How to set up a crypto wallet for your child: A beginner’s guide

Key takeaways

• Early exposure to blockchain helps kids develop essential digital-first skills.
• Setting up a MetaMask wallet is an educational and hands-on introduction to crypto.
• Blockchain offers opportunities for creativity, financial literacy and strategy through NFTs and GameFi.
• Parental supervision is crucial to mitigate risks such as scams, volatility and unethical practices.

It’s no secret that children learn more efficiently than adults. This trait is a neurochemical advantage that, aside from the basics such as learning new languages and instruments, allows children to pick up new technologies much faster than their parents, as their brains are highly adaptable and efficient in acquiring new skills. 

Therefore, many are eager to introduce their children to environments that nurture skills they’ll find invaluable later in life. The only issue is handing them an iPad might not be enough. Indeed, having a tech whiz in the younger ranks of the family isn’t as rare as it once was, with so many kids now leveling the playing field.

One technology that parents might not have considered in the quest for developing a child’s “edge” is cryptocurrencies and blockchain technology.

With continent-wide regulatory frameworks emerging, Bitcoin (BTC) surpassing $100,000 and the United States officially referring to Bitcoin as “digital gold,” these advancements are quickly reshaping the financial landscape. Features like lower transaction fees, faster speeds, global reach and decentralization anchor the industry by solving issues inherent in the outdated financial system.

With only 6.8% of the global population owning cryptocurrencies — yet up 34% from 2023 — it might be time to introduce your child to this space. And it all starts with setting up a crypto wallet.

Can children even use crypto? 

It’s somewhat of a gray area. Many crypto exchanges are bound by Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations, which require them to verify users’ identities to ensure they meet the legal age requirements and prevent issues such as fraud.

But if that were really the case across the board, then how did a 13-year-old — aka Quant Kid — manage to create his own memecoin on Solana, build a community around it, only to withdraw the entire project’s liquidity in November 2024 and pocket around $30,000? 

Centralized exchanges and wallets only make up one-half of the industry. These are the regulated, compliance-focused side of crypto designed to operate within the boundaries of legal systems and provide a controlled environment for buying, selling and holding digital assets.

The other half? That’s the decentralized, permissionless world of blockchain. In this realm, anyone with an internet connection can create a wallet, interact with decentralized applications (DApps), and even launch their own tokens — all without submitting personal information or verifying their age. 

The latter is not only accessible to your child but also offers countless opportunities to learn.

While stealing investor funds is, of course, not the opportunity you should emphasize during the “crypto conversation,” it’s worth noting that for Quant Kid to reach that point, he would have needed an understanding of cryptocurrency fundamentals, smart contracts, tokenomics, liquidity pools, social media engagement strategies, DApps and blockchain explorers.

It’s a lot of very useful information for a 13-year-old in 2024. 

As long as parents instill an understanding of ethics, security practices and potential dangers, a crypto wallet can be set up for a child. This wallet can serve as the foundation for a learning journey that, when accelerated by “neuroplasticity,” will prepare them for the world of Web3.

Did you know? At just 12 years old, Eric Finman began investing in Bitcoin and went on to become one of the youngest cryptocurrency millionaires by the age of 18, showcasing the power of early adoption and foresight in the crypto world.

What age should a child get a crypto wallet?

While there is no universal minimum age for owning a crypto wallet, parents can open accounts on their child’s behalf, similar to a joint bank account. For instance, to access Coinbase services, users must be at least 18 years old, as many crypto platforms set age restrictions to comply with legal requirements. 

In most cases, a child can start using a wallet under parental supervision at a young age, but it’s crucial to choose platforms that allow minors to access services with parental consent. 

However, it’s essential for parents to educate their children about safe usage and monitor their activities closely.

How to set up a crypto wallet for your child

Setting up a MetaMask wallet is a simple, hands-on way to introduce your child to the world of Web3.

While there are many wallets on offer, MetaMask is a decentralized wallet that’s free, requires no personal information, and opens the door to exploring blockchain apps safely and responsibly. It’s also the most widely used crypto wallet. 

Here’s how to get started and what they’ll learn in the process.

1. Downloading MetaMask

Start by visiting the official MetaMask website or app store and emphasize the importance of downloading from the correct source to avoid phishing scams.

While the app can be downloaded for mobile devices, we recommend downloading the MetaMask extension for Chrome, Firefox, Brave or Edge. This option allows interaction with many DApps optimized for desktops, offering a broader range of use cases.

It also helps develop desktop-based skills, such as navigating browser settings, managing extensions and understanding web-based blockchain interactions.

