The world of cryptocurrencies is a realm where blockchain technology intertwines with groundbreaking initiatives, fostering an environment of innovation in which plenty of opportunities emerge every day. Volatility is ever-present in the crypto landscape due to political events and economic conditions, such as inflation, interest rates, and unemployment, suggesting a future of constant changes and diverse trajectories.
Whether because of the complexity of the technical process or the countless propaganda, the world of cryptocurrencies feels like simply too much for the average person to bother pursuing. At the end of the day, however, when Bitcoin is worldwide accepted as an asset for wealth preservation, and meme coins such as DOGE, SHIB, PEPE, and Trump coin are dominating the market, many individuals have started to acknowledge the benefits and importance to develop a proper understanding of cryptocurrencies.
Numerous parents who are not necessarily interested in becoming active traders have shown incredible interest in cultivating a clear and accurate foundation of cryptocurrency knowledge, aspiring to articulate the concept in a way their children could understand. If you’re also a parent who seeks to bridge the gap between children’s curiosity and crypto, keep reading.
Paint A Compelling Picture Through Imagination With Your…
5-8-year-old
“Teach them young” is a popular saying that has proven very beneficial in numerous circumstances. A child’s brain is like a sponge that effortlessly absorbs all the information around them. However, the learning process must be gradual. Otherwise, they might feel overwhelmed or bored and give up.
One way you can explain cryptocurrencies to your 5-8-year-old is through arts and crafts, not through fancy terms that are hard to understand, even for those who have recently finished high school. Challenge your kids to design their own crypto coin and engage in an interactive discussion about the coin’s name, looks, and value. Explain to them how everyone can design a crypto coin with the proper knowledge, and encourage them to develop a winning mindset that will never sabotage their chances of success because of fear.
Then, you can give them a basic example of something they’re already familiar with and then draw a parallel between the example and the concept of cryptocurrencies, illustrating to them how this ecosystem functions similarly to ordinary industries.
For example, if they wish to sell something, like a book or a toy, they would have to post an advertisement on an eCommerce site, such as Amazon or eBay, websites that stand as a middleman between them and customers. After they sell the book, they make 5 percent less money than anticipated. Why? Because eCommerce websites deduct these costs as compensation for their service to connect the sellers with the buyers in the form of fees. On the other hand, cryptocurrencies work on blockchain technology, which is very popular for minimizing costs and distributing control across users instead of a central authority.
8-12-year-old
Fortunately, your 8- to 12-year-old might already be familiar with virtual currencies from games they play online, such as Minecraft, Roblox, or Fortnight. These games imply special tokens that only have value in the game and can be bought to get upgrades or unlock in-game rewards, such as special characters, weapons, and outfits, without knowing what to expect. Consequently, you can distill the core terms of cryptocurrency and convey them through the lens of imagination. Here are a few examples:
- Blockchain could be explained as a big notebook where everyone writes down everything that happens in a game. Every participant holds a copy of the notebook, so if anyone has malicious intent and wants to change what is already written, the others will see it and notice that something is wrong.
- DeFi (Decentralized Finance) could be explained through a scenario where your child and their friends want to trade stones. Instead of using a shopkeeper to exchange them, they decide to do it on their own with the guarantee that everything gets written down and no one can cheat. There’s no higher authority that tells them what to do, and they’re the only entity in charge of everything.
- Bitcoin is like a shiny gold ticket that everyone in the world can see, but nobody has the power to touch or steal it. However, the ticket is not in their pocket. It is stored in a magical cloud with the mention that only they have the code that proves it belongs to them.
- NFTs (Non-Fungible Tokens) are like cool drawings with a special golden sticker on them. The sticker shows that the picture is yours and unique, like a one-of-a-kind treasure. No one else can have the exact picture, even if they copy it.
Discuss With Your Teenagers The Risks Implied
Teens are more likely to have encountered or are encountering crypto opportunities, so it would be better to start off the conversation by explaining the most common risks that exist in the cryptocurrency world. Jonathan Leslie from NatWest’s fraud prevention team has raised awareness of the organized crime gangs that are actively seeking ways to launder illegal money, targeting young adolescents who are using TikTok and Instagram and are vulnerable to money talks in general.
These malicious actors present their offer as a harmless way to make a quick buck, asking young people to accept or move money with the honest promise of payment in cryptocurrencies. As teenagers usually have unlimited access to the internet, it’s of paramount importance to make sure they’re aware of these kinds of fraudsters.
Furthermore, it’s essential to present them the world of cryptocurrencies exactly as it is, emphasizing its volatile nature that contradicts the common belief that crypto is a sure way to wealth. Numerous stories of Bitcoin multimillionaires are navigating through the internet, tricking teenagers into believing that “If they did it, I could do it too.” This mentality could be partially fair, but unfortunately, not all crypto investments have a happy ending. Make sure your relationship is built on trust, and encourage them to talk about any potential cryptocurrency investment they might be considering when they reach the age to buy crypto, which generally is 18 years old.