As a parent, you want to give your children every opportunity possible to have a successful life. In the old days, that meant giving them a piggy bank and encouraging them to save a few coins or dollar bills from their allowance each week. Today, it means helping them open investment accounts and building out a diverse financial portfolio; one that includes digital currency.
Maybe your kids are already begging you to help them invest in crypto, or maybe you’re a wise investor yourself and know this is a fantastic opportunity for them to start building wealth. Either way, the reality is that they’ll need a crypto account in their names in order to start buying, trading, and selling digital currencies.
Until Stack came along, there was not a single cryptocurrency platform that allows under-18 investors to join. That’s why we built the first — and only — cryptocurrency platform for investors under the age of 18. Stack is designed specifically for custodial crypto, because we think everyone, regardless of age, should be able to participate in digital currency.
But what is a custodial crypto account? And what’s it like to be a custodian for a minor’s account with Stack? Here’s what you need to know as a parent or guardian.
Careful: it’s illegal to open an account for a minor in your name
Your kids may be pressuring you to open a cryptocurrency account for them in your name. They want to be part of this growing market and to participate in the metaverse. But, it’s not worth taking shortcuts.
Opening a crypto account and allowing a minor to trade under your name is illegal. Just like it’s illegal for a minor to open a bank account, stock account, or acquire any other type of financial asset in their parent’s name. That’s what custodial accounts are for.
What is a custodial financial account?
A custodial account is one that is opened in a minor’s name, but managed by a parent or guardian until the minor turns 18 or 21 (depending on which state you’re in). It’s probably how you (and your own kids) got your first debit card or opened your first savings account at the bank.
It’s also how we’re able to welcome under-18 investors onto our cryptocurrency platform.
How does a custodial account work at Stack?
In order for your children to invest in crypto under the age of 18, they’ll need your approval. Only until you approve their account can they enter the platform.
Once that happens, you’ll each have your own separate account and login information within the Stack app. You can do things like set up automatic deposits, approve or deny transactions, and monitor investment and trading activities. You’ll also be able to watch with pride as your child learns responsible investing habits, grows their portfolio, and works towards becoming financially independent.
Stack is a safe, secure crypto platform
We partner with industry leading companies to ensure Stack is safe and secure. That means everything from protecting your children’s digital assets with Fireblocks, to working with the best crypto compliance team out there (that’s Aspect!), and running our platform through Prime Trust (who also works with major players in the crypto world like Kraken and Binance).
You can rest assured that safety and security are top priorities for every aspect of our app. Those factors are part of the draw to digital currency, after all.
Financial success starts here
Helping your kids invest in cryptocurrency with Stack is a powerful first step toward financial success and independence. Give your children the tools and freedom they need to learn about investing in a safe app that was designed with their age and needs in mind. Sign up for the Stack waitlist to get early access to the app.