Bitcoin Forum

I would like to set up a wallet for each of my kids and start saving accordingly.  I am not sure it is the best idea to create new accounts with DEX's under my name where the future owner will be my kids.  Any ideas on best practices a for this?

I'm not sure why you're worried about registering a name for any DEX since it's not necessary and you only do that for centralized and custodial exchanges. Are you going to declare those wallets meant for your kids in your tax returns? If that is not the case then you can simply set up a non-custodial bitcoin wallet like Electrum and give them the seed phrase once they are old enough to receive it.

No, even DEX exchange we dont know when the site becomes shutdown, IMO, isn't a good idea to save your Bitcoin for a long time purpose there.
You can create a paper wallet or a Hardware wallet and here is a [BIG LIST] Hardware wallets (80+) (https://bitcointalk.org/index.php?topic=5282364.0), either Ledger or Trezor which are very common to use.

In crypto, we have an important rule to follow in order for your coin to be safe for a long time (Not your key Not your coin), that key means your private key which is you are the only one who controls it and no one will access it.  Saving Bitcoin on exchange isn't a good idea at all.

When it comes to savings then you would really need to deal with non custodial ones which simply means that you are in own of the private keys of said wallets.Its up to your whether you do like to know

the keys of those wallets or only into the possession of your kids and wont tend to know for yourself for the benefit of privacy or complete ownership but since you could really
still able to monitor those transactions when it comes to savings.

One of your common problem would really be on how you would make your children to learn up everything.

Are you sure you are going to create a wallet for your children in the future on DEX?
I think that it is not really safe enough for a long term saving.
If you are wiling to give your children about Bitcoin, Ethereum, and also other top coins, why don't use any hardware wallet which is safer than DEX?
I really wonder how if the DEX is closed, it's hacked, or even experiencing bad problems but you miss the chance to get them or lose your assets.
But, if you are willing to create so, DEX commonly doesn't need original ID or data to register.

Hardware wallet if you don't mind spending a few quid or a simple offline wallet will suffice. Just save some of the addresses, and you can deposit Bitcoin whenever you want without actually opening the wallet. It's probably best to educate your children on how to stay safe with Bitcoin wallets, and the most common pitfalls.

Basically, the only thing your children need is either the private key or the seed, or preferably both. So, you only need to generate them, assure that they're working properly (which you can do safely on a offline computer), and that should avoid most of the common pit falls. Don't use a online service, since the attack vector increases, you can't guarantee that they haven't seen the private key themselves, and you also can't guarantee that the online service will still exist when your children grow of age to claim the wallet.

Regardless if you're giving them bitcoin or other altcoins, a hardware wallet such as Ledger[1] or Trezor[2] is necessary; especially if you want your children to actually end up inheriting something. Unless you want to hand over a wallet that's emptied out.

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[1] https://ledger.com/
[2] https://trezor.io/

I do advice OP to save assets in hardware wallet too rather than setting up wallet's on Dex, I assume after reading his thread that he was going to start saving in it for a long term. I love the idea of saving up a a crypto asset for our children especially if it is bitcoin and ethereum because for sure it still has a value in the future and I believe that the children will love it because I'm pretty confident at that time the adoption of crypto in their generation are widely use.  Just make sure also, that you have taken down notes all the seed phrase and keep it because it is the only way for the children to access the wallet.

Not necessarily under your name. Cause dex is just a compilation of users, no emails needed for registration but a technical creation of wallet with a key. That's the important one since you gonna do a very sensitive process for your kids. Can I ask what are the ages of your kids? Hope they are big enough to handle this cause for a child below like 10 is kinda not a good practice to let them handle a very risky one with involvement of money of course.

I'd rather go for a software wallet (noncustodial) like electrum than buy a hardware wallet too early. Unless you think it's good enough to store hardware for years. The problem is you don't know how many years you have left to inherit those bitcoins. Also, by the time you hand HW over to your children, it may become an obsolete tool and not worth using. The durability of HW also needs to be considered.

