Young Investors: A Guide To Bitcoin Before 18

Bitcoin is a decentralised digital currency that is issued and managed without any central authority, such as a government, company, or bank. As such, it is resistant to wild inflation and corrupt banks. There is no rule against children buying cryptocurrencies, and there is no age limit for trading or mining. However, most cryptocurrency exchanges require their users to be 18 or older, and many have strict age verification requirements. So, how can minors invest in Bitcoin?

Seek parental consent and involvement

Before you begin investing in Bitcoin, it is important to have an open and honest conversation with your parents or guardians about your interest in doing so. Address any concerns they might have and be sure to carry out thorough research to ensure you are aware of the risks and benefits of investing in Bitcoin.

If you are under 18, it is likely that you will need your parents' or guardians' support to proceed with the process of investing in Bitcoin. This is because most cryptocurrency exchanges require their users to be 18 or older to buy and sell Bitcoin, and many have strict age verification requirements.

However, this does not mean that it is impossible for minors to invest in Bitcoin. One option is to ask your parents or guardians to help you buy your first crypto portfolio. They can do this by opening an account on a crypto exchange and making trades on your behalf. Alternatively, they could invest in educational courses to help you learn more about the crypto space.

Another option is to use a decentralised exchange, which does not store user funds and does not control transactions. These platforms also do not have user verification procedures, meaning that minors can trade without verifying their age. Examples of decentralised exchanges include Bisq, HodlHodl, and Localcryptos.com.

It is also possible to buy Bitcoin through peer-to-peer platforms, which connect buyers and sellers directly. These platforms typically don't require users to complete any KYC processes, so they can be a great way for those under 18 to buy and sell crypto. Binance P2P is one example of a reputable P2P platform.

Bitcoin ATMs are another accessible way for minors to buy Bitcoin. These machines allow you to purchase Bitcoin using cash or a debit card, and some may not have age restrictions. However, it is important to be aware that Bitcoin ATMs usually feature very high fees.

Finally, you could consider purchasing a cryptocurrency gift card. These are digital gift cards that contain cryptocurrency instead of fiat currency, and they can be freely transferred and sent anywhere in the world.

Use a platform with no age restrictions

While there is no specific law against minors investing in Bitcoin, most cryptocurrency exchanges require their users to be 18 or older. This is due to the identity checks and Know Your Customer (KYC) procedures that these platforms have in place.

However, there are alternative ways to invest in Bitcoin that do not have age restrictions. These include:

Peer-to-Peer Platforms

P2P platforms connect buyers and sellers directly, without the need for a centralised third party. Since P2P platforms typically don’t require KYC processes, they can be a great way of buying and selling crypto for those under 18. Examples of such platforms include Binance P2P and LocalCryptos.

Bitcoin ATMs

Bitcoin ATMs are machines that allow you to purchase Bitcoin using cash or a debit card. There are currently over 4,000 Bitcoin ATMs globally, with the number growing daily. While some ATMs may have age restrictions, many do not, making them a viable option for minors. However, it is important to consider the high fees associated with this method.

Gift Cards

Gift cards are another way for minors to acquire cryptocurrency. You can buy gift cards from iTunes, Amazon, or Google Play, and then exchange them for Bitcoin on a platform like Paxful. This method does not require any age verification.

Freelancing

If you have skills such as software development, web development, or content writing, you can earn Bitcoins by freelancing. There are many new crypto-focused freelance websites that facilitate payments in digital currency and offer Bitcoin escrow services to ensure honest transactions. Examples of such platforms include Pompcryptojobs, CryptoJobs, and BitGigs.

Decentralised Exchanges

Decentralised exchanges (DEXes) match buyers and sellers anonymously, without the need for KYC procedures. Examples of DEXes that minors can use include Bisq, HodlHodl, and Localcryptos.com. However, it is important to note that these exchanges are unregulated and do not allow the exchange of fiat currency for crypto.

Use a platform with no ID verification

If you are under 18 and looking to invest in Bitcoin, you may consider using a platform that does not require ID verification. This approach can help you bypass the age restrictions imposed by many popular cryptocurrency exchanges. Here are some options and key considerations:

