Crypto for Teenagers [and Kids]

Are you a teenager looking to venture into the world of cryptocurrency? You’ve come to the right place! In this article, we’ll explore the basics of crypto investing and provide you with valuable insights to help you make informed decisions. Let’s dive in!

The Top Cryptocurrencies for Teen Investors

When it comes to cryptocurrencies, there are numerous options available. However, as a teen investor, it’s best to focus on the top coins that offer stability and growth potential. Here are three popular choices:

Bitcoin (BTC-USD)

Bitcoin, the first cryptocurrency launched in 2009, has become the most valuable digital currency globally. Its established reputation and market dominance make it an attractive option for investors.

Ether (ETH-USD)

Ether, the cryptocurrency of the Ethereum blockchain, is the second most valuable digital currency. Launched in 2015, Ether offers unique investment opportunities within the world of decentralized finance.

Tether (USDT-USD)

Tether is a stablecoin pegged to the US dollar, maintaining a value of $1. It serves as a safe choice for first-time investors, but it’s important to note that it doesn’t offer long-term growth potential.

Alongside these top options, there are various altcoins available. However, as a teen investor, it’s advisable to stick to the top three coins mentioned above to minimize risks in crypto investing.

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Understanding the Risks

Cryptocurrency investing, like any other investment, carries risks. The volatile nature of crypto markets requires caution and careful decision-making. Let’s explore some key risks associated with crypto investing:


The value of cryptocurrencies can fluctuate wildly, impacting your investment’s worth. For example, Bitcoin reached a high of $68,000 in November 2021 but experienced a significant decline to about $20,000 in September 2022.

Platform and Investor Bankruptcy

Several instances have occurred where crypto platforms and investors filed for bankruptcy, leaving customers without access to their funds. To mitigate this risk, it’s recommended to use cold wallets for secure storage.

While crypto investing can seem exciting, it’s crucial to approach it as a gamble and only invest money you can afford to lose without jeopardizing your financial stability.

Determining Your Investment Amount

As a teenager, your investment capacity may be limited. Consider your current savings and financial situation when determining the amount to invest. For beginners, starting with a small fraction of Bitcoin or Ether, such as $300-$500, can be a sensible choice.

Where Cryptocurrency is Accepted

While the US government doesn’t accept cryptocurrencies as legal tender, many businesses, both online and offline, do. For instance,, Microsoft, Home Depot, Virgin Airlines, and Whole Foods are among those accepting Bitcoin as payment. Though the number of locations accepting crypto is limited, it’s gradually increasing.

Buying and Selling Cryptocurrency

If you prefer to invest directly in cryptocurrency, utilizing a cryptocurrency exchange is the easiest option. Popular exchanges like Coinbase, Binance, and Kraken act as intermediaries for buying and selling crypto. However, note that these exchanges have age restrictions preventing members under 18 from accessing them.

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To overcome this barrier, you can rely on your parents. They can open an account, deposit money, and buy crypto on your behalf. It’s essential to use a cold wallet to store your crypto securely. With a hardware wallet, your parents can transfer the cryptocurrency to you when you come of age.

Custodial Accounts for Teen Investors Under 18

Teenagers under 18 can invest in crypto through custodial accounts. These accounts are managed by an adult custodian, typically a parent or guardian, until the child reaches the age of majority. Opening a custodial account requires specific information from both you and your parent.

To learn more about custodial accounts and the process of opening one, refer to the article “Custodial Brokerage Account for Your Kids.”

Investing Through Special Custodial Accounts

Another avenue for teen investors is to utilize special online brokers designed to facilitate crypto investments through custodial accounts. These platforms simplify the process for parents to assist their kids in investing in cryptocurrencies.

Ready to Begin Your Crypto Journey?

Now that you have a basic understanding of crypto investing, it’s time to discuss your plans with your parents and explore the available options. Remember, investing in cryptocurrency requires careful consideration and ongoing learning. Stay informed, invest responsibly, and enjoy the exciting world of crypto!

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