I Second that suggested by mk4. Since you are wondering about saving Bitcoin or cryptocurrency for your kids, I believe you can afford to buy two hardware wallets. Especially you may find some offer next few days. So gift them a hardware wallet device and save it there. So your saving will be most secure and your kids will have a better experience. This is the right way to teach your kids for good practice of cryptocurrency
 

I don't know what Decentralized Exchange (abbreviation DEX) has to do with anything here. You don't create an "account" in a DEX, if you do it is no longer a DEX. Instead you create a local wallet like any other  bitcoin wallet but it would be a hot wallet. Although it can still be used but why would you even choose it if you want to create a "wallet"? Just use any of the traditional wallets such as Electrum.

You can create a new deterministic wallet with Electrum that will give you a seed phrase which you can write down as backup, then choose a different address for each of your kids and deposit the money in there. In the end you can give them each a single private key (corresponding to their address) while still holding the seed phrase so that you can recover everything if you needed.
It is the same with hardware wallets as others suggested.

Children are not mature they download and made wallets and they don't know what is seed phrase and keys. They don't save any keys and they forgot their password and lost there wallets. My opinion is to give mobile to child with parent control.

You need neither a decentralized exchange (DEX) nor a centralized exchange (CEX) in order to save money for your kids. As a name suggest, an exchange is nothing else but a place where the buyer and the seller meet to make a deal, it is not supposed to be used for storing your funds, especially if you are focused on the long term.

So, if you are focused on the future then you will likely need to set up your own bitcoin wallet. During the creation of a wallet, you will be given a set of English words that should be carefully written on paper and kept securely. These are your seed phrase, your main key. Your seed is used to generate a set of private keys. Private keys generate addresses where you send your savings.

There is also a thing called "passphrase". A passphrase is like a password, but when combined with your initial seed phrase, it generates a totally different set of private keys and therefore completely different addresses. Each passphrase generates its own set of addresses. You can utilize this feature and create multiple wallets using only one seed phrase. Each kid will have an assigned passphrase, with which they can access a particular wallet after combining it with your seed phrase.

I still do not understand what OP meant as DEX, decentralized exchange or what? In my opinion, there is nothing bad to use a hardware wallet, but this type of idea is not that safe for children if not above certain age to understand what wallet, seed phrase and passphrase are. But, yet, hardware wallet will be one of the safest option in this regard.

If anyone is suggesting centralized exchange, that will be the worst option to go for. If anyone is suggesting decentralized exchanges, decentralized exchanges are only used for trading or exchanging of coins, not for saving.

Just get a hardware wallet? Why even bother making a wallet in an exchange when you're going to use it to hodl and earn crypto for your children. It's not like they're going to use said coins to trade right now, or in the next few years even. You're just going to let the coins sit there for a long time, till at least when your children have grown old enough to handle their own finances, then you can give them said hardware wallet without any issues whatsoever no? Trezor would be one of the top choices imo.

If you want to setup a savings fund, DEX would obviously not be a part of this, and you should go for a non-custodial wallet and keep the funds on your own safekeeping and just keep multiple backups of the wallet. Or you can buy a hardware wallet and keep it somewhere safe, and give it to your children when the time comes. It's less of a hassle for you since you don't have to continuously think whether the third-party you're entrusting the funds will be gone.

Why not just have Electrum wallets for each kid and send money to these wallets when you can? You can then give your kids access to their wallets when you believe they are old enough. It seems like a simple and safe solution to me. Also, I don't think it requires a name, so that part of the problem is solved automatically. After all, Bitcoin wallets don't have to be tied to particular names and identities. As for exchanges, I wouldn't trust any of them when it comes to savings. Even good ones can fail at some point over the years or, if it's a centralized exchange, change policies to those you or your kids might not find appealing in the future.

