Cryptocurrency has been around for more than a decade. However, it only gained popularity after the introduction of Bitcoin in 2009. This virtual currency has become more mainstream in the past few years, with new cryptocurrencies entering the market regularly. There are many reasons behind the exceeding acceptance of cryptocurrencies. One of them is that there is no age restriction in buying and selling them. But there are some catches to this statement. Read on to learn more.
What is Cryptocurrency?
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Cryptocurrency, in its simplest definition, is a medium of exchange. Unlike cash or other digital payment methods, cryptocurrencies are wholly decentralized. They are not regulated by any centralized authority and do not have middlemen. It functions on the peer-to-peer network. Anyone can create a cryptocurrency and sell it. This provides a certain level of freedom and anonymity in the transactions done in cryptos. Cryptocurrencies are secured by cryptography, making them a safe option for traders.
The technology underlying cryptocurrencies is blockchain. Blockchain secures and stores decentralized information of all the transactions that take place. You can buy and mine cryptocurrencies, use them to purchase things. The entire system is built to ensure confidentiality and integrity. But it’s not all positive. Due to the absence of any regulating authority, it is easy to manipulate the prices of cryptocurrency. Even a single tweet from someone influential can send huge ripples across the crypto market. This makes the trading highly volatile. The volatility and the uncontrollable nature have made the governments of different countries some laws of their own.
Age Restrictions For Trading Cryptocurrency
When cryptocurrency had just entered the field of digital currencies, no age restriction was imposed on them. But with their rising popularity, many crypto platforms introduced the KYC (Know Your Customer), which has made the age limit 18. You have to be 18 years and above to trade cryptocurrency. Nevertheless, there are several legal ways of going around this limit and still investing.
Ways to Buy Cryptocurrency if You Are Underage
There are many ways to buy cryptocurrency even if you are underage. Remember to exercise caution while using any third-party services or websites.
- The easiest way to do this is by convincing your parents to help you. You can invest by using their accounts.
- Look for the platforms that let you buy and sell cryptocurrency without KYC. Do proper check before using them as many fraudulent websites are also on the internet.
- For investing in Bitcoins, you can use Bitcoin ATMs. Bitcoin ATMs don’t require identification and can work even with message verification.
How to Trade Cryptocurrency
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While the entire trading process is fairly simple, it might sound complicated while reading. The steps are as follows-
- Find a crypto broker and make an account with it.
- Connect your account with your bank or in whatever way you want to fund your trading.
- Choose the cryptocurrency you want to buy. There are many popular cryptocurrencies in the market. Some of them are Bitcoin, Ethereum, and Dogecoin. Due to the intense volatility of the market, the prices for these currencies change frequently.
- Make a trading plan as per the amount of risk you are ready to take. The volatility is dangerous but also an attractive way to make quick profits. Learn all the things you must know about them and keep yourself up-to-date.
- Choose a trading platform. Many trading platforms offer extra services along with confidentiality and security.
- Get a cryptocurrency wallet if you plan on holding them for a long time. Even if you are actively trading them, you have to store your funds for easy access.
If you are looking to invest, the best strategy would be Hodling. According to Cypherpunk Holdings hodling is the process of holding the cryptocurrency for as long as possible to ensure future profits. Hodling is the process of holding the cryptocurrency for as long as possible to ensure future profits. It is safe to assume that the value of cryptocurrency will only increase in the future, automatically increasing the value of the currencies you hold. Click here for the best automated cryptocurrency trading software.
Advantages
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Many cryptocurrency enthusiasts believe that cryptocurrency will soon be a widely used form of digital currency. It will soon overtake other digital payment methods. This belief might be justified based on the many advantages that cryptocurrency offers.
- Transactions in cryptocurrency are quick and straightforward. The lack of a regulatory authority, the absence of middlemen, and the convenience of trading from your phones are a few reasons for the quick nature.
- The entire process is highly secure. Blockchain stores all the transactions that take place in cryptos, making it possible to trace the history while ensuring the complete anonymity of the people transacting.
- There is no extra cost of transactions. Unlike banks that charge service costs for digital payment facilities, cryptocurrency has no such thing. You can complete your transaction without paying any extra transaction cost, making it a cheaper alternative to other payments.
- There are no intermediaries in the crypto world. This also makes trading cheaper as there are no payment processing fees.
- The entire system of cryptocurrency is made on integrity and confidentiality. Data integrity is also placed in the authenticity checks.
Disadvantages
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No technology is perfect. Despite its various advantages, cryptocurrency also has its fair share of disadvantages. Some of them are
- Anonymity is one of the biggest advantages of cryptocurrency. But this advantage comes at the cost of the irreversible nature of transactions. Once done, you cannot reverse your transactions. So one must be extremely careful while making the transactions.
- If you lose your private key or the accessing password of your wallet, there is no way to recover it. This is also because of the lack of regulatory authority.
- Cryptocurrencies are immensely volatile. The price of any popular cryptocurrency can fall or rise because of rumors or a single tweet.
- They are also vulnerable to illegal activities. Tax evasion and money laundering can be easily done over cryptocurrencies.
Final Words
Cryptocurrency is considered a digital revolution. Its sudden popularity has raised the need for vigilance. Because of this, governments around the world have started passing laws to regulate them. Remember to check your country’s laws before investing in them.
