The primary rule is simple. Most U.S. crypto exchanges require users to be 18 or older to open an account and buy crypto. This rule ties to identity rules and federal financial checks. Teens ask questions such as how old do you have to be to buy crypto.
This guide answers those questions and shows legal, safe options for young people. It also gives practical steps parents can use to invest for kids. Filsx wrote this to help you act safely and learn fast.
Quick answer
You must be 18 to buy crypto on major U.S. exchanges. If you are under 18, use a parent or guardian for legal purchases. Parents can open custodial accounts or buy crypto and hold it for the youth.
Why do exchanges set an age limit?
Exchanges follow identity rules that require verified ID for money handling. These checks stop fraud and help comply with federal rules tied to banking and anti-money-laundering. Exchanges also set internal policies to limit legal risk. That is why they block underage signups.
How does U.S. law affect age and crypto?
No single federal law names an exact age to buy crypto. The practical effect comes from banking, KYC, and AML rules. Banks and exchanges must verify identity and link accounts to real adults. That structure forces the 18+ rule on most major platforms.
Can a minor buy crypto at all?
Yes, a minor can own crypto but not usually on their own account at major exchanges. Safe routes include:
- The parent buys and holds crypto for the child.
- The parent opens a custodial account for the child where the parent controls the account.
- The child earns crypto through approved programs or games that reward cryptocurrency.
These paths keep transactions legal and reduce fraud risk.
How to buy crypto as a minor? – Step-by-Step Options
Here are safe, legal steps for teens and parents.
Option 1 – Custodial account
Parents open a custodial investment account that allows crypto investments on behalf of a minor. The parent is the legal owner until the child reaches adulthood. Use a known platform that supports custodial accounts. Track tax rules and gift rules when you transfer assets later.
Option 2 – Parent buys crypto and transfers later
A parent buys crypto on their verified exchange account and stores it in a secure wallet. The parent can then transfer ownership when the child turns 18 or when the parent sets terms in the custodial arrangement. Use a hardware wallet or a reputable software wallet for safety.
Option 3 – Earn crypto through work or programs
Young people can earn crypto via freelance work, learning platforms that issue crypto rewards, or certain games that reward tokens. Earning reduces legal friction since a parent still oversees payment flows when required by law.
Option 4 – Peer-to-peer with full parental oversight
Peer-to-peer platforms sometimes allow trades with less strict onboarding. This route carries high risk. Scams and fraud are common. Do not use P2P without a parent present and full verification of the counterparty.
How to buy crypto at 16?
A 16-year-old should not open an exchange account alone in the U.S. The correct path is parent-assisted buying. A parent can:
- Open an account and buy crypto for the teen.
- Use a custodial product that names the teen as beneficiary.
- Teach wallet basics and practice with small amounts.
Teens can learn trading, wallets, and security using sandboxes and simulation tools before handling real funds.
Can a 14 year old buy cryptocurrency?
A 14-year-old cannot legally register on most exchanges. Focus for this age should stay on education. Safe steps include:
- Learning blockchain basics with free courses.
- Using simulation apps or demo accounts.
- Getting small amounts of crypto through parental gifts held by parents.
This approach builds knowledge while keeping legal and financial risks low.
Risks for minors who try to bypass rules
Trying to sign up with a false ID or using an adult’s credentials can cause account closure, frozen funds, and legal trouble. Young people face scams, phishing, and loss from risky tokens. Education and parental supervision reduce these risks.
Wallets and custody – what young investors should know?
A wallet holds keys. A custodial wallet gives control to a service provider. A noncustodial wallet gives control to the owner who holds private keys. For minors, custodial custody under a parent often makes sense. Teach secure key storage and backup habits early.
DeFi and NFTs – Are they suitable for minors?
DeFi and NFTs carry high technical risk. These markets expose users to scams and complex smart contract risks. Minors should study these systems before investing. Parents should supervise any DeFi use and restrict access when needed.
Taxes and reporting for crypto gifts and custodial holdings
Crypto gifts follow tax rules. Parents should track gift values and any taxable events. If a parent sells or transfers crypto, tax rules apply to capital gains. Keep clear records of dates, amounts, and transfer values for tax filing.
State differences in the USA
Most states follow federal rules on identity and banking. State regulators may add rules for money services or digital assets. Check state-level guidance when choosing an exchange or custodial platform. Ask the provider which state rules apply to their services.
Security checklist for parents and teens
Follow this checklist to reduce loss and theft.
- Use two-factor authentication on exchange accounts.
- Store most funds off-exchange in a secure wallet.
- Use hardware wallets for long-term holdings.
- Keep private keys private. Do not share them.
- Teach teens how to spot phishing and scams.
- Keep software up to date and use strong passwords.
How Filsx helps young investors?
Filsx offers clear guides on wallet setup, custodial options, and safe learning paths for teens. Use Filsx tutorials to learn how to secure keys, set up wallets, and track crypto performance. Filsx focuses on safety and plain language for first-time investors.
Best practices for parents who want to help a teen invest
- Start with a plan that sets goals and limits.
- Use small, controlled amounts for learning.
- Teach record keeping for taxes and transfers.
- Keep crypto holdings on secure devices and use hardware wallets for large amounts.
- Review transactions with the teen and explain the risks of volatility.
Sample scripts for parents and teens
Use these short scripts when teaching or supervising.
Parent to teen when buying:
“I will buy this amount and hold it in a custodial account. You will see the transactions and learn how it works.”
Parent to exchange support:
“We need a custodial option for a minor. Which products support parental custody and what paperwork do you require.”
Teen to parent when asking permission:
“I will start with a small amount. I will learn how wallets work, how to back up keys, and how taxes work.”
FAQs
Can minors buy crypto legally in the USA?
Most major exchanges require age 18. Minors can own crypto through parental custody or gifts.
Can a 14 year old buy cryptocurrency?
Major platforms do not allow 14-year-olds to register. Use educational routes and parental custody.
How to buy crypto at 16?
A 16-year-old needs parental help. Parents can buy on their account or use a custodial product.
How to buy crypto under 18?
Parents should handle purchases. Custodial accounts and parental transfers give legal ownership and help with taxes.
How to buy crypto as a minor?
You need a parent or guardian. Use custodial accounts or have the parent hold the assets until you reach adulthood.