Cryptocurrency for Kids 101: The Ultimate Guide 

Current technological advancements are not only shaping social interactions but are steadily influencing the growth of financial literacy along the blockchain. If you’ve noticed your kid takes a liking to develop an interest in cryptocurrency, there are a few key factors to consider in steering them in the right direction.

The benefits of developing fluency in cryptocurrency for kids at a young age reside in the evolving nature of a decentralized system with the potential to strike as one of the leading forms of currency within the next 5-10 years.

Introduction to Cryptocurrency for Kids

One of the best ways to prepare the youth for the future is in developing healthy practices with finances and learning the basics of properly saving and investing. While traditional models in stocks and accounts serve a secure purpose, it is critical parents consider the growing facets of cryptocurrency as a leading financial exchange with the potential to redefine the way wealth is accrued while extending a more harmonious globalized world.

What is crypto, anyway?

Rooted in the principles of cryptology, the science of storing data and communication in hidden form, cryptocurrency is designed to be a secure form of financial notes that can be exchanged along the blockchain. Unlike the US dollar and other forms of traditional fiat, cryptocurrency is decentralized with the intention to be free from governmental restrictions. The place cryptocurrency holds in shaping the future landscape resides in the youth and understanding its value is pivotal as it coincides with the importance of coding and programming.

Examples of cryptocurrency vary including Bitcoin, Ether, and Solana, to name a few. Since there are over 18,000 types of cryptocurrencies, having an understanding of which ones are likely to stick around is a must when investing or trading. 

Understanding the blockchain

The blockchain exists as a recordkeeper. It keeps a history of any transactions made through a secure peer-to-peer network. This makes it incredibly difficult to cheat or hack the system and provides a secure way for people to send or transfer money – without the need of a third-party system, like a bank or governmental institution, for example. Whenever a transaction is made, it forms a new block of information. Thus, adding to the virtual chain creates a record of every crypto transaction that has ever occurred.

How does crypto mining work?

Mining cryptocurrencies is akin to the process of printing dollars, through a virtual lens, of course. According to Coinbase, mining is the process by which networks of specialized computers generate and release new Bitcoin and verify new transactions. Essentially, there is no gold or physical component to back its value, but rather is backed by the value a group of people gives it. Miners are a group of people who solve coding and process transactions to receive new crypto coins.

Another factor to consider, when mining new coins in crypto, is the computational power required to maintain its creation. In the past, anyone with a computer and a basic understanding of cryptocurrency could create, but as the blockchain has become sophisticated most mining is completed by groups of people bringing resources together. Other ways to “mine” cryptocurrency are in the exchange cycle of either buying them, receiving them as payment, or exchanging currency.

3 Essential Cryptocurrency for Kids Factors to Know About 

While coding and programming are must-know topics for kids in STEM, it is essential cryptocurrency makes its way into the conversation. It is one of the fastest-growing currencies and it is here to stay. Learning how to interact with the evolving landscape of 

Growing in popularity

With major corporations and organizations announcing that they will be supporting cryptocurrency payments, decentralized currency is growing to quickly become the norm of financial exchange. Learning the basics, at a young age, is critical in developing financial literacy and stability. According to a Forbes article, some experts believe crypto could replace regular forms of currencies within 5-10 years. The pace of innovation is moving at lightning speed making this a perfect time for cryptocurrency for kids literacy to boom within the STEM field.

Develop discernment 

Getting a step into the world of cryptocurrency, at a young age, comes with the opportunity to develop a strong sense of discernment. The values of different cryptocurrencies are volatile which means crashes and scams can oftentimes become a part of the recipe. Another aspect to consider is where your kid is getting financial advice. There are many accounts with big followings, but any advice they receive must come from a reliable source with credible backing. 

Can start earning now

Cryptocurrency funds are always available, anytime and anywhere since they aren’t tied to any third parties or governments. Funds must be stored in an account like Coinbase, for example, where crypto can be stored. While minors can’t mine or own their own crypto wallets, having a parent account is a great way to build literacy and save for the future.  

The Final Point

As more and more cryptocurrency camps for kids begin to offer courses on blockchain and financial literacy, it is worth considering enrolling your kid as a supplemental piece to their STEM education. The conversations on major platforms like TikTok and even popular games like Roblox, where Robux is used, are making cryptocurrency more mainstream than ever before. Having a solid foundation and understanding of basic crypto terminology and best practices is soon to become required curricula as more people begin to exchange within the blockchain. Lastly, as your child’s interest grows and matures, they may feel inspired to create their own cryptocurrency.