2. Creating a wallet

Once installed, set up a new wallet. MetaMask will guide you through the process. Notably, the wallet generates a 12-word recovery phrase. Write it down together — on paper, not online — and explain why it’s critical to keep this safe and private. Losing it means losing the wallet forever. You might wish to explore creative options for its storage, such as in a safe in your child’s room. 

3. Adding Ethereum to the wallet

MetaMask runs on Ethereum by default, so you’ll need to add a small amount of Ether (ETH) to cover gas fees for transactions.

The easiest way of doing this would be from your own account (on a centralized exchange such as Binance), where you’d purchase and send ETH to your child’s wallet address, which can be copied directly from MetaMask.

In the process, you could explain how gas fees work and how to check network congestion (higher congestion means higher fees).

4. Making the first transaction

This is where your child gets hands-on experience with the basics of blockchain. Start by guiding them through a simple transaction.

Together, you could buy a low-cost non-fungible token (NFT) from a platform like OpenSea. Specifically, one that your child likes. Alternatively, you could send a tiny amount of ETH to a trusted wallet, like your own, to demonstrate how transfers work.

It’ll be important to explain that MetaMask processes transactions and sends them to the blockchain for verification. Once confirmed, the transaction is recorded on the blockchain, and the wallet balance updates in real-time. 

You don’t need to go into great detail, as hands-on experience can go a long way. 

5. Recapping security basics 

Building good habits early is crucial in the crypto space. Use this step to reinforce cybersecurity skills that will protect their wallet and funds.

• Emphasize that these should never be shared with anyone. Explain that whoever has the seed phrase controls the wallet.
• Teach them to avoid suspicious links, offers or unknown DApps. Show how to verify websites and apps before using them.
• Help them enable password locks or biometric access for their MetaMask wallet (on mobile). These layers of security add protection in case the device is lost or stolen.

You might also want to practice real-life scenarios. For example, what should they do if someone asks for their seed phrase? Rehearse responses to emphasize the importance of keeping it private.

Unlocking blockchain games with a crypto wallet

Introduce your child to DApps they can use with MetaMask. It’s likely that this will be where the real fun lies for them. These apps are powered by blockchain and connect directly to the wallet. While there are all sorts available that enable anything from yield farming to NFT trading, it’s best to start with GameFi applications. Here are some options: 

• Axie Infinity: A popular play-to-earn game where players breed, raise and battle digital creatures called Axies, earning cryptocurrency rewards while exploring a colorful, immersive world.
• Hamster Kombat: A fast-paced tap-to-earn game where players engage in competitive battles by tapping to earn tokens, combining simple mechanics with exciting challenges and rewards.
• Catizen: A blockchain-based simulation game where players manage and grow a colony of cats, balancing resource management, strategy and creativity in a whimsical virtual environment.

For kids interested in art, the blockchain offers a way to turn their drawings into NFTs using apps like Procreate or Canva for design and platforms like OpenSea or Rarible for minting. After creating a digital wallet like MetaMask and funding it with a small amount of cryptocurrency to cover gas fees, they can upload their artwork, mint it on a blockchain — e.g., Ethereum or Polygon — and list it for sale. 

In any case, show them how to connect the wallet safely and explain why it’s important to only use verified, secure platforms.

Encourage them to track their wallet activity regularly, not just for transparency but to spot any suspicious activity early. This also reinforces a sense of accountability for their wallet.

Later steps and financial literacy 

If your child is a little older, already familiar with GameFi, and showing an interest in exploring financial markets, a crypto wallet can be a powerful tool for teaching financial literacy.

One way to introduce technical analysis could be via the Bitcoin Rainbow Chart, which offers a simplistic view of when to buy and when to sell. Later, you can introduce decentralized trading platforms such as Uniswap, explaining how trading works in a permissionless environment and showing the basics of swapping tokens, liquidity and price slippage. 

Fundamental analysis can also be a fun and insightful activity. Encourage your child to explore blockchain projects by reading token white papers or researching project roadmaps. Discuss the importance of understanding what a token does, how it’s used, and why people value it. This helps them make more informed decisions while navigating a rapidly evolving market.

For practical learning, consider sending them a small weekly allowance in stablecoins to practice basic strategies like dollar-cost averaging. Let them experiment with swapping tokens on decentralized platforms, choosing when to enter and exit trades. This teaches them how consistent investments over time can reduce the impact of market volatility, even in a decentralized setting.

These activities encourage curiosity and build practical skills in finance, all within the safety of a supervised environment. They’ll not only learn to navigate decentralized markets but also gain an early understanding of responsibility, critical thinking and the opportunities available in Web3.

