Exploring Bitcoin: Underage Investing And Opportunities

There is no legal age restriction on buying and selling Bitcoin or other cryptocurrencies. However, some crypto trading platforms enforce government policies that prevent those under 18 from owning crypto. This can make it difficult for minors to buy Bitcoin, but it is not impossible. Some platforms have a minimum age mandate and require KYC or AML verification, but there are ways for minors to buy Bitcoin without breaking the law. These include buying Bitcoin through a trusted adult, using a platform that doesn't require ID verification, or buying a gift card and exchanging it for Bitcoin.

No age restriction to buy and sell crypto

There is no age restriction to buy and sell crypto, and there is no legal age to buy Bitcoin or other cryptocurrencies anywhere in the world. If you are old enough to understand the risks of investing in cryptocurrencies, you are old enough to buy them.

However, many popular crypto exchanges enforce government policies and bar users under 18 from trading. Examples of such platforms include Coinbase, PayPal, and Solidi.co. Nevertheless, there are still ways for minors to buy and sell crypto.

Ways for Minors to Buy and Sell Crypto

• Decentralized exchanges (DEXes): Bisq, HodlHodl, and Localcryptos.com are examples of DEXes that allow users to trade anonymously without the need for Know Your Customer (KYC) verification.
• Peer-to-peer (P2P) platforms: Some P2P platforms allow users to buy and sell crypto with minimal verification. Examples include LocalBitcoins, Paxful, and Mycelium Local Trader.
• Bitcoin ATMs: There are currently over 4,000 Bitcoin ATMs globally, and this number is growing. While these ATMs charge high transaction fees, they offer a safe way for minors to buy and sell Bitcoin.
• Freelancing: Minors can offer their skills, such as software development, web design, or content writing, in exchange for crypto payments on crypto-focused freelance websites.
• OTC (Over-the-Counter) brokers: Crypto brokers are often not concerned with the age or nationality of their clients, as long as they can make a sale. Minors can find brokers online through Facebook forums, Reddit, or other peer-to-peer groups.
• Gift cards: Minors can buy gift cards (e.g., iTunes, Amazon, Google Play) and then exchange them for Bitcoin on platforms like Paxful.
• Exchanges with lenient KYC regulations: Some exchanges, like KuCoin and Binance, have lenient KYC regulations for users trading small amounts of crypto.

Precautions for Minors

While there are ways for minors to buy and sell crypto, it is important to exercise caution. Here are some precautions to consider:

• Research and education: Before investing in crypto, take the time to learn about the fundamentals of cryptocurrency and the risks involved.
• Parental guidance: Speak to your parents or guardians about any investments you plan to make.
• Due diligence: When dealing with online brokers or P2P platforms, be sure to research reviews and ratings to avoid scams.
• Cold storage wallet: Store your crypto investments in an offline cold storage wallet to protect them from cyber theft.

Crypto platforms enforce govt policies barring under-18s

Although there are technically no age restrictions for trading or mining in cryptocurrencies, some crypto platforms enforce government policies by barring under-18s from owning crypto. This is due to the Know Your Customer (KYC) measures that have been introduced on crypto trading platforms, which limit access to under-18s.

Coinbase, for example, doesn't allow minors to buy or sell cryptocurrencies on its platform, and there are many other exchanges like this in different countries. PayPal and Purse.io, for instance, have age restrictions of 18+ and 13+ respectively.

However, there are ways for under-18s to buy Bitcoin and other cryptocurrencies without breaking the law. These include:

• Buying on the P2P market
• Using a phone number (US only)
• Paying a trusted adult to buy for them
• Buying on crypto platforms without identification
• Discussing plans to buy Bitcoin with a parent/guardian
• Buying Bitcoin using ATMs
• Swapping gift cards for Bitcoin

It is important to note that buying Bitcoin and other cryptocurrencies as a minor can be risky, as there are many scams and fraudulent sellers in the market. It is also worth noting that cryptocurrencies are not regulated by banks or financial institutions, so they can rapidly gain or lose value.

No ID needed on some platforms

While there is no age limit for trading or mining cryptocurrencies, many popular crypto exchanges have age restrictions and require users to be 18 or older. However, there are some platforms that don't require ID verification, allowing individuals under 18 to purchase crypto anonymously. These platforms include:

• Bybit: Offers various payment options, low trading fees, and no ID verification.
• MEXC, Weex, KuCoin, Margex, PrimeXBT, and Bisq: Each has its own features and benefits for users under 18.
• Binance: Allows the purchase of Bitcoin and Altcoins easily. The trading threshold without verification is 2 Bitcoins per day.
• LocalCryptos: A trusted peer-to-peer crypto marketplace where you can buy Bitcoins securely and instantly.
• Bitcoin ATMs: These can be a safe way for minors to buy and sell Bitcoin, as you aren't required to verify your account unless you exceed a certain threshold.
• Decentralized Exchanges (DEXes): These match buyers and sellers anonymously, and no verification is required to transact. Examples include Bisq, HodlHodl, and Localcryptos.com.
• Freelance websites: Some freelance websites facilitate payments in digital currency. Examples include Pompcryptojobs, CryptoJobs, and BitGigs.
• Over-the-counter (OTC) method: You can try the OTC method and look for a reliable Bitcoin broker who isn't keen on knowing your age or nationality.
• Gift cards: Anyone can buy gift cards from iTunes, Amazon, or Google Play, and then exchange them for Bitcoin on platforms like Paxful.
• Exchanges with lenient Know Your Customer (KYC) regulations: Some exchanges don't require verification to create an account or trade. For example, KuCoin doesn't have strict KYC regulations for users trading small amounts of crypto.

