Can I buy crypto for my child?
Parents who want to buy crypto for their kids have several options:
1. Create a brokerage account to buy and hold crypto. Parents can buy cryptocurrencies, store the holdings separate from their personal account, and transfer funds to their child when they turn 18.
Note: With UNest Plus, parents can buy and hold crypto in a specific account set aside for the benefit of their child. 2. Instead of maintaining a separate account, parents can open a personal account at any broker or exchange, such as Coinbase, and purchase crypto using cash. Once their child turns 18 years old, parents can gift the crypto to their child.
3. Parents can give their child indirect exposure to crypto demand by investing in a cryptocurrency futures ETF. ProShares Bitcoin Strategy ETF (BITO) is a popular choice. Note: Because this approach involves buying futures contracts to roughly track the price of Bitcoin, neither the parents nor ProShares owns the underlying crypto.
4. Parents can buy a cryptocurrency Trust, such as the Grayscale Bitcoin Trust, through over-the-counter (OTC) exchanges.
5. Parents can buy shares of particular companies who have business ties to the crypto industry. Examples include Coinbase Global, Inc. (symbol: COIN) and Block, Inc. (symbol: SQ).
This material is for informational purposes only and should not be construed as financial, legal, or tax advice. You should consult your own financial, legal, and tax advisors before engaging in any transaction. Information, including hypothetical projections of finances, may not take into account taxes, commissions, or other factors which may significantly affect potential outcomes. This material should not be considered an offer or recommendation to buy or sell a security. While information and sources are believed to be accurate, UNest does not guarantee the accuracy or completeness of any information or source provided herein and is under no obligation to update this information.
Don't just take our word for it
Hear what trusted money experts say about why UTMA and UGMA accounts can be a smart way to invest for a child’s future.
There are some tax advantages to using UGMA and UTMA accounts… Since they’re in your child’s name, the accounts will be taxed according to their tax bracket… There are no contribution limits on UGMA and UTMA accounts.
Dave Ramsey
Personal Finance Expert
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Investing for your kid’s future
Dave Ramsey
Personal Finance Expert
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...you could consider opening an account where you can dive deeper with the kids by your side. The easiest way to do so is to open a custodial account, known as an UGMA ... or UTMA ... account.
Jill Schlesinger
Emmy winning Business Analyst
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Straightforward “starter” investing account for kids
JILL SCHLESINGER
Emmy winning Business Analyst
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You can give children money that can accumulate somewhat tax-free over time... I love them (UTMAs) because they were like, trusts that you didn't need lawyers to create.... I think it's one of the better tax breaks around though. I know hunting for tax breaks may not sound very exciting, but that's how you take care of your family.
Jim Cramer
CNBC Host
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Give children money that can accumulate over time
Jim Cramer
CNBC Host
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