One word of caution, however: Ensure they never have direct access to your credit card.

Did you know? The Bitcoin Rainbow Chart is a colorful visualization tool that tracks Bitcoin’s historical price trends. It categorizes price ranges into bands, such as “Fire Sale,” “HODL” and “Maximum Bubble Territory,” offering a simplified way to gauge market sentiment and potential value. While it’s not a predictive tool, it helps investors view long-term trends rather than getting caught up in short-term volatility.

Teaching token creation: A hands-on blockchain lesson for children

Malpractice should be closely monitored by parents, although there is some value in teaching your child about token creation and management. Indeed, for children who love building and experimenting, creating their own cryptocurrency token can be an exciting way to explore blockchain technology more deeply.

It’s simpler than you might think, and platforms like Ethereum or BNB Smart Chain offer tools to help them get started with minimal coding experience.

Start by discussing what a token is and how it’s used. Explain that tokens can represent anything — from currency to digital assets in games or even unique collectibles. With platforms like Remix (for Ethereum) or tools like TokenMint, they can create and deploy their very own token in a matter of hours.

Walk them through deciding on key token details, like its name, symbol, total supply and whether it should have additional functionality like minting or burning. This process helps them think about economics and utility — why would someone use their token, and how could it have value?

Once the token is created, they can deploy it on a testnet like Ethereum’s Goerli or BNB Smart Chain’s test environment. This lets them experiment without real money, learning how to send tokens, track them on blockchain explorers like Etherscan, and even set up liquidity pools on decentralized exchanges.

Creating a token is a hands-on lesson in understanding tokenomics, coding basics and the broader blockchain ecosystem. It fosters creativity and technical curiosity while giving them a sense of accomplishment when they see their token live on the blockchain.

The risks of your child owning a crypto wallet

While this article takes a lighthearted approach, it’s important to highlight the real risks of introducing children to crypto. Blockchain technology offers exciting learning opportunities, but as mentioned earlier, many crypto platforms enforce age limitations for good reason.

Illicit activities have legal repercussions. Actions like rug-pulling can have serious consequences, including hefty fines and even prison time. Teaching children the importance of ethical behavior and the consequences of fraud is critical to ensuring they use their newfound knowledge responsibly.

There’s also the risk of scams and exploitation. The decentralized nature of blockchain means there’s little regulation, making it a haven for bad actors. Scammers may attempt to lure inexperienced users, including children, into phishing schemes, fake DApps or fraudulent projects. It’s essential to teach kids how to recognize red flags, such as unsolicited offers, suspicious links or deals that seem too good to be true.

Additionally, cybersecurity vulnerabilities are a significant concern. If a child mishandles their private keys or seed phrases, their wallet could be compromised, leading to the loss of funds. Educating them on secure practices, such as never sharing sensitive information and enabling two-factor authentication (2FA), is non-negotiable.

Another consideration is the emotional and financial risks of market volatility. Cryptocurrencies are highly unpredictable, and losses can occur just as quickly as gains. For younger users, experiencing these swings without a solid understanding of risk management could lead to frustration or even financial stress.

Lastly, peer pressure and overexposure to blockchain technology could lead to unhealthy habits. Children might feel compelled to chase trends, gamble with tokens or neglect other areas of learning in favor of crypto. Ensuring a balanced approach, with boundaries and parental supervision, is essential for keeping their engagement positive and productive.

Did you know? Quant Kid wasn’t the only young crypto enthusiast to pull off a malicious scam. In 2021, a 15-year-old orchestrated a SIM swap scam, stealing $23.8 million in cryptocurrency from an investor.

Cautiously inspiring the next generation

Just as early exposure to computing inspired figures like Bill Gates and Steve Wozniak, diving into Web3 could open doors for the next generation of innovators. By introducing your children to blockchain concepts from a young age, you might just inspire the inventor of an interoperable superwallet, artificial intelligence-powered decentralized finance advisory or even a quantum-resistant blockchain.

However, it’s essential to approach this space with a balanced mindset. While blockchain offers a wealth of opportunities — from financial literacy to creative exploration — it also carries significant risks. By teaching your child ethics, security practices and the importance of responsibility, you can ensure they engage with this technology in a way that’s both enriching and safe.

The goal isn’t just to help them mint NFTs, trade tokens or even create their own cryptocurrency. It’s to equip them with skills and knowledge that will serve them in a digital-first world. Blockchain literacy today could very well become as fundamental as computer literacy was for the pioneers of the past. With your guidance, they’ll be building a foundation for the future — responsibly and ethically.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.