How Old Do You Have To Be To Buy Cryptocurrency? A Guide for Young Investors

As a digital-native financial asset class, crypto has largely attracted younger generations. However, most crypto exchanges, including Binance, Coinbase, and WhiteBIT, impose age restrictions to meet regulatory requirements and protect minors from risky investments.

Legal Age Restrictions for Buying Crypto

In practice, buying crypto is more nuanced than it might seem.

So, how old do you have to be to buy cryptocurrency on a regulated exchange? The answer depends on where you live and how you plan to pay. In the U.S., most platforms require users to be at least 18, though some states set the bar at 21. The same 18+ rule applies across much of Europe, the UK, Japan, Hong Kong, and other regions.

To open an account on a regulated crypto exchange, you’ll usually need to pass identity checks and submit documents like a government-issued ID to verify your personal details, including your age. But this doesn’t mean minors are completely shut out. One way to buy crypto is with the help of a parent or guardian, through a custodial account linked to a bank card or other approved payment method.

What about other options, like peer-to-peer (P2P) exchanges that aren’t bound by the same regulations? How old do you have to be to do crypto on a non-regulated platform? 

P2P platforms such as RoboSats (for Bitcoin only) and dYdX don’t require identity verification, so there are no age checks. Payment options often include PayPal, Revolut, bank transfers, gift cards, and in some cases, even cash (in person or by mail).

You can also buy or sell crypto through crypto ATMs, which may allow minors to use them. While this option is convenient, crypto ATMs can be hard to find depending on your location, and they often charge higher fees than online platforms.

Parental Authorization and Custodial Account for Minor Users

Custodial accounts allow a trusted adult to oversee and authorize investments on behalf of a child until they reach legal adulthood. The money in the account belongs to the minor, while the adult acts as a custodian and manages the funds in the child’s best interest. Here’s a breakdown for more details:

How old do you need to be to buy crypto through a custodial account?
There’s no strict minimum age for the child, but the adult custodian must meet the platform’s requirements, usually being 18 or older. As long as an adult is involved, they can create the account, link a payment method, and help the minor start investing.

Can the child still make decisions, like what to invest in?
Minors can absolutely be part of the decision-making process, but the parent or guardian has the final say until the child is legally old enough to take over the account.

What kinds of custodial accounts are there?
There are different systems for managing assets on behalf of minors. In the U.S., the two main types are UGMA (Uniform Gifts to Minors Act) and UTMA (Uniform Transfers to Minors Act). UGMA accounts typically cover financial assets like stocks and mutual funds, while UTMA accounts are more flexible and may include other types of assets, including crypto, depending on the provider.

Why is adult authorization important?
Custodial accounts provide a legal and safer way for young investors to gain exposure to cryptocurrency, especially on regulated exchanges that restrict access for minors.

Age Policies on Popular Cryptocurrency Exchange Platforms 

The safest way to start investing as a beginner is through reputable centralized exchanges. Before signing up, however, it’s important to check the terms and conditions – you can usually find information about how old to buy Bitcoin there. On WhiteBIT, for example, the largest crypto exchange in Europe by traffic, services are only available to individuals who are at least 18 years old. The same rule applies to Binance and Coinbase. When you start the sign-up process on these platforms, you’ll be required to provide identity verification documents. If you’re under 18, your account will be rejected.

Attempting to use a fake ID to falsify your age can lead to serious consequences, including a permanent ban from the platform or even potential legal charges.

Instead of taking that risk, it’s better to act legally and discuss your options with a trusted adult. Parents or guardians can open an account on a child’s behalf, allowing them to invest under adult supervision. 

KYC as Age Verification 

Most crypto exchanges use a process called KYC – short for “Know Your Customer” – to verify who you are. It’s a standard step that helps prevent fraud and also serves to confirm your age. KYC is mandatory in most countries where crypto exchanges operate legally and is part of a broader effort to comply with Anti-Money Laundering (AML) regulations. These rules are designed to prevent illegal activities like money laundering, terrorism financing, and fraud.

By verifying users’ identities and monitoring suspicious transactions, crypto exchanges help ensure that digital assets aren’t used for criminal purposes. Most regulated platforms are legally required to follow both KYC and AML standards to operate. When you sign up, platforms like Binance, Coinbase, or WhiteBIT will ask you to upload an ID, such as a passport or driver’s license. These documents include your date of birth, which the exchange uses to confirm that you’re at least 18.

If you’re underage, your account won’t be approved. Without completing KYC, you also won’t be able to trade or withdraw funds. This system helps exchanges stay compliant and keeps minors away from risky investments.

Should You Invest in Crypto at a Young Age?

There’s no clear right or wrong answer. Many people buy their first crypto as teenagers. One of the most well-known examples is Eric Finman, who used a $1,000 gift from his grandmother to buy Bitcoin at age 12 in 2011 and became a millionaire by age 18. While Eric’s story is often cited as a success, there are also cases where teens have lost their savings.

Beyond buying, another common question is: How old do you have to be to use Bitcoin for payments, trading, or other activities? The answer is largely consistent with the minimum age requirement of 18 years for buying.

It’s also worth noting that teens are active on decentralized crypto platforms – launching tokens, trading, and, in some cases, even running scams. In 2024, a story went viral about a teenager who launched a memecoin on the platform Pump.fun. The high school student promoted the token during a livestream, then sold his share, causing the price to crash.

Overall, teens may exhibit the same risk-taking behavior, impulsiveness, and potential for mistakes as adults. However, they can be more vulnerable due to limited financial resources and inexperience. Getting involved in investments and taking financial responsibility before reaching legal age calls for careful thought, guidance, and education.