I agree with mK4 it's better to use hardware only, because the level of risk is less in my opinion than exchange,
you save the key and phrase in the form of inheritance in a lawyer you trust

is it not too risky for you to make a wallet on dex, I think it would be better if you just use a soft wallet, which is only specifically for you to save for your child in the future, by the way how old is your child? Is your child ready to learn to operate the wallet that you will inherit?

I understand you want to introduce the digital world by way of educational storage by saving money using a wallet that may be specifically for your child, but in my opinion that is not a good thing and very risky because this makes your child will try to open it because he wants to know so that it can be misused to access it and you should be the one who deserves to keep it

If I were you I would simply buy a hardware wallet ( in my opinion either Trezor or CoinKite ), fund it, and then hold it for them for the long term.  Exchanges should be used as little as possible.  Buy your coins off of an exchange or sell your coins and then be done with it until you have to do a similar procedure.  Try and stay away from leaving any funds on an exchange.

You don't need to create any accounts on DEX or CEX exchanges, all you need to give your children is seed words or private keys that are holding Bitcoin you sent on their addresses.
Using hardware wallet would be interesting in case you have multiple kids, everyone could share same seed words but each of them will have separate strong passphrase only they know.
If one of them lose seed words but still have his passphrase, he/she can always regain access to his coins again with help of sibling sharing seed words.
Most important thing for this to work is to write clear and simple instructions for them.

My question would be though; is it worth investing in a hardware wallet, when you could just make a offline wallet. Since, hardware wallets really start to shine when you want to frequently access the Bitcoin, while still remaining pretty safe. However, since this is a inheritance plan, that isn't really required. Might be better putting that 30-50 quid that it would cost for a hardware wallet, and put it towards more Bitcoin for his kids.

No need for you have make new wallets under dex's. You can make them new wallets with any common and reputable wallets. Like if you are using a hardware wallet, you can name wallets for them.
And if you use desktop wallets for them, you can also make one for them without having problems. You just have to keep the private keys for each of them.

Tell them about the basics first from what is bitcoin or crypto and then tell about the security or on how wallet works because if you dont explain about the basic fundamentals then you would really be seeing this as a main problem because it could really lead to mistakes which is really a common thing thats why you should really need on explaining on everything so that everything would really be in order and would work as it should be.

I mean exactly hardware wallet will be safer. And yes of course, the crypto itself is better to give for children wisely, when they are exactly ready enough. It is not only to enable them to operate the wallet itself but also to manage the assets and control themselves in crypto industry. As we know that crypto industry needs wiser, more careful, and also smarter decision and activities that may be difficult to children. So, I mean that it is for our children when they are really enough for this.

The decision is really appreciable, because such thinking take bitcoin and other cryptocurrencies to the future. When we start accumulating cryptocurrencies for the future generation automatically the usage will continue rather than getting disturbed at some time period. As most users suggested it is good to educate your kids how-to use the ledger or trezor wallet. So that now itself they'll start accumulating same as saving in a piggy bank.

Well as long as you are holding the private key that is a safe wallet to store your bitcoin, there are 3 kinds of bitcoin wallets which are I know to store bitcoin safely. It should you have to control the key like ^{[paper wallet]}, ^{[hardware wallet]}, and the ^{[air-gapped device wallet]}. All of them you hold the key so perhaps that is very safe in storing bitcoin for a long time and keep the private key safe so that no one will access it except your children.

With cryptocurrencies you don't need to care about that, because nobody needs an ID card or any KYC paper to own cryptos and to set up a wallet. You just need to own a private key for that. Then unlike a bank account you can create and use a wallet for you and later transmit it to your children without any formality.

You can just buy ledgers for them or any other cold wallet and buy crypto for them. You had better store seed phrases on a sheet of paper in your safe and inform your children on how to use ledger and tell them about crypto. It will be a good heritage for them if you buy some Bitcoin and some other mainstream currencies and store them in cold wallets that they will be able to use in the future.

