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If you’re wondering how old you have to be to buy crypto, the answer is that it depends on the exchange and the country you’re in. In the US, for example, you must be 18 years old to buy crypto on most exchanges. So check the exchange’s age requirements before you start trading.
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Introduction
Cryptocurrency is a hot commodity these days. With Bitcoin and Ethereum prices reaching all-time highs in 2017, more and more people are looking to get in on the action. But one question that often comes up is: how old do you have to be to buy crypto?
The answer, unfortunately, is not so simple. Unlike traditional stocks and bonds, there is no uniform age requirement for buying cryptocurrency. That’s because cryptocurrencies are not regulated by any central authority, such as the Securities and Exchange Commission (SEC) in the United States.
This lack of regulation means that each exchange or broker can set its own age requirements. For example, Coinbase—one of the largest cryptocurrency exchanges—requires users to be at least 18 years old. But other exchanges have no age requirement whatsoever.
So if you’re thinking about buying cryptocurrency, you’ll need to do some research first to find out the age requirements of the exchanges or brokers you’re interested in using. Keep in mind that even if an exchange doesn’t have an age requirement, you may still need to be 18 or older to open a account with them.
Once you’ve found an exchange that meets your needs, you’ll also need to create an account and verify your identity before you can start trading. This process typically involves uploading some form of government-issued ID, such as a driver’s license or passport. So even if an exchange doesn’t have an age requirement, you may still need to be 18 or older to open a account with them.
The bottom line is that there is no single answer to the question of how old you have to be to buy crypto. It depends on the exchange or broker you use. So if you’re thinking about getting into the cryptocurrency market, make sure to do your research first so you know what age requirements apply to your situation.
What is Cryptocurrency?
Cryptocurrency is a digital asset designed to work as a medium of exchange that uses cryptography to secure its transactions, to control the creation of additional units, and to verify the transfer of assets. Cryptocurrency is a decentralized control of monetary policy and has no central authority.
Bitcoin
Bitcoin is the first and most well-known cryptocurrency, created with the intention of establishin a decentralized, global digital currency that isn’t subject to government or financial institution control. Bitcoin is pseudonymous, meaning that transactions are not linked to any real-world individual or entity. Instead, each bitcoin transaction is associated with a “public key,” which is sort of like a really long password that’s unique to each user. Users can also have a “private key,” which allows them to access their bitcoins.
Ethereum
Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of fraud or third party interference. In the Ethereum protocol and blockchain there is a price for each operation. The general idea is, in order to have things transferred or executed by the network, you have to consume or burn gas. The cryptocurrency is called Ether and is used to pay for gas, so the more complex the transaction, the higher the gas price. Ethereum allows developers to build marketplaces, voting and democracy systems, financial exchanges, documentation management systems, and any other decentralized application.
Litecoin
Litecoin is a decentralized digital currency, with all transactions recorded on the public blockchain. It is an open source software project released under the MIT/X11 license, which gives you the right to modify, redistribute and use the software for any purpose. Litecoin was an early bitcoin spinoff or altcoin, starting in October 2011. In technical details, Litecoin is nearly identical to Bitcoin. For a more detailed explanation of what Litecoin is, where it came from, and how it works, see this explainer article. You can buy Litecoin with fiat currencies like USD, EUR or GBP on cryptocurrency exchanges like Coinbase or Kraken. You can also purchase goods and services with Litecoin. A few notable examples areOverstock.com, Bitrefill and BTCPay Server.
Bitcoin Cash
Bitcoin Cash is a cryptocurrency that was created in August 2017, arising from a fork of Bitcoin. It is also sometimes referred to as “Bcash,” “BCH,” or simply “BCC.”
As of May 2020, Bitcoin Cash had the fourth-largest market capitalization of any cryptocurrency, at nearly $5 billion. In other words, it would rank as the 40th largest company in the world if it were a business.
Bitcoin Cash was created to improve upon Bitcoin by increasing the size of each block from one megabyte to eight megabytes. This allowed for more transactions to be processed with each block and, therefore, for the system to handle more transactions overall. The developers behind Bitcoin Cash also wanted to be sure that everyone who held Bitcoin at the time of the fork (August 1st, 2017) would receive an equal amount of Bitcoin Cash.
How Old Do You Have to Be to Buy Crypto?
You have to be 18 years old to buy crypto. The reason for this is because crypto is a speculative investment and it’s important that you are of age and can make investment decisions for yourself. There are some exceptions to this rule, but for the most part, you have to be 18 to buy crypto.
The United States
In the United States, you have to be 18 years old to buy cryptocurrency.
Europe
In Europe, the answer to this question depends on the country you are in. In some countries, such as Germany, the age limit is 18. In others, such as the Netherlands, it is 21. In still others, there is no age limit at all. It is advisable to check with your local regulator before purchasing crypto.
Asia
In Asia, the median age of cryptocurrency users is 26.9 years old. South Korea has the youngest users, with a median age of 22.6 years old. China has the oldest users, with a median age of 30.5 years old.
Conclusion
In general, most countries have no specific age requirements when it comes to buying cryptocurrency. However, some exchanges may require you to be 18 or 21 in order to open an account and trade. Additionally, some jurisdictions may have regulations in place that restrict the sale of cryptocurrency to minors.
