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Even approaching two decades since the launch of Bitcoin in 2009, the crypto space enjoys substantial popularity, with many adoptees around the world believing it will continue to revolutionize the world of finance.
It’s no surprise that young people are among the many interested in cryptocurrencies. But should teenagers invest in crypto? While regulations allow for minors to participate in the cryptocurrency space, there are substantial barriers to entry—and this may push young traders to explore riskier options.
Key Takeaways
- Cryptocurrencies are digital, decentralized currencies not overseen by any government or central bank and traded using dedicated exchanges.
- Thousands of cryptocurrencies exist, but just a handful dominate conversation in the space—these include Bitcoin, Ethereum, and several other names.
- There are no federal restrictions in the U.S. for minors interested in buying crypto, but most regulated crypto exchanges require users to be 18 years of age or older.
- Cryptocurrencies are a highly risky, speculative venture, so parents should be cautious when permitting their children to make trades.
What Is Cryptocurrency?
Cryptocurrencies are digital currencies that utilize cryptography to facilitate anonymous, secure transactions, and typically also involve blockchain technology. Generally, these virtual currencies are decentralized—they are not issued by a government or central bank and do not have physical backing or any physical presence, but rather are “mined” or generated via complex computing processes. Thousands of cryptocurrencies exist, but the most popular include Bitcoin, Ethereum, and Tether.
Is Cryptocurrency Available to Teenagers?
Can teenagers legally trade crypto in the U.S.? The short answer is yes. No federal laws currently exist prohibiting minors from investing in cryptocurrencies. This makes them stand out relative to many other assets, which cannot legally be sold to minors in the U.S.
The longer answer to that question is more complicated, however. In practice, the way most people buy and sell digital tokens is through a popular exchange such as Coinbase. Exchanges provide some security for investors worried about storing their tokens, and they facilitate markets in which users can deposit fiat currency and buy, sell, or trade crypto. The issue for minors is that these exchanges frequently employ know-your-customer (KYC) practices requiring that accountholders be at least 18 years old.
Still, teens looking to invest in cryptocurrency do have some options.
Understanding the Basics
Although cryptocurrencies are designed with anonymity and security in mind—transactions are verified using blockchain technology and distributed ledgers—the reality is that crypto holders are vulnerable to hacks, theft, and various types of fraud. Estimates place the value of all crypto tokens stolen in 2024 at $2.2 billion.
Like many other assets, the law of supply and demand dictates the price of cryptocurrencies. Many crypto tokens fluctuate in price significantly depending upon demand, and they exist in a unique space compared to stocks and other traditional investments because they are available around the clock and not limited to specific trading hours each day.
Given these factors, investors should see crypto as a speculative investment, meaning they should be prepared to lose all the money they invest in tokens. While this is especially true of the large number of new or unknown cryptocurrencies, it is even possible with the largest names.
Tip
Investors commonly buy and sell cryptocurrencies via dedicated exchanges as well as brokerage accounts and apps.
Leading Cryptocurrencies
As the first cryptocurrency and the largest in size by total market value, Bitcoin (BTC) is often synonymous with the crypto universe as a whole. It was created in 2009 by a programmer (or group of programmers) under the alias Satoshi Nakamoto. Bitcoin was used—and continues to be used—as a reward to participants in the network who would process and verify transactions on its original blockchain.
In recent years, the popularity of Bitcoin has led non-participants to get involved in “mining,” and there are even entire companies dedicated to generating Bitcoin in this process. However, the total supply of Bitcoin is capped at 21 million BTC, so this will not be possible forever. Still, looking at Bitcoin’s price history, it’s easy to see the appeal for would-be miners—BTC has risen from a few cents when it originally began trading to more than $124,000 per coin in Aug. 2025.
The other best-known cryptocurrency is Ethereum, with a native token called Ether, or ETH. The second-largest crypto by market value, Ether powers smart contract technology that has made a tremendous variety of decentralized apps (dApps) possible and facilitates many other cryptocurrencies. Ether offers some advantages over Bitcoin, including higher transaction processing speeds.
What You Need To Get Started Trading
To start trading crypto, every investor first needs a way to store their tokens. The solution is called a wallet. Most commonly, wallets exist digitally and are accessed using special codes called keys, but they can also exist physically to provide extra defense against would-be hackers or thieves. Centralized cryptocurrency exchanges often have built-in wallets, removing the need for users to set up their own.
Note
Wallets are necessary not only to hold cryptocurrency, but to transfer funds, exchange tokens for other crypto, and so on.