• Peer-to-peer (P2P) platforms: P2P platforms, such as Binance P2P, connect buyers and sellers directly, allowing you to purchase Bitcoin from individuals willing to sell. These platforms typically do not require KYC processes, making them ideal for minors. Ensure you use reputable platforms with robust security measures to protect your funds.
• Bitcoin ATMs: These machines enable you to buy Bitcoin with cash or a debit card. While some ATMs may have age restrictions, others permit transactions for minors. Bitcoin ATMs offer a convenient way to convert cash into crypto, but they often charge high fees, so they may not be suitable for frequent or small transactions.
• Cryptocurrency gift cards: Several online platforms, including Coinbase and Binance, offer cryptocurrency gift cards that can be redeemed for Bitcoin. These gift cards do not require age verification, making them a viable option for minors.
• Decentralized exchanges (DEXs): A DEX is a crypto-asset trading application that uses smart contracts instead of a centralized trading system. Since DEXs do not store user funds or control transactions, they do not require user verification. However, they may not support fiat-to-crypto transactions, and you might need to acquire crypto through other means first.
• Platforms with no ID requirement: Some platforms, such as Bybit, Kine, and LocalBitcoins, do not mandate ID verification, allowing you to buy crypto anonymously. Bybit, for instance, offers various payment methods and low trading fees. Kine is a decentralized exchange (DEX) that provides the option to create an anonymous account. LocalBitcoins is a peer-to-peer marketplace built on the Tor network, where no central servers exist.

It is important to remember that investing in Bitcoin carries risks, including price volatility and security concerns. Always conduct thorough research and only invest what you can afford to lose. Additionally, if you are under 18, it is advisable to involve your parents or legal guardians in any investment decisions.

Buy Bitcoin gift cards

If you are under 18 and want to invest in Bitcoin, there are several ways to buy Bitcoin without breaking the law. One way is to use a Bitcoin ATM. These work similarly to regular ATMs, allowing you to buy or sell Bitcoins using cash or, in some cases, a credit or debit card. However, when using a Bitcoin ATM, you will need to provide a wallet address to receive your cryptocurrency.

Another option is to use a peer-to-peer exchange, which allows crypto investors to transact directly with each other without a centralised third party. Examples of these include LocalBitcoins, Bisq, HodlHodl, and Paxful.

You can also buy Bitcoin gift cards, which are digital gift cards that contain cryptocurrency instead of fiat currency. These can be purchased from official and authorised distributors and can be freely transferred and sent anywhere in the world. For example, Crypto Voucher allows you to buy Bitcoin with a credit card instantly. BitCard also provides a safe and simple method to buy BTC Gift Cards with a credit card.

It is important to note that while there is no age limit for trading or mining cryptocurrencies, many popular exchanges require identity verification, which may prevent minors from buying Bitcoin. Therefore, it is recommended to involve a parent or guardian when investing in cryptocurrency as a minor.

Work for crypto

Working for crypto is a great way to get your foot in the door of the crypto world. There are many ways to get involved, from freelancing to permanent employment, and it's a particularly good option for those under 18 who want to invest in Bitcoin.

Freelancing

Freelance jobs that pay in Bitcoin are a fantastic way to source work from anywhere in the world. All you need is a laptop and an internet connection. There are many benefits to working for Bitcoin as a freelancer. Firstly, it gives you access to a global marketplace, allowing you to search for work from anywhere in the world without worrying about cross-border payments. Secondly, transactions are fast and low cost compared to traditional bank transfers. Finally, it can be a good way to store funds and invest for the future, although it does carry risks.

There are lots of websites that pay in Bitcoin, including Crypto Jobs, Cryptogrind, and CoinTelegraph Jobs. These sites offer a range of roles, from tech and developer jobs to sales, marketing, customer support, and design.

When looking for freelance jobs that pay in Bitcoin, it's important to do your due diligence. There are fewer protections when working across borders in the gig economy, so it's crucial to use a platform that offers safeguards such as escrow and dispute resolution processes. Additionally, cryptocurrency transactions cannot be reversed, so make sure you check the legitimacy of any recipient and their address.

Part-time and Permanent Work

If you're looking for something more permanent, you can also find part-time and full-time work with various blockchain companies. These roles often pay in crypto and offer the benefits of stable employment and remote work. To find these opportunities, you can start by searching on LinkedIn, which has many opportunities in the blockchain and crypto space. You can also try grassroots approaches, such as going directly to the crypto community and the initiatives they are spearheading. Forums like Bitcointalk and r/Jobs4Bitcoins often have areas for posting freelance gigs, and these pay in crypto.

Other Options

If you're under 18, another option is to get help from your parents. They can assist you in buying your first crypto portfolio or investing in educational courses. You can also receive crypto payments for part-time jobs, such as those in the IT and crypto spheres.

Final Thoughts

Working for crypto is a rewarding way to supplement your income or forge a new career in the blockchain and cryptocurrency space. Whether you're looking for freelance work or something more permanent, there are plenty of opportunities to get involved and start investing in Bitcoin.

Frequently asked questions