Agree this is the best option because it is safe and reliable which you can keep it your self also because if you are creating wallet online it is really prone now a days and i know you will be holding it in a long period of time which we dont know what will happen soon and also not just i don't trust them but i think anytime you will be having problem in converting your money into fiat but if in your ledger it is sure 100% safe and you could get your money

The best thing you can do is just buy a hardware wallet for each of your kids and start saving accordingly and prepare their future so when they grow up and you have already taught them about how to use crypto properly, they will know what they can do with that funds. You do not have to create a new account for each of your kids instead just create one new account and send the funds for each wallet so that will save your time watching the price when you want to buy the coin. Besides that, you can only use one exchange (CEX or DEX) to buy and send the coins and I suggest you use CEX instead of DEX and Binance will be my recommendation.

Best thing to do would be for you to teach them when they're on the appropriate age about handling their own crypto wallet. You may keep it for now if they're still young and carefree, I mean you can teach them financial stuff right now but you can't trust them yet with the applications of it yet. I think that it's a good thing that you're thinking about introducing your children to cryptospace, wish that more parents are just like you.

It depends on the age of your children if they are already in teachable age then you have to teach them what io s necessary to operate a wallet such as a wallet seed and security phrases, you don't necessarily have to register the wallets in your name and most none custodial wallet doesn't require any information to set it up.

I would not do this as well as others adviced.

Think about how you would do something with regular money. You would simply keep the savings in a wallet or bank account under your name. Which you control.

Then when it is time to give it to your kids you simply transfer it to them. With accounts on their name, teaching them how to use it, sign it, withdraw it,,, all the rich kids do it like this :)

OP doesn't mean to create wallets and seed phrases and give them to his kids right away.
He wants to save a bunch of crypto in some wallets and give the wallets to his kids when they become mature enough(18+ years old).
Like other forum members said,the best idea is to have hardware wallets,rather than relying on some centralized online wallet.
OP should also be aware that the idea of long term saving of cryptocurrencies can be risky.
Nobody knows what will happen with Bitcoin in 10 years.It might be 250K USD or it might be gone.
New technology gets obsolete pretty fast,nowadays.

I had the same situation just like you a few months ago and I could find a good solution for it, opening account any platform on any exchange or platform for your children can not be safe since you cannot be hundred percent sure about any platform besides that we all know the best and most safe asset for us to hold is bitcoin in long term and usually you will invest your children in long term, so you can store the bitcoins on a wallet and save seeds in a piece of paper and keep it somewhere safe with a little of kind words for your children.

I am somehow guilty with this especially on the last paragraph you pointed out.

As someone who started with the world of cryptocurrencies last 2017, I mainly deposit almost all of my earnings to our local exchange which is recognized here in the country. While I do acknowledge the convenience it provides (e.g. direct bank transfer, credits, exchanges, etc.), the best way to really secure my funds is by transferring them to a hardware wallet. I might actually check those out with the link that you provided- got me really curious as to how these hardware wallets function.

Allow me to enter into context with these two basic points, I think they are necessary because if you understood them, your question would not have arisen:

1.-The traditional scheme gives you an account address and a physical office. Deposits are in Fiat + KYC.

2.-with bitcoin you only need a public address, but you do not need the infrastructure of a bank, deposits in bitcoin, not KyC.

It doesn't matter what he meant by Dex, or whatever adjective he adds to Wallet, as in his case "Childrens," a bitcoin wallet provides several advantages in terms of control, e.g. giving succession to his children their bitcoin just by giving them access to the private key of a public address.

That is what you have to interpret, now what type of wallet and how will you give access to the private keys, some posts above have already made suggestions but it is if you want a very creative and simple or technological part if you wish, by the way there is also the legal one.

Non custodial wallets like hardware is much more preferred rather than storing up your coins mainly on a custodial one which we know that we don't possess the keys which means that it is really riskier in terms of possible losing those coins.

So don't really be that confident on making it a storage no matter how reputable or known it is because you wouldn't know on when they would be hacked.

As for giving your children a wallet for his own crypto savings then it isn't a bad idea as long he/she do knows on how things works then it wouldn't matter.