Ways That Teens Can Invest in Crypto
Because of KYC protocols, minors cannot set up accounts on many of the most popular exchanges. However, there are ways for teens to invest in crypto. These include:
- Custodial account: Custodial accounts are investment accounts managed by a parent or guardian on behalf of a minor child. They allow adults to invest, but the assets legally belong to the child. Companies like EarlyBird offer custodial accounts that can facilitate cryptocurrency investment. Parents can work together with their children to make investment decisions with these accounts.
- Crypto-earning apps: A growing number of apps allow children to earn crypto, while others like Step provide a straightforward way to buy and sell BTC. Some of these apps, Step included, require an adult sponsor to open an account on behalf of a minor.
- Some crypto exchanges: Unregulated, decentralized exchanges are available, which do not require that users complete KYC protocols. Children may be able to use these exchanges by connecting their own digital crypto wallets. However, these exchanges are among the riskiest ways to transact in the crypto space. They also typically do not have a way to trade fiat currency, meaning that a teenager will have to already have some crypto holdings to make use of them.
Risks To Keep in Mind
As a speculative investment, cryptocurrency is risky. It’s important never to invest more than you’re willing to lose. The risks are not necessarily unique to teens and include the following:
- Volatility: The crypto universe is known for its extreme volatility, even among the largest coins like Bitcoin and Ethereum. Be prepared for big drops in value to go along with the equally large gains that often entice people to the space.
- Shifting regulations: Up to this point, the crypto industry has benefited from relatively lax government regulation in the U.S. However, there is no guarantee that this will remain the case. It is possible that cryptocurrencies will be heavily regulated—or even banned outright—in the future.
- Security: As mentioned, crypto fraud is big business for hackers, and a host of scams and hacks regularly lead to losses in the millions or even billions—and this includes some of the biggest crypto exchanges.
Alternatives to Cryptocurrency
Teens may be drawn to cryptocurrency because of stories about massive increases in price or because of trendy tokens that have gained popularity. Still, there may be other options for young investors looking to explore the speculative space—or to simply diversify their emerging portfolios. Consider the following alternatives:
- Real estate: Buying a whole property is prohibitively expensive for many, but real estate investment trusts (REITs) or real estate-focused ETFs are much more accessible and provide exposure to the same space while also managing risk. These products allow investors access to residential as well as commercial real estate projects and often pay out monthly dividends.
- Collectibles: A broad category of speculative investment, collectibles can include anything from baseball cards to artwork, classic cars, and much more. Investing a small portion of your money in a collectible is attractive to many teens, particularly if their interests coincide with the type of item that can provide outsized returns. Of course, there are also risks associated with these investments, including price volatility and difficulty timing the market.
- Precious metals: Who isn’t interested in the idea of investing in gold, silver, or platinum? As a store of value, these safe-haven assets can retain their purchasing power in the face of inflation. Gold in particular has had an incredible rally since late 2024.
Can a Minor Own Cryptocurrencies?
There are no U.S. regulations limiting whether a minor can own cryptocurrencies. However, the most common way of accessing this space—centralized exchanges—may not be available to those under 18 years of age.
How Should a Parent Be Involved in Their Teenager’s Crypto Trades?
Parents should keep in mind that crypto is highly speculative and risky. It’s a good idea to have thoughtful discussions with a teenager interested in buying crypto to be sure they understand these dangers. Parents may also wish to invest on behalf of or alongside their child using a custodial account.
How Old Should You Be Before Getting Into Crypto?
Cryptocurrencies are highly popular and widespread. Many investors feel that they should be part of a basic financial education for any young person. It’s also important to keep in mind that children do not need to invest in crypto in order to take an interest in the space. Learning about why cryptocurrencies have become popular, how they work, and what technologies they use and make possible can be another entry point to this universe.
Is There a Minimum Age To Own or Use Crypto?
There is no minimum age to use cryptocurrency.
The Bottom Line
Cryptocurrency’s appeal is strong thanks to its unique structure and a perception among investors that it can lead to significant gains. Teenagers may be interested in taking part in the crypto space, and while there are no regulations prohibiting their trading cryptocurrencies, the reality is that access can be difficult due to accountholder rules for popular exchanges and brokerage apps. Alternative approaches do exist, including some custodial accounts, apps allowing users to earn crypto, and decentralized exchanges without KYC protocols, but these may carry unique risks.
If you are a teenager, one of the best things you can do is continue learning about cryptocurrency and how it is changing the world of finance. Working with a parent or guardian to set up a custodial account or approved app can be a good way to begin to make speculative investments in the space.