One of the important domains of education which has been gradually blending with the digital is finances. Children have to become aware early on of the functionalities of credit cards, the risks of online payments and the perils of getting into debt. But it’s time they also become familiar with the concept of digital money and the decentralized option to the traditional fiat currencies.
Brief Introduction to Cryptocurrency
Cryptocurrencies rely on coding. Encrypted code pieces are the base technology for creating, buying and exchanging digital money. Every transaction is registered in a public ledger, a Transaction Block Chain. The Blockchain is a peer-to-peer system, so it updates operations on all computers in the system simultaneously. Encryption and blockchain are technologies which keep digital money safe from hacking and counterfeiting.
Why bother to understand all these?
- The market capitalization of cryptocurrencies has exceeded 70 billion $
- Central Banks, governments, and financial institutions have taken cryptocurrency seriously, while the US is already taxing it
- You can keep at least part of your kids’ savings safe in case of a new financial crisis, as digital money is free from manipulation of financial institutions
Start Investing in Cryptocurrency for Their Future
Start including digital money in your family’s finances gradually, while educating yourselves about it. For example, you can give children their allowance in virtual coins. They will learn the value of money to rise instead of immediately spending it and this is a good beginner’s lesson about savings. Also, they will make less impulsive spendings and will learn to plan for bigger and more qualitative investments.
Further on, take into consideration saving for the future education of your children in cryptocurrency. Web wallets like DNotesVault offer instruments to build a CRISP(Cryptocurrency Investment Savings Plan) for kids. It is supported by CryptoMoms.com, a currency neutral site that offers information for parents. You will also find many other alternatives online for digital cash deposits.
However, you’ll be wondering what to choose from more than 100 crypto coins out there. The most famous, Bitcoin and Ethereum are certainly too expensive, as you’ll most probably want to start with small amounts of money. There are coins which value less than 50 $ a piece, but are fairly stable and long term you will benefit from a slow increase on their value. Litecoin, Ethereum Classic, and Monero are among the best in terms of stability.
Another good strategy is to get currencies that are new on the market, as their value is most likely to increase and boost your savings. Elements(ELM) is one of the newbies that come with interesting features. This is its mining pool and its technology is based on an advanced algorithm, which makes the coin hard to be hacked, but also not profitable for application-specific integrated circuits. In the past, coins like Bitcoin have become profitable only if they’re mined through ASICs, making it hard for regular users to get in on the game. ELM’s description is attractive for long-term propositions and you can even find some extra information on dedicated forums.
After you have chosen a currency(or more), keep updated with news on the topic and keep an eye on the market capitalization. In time, you might want to switch from a currency to another or even start trading.
Fun Ways to Introduce Cryptocurrency to Kids
If your children are fans of online gaming, they are already used to trading digital goods and money. So you can start a conversation by asking about their favorite games and how they work and you'll be surprised how fast they get the idea.
Then, you already have some educational resources available. For example, BitKidz is three-part book series written by preteens and educating children about virtual money. The Bitcoin Alphabet - For Kids and Everyone Else is an app able to help both you and your kid get the basics of virtual currencies. Also, games like Minecraft allow children to earn digital money and use them in the real world.
Nowadays, parenting includes a new task: educating your children about the digital medium. And you will always be caught between worrying about them having too much screen time and worrying about them not accessing enough information regarding new technologies that might become essential for them when growing up.