03 Oct, 2018 at 18:55pm
One of the largest problems for people discovering cryptocurrencies is their inability to purchase them - many of the younger generations are unable to participate in the latest craze as almost all the sites they come across require you to be aged 18 or over, as well as requiring some form of identification. This is a guide for minors who are wondering how can you get cryptocurrency under 18 (underage)?
Every day more and more teenagers are becoming interested in cryptocurrencies and as someone who has friends who fit this category, along with fitting it myself, it always intrigued me as to how I could get cryptocurrencies without violating the law. Upon the debut of KYC (Know Your Customer), many of the largest exchanges and sites that people use to initially buy a coin closed their doors to many people. Some customers prefer to remain anonymous as that’s the main reason they use their digital currencies, whilst others prefer to not provide their identification to a corporation. A reason that a lot of people have had the doors closed on them is that the KYC works in cooperation with these companies not allowing under 18s to use their platforms as it means people will show their age when using the platform, through the form of their ID. This creates a barrier for said people. One of the largest sites, that goes by the name Coinbase, used to allow under 18s to use their platform but have since banned under 18s from using their site.
Some of the people I know have had to resort to asking their parents to create an account for them, using their parent's ID and then operating under their name. Whilst this can be questionable, legality and ethics-wise, the problem of how to get crypto underage does get solved. On a negative note, not everyone can do this, some people’s parents don’t believe in cryptocurrencies, whilst some believe they are a scam - any true advocate would know this is not the case.
It’s no surprise that teens want to get involved when any good search involving the terms under 18 and crypto result in a plethora of posts and questions by teens asking how to get involved without being of legal age for most sites. Whether it’s Reddit, Quora or elsewhere, there’s bound to be someone asking - some questions are as simple as “how can a teen invest in cryptocurrency”, a question that this article aims to answer.
I started off this article by saying that most sites require you to be over 18 to purchase crypto - this is true. On the other hand, there are also some sites that do not require an ID.
The minimum age required to use the LocalBitcoins platform, as of September 2018, is 16 years of age - anyone aged 16 or older can legally have their own LocalBitcoins account that they can also use. This platform doesn’t actually handle the funds that are part of the deal - the company acts as a directory of traders and connects people together, so they can trade. The peer to peer trades that take place are intended to match people who live near one another so that they can easily travel and meet up to carry out their deal, however, deals can be done online. When arranging to meet in person it is advised that people are alert and aware of their surroundings.
Many people only know that traditional ATMs exist whilst, in actual fact, there are many cryptocurrency ATMs located around the world. A Bitcoin or cryptocurrency AMT isn’t an ATM in the traditional sense, it would be better classed as a kiosk and is essentially an exchange. The machines work to communicate with an exchange to convert between two currencies or use a dynamic exchange rate in combination with a hot wallet to convert between two currencies. Transaction fees on such devices often range from 5% to 10%, sometimes with an additional fee, like a $1 fee. There are, as of the time of writing this article, almost 4000 cryptocurrency ATMs/kiosks around the world, predominantly in the United States. This figure is ever growing as more and more businesses look at adopting cryptocurrencies. Many websites have digital maps that can help with finding these machines, click here for an example.
It is a common belief that people’s parents and older adults, in general, are against cryptocurrencies when in many cases this is quite the opposite. Every day more and more people are discovering this revolutionary digital currency, many of which like it and many of which think it is a scam. The best way to determine how one’s guardian feels about cryptocurrencies is to talk to them - talk to them about the digital currencies, see how they react and what their opinions are. If you are lucky to have parents who support you in your passions and want to see how you perform when buying cryptocurrencies then you would be able to ask them to register on exchanges and trading platforms. Upon registration under their details, with their permission, you can proceed to make transactions and purchase coins or tokens or invest in them in an attempt to turn a profit. Money used should be the user of the account’s unless explicit permission is given by a parent or guardian to use their money.
Many young people are actively engaging with innovative products and solutions to global problems, it comes with no surprise that one of these products that said individuals encounter is blockchain technology. The blockchain technology ties in with cryptocurrencies which have been dubbed by many as being the latest craze - everyone wants to join in but not everyone may be able to. As outlined in this article, there are several legal ways for minors to get involved and to acquire cryptocurrencies, all of which are widely available around the world. New investors are advised, however, that there are nasty people out on the internet who are in the business of scamming gullible purchasers and stealing their money instead of providing a cryptocurrency. It is generally not advised to purchase from people who exchange fiat for a coin on forums as this is where a high volume of scammers hide.
If you're curious as to what coin you could invest in then be sure to check out our best cryptocurrency to invest in for 2018 article.