How to Create a Crypto Savings Wallet for Your Child
Whether you are a crypto enthusiast or a crypto-curious beginner, as a parent you may have wanted to share your interests with your child, and if you also believe in the long-term value of crypto, to give them an early start on this type of asset.
The easiest way to do this is to create a cold wallet so that you, as well as friends and family, can deposit crypto for your child until they are ready to manage it themselves. In fact, creating a cold crypto wallet as a savings account (that can also generate returns) is much easier than starting a custodial account at the bank or building a market portfolio in their name.
Create a cold/paper wallet
Creating a cold wallet (sometimes referred to as a paper wallet) means:
1. generating the wallet securely
2. writing down the access information and wallet address very carefully
3. only SENDING crypto to the wallet, but not accessing it online so that the keys are not exposed to the internet
The most secure way to make a cold paper wallet using MEW is with the MEW wallet app. Just download the app, go through the easy steps of generating a wallet, and then write down your recovery phrase and wallet address. The phrase will serve as the key that you or your child can later use to access and move the crypto (even 10-15 years down the line). The address is where you can send the crypto, and keep track of the balance on a block explorer, without ever having to access the wallet. The entire process should take you less than 10 minutes – really. You can find the detailed guide in our Help Center.
Please note: what makes a cold or paper wallet secure is the fact that the keys are NEVER used online and the assets are not being accessed or moved. Once you decide to access the wallet on a wallet interface, and put in the phrase or key to do so, it’s no longer a cold wallet.
Exploring crypto together
You can create a cold wallet for your child regardless of their age, but if your kid is a teenager, there are other great ways to get them started thinking about crypto. You may actually find that they can teach YOU a lot about digital assets and the metaverse. Here are a couple of things to explore together.
NFTs: discuss creator economies and asset appreciation
NFTs are probably the most trendy crypto assets at the moment. They are also very versatile, ranging from art, to sports collectibles, to song recordings, to in-game items – there is something for everyone.
NFTs are probably the easiest way to understand the benefits of asset ownership on the blockchain. With a couple of fairly simple steps, your teen can create an NFT, list it on a marketplace like Rarible or OpenSea, and see if their art attracts fans. If someone decides to buy their NFT, they get the payment directly in their crypto wallet without any intermediaries. Many teens are well-versed in creator economies on platforms like TikTok, Instagram, and YouTube, but they may not be aware of the ways those platforms can also exploit creators. Exploring NFTs can add to their understanding of monetization possibilities for content creation.
In addition, a big lesson of NFTs is that assets can both increase and decrease in value dramatically. Understanding what people like (and will continue to like in the future) can be rewarding, if you make the right call. At the same time, nobody can predict future trends with certainty, which is why it’s important not to put all your resources into any one asset.
Browse our blog and help center to learn more about NFTs, and find out how you can use MEW wallet app iOS or Android to interact with NFT platforms.
Staking: understand networks, growth, and long-term strategies
Staking is becoming one of the most attractive and stable ways of collecting passive rewards in crypto. In a space where high risk and quick returns are the standard, staking is the more low-effort option, emphasizing a long-term strategy.
It can also be a good opportunity to discuss how decentralized networks work. Participants who stake cryptocurrency on a blockchain are being rewarded for helping to maintain the network. They are supporting the growth and security of an ecosystem that they believe in, and earning returns at the same time. It’s important to note that these networks don’t have a centralized authority and are only as strong as their global communities. This kind of do-it-yourself collaboration in the digital world, as well as the ability of communities to generate considerable value, can resonate with teens.
We are all becoming increasingly aware that our investments into certain company stocks have social and moral implications. Similarly, before staking on a specific blockchain, it’s a good idea to research the network’s goals, road map, and team. Quite likely, your child already has a good idea of what kind of values they are looking for in organizations they support. For Gen Zs, a company’s attitude toward the environment and its awareness of current social issues can be more important than the products themselves. Talking about blockchain staking can add to their understanding of the connection between investment, citizenship, and community.
If you haven’t explored staking yet, see our article about the different ways and benefits of staking, as well as Ethereum’s transition to proof of stake. Then, take a look at all the staking options in MEW wallet app and MEW web.