How to teach cryptocurrency to your children
Teaching cryptocurrency to children can be a great way to introduce them to the world of finance and technology. Here are some interactive ways one can utilize to teach cryptocurrency to children:
Start with the basics and use analogies
Start by defining and describing the nature of money. Inform your kids about the various types of money and the function of banks. It is also important to teach them the origin of money and how it got involved, from paper money to digital money.
Related: What is cryptocurrency? A beginner’s guide to digital currency
Furthermore, analogies can be a powerful tool to help children understand complex concepts. For example, one could explain cryptocurrency as “digital money” or “internet money” and compare it to physical money.
Play games and use real-life examples
Children can learn about cryptocurrencies in amusing ways through games. In addition to several board games that cover the fundamentals of cryptocurrencies, there are many online games that simulate purchasing and selling cryptocurrencies.
Alternatively, use real-life examples to help children understand how cryptocurrency works. For instance, begin by playing a number-guessing game by picking a secret number between 1 and 100 and asking your child to try to guess what it is. For each guess they make, give them a clue to help them get closer. Now, ask your child to pretend that each Bitcoin (BTC) is like a special number that’s worth a lot of money.
Related: A beginner’s guide to the GameFi ecosystem
Then, tell your kid that everyone around the globe tries to figure out the Bitcoin number, and whoever finds it, gets to keep it. But they have to keep guessing until they get it right, exactly like in the simple number-guessing game.
However, Bitcoin presents a challenge because the number that needs to be guessed is always changing. Sometimes, it’s really simple to guess, and other times, it’s very challenging. It’s like the number is always moving up and down, kind of like the stock market.
Did you know bitcoins are created from a number guessing game played by a group of players? Rommel Vergara dives into how #bitcoin started here #FromtheLabs https://t.co/rXvwV1fsCd pic.twitter.com/cuHjYBWXSv
— IR (@We_Are_IR_) March 30, 2018
Continuing to guess the number between 1 and 100, explain to your children that if they correctly predict the number, you’ll award them with 1 BTC as a gift. And if 1 BTC’s worth increases the next day, they will have more money, or vice versa.
#UnderstandBitcoin Having kids and being totally obsessed with #crypto eventually led me to explain #Bitcoin to my 5yo daughter…this may seem easy – but I invite you to try it. When you find this impossible, try this: Bitcoin Money: A Tale of Bitville Discovering Good Money pic.twitter.com/O7UcxcZ0PL
— Hannah Rosenberg (@hmichellerose) October 24, 2021
Blockchain is a digital lego
Tell your children to think of blockchain as a type of digital building block that’s used to keep track of things. Instead of building towers or houses in a Lego game, internet money uses blockchain to keep track of transactions.
Show them how to buy cryptocurrency
Find a cryptocurrency trading simulation game and go through its tutorials to show your child how to buy cryptocurrency. Explain to them the importance of opening an account on a cryptocurrency exchange, just like websites. In addition, inform them that in order to buy and sell cryptocurrency with real money, one must fund their exchange account using fiat money.
Then, use the fake in-game money to buy some Bitcoin and confirm the transaction, just like in real life. After buying BTC, encourage them to watch the market trends to see if the value goes up or down. Make your children aware that if the value of Bitcoin goes down, they may lose money or vice versa.
On the contrary, create a board game where kids have to use cryptocurrency to buy and sell different items. This will help them understand the concept of buying and selling, as well as the risks and rewards of investing in cryptocurrency.
A digital wallet as a special type of piggy bank
Your children may ask you about storing cryptocurrencies. You can explain to them that a cryptocurrency is stored in a digital wallet rather than a physical one, like a special kind of piggy bank, and that the digital wallet can be accessed from anywhere in the world and used to make online purchases.
Dialogue with a 10-yro.
-Do you have a piggy bank?
-No, but I have a digital wallet.#mummifymenow
— Pablo Pomposiello (@pablopompo) May 3, 2022
Watch educational videos
There are many educational videos available online that explain cryptocurrency in a way that is easy for children to understand. You can watch these videos with your child and use them as a starting point for discussion.
Moreover, videos can help children visualize complex concepts like cryptocurrency and blockchain, making it easier for them to understand the topic.