A friend in my society approached me to solve a unique problem for him. He wanted me to teach his 12-year-old son about cryptocurrency. The little fella was interested to buy an NFT after seeing some random ass videos from a random ass Instagram influencer. 😂 I tried to explain everything to him in simple language and hopefully he's on the right path now.
If you have children, then you are probably already aware of the fact that they can be a little annoying at times and irresponsible too. xD More often than most adults. That's why it's important to teach them how to use cryptocurrency responsibly and maturely before they go deep into the rabbit hole.
In this blog, I will tell you how to teach your kids about cryptocurrency so that they don't end up doing something stupid with their money online.
Tell Them How the Blockchain Works
Obviously, you have to start with the basics. This is a great place to start. Explain that a blockchain is a digital ledger that records transactions across many computers at the same time. This allows everyone in the blockchain to see every transaction and make sure it’s valid.
It’s important for children to understand what cryptocurrencies and blockchains are before they start learning more about them since they will be able to recognize all the terms and concepts later on in their education.
Explain What Cryptocurrency Is
It's no secret that cryptocurrency is one of the most volatile markets in existence today. At any given moment, a coin may be valued at $100 or $100 million. 😯
This presents an exciting opportunity to teach your children about the power of investing while they're young and impressionable. And it's also imperative if you want them to learn from your mistakes. Here are some tips to get started:
- Explain what cryptocurrency is and how it works. The basic idea behind cryptocurrencies like Bitcoin or Ethereum is that they're digital coins that can be traded for goods and services just like cash but without any intervention or oversight from the government or banks (at least, not yet). Cryptocurrencies run on blockchain technology, which creates an open ledger system where every transaction made with a coin must be verified before being added onto the blockchain itself; this prevents fraud by ensuring that each user has access only to their own funds while simultaneously allowing people across borders more freedom when sending/receiving funds between each other. Tell them about peer to peer concept.
- Explain the difference between fiat currency and cryptocurrency. Fiat currency (or "fiat money") refers specifically to any form of legal tender used in everyday transactions such as dollars, pounds, etc. The recent technological breakthroughs have allowed us access to alternative currencies like bitcoin which exist only in digital form! Just like the music file they listen to or photos they click. Fiat currencies rely on governments printing physical bills out first before releasing them into circulation whereas cryptocurrencies rely solely on math equations & code.
Use Examples to Help Them Understand
Using examples that are relevant to your child's age and interests will help them understand the topic better. Try to speak in their language!
For example, if the topic of cryptocurrency is introduced in a way that's relevant to your 12-year-old child’s life, they'll be more likely to retain the information and remember it in the future. Perhaps you're having dinner with some friends who are talking about how well their cryptocurrency investment is doing, or maybe you've told them about how much money you made on Bitcoin recently. If these conversations were happening regularly at home when they were younger, then this type of discussion won't be too shocking when they hear it later on.
Teach Them About Wallets, Keys, Security & Digital Privacy
Your children are now aware that cryptocurrency exists, and they've gotten a taste of what it feels like to be part of the crypto community. Now it's time for them to get their own wallets. Cryptocurrency wallets are a lot like regular bank accounts, but instead of having your money in the bank's safekeeping, you're in charge of storing your own funds safely. That's a huge responsibility! While this may sound daunting at first, setting up a wallet is actually pretty easy and there are many benefits! In fact, once you set up your child's first cryptocurrency wallet (or explain how one works), they'll be able to go out into the world and buy something with their newfound wealth in no time at all! 😉
But first, you need to tell them how to safeguard their funds. If someone steals their keys or they get lost, then there's no way your poor kids are getting their funds back. They are gone forever! That's why security and taking care of your digital privacy are of prime importance when dealing with crypto. Teach your kids on how to use VPN and ways to avoid scams & hacks.
Show Them How They Can Do Their Own Research
“If you give a man a fish, you feed him for a day. If you teach a man to fish, you feed him for a lifetime.”
Teach them how to distinguish between shitcoins and mutlibaggers. Encourage your children to do their own research before dealing with anything new in their lives. The same is true with crypto space. This way your kids can avoid getting rekt by putting their money into worthless opportunities due to FOMO.
Show Them How They Can Earn Cryptocurrency
Explain to them that cryptocurrencies are not just for investing but can be earned too.
In fact, you should teach your kids about the many ways they can earn bitcoin and other cryptocurrencies online. Tell them about decentralized social media websites Peakd, Ecency, 3Speak, LeoFinance & Liketu where they can earn crypto for publishing content.
They may have a hard time believing it at first, but if you show them some of the ways that people have earned on their own (without having to spend any money), then they might start to see things differently.
Make Them Learn More By Being A Good Role Model
You can't expect your child to follow in your footsteps if they don't know where those footsteps are leading. It's important for them to understand the true value of cryptocurrency and how it can be used responsibly. Once they do, they'll be more likely to make good decisions about money on their own.
Make sure that they see you using cryptocurrency in a positive way, not to fund politicians, propaganda, and war. xD It is not just about the technical stuff. You need to teach them the philosophy behind its creation and existence.
Conclusion
Cryptocurrency & Blockchain technology are still new, and many people have a hard time understanding them. However, your kids can be an exception to that rule and grow up to become leaders of the future by leveraging these technologies. It all depends on how much effort you put into explaining the ins and outs of crypto to them, which will help them understand the concept better than most adults who are trying too hard or not trying enough at all.