How to teach cryptocurrency to your kids

Teaching children about cryptocurrency can be a great way to introduce them to the world of finance and technology. Here are some interactive ways one can use to teach cryptocurrency to children:

Start with the basics and use analogies

Start by defining and describing the nature of money. Inform your children about the different 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 can explain cryptocurrency as “digital money” or “internet money” and compare it to physical money.

Play games and use real-life examples

Kids can learn about cryptocurrencies in fun ways through games. In addition to several board games that cover the basics of cryptocurrency, there are many online games that simulate the buying and selling of cryptocurrency.

Alternatively, you can use real-life examples to help children understand how cryptocurrency works. For example, start by playing a guessing game by choosing a secret number between 1 and 100 and asking the 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 is worth a lot of money.

Related: A Beginner’s Guide to the GameFi Ecosystem

Then tell your child that everyone around the world is trying 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, just like in the simple number guessing game.

Bitcoin presents a challenge because the number that must be guessed is constantly changing. Sometimes it is very easy to guess and other times it is very challenging. It’s as if the number is always moving up and down, much like the stock market.

Keep guessing the number between 1 and 100, explain to your kids that if they predict the number correctly, you will give them 1 BTC as a gift. And if the value of 1 BTC increases the next day, they will have more money, or vice versa.

Blockchain is a digital Lego

Tell your kids to think of blockchain as a type of digital building block 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 the 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. Additionally, inform them that in order to buy and sell cryptocurrency with real money, one must fund their exchange account with 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 is going 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 the 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 benefits 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 instead of a physical one, like a special type of piggy bank, and that the digital wallet can be accessed from anywhere in the world and used to make online purchases.

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.

Also, videos can help kids visualize complex concepts like cryptocurrency and blockchain, making it easier for them to understand the subject.