I was very small when I first learned about Bitcoin. My whiskers were still coming in. I had recently learned to land on my feet, mostly.
My dad had been reading about it for months. One evening, he sat down with me at the kitchen table with his laptop and a warm glass of milk.
“I want to show you something,” he said. “Something that might matter a lot when you grow up.”
He explained Bitcoin to me — the blockchain, the 21 million, Satoshi Nakamoto. I had approximately forty-seven questions. He answered every single one.
Then he opened his own Coinbase account and said: “I’m going to buy a small amount of Bitcoin under my name. And we’re going to learn about this together. Deal?”
Deal.
That was the beginning of everything. And it started with asking permission — and a grown-up saying yes.
The honest answer: what the rules actually say
Here’s the truth, clearly stated:
- There is no federal law in the US that says minors cannot own cryptocurrency.
- However, every major crypto exchange — Coinbase, Kraken, and all the rest — requires users to be 18 or older to open their own account. This is because of federal identity verification laws (called KYC — Know Your Customer) that apply to financial platforms.
- Under-18 users who try to create accounts by lying about their age are violating the platform’s terms of service. Do not do this. Accounts found to be fraudulent can be frozen and funds may be inaccessible.
- The right path is always through a parent or guardian.
Option 1: A parent’s account, earmarked for you
The simplest and most common approach: a parent or guardian opens a crypto account in their own name on a platform like Coinbase, buys a small amount of Bitcoin or another cryptocurrency, and earmarks it for the child as a learning experience.
A parent creates a verified Coinbase account in their own name. They can buy Bitcoin or USDC and track a portion as belonging to their child — in a notes app, a spreadsheet, or just in conversation. Coinbase is the largest US-regulated crypto exchange, publicly traded on the stock market, and widely considered the safest on-ramp for beginners.
When the child turns 18, they can open their own Coinbase account and have the amount transferred to them. Until then, the parent is the legal account holder.
ⓘ The parent must complete identity verification with their own information. A child should never enter a parent’s personal details without explicit permission and supervision.
Option 2: Cash App Families — with Bitcoin turned on by a parent
Cash App Families is specifically designed for teens ages 13–17. A parent or guardian sponsors the teen’s account — they are the legal owner and have full visibility and control. Bitcoin access is off by default and can only be enabled by the parent choosing to turn it on.
A parent downloads Cash App and invites their teen (ages 13–17) to create a sponsored account. The parent is the legal account owner. They can see all transactions, set limits, and control which features the teen can access — including whether Bitcoin is enabled at all.
Bitcoin on teen accounts is turned off by default. A parent must deliberately choose to enable it. This is a meaningful safeguard — crypto access only happens if a parent actively decides it’s appropriate.
ⓘ Bitcoin and stock investing are restricted to 18+ by default. A parent enabling Bitcoin for their teen is making an active, informed decision — not something that happens automatically.
Option 3: A custodial wallet set up together
For families who want the child to understand crypto more directly, a parent and child can set up a self-custody wallet together — an app like Coinbase Wallet, Muun, or Blue Wallet where the family holds the private key themselves rather than relying on an exchange.
A parent and child set up a wallet app together. The parent controls the seed phrase (the backup words) and stores it safely. The child can watch the balance, observe transactions, and learn how wallets work — with a parent always involved.
This is more hands-on than an exchange account and teaches real crypto literacy. The child sees Bitcoin move in real time and understands how wallets actually function.
ⓘ The parent must maintain control of the seed phrase. If a child ever memorizes or copies the seed phrase without a parent’s knowledge, they would have independent access to the funds. Discuss this openly and honestly.
Never use a parent’s personal information (Social Security number, ID, bank account details) without their explicit knowledge and presence. This applies to setting up any financial account.
Never lie about your age on a financial platform. Accounts found to belong to minors can be frozen, and any crypto in them may be inaccessible.
Never send or receive Bitcoin without a parent knowing. Even small amounts matter, and transparency is how trust gets built.
Never share a seed phrase or private key — not even with a parent’s knowledge. The only person who should ever know your wallet’s seed phrase is you and the trusted adult who helped set it up.
What about a regular bank account?
Most US banks allow minors to have a custodial bank account — a joint account where a parent is co-owner and the minor can use it with their oversight. These are great tools for learning about money generally.
Common options:
- Most major banks (Chase, Bank of America, Wells Fargo, etc.) offer custodial or joint checking/savings accounts for minors — usually requiring a parent to be a co-owner until the child turns 18.
- Local credit unions often have youth savings accounts with very low or no minimum balances, designed specifically for kids learning to save.
- Greenlight — a popular family debit card app where a parent manages the account and a child gets their own card. Greenlight offers stocks and ETFs through their investing feature, but does not currently support direct crypto purchases. It’s excellent for general financial literacy and money management.
A bank account and a crypto learning experience actually go really well together — the bank account teaches saving and spending habits, while crypto teaches how new financial technology works. They’re complementary.
How to have the conversation with a grown-up
Not sure how to bring this up? Here are some things that might help:
- Share one of the Hodl articles — start with Bitcoin for Kids: Hodl’s Big Adventure
- Ask if you can learn about it together, not just get some
- Be honest: “I’m curious about this and I want to understand it. Can we look into it as a family?”
- Start with questions, not requests — grown-ups respond well to genuine curiosity
- Be patient if they want to think about it. This is a real financial decision
Setting up a small, educational crypto experience with your child is one of the more meaningful financial literacy conversations you can have together. Even $5–$10 in Bitcoin or USDC gives a child something real to watch, ask questions about, and feel ownership of — while the amounts are low enough that any loss is a lesson rather than a hardship.
The key things to do together: use your own verified account or a properly sponsored teen account, explain every step as you go, keep the seed phrase somewhere only you control, and be clear that this is for learning — not investing.
The conversation is the most valuable part. Hodl’s dad knew that.
After we set things up, my dad closed the laptop and looked at me for a moment.
“I don’t know exactly what Bitcoin will be worth when you grow up,” he said. “Nobody does. But I know that understanding money — how it works, why it matters, what makes something valuable — that knowledge will always be useful. Whether Bitcoin goes up, down, or sideways.”
“So this is for my education?” I asked.
“This is for both of us,” he said. “I’m learning too.”
The best things aren’t the ones you do alone. They’re the ones you figure out together.
Ask your grown-up. Start the conversation. That part is always free. 🐱
The most important rules — one more time
- Always ask your parent or guardian first — every single time, no exceptions
- Never use anyone’s personal information without their knowledge and presence
- Never lie about your age on any financial platform
- Never do anything with crypto that a parent doesn’t know about
- Keep amounts small — this is for learning, not for getting rich quickly
- If something ever feels wrong or confusing, tell a trusted adult immediately
- The goal is to learn — everything else can wait until you’re older
Want to keep learning with Hodl?
Follow Hodl’s whole journey — from his first Bitcoin to helping his cousin Purrsley get her first satoshis.
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