Post
Topic
Board Beginners & Help
Re: Crypto child savings account
by
ReddaJoppe
on 01/02/2023, 13:22:53 UTC
What do you mean you're "looking to accumulate some sort of interest during that period?" If you're thinking of a bank-like scenario, that's something not advisable as it means you will entrust your funds to a custodian. It's risky and not worth it. The best way is to have your funds kept in a cold wallet. Forget about interest. It could mean your children might not be able to enjoy it.

I'm aware that it doesn't work like a bank account. I've been reading about possibilities to earn more crypto simply by holding it. One option is staking, but it sounds like there are other possibilities as well, but I haven't looked that deep into it yet, and it also seems a bit complicated. That's why I'm asking.

Also, since this is for the next 6-10 years, you might want to focus only on Bitcoin. Avoid altcoins as it could mean they're already worthless by the time they're given to your children.

I was thinking something like 50% BTC, 25% ETH and 25% others (is there some sort of crypto index of the 20-50 most popular or valuable coins that you can invest in?) Does that sound sensible?