractions.
Financial firms may request social security numbers, email addresses, phone numbers, and mailing addresses. However, these tactics are uncommon in the crypto community.
Nonetheless, what options do persons who aren’t of legal age but would like to invest in cryptocurrencies have or whose parents are looking for accounts on their behalf?
How to Invest in Crypto Before 18?
Traditional finance has custodial accounts. A fiduciary oversees a minor’s custodial account at a mutual fund company, brokerage firm, or bank (beneficiary). Usually, a parent opens a bank or savings account for their child’s first job.
So, what is the crypto equivalent? UNest is one such example. UNest is a brokerage service that specializes in parental crypto investment accounts. Parents may effortlessly accept gifts from friends and family members and easily control their portfolios using UNest. People can find more information in The Potential Of Cryptocurrency For Kids.
Is the Cryptocurrency Age Limit Essential?
The crypto community is dominated by young people, making this a significant concern. For instance, according to a survey by Pew Research, 43% of men between the ages of 18 and 29 have either invested in, traded, or used a cryptocurrency, whereas only 19% of women in the same age range have done so. There are other reasons as well to ensure that young adults are not discriminated against because of their age.
Today’s younger generations face unique financial challenges. Prices for housing, food, education, and health care, among other products and services, have skyrocketed due to inflation, placing excessive weight on the incomes of younger generations.
In addition, there are concerns regarding government and personal debts, endless government spending, war, and many other issues. Thus, cryptocurrencies are viewed as a haven for those who wish to prevent further devaluation of their currency and an opportunity to engage in commerce with money deemed superior to the U.S. dollar, Euro, or British pound.
We have noticed that in light of the current economic, political, and cultural challenges around the world, there is a natural interest in setting an age limit for cryptocurrencies. People will flee to safer areas as a result. Fortunately, there is no minimum age to buy bitcoin, and as UNest demonstrates, parents may open cryptocurrency investment accounts for their children.