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Re: Crypto child savings account

ReddaJoppe

on 01/02/2023, 13:35:45 UTC

Quote from: sheenshane on January 31, 2023, 11:38:28 PM

Quote from: ReddaJoppe on January 31, 2023, 08:02:52 PM

Is it possible to create accounts/wallets in their name, that I can control while they are minors, and that they automatically will become owner of when they turn 18? Or will I need to create a crypto account for myself and just manually gift it to them when they become of age? What might be the smart solution?

It seems like you're planning to sign up in a centralized wallet because you've said it under the name of your child.
No, that's a big mistake, don't trust any centralized wallets and store your Bitcoin for a long term that is intended for your child saving. That's not how will work. Centralized exchanges will have a right to your Bitcoin anytime and not under your control or your child's.

Choose these [BIG LIST] Hardware wallets (80+) which are very safe to store your Bitcoin that you've control on it. You can keep it and give it to your child when at the right age.
I always said here this valuable rule for storing your Bitcoin, "Not your keys Not your coins".

So are you saying bitcoin or other crypo funds are never safe, unless they're on a flash drive or something?
I started investing in crypto about a month ago, buying BTC at the Binance Exchange. I understand it's the world's largest crypto exchange is it really unsafe to keep funds in a Binance wallet or any other wallet at a large crypto exchange?
I've recently transferred all my cryptocurrency to Pionex, hoping to earn a little with their trading bots. Is it also consided unsafe to keep my crypto in the wallet at Pionex?

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Re: Crypto child savings account

ReddaJoppe

on 01/02/2023, 13:22:53 UTC

Quote from: Darker45 on Today at 01:58:56 AM

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.

Quote from: Darker45 on Today at 01:58:56 AM

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?

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Crypto child savings account

ReddaJoppe

on 31/01/2023, 20:02:52 UTC

I have recently started investing in crypto, and I have now decided to create crypto savings accounts for my children. Is it possible to create accounts/wallets in their name, that I can control while they are minors, and that they automatically will become owner of when they turn 18? Or will I need to create a crypto account for myself and just manually gift it to them when they become of age? What might be the smart solution?

I'll be depositing funds in their accounts regularly, which will keep sitting there for about 6-10 years, so I'll be looking to accumulate some sort of interest during that period. What options should I consider for this?