There's no problem as long as you're holding your private key. It's all that matters and you can import that whenever you can. The thing is about how they'll keep the private keys. Or before he gives it to them.
Maybe before they turn 18 or until they understand how wallet works and if they know how to make their own wallets and understands the concept already of bitcoin and wallets.

Looks like the OP is worried enough about the future of his kids to have to think about making a dex wallet for his kids. I think it's not necessary to worry about preparing a wallet for children from now on, you just need to invest bitcoin for yourself and save it well, after your child is old enough and has understood about cryptocurrency, you just need to transfer the bitcoin to your child, done and not too much trouble. Looks like the OP is thinking of a wallet for kids like building a house or building.

Hardware wallet, or maybe even the centralized wallet i think no matter what wallet it is as long we save the private key securely it can be done. But maybe hardware wallet can be best option to take, i have ledger nano s and don't have any problem with it until now. But for kids, maybe i just made savings in fiat,i am not aim anything with savings because i want it to be safe.

Are you sure your chosen DEX still operate until your child grows up? it seems like hardware wallets like ledger or trezor are more suitable and more secure in the long run and don't have to worry about losing them and don't need your personal data to use them either.

Don’t know what plans you are having for now, but my suggestion would be that you should make use of a wallet that is a non-custodial wallet and then you can back up the wallets using the twelve word phrase, which you will write down and keep it in a safe place for your children to have access to them whenever they are ready for it.

Moreover, I don’t think I have seen a custodial wallet that allows people to add a next of kin that would inherit their wallet later on. But, when you store on a non-custodial wallet and you keep the private keys safe for them, anyone can be able to have access to their own wallets, without any problems at all. The decision is still left for you to make anyway.

If you're a parent, you get to understand why parents are thinking of their kid's future. It's not about being worried but just wanting to make sure that his kids will have a good place whenever they grow up and OP becomes older. But what you've said is also correct about him being the investor and eventually, he's going to introduce it to them and I think there's no difference from it from doing so. It's not questionable if someone is thinking of it and we're also doing the same as him but we have a different priority.

You or your children will be the owner of the coins if you have the private key with you. I can advise that you should create one or more trust wallets for your kids and deposit funds in those wallets. Once they grow up, you can hand these wallet to the kids by giving them the private keys. If you can afford, you can buy a hardware wallet for each of your kid.

maybe it's not necessary since you already have one.. Even it's for your kid it doesn't matter i think , because the more you hold there will be a good profits afterwards. ;) but just keep your private key to the safest place.. Or i suggest print it to a piece of stainless like what others doing to prevent lossing it from any disaster, and of course it's up to you where do you want to hide which is for you easy to find as well.

Its a good idea. But don't forget to save their keys. Every person have their own opinion and strategy for long term holding coins. Don't forget to name these wallets.
How many wallets you are creating according to your children future planning. Its a good idea but i did not think about this. Because i am still unmarried.

Partly true, but not in all instances. Some websites for example allow you to have a wallet, retrieve the private key, and therefore you have the private key to that address. However, you can't guarantee that they also haven't stored that private key in their databases, which is a risk. Its much better to generate the private key yourself, and not rely on someone else doing it for you.

I think this is a point often missed when recommending what wallet to go for. Usually, we recommend anything which allows you to have access to the private key, but really we should be recommending only keys that you've generated yourself.

When it comes to security or even privacy to some extent, third parties are generally not a great idea. There are a few exceptions, but not for your personal wealth.

What DEX you've been talking into?

Doesnt really need to be a DEX or something like that because if you particularly talks about web wallets then stick with non custodial ones like Electrum
which you could really possess its keys which is a must.

Thing here is that make sure that you have able to explain it well about into your Children on what is crypto is all about.
On how to access funds and how to make out conversions so that on the time that they are already
aware then thats  the time on giving out that posession of those wallets.

if this is to be realized, then each child has their own wallet, besides that we can set aside cold money to start investing according to their abilities, if your child is still small at this time, then over time at least they can be guaranteed good educational facilities at affordable costs. later taken from their respective wallets, without paying attention to it, the investment will grow in value and avoid inflation

I do not allow my child to manage a digital wallet because my child is not ready, I will wait for my child to be over 15 years old then I will introduce my child to how to manage a digital wallet.

