Vikki Velasquez is a researcher and writer who has managed, coordinated, and directed various community and nonprofit organizations. She has conducted in-depth research on social and economic issues and has also revised and edited educational materials for the Greater Richmond area.
Even approaching two decades since the launch of Bitcoin in 2009, the crypto space enjoys substantial popularity, with many adoptees around the world believing it will continue to revolutionize the world of finance.
It’s no surprise that young people are among the many interested in cryptocurrencies. But should teenagers invest in crypto? While regulations allow for minors to participate in the cryptocurrency space, there are substantial barriers to entry — and this may push young traders to explore riskier options.
Cryptocurrencies are digital currencies that utilize cryptography to facilitate anonymous, secure transactions, and typically also involve blockchain technology. Generally, these virtual currencies are decentralized — they are not issued by a government or central bank and do not have physical backing or any physical presence, but rather are “mined” or generated via complex computing processes. Thousands of cryptocurrencies exist, but the most popular include Bitcoin, Ethereum, and Tether.
Can teenagers legally trade crypto in the U.S.? The short answer is yes. No federal laws currently exist prohibiting minors from investing in cryptocurrencies. This makes them stand out relative to many other assets, which cannot legally be sold to minors in the U.S.
The longer answer to that question is more complicated, however. In practice, the way most people buy and sell digital tokens is through a popular exchange such as Coinbase. Exchanges provide some security for investors worried about storing their tokens, and they facilitate markets in which users can deposit fiat currency and buy, sell, or trade crypto. The issue for minors is that these exchanges frequently employ requiring that accountholders be at least 18 years old.
Still, teens looking to invest in cryptocurrency do have some options.
Although cryptocurrencies are designed with anonymity and security in mind — transactions are verified using blockchain technology and distributed ledgers — the reality is that crypto holders are . Estimates place the value of all crypto tokens stolen in 2024 at $2.2 billion.
Like many other assets, the law of supply and demand dictates the price of cryptocurrencies. Many crypto tokens fluctuate in price significantly depending upon demand, and they exist in a unique space compared to stocks and other traditional investments because they are available around the clock and not limited to specific trading hours each day.
Given these factors, investors should see crypto as a speculative investment, meaning they should be prepared to lose all the money they invest in tokens. While this is especially true of the large number of new or unknown cryptocurrencies, it is even possible with the largest names.
As the first cryptocurrency and the largest in size by total market value, Bitcoin (BTC) is often synonymous with the crypto universe as a whole. It was created in 2009 by a programmer (or group of programmers) under the alias . Bitcoin was used — and continues to be used — as a reward to participants in the network who would process and verify transactions on its original blockchain.
In recent years, the popularity of Bitcoin has led non-participants to get involved in “mining,” and there are even entire companies dedicated to generating Bitcoin in this process. However, the total supply of Bitcoin is capped at 21 million BTC, so this will not be possible forever. Still, looking at Bitcoin’s price history, it’s easy to see the appeal for would-be miners — BTC has risen from a few cents when it originally began trading to more than $124,000 per coin in Aug. 2025.
The other best-known cryptocurrency is Ethereum, with a native token called Ether, or ETH. The second-largest crypto by market value, Ether powers smart contract technology that has made a tremendous variety of decentralized apps (dApps) possible and facilitates many other cryptocurrencies. Ether offers some advantages over Bitcoin, including higher transaction processing speeds.
To start trading crypto, every investor first needs a way to store their tokens. The solution is called a wallet. Most commonly, wallets exist digitally and are accessed using special codes called keys, but they can also exist physically to provide extra defense against would-be hackers or thieves. Centralized cryptocurrency exchanges often have , removing the need for users to set up their own.
Because of KYC protocols, minors cannot set up accounts on many of the most popular exchanges. However, there are ways for teens to invest in crypto. These include:
As a speculative investment, cryptocurrency is risky. It’s important never to invest more than you’re willing to lose. The risks are not necessarily unique to teens and include the following:
Teens may be drawn to cryptocurrency because of stories about massive increases in price or because of trendy tokens that have gained popularity. Still, there may be other options for young investors looking to explore the speculative space — or to simply diversify their emerging portfolios. Consider the following alternatives:
Cryptocurrency’s appeal is strong thanks to its unique structure and a perception among investors that it can lead to significant gains. Teenagers may be interested in taking part in the crypto space, and while there are no regulations prohibiting their trading cryptocurrencies, the reality is that access can be difficult due to accountholder rules for popular exchanges and brokerage apps. Alternative approaches do exist, including some custodial accounts, apps allowing users to earn crypto, and decentralized exchanges without KYC protocols, but these may carry unique risks.
If you are a teenager, one of the best things you can do is continue learning about cryptocurrency and how it is changing the world of finance. Working with a parent or guardian to set up a custodial account or approved app can be a good way to begin to make speculative investments in the space.
