Crypto 101 for Parents | Everymom

We’ve all heard the terms “crypto”, “bitcoin” and “NFT” casually thrown around over the past couple of years, but what do any of these actually do? mean? More importantly, is any of it even worth trying to understand? Cryptocurrency is definitely not an easy concept to wrap your head around, especially as a busy parent who has a million and one other things on her to-do list. But while it may seem like it’s strictly reserved for savvy financial experts and tech-obsessed business bros, using cryptocurrency is much more accessible (and perhaps even more beneficial) than you think. Whether you just want to learn more or seriously want to know how to get started, we’ve got the easy-to-follow 411.

After realizing that current exchanges do not cater to women’s technology preferences, Kendra Cole decided to create TheCryptoMom App, a black-owned and women-run crypto investment platform with the mission of making cryptocurrency accessible and beneficial to all mothers and parents. As a financial expert and mother herself, she offers a perspective on how cryptocurrency can be useful to someone raising children, and serves as a perfect resource for mothers curious about the world of digital finance.

We had the opportunity to ask Kendra about all things crypto, so read on if you’re ready to conquer the biggest question of them all: What the heck is cryptocurrency?

Kendra Cole

Co-founder and CEO of the CryptoMom app

Everyone today certainly has heard of cryptocurrency, but knowing exactly what it is is still a bit confusing. How would you explain it in easy to understand terms?

Cryptocurrency is a digital currency. Bitcoin is the world’s largest and most popular cryptocurrency. There are other types of coins such as Ethereum and Solana, which are called altcoins. We like to say bitcoin is like Kim and altcoins are the rest of the Kardashian/Jenner sisters. The different coins have different tools which are usually divided into four categories: payment coins, tokens, stablecoins and central bank digital currencies.

What would you say are the biggest benefits of understanding/investing in cryptocurrency, especially as a parent?

As a parent, I am constantly looking for ways to not only support my family’s current life (financially, educationally, etc.), but also for ways to support our future. Bitcoin in particular was created in 2009, so we’ve seen its price ebb and flow, but we’ve also seen other coins come and go.

As this industry continues to evolve, it is important for women in particular to be educated about it, even at a basic level, and to make the best decisions for themselves and their families. We know how the gender pay gap permeates our lives, and now that cryptocurrency is here, we don’t want to see similar gaps in knowledge and usage happen when it comes to women who don’t invest early and often.

I wanted to create opportunities for women and mothers to leverage cryptocurrency in time-saving and tax-efficient ways. And when I looked at what products and services were out there, none of them spoke directly to me, nor prioritized what was most important to me. That was the inspiration for the CryptoMom app.

Source: David McBee | Pexels

What initially got you interested in cryptocurrency and what made you want to create the CryptoMom app?

At the beginning of the 2020 pandemic, I wanted to stay busy and learn something new. At the time, there was a lot of chatter in the news about the price of bitcoin increasing. So I talked to some of my friends, who were also trying to find something to do, and we all started learning together.

But I wanted to do more with my investments. I was pregnant with our third child and I wanted to educate myself not only for my own well-being, but also to be able to start having these conversations with my children. I wanted financial literacy, which includes cryptocurrency, to be a common everyday dinner conversation. That got me thinking more about what this meant for my larger financial portfolio: Can I start a college fund for my kids funded by cryptocurrency? Is there a way I can plan for childcare with my income? Where were the other women interested in crypto and using a platform that gave us a safe place to invest in a way that saved me time? How do I give crypto to my loved ones in a fun, meaningful way, like a baby shower gift?

When I couldn’t find anything out there, together with my husband Lord, I decided to make it myself. The CryptoMom app is the premier destination for all things crypto for women, by women.

On our platform, women can buy bitcoin online in just three easy steps, create tax and non-tax advantaged accounts, and gift crypto for special occasions like baby showers and graduations. The app makes crypto more accessible and relatable to women and mothers.

What would you say are the most important things to keep in mind when navigating cryptocurrency?

I’m not a financial advisor, so I can’t give investment advice. But in general, for anything new, take the time to learn and understand what you’re investing in. It’s also important to find other women interested in learning and growing in crypto to ask questions and build community. Women are stronger together!

How is investing in cryptocurrency different from just investing in stocks?

First, let’s discuss some of the similarities between the two. Both stocks and cryptocurrency are risky assets, which means they all have a certain level of risk in relation to price. You buy certain stocks and cryptocurrencies with the belief that they will increase in value and/or provide a return on your investment. It’s similar to when you want to invest in real estate: there are some properties that you think might be a good investment and others that you think might not be, based on a variety of factors.