It's important to note that while these platforms don't require ID verification, you should still exercise caution and conduct thorough research before investing. Additionally, always speak to your parents or guardians about any investments you plan to make and never invest more than you can afford to lose.

Freelance for crypto payments

There are no age restrictions on trading or mining cryptocurrencies, but some platforms enforce government policies that prevent those under 18 from owning crypto. If you are under 18 and want to get into crypto, it is important to first learn about cryptocurrency and its fundamentals.

• Discuss your plans with your parents or a trusted adult who can help guide you.
• Use Bitcoin ATMs that only require SMS verification or none at all.
• Swap gift cards for Bitcoin.
• Buy on the P2P market, but be cautious of fraudulent sellers.
• If in the US, you can buy through LibertyX with your phone number.
• Pay a trusted senior to buy crypto for you.
• Buy on crypto platforms without identification.

Now, onto the topic of freelancing for crypto payments. Here are some things to consider:

The Basics of Getting Paid in Crypto

Getting paid in crypto can be intimidating, especially if you are new to the space. However, it is not much more complex than traditional payment services. There are different types of cryptocurrencies that you can make and accept payments in, such as stablecoins, utility tokens, and governance tokens. When choosing a cryptocurrency to get paid in, consider the volatility of the coin. Stablecoins tend to be the least volatile, while utility and governance tokens are highly volatile and can see wild price fluctuations. Most freelancers getting paid in crypto opt for stablecoins to ensure their savings don't lose value, but they may also consider getting paid partially in utility or governance tokens to profit from potential price increases.

Accounts & Wallets

To get paid in crypto, you will need a crypto wallet, which functions like a digital wallet on your phone. There are two main types of crypto wallets: hot wallets and cold wallets. Hot wallets are connected to the internet, making them convenient for accessing your coins quickly for trading or interacting with decentralized apps. However, they are more vulnerable to hacking. Cold wallets, on the other hand, are not connected to the internet and are therefore less vulnerable to hacking, but they are less convenient for accessing your coins. When choosing a crypto wallet, consider security and access control.

Blockchain Networks

When getting paid in crypto, you will be asked what blockchain network or "chain" you want to use. There are Layer 1 blockchains like Ethereum and alternative Layer 1s, and Layer 2 blockchains that improve on the limitations of Layer 1 chains. Not all blockchain networks are interoperable, so you may need to use a "bridge" to pay across certain networks. When choosing a blockchain network, consider cost, speed, reliability, and bridge security. Crypto payment networks tend to have transparent and cheaper fees compared to traditional payment methods, and they are usually faster, especially for cross-border payments.

Invoicing and Tax Considerations

As a freelancer, it is important to have a reliable invoicing system in place to manage your crypto payments. Crypto invoicing tools like Request Finance can help automate the process and make it easier for clients to pay invoices in crypto. Additionally, be sure to stay on top of the tax implications of your crypto earnings, as tax laws and regulations are starting to catch up with the mainstream acceptance of crypto. Use crypto tax calculation tools to help you stay compliant.

Finding Freelance Jobs that Pay in Crypto

There are several platforms that cater to jobs that pay in crypto, such as WorkAsPro, Blocklancer, LaborX, Crypto Jobs, and PrompCryptoJobs. These platforms offer a range of opportunities, from development and technical jobs to writing, product design, and data science roles.

Speak to parents about investing

If you are under 18 and want to invest in Bitcoin, it is a good idea to speak to your parents about it. Here are some things to consider when approaching this conversation:

Educate yourself first

Before you speak to your parents, make sure you understand the fundamentals of cryptocurrency. This will show maturity and help you make a stronger case for why you want to invest. Learn about the risks and volatility of Bitcoin, and be prepared to explain these to your parents. Understand that cryptocurrencies are not regulated by banks or governments, which means they can rapidly gain or lose value.

Explain the benefits

Explain to your parents that you understand the risks, but believe that the potential benefits make it a good investment. You could explain that, because cryptocurrencies are decentralised and unregulated, they offer a way to get around the reliance on banks. This means that, in theory, anyone can become very wealthy from investing in crypto. You could also mention that cryptocurrencies are becoming increasingly popular and accessible to the public. For example, PayPal now supports cryptocurrency payments.

Make it relatable

Money and crypto can be confusing, especially for younger people. Try to find something relatable to explain the concept, such as in-game currency for video games. For example, if your child understands that they need to convert dollars into Robux to buy items on Roblox, you can explain how this is similar to exchanging dollars for Bitcoin.

Address the risks

Be honest and transparent about the risks involved in investing in Bitcoin. Explain that you are aware of the potential for scams and that you know not to trust advice from people who have a large following but no firm backing. You could also suggest that, to mitigate the risks, you will start by investing a small amount.

Ask for help

If your parents are still unsure, suggest that you speak to a financial advisor together to get their expert opinion.

Frequently asked questions