Everything would depend on the needs you have and which are your goals in terms of portfolio diversification. What they do with your coins is then their responsibility rather than yours. Thus, it is up to you to decide which service you use to get cryptocurrency for a minor. This account also comes with investment guidance and 24/7 . All of the providers on this list provide custodial accounts that can be used to save for your child's future. Platinum | QC: CC 1012, GPUmining 99, ETH 49 | MiningSubs 131, Platinum | QC: BTC 469, CC 118, Coinbase 114 | ExchSubs 122. From that perspective, crypto might be an excellent long-term investment to add to a childs portfolio. What Is a Custodial Roth IRA? I'm looking at a custodial investment account in a traditional brokerage. By purchasing cryptocurrency for a minor you will let them own these funds once they become adults. Grow Magazine offers additional information on topics of saving, investing, earning, spending, and borrowing. Vanguard is our choice for the best custodial account for mutual funds because it is known for its low-cost index fund products. At the moment, Nexo is offering 12% interest on your crypto savings plan. Stock plan account transactions are subject to a separate commission schedule. The app is not a pure crypto wallet, howeveryour kids currently cant spend Bitcoin directly at vendors. Decide if you want your kids crypto to be stored in a cold wallet, hot wallet, or both. And if you and your child are unsure about which crypto(s) to buy, you can always talk to an SEC-registered investment advisor for investment advice. If fees are too high, those costs might cut too much into your profits, so youll generally want an account with low fees. A custodial account is a type of investment account that an adult can set up for a child as a way to give them a head start on their financial future. Minors cannot buy, sell, or trade any type of securities. While a child is still a minor, their parents or custodians control the investment account. This is due to KYC regulations and to be compliant with local regulations. Another thing you should consider before you decide to buy virtual currencies for your child is to plan how to share with him the necessary information about the wallets you own (if this is a non-custodial wallet) and how to access these funds. By Kaye A. Thomas Current as of July 8, 2016. Buy stocks, funds, or crypto for children Check out what he thinks about the stock market, sports, and everything else at @KyleWoodley. If you plan to use a centralized exchange or other form of custodian, choose a password that is long, complex, and unique. Before you set up a custodial account for a minor, consider whether this is the best choice. In other words, what goes in often cannot come out. Im looking at a custodial investment account in a traditional brokerage. Custodial Account for Minor Child w/ Crypto Gains For children who are college-bound, the availability of financial aid is a relevant concern in setting up a custodial account. To help keep your custodial account organized, Ally offers organizational tools that let you divide your savings up into using multiple buckets. This works by connecting your cryptocurrency wallet to decentralized protocols such as Compound. Thats why it should be part of a well-rounded portfoliomost experts say no more than 5%rather than having a crypto hardware wallet hold the entire savings for a child.