As for the differences, traditional stocks and cryptocurrency are categorized differently by the Commodity Futures Trading Commission (CFTC), which is an independent government agency that regulates the financial markets. The CFTC categorizes traditional stocks as a security, which means that when you buy a stock, you are buying partial ownership of a company. In contrast, cryptocurrency is categorized as a commodity. Another example of a commodity is gold: In general, the more people use a commodity like gold or crypto, the more its prices are driven up (because there is a fixed supply of that commodity).

Source: Mikhail Nilov | Pexels

What are the biggest benefits of investing in cryptocurrency?

In general, investing in cryptocurrency gives ordinary people the opportunity to increase their gains and access to be able to do it themselves, unlike traditional investments much of the time. Investing in the stock market has often been reserved for people who have access to financial advisers. I’ve also loved seeing the innovation in the space: you see female creators and startups from founders from diverse backgrounds building creative solutions that help their communities around the world, from NFTs to education to mentorship.

Why should people take the time to understand a currency that is not accepted by the federal government?

To clarify, in America the only currency accepted by the US government is the US dollar. For example, you cannot use British pounds or euros in America.

Cryptocurrency is being adopted worldwide. With other technologies like smartphones, you usually see wealthier countries adopt them first before they are later adopted by less wealthy countries. The good thing about crypto is that because all you need is internet access, it gives people easier access to what they are looking to buy.

We’re also seeing cryptocurrency being integrated into our everyday lives: Whole Foods is accepting bitcoin as tender, major banks are now starting cryptocurrency, and we’re even seeing big commercials during the Super Bowl!

There is a lot of skepticism surrounding cryptocurrency, with arguments saying that it is a very volatile investment with scalability issues. Do the advantages outweigh the disadvantages?

When it comes to investing, I always encourage people to first educate themselves about what they are investing in and always do what you are comfortable with and what is best for you and your family. That said, when it comes to volatility, investing in any market has a certain range of risk. For example, with the massive tech layoffs we’ve seen from big companies like Meta after disappointing financial results, you’d expect stock prices to fluctuate, but you may or may not necessarily sell all your shares. You may decide to hold onto your stock based on the fact that you believe Meta will eventually recover over the long term.

With other technologies like smartphones, you usually see wealthier countries adopt them first before they are later adopted by less wealthy countries. The good thing about crypto is that because all you need is internet access, it gives people easier access to what they are looking to buy.

We have a similar view on cryptocurrency, especially with bitcoin. You can read in the news about the changes in bitcoin prices, which may or may not affect your decision to buy or sell. Because we know that women take an investment approach to investing (as opposed to a casino-style, fast-trading approach like men), the CryptoMom app offers financial vehicles that allow you to invest bitcoin over the long term, like a 529 education account.

You mentioned a 529 education savings account. Should parents also consider cryptocurrency as part of their investment in their child’s education?

Like all parts of parenting, I think families should do what is best for their families. That being said, as a woman—whether you’re working or a SAHM—I’m always an advocate for women to strive for financial independence, pursue education, and stretch and grow in any way their hearts desire. As the person who makes the majority of the family’s financial decisions, when I look at the potential opportunities for growth in crypto, I want to be able to invest some of my money in my children’s future.

There is talk of crypto being phased out – what are your honest thoughts on that?

Rather than being phased out, I like to say that I think crypto is maturing and “growing up.” As with any new industry, there are going to be companies and ideas that come and go (remember when we had MySpace pages?!). In recent months, we’ve seen the results of failed regulation and corporate greed, but that’s not a failure of the actual technology, benefits, and possibilities of crypto: It’s the failure of human greed.

I think new technology and use cases make crypto ripe for innovation, and that’s what’s really exciting to me. You see NFT projects from diverse women around the world, crypto affinity groups committed to making blockchain education more inclusive and equitable, and startups from underrepresented founders finally getting their fair shot at access to capital and resources.

That’s one of the missions of the CryptoMom app: Women DESERVE to have an inclusive, secure platform that was made just for them, where they can learn and leverage crypto at her own pace in an accessible way. We don’t need men explaining to us products that literally ignore our preferences and priorities. We believe that women are the future of cryptocurrency and that women and The CryptoMom app together will usher in the next generation of female investors and change makers.

What is the most important piece of advice you have for other moms and those who identify as women who want to improve their financial literacy but are overwhelmed with where to start?

First, know that you are not alone. Studies show that most women lack confidence in their investment decisions, but women are often better investors than men. So gain the trust of a mediocre white man! And finally, know that you CAN do this. Women juggle so much, whether you’re a SAHM or a working parent, so a little thing like cryptocurrency is no sweat off your back. You got this!