Kids and teenagers from the Alpha Generation have gained a newfound interest in cryptocurrencies according to Jett and Ben, Co-Founders of www.hubpodschool.com. Every Saturday morning, they lead children from around the world and teach kids from the Alpha Generation about cryptocurrency, NFT’S and the Metaverse. Cryptocurrencies are a different class of digital money and assets that seem safe when best left to adults.
But there are several enthusiastic kids and teenagers who are eagerly waiting to receive their profits after investing in crypto. The crypto market has a new class of investors which comprises kids and teenagers. While investing seems risky, these kids believe that it can help them become more financially independent and get accustomed to emerging financial technologies and market developments. Although professional traders love the volatile cryptocurrencies, brand new investors prefer the less volatile ones, since keeping up with the market might become challenging. In this article, we have listed 10 cryptocurrencies that kids can buy with their small savings and continue to build on their financial literacy skills.
• Tether: It is the first cryptocurrency that is secured by the US dollar. This stablecoin was launched in 2014 and gained popularity quite rapidly. Despite certain legal proceedings involving tether’s developers, the crypto remained afloat. Moreover, the share of tether in the stablecoin market is more than any other existing stablecoins.
• USD Coin: USD Coin is another stablecoin that is pegged by the US dollar on a 1:1 basis. The coin was launched in 2018 and follows the mantra of ‘digital money for the digital age.’ It is designed to encourage more cashless transactions. Several use cases based on USD coin have proved it as a safe haven for crypto traders in times of volatility.
• Cardano: Cardano might be a riskier investment than the other two, but it can become a great way for new investors to learn more about blockchain technology. Cardano has a slow and steady approach to development. The idea behind this crypto is to provide alternate solutions to the drawbacks of ethereum. But the challenge pertaining to Cardano is that several other cryptos are also trying to provide solutions to ether’s shortcomings, making the competition for the crypto pretty difficult.
• Litecoin: For young investors, litecoin might be the perfect alternative to bitcoin. It has lower transaction fees, processes payments quicker, and is substantially cheaper than bitcoin. Litecoin also has solid fundamentals as a project and has higher returns than BTC as well. It has a block time of just 2.5 minutes making it extremely suitable for micro-transactions and point-of-sale payments.
• Dai: Dai is an ethereum-based stablecoin whose issuance and development are managed by the Maker Protocol and the MakerDAO decentralized autonomous organization. Its price is soft pegged to the US dollar and is collateralized by a mix of other cryptos that are deposited in the smart contract vaults every time a new DAI is minted.
• Binance USD: It is a 1:1 dollar-backed stablecoin issued by Binance. Launched in 2019, this stablecoin aims to meld the stability of the dollar with blockchain technology. Investors can trade BUSD on different exchanges and DEX and can also deposit the coins to gain an interest rate. It can be used as a collateral and loan asset, and as cross collateral in the future.
• Ripple: Currently, ripple is transforming the banking industry and is establishing itself as a leader in the digital payment industry. It is offering the fastest and lowest cost option to financial institutions for sourcing liquidity in cross-border payments. Ripple is fast and more scalable than any other digital asset. XRP and XRP assets are used to power innovative technologies across the payments landscape.
• Filecoin: Filecoin is a decentralized storage system, which is an open protocol and is backed by a blockchain the records commitments made by the network’s participants, with transactions made through FIL. It is based on both proof-of-replication and proof-of-spacetime.
• Hedera: Hedera is a perfect choice for investors looking for a more sustainable option among cryptos. It is a sustainable and enterprise-grade public network for the decentralized economy that allows individuals and businesses to create decentralized apps.
Even as cryptocurrencies have not yet become a preferred medium of currency for daily transactions and are limited to mostly trading and investments, they have proved more efficient in terms of foreign funds transfer as no additional fee is charged as well as it takes minutes than days when compared to banks.
However, considering extreme volatility and other risks, like the absence of crypto laws and regulations, it is also important to make your child understand the safety concerns.
“It would be unwise to skip the part where there equally are fraudsters who propagate their hyped altcoins and defraud uninformed citizens who blindly invest in the hope of betting on the next Bitcoin. In this vein, given the volatile nature of crypto, it also becomes imperative to emphasize the fact that one must invest only as much as one is comfortable losing both Jett and Ben say as Co-Founders of www.hubpodschool.com . They also want to make sure that any kid or teenager reading this article understand that they are not giving any financial advice. They are simply providing information to their peers from the Alpha Generation who they hope will continue to do research and speak to their parents about their investment choices.