A wallet for a child is a great idea, it's like preparing money for the future. By storing crypto currency, of course there are risks and benefits. Luckily without admin fees but you certainly have to consider unstable prices and you also have to choose a cryptocurrency that will not scam. Honestly, at this time I have not prepared a special wallet for children. But for fiat money I set up a bank account. Then regarding the hard wallet, maybe that's the best way to secure funds, because I also store there.

So you wants to save for your children simply just use Hardware wallet it for safe and secure. Although you should teach your child crypto basics knowledge if you lost then who will recover savings.
Don't youse Cex - Centralized Exchange

In general, this is not a bad idea. But you should also understand that you need to prepare your children for this. Otherwise, the result may not be the most positive.

Why not a paper wallet ?
Why not generate seed from a non-custodial wallet in a cold storage device ?

Just keep the seedphrase protected at all times and you will be good to go.
You will just need the public key to keep depositing the bitcoin whenever you can.
Once your children are old enough to understand how to use cryptocurrencies you can teach them all about crypto.

I think what matter is to have the seed phrase or private keys. The name you use for registrating them on a decentralized platform wouldn't matter as far as I can tell. If your kids control the keys, they can use they keys on another platform/wallet and your name will not appear on their accounts.

You could also lock the funds for certain period of time to prevent them from withdrawing when you give them the keys. The locking of the fund wouldn't prevent you or them from always sending or adding more money to the addresses/accounts

Consider this factor, +how old are your children, + when is the ripe time you intend to let the cat out of the bag and give them what you have saved up for them, also would DEX and exchange still be a thing or even available then and if they are what if they create some new law by themselves or forced on them by the government of your country, you have to be very sensitive when trying to save for future reference or usage.

And what is the actual need to create crypto wallets for your children? If you are talking about cryptocurrency wallets, then the information about the owner is not indicated there. This applies only to centralized crypto platforms, and even then not always. Again, if you want to create a wallet for a child on a centralized platform, then you will not succeed, since there are age restrictions. As for the accumulation of wealth, you can easily do it on your crypto wallet and, if necessary, share this wealth in the future with any person, including your children. So personally, I see no point in creating crypto wallets for my children.

It's a strange concept to setup a wallet independently for a child. It makes sense for a savings or stock market based account, where it could grow every year at a different rate and separate from your own personal funds. However Bitcoin is static - it's not changing over time. It'd be simple enough to just mentally separate the funds in your account to allocate x amount to your children, rather than dropping it into different wallets that could possibly get lost or have different problems with accessibility in future. The best way to do it might be to pick a physical cryptocoin provider you trust or something like the ledger hardware that gives you a safe, readily accessible physical wallet.

Fifteen years old it's very late to introduce cryptocurrencies to a child. Why are you waiting a such old age? Your child is not clever enough to understand the basis of cryptography?  ??? If your child knows what money is he should know what cryptomoney is too.

Children are not mature they download wallet apps and made account they not know the features of wallet they invest their money and they lost their money and if they forget their seed phrase Wallet will bi stuck and can be lost.

That’s not true, 15 years of age is not late for anyone to learn  Everything they want to know about cryptocurrency. Moreover, a lot of people who are here are already in their 30s and 40s when they got to know about cryptocurrency, but they still learnt about it and they are good at it now, with some of them becoming programmers and developers in blockchain, and also others becoming good investors and traders, and making lots of money to even be able to take care of themselves and their family.

So, the age doesn’t even matter, a child can learn about cryptocurrency at any age. I believe that as long as it is a brilliant child, they would always be able to come up with new ideas or innovations that will profit them in the future. Just like the two kids that were able to start up Ethereum mining and it became a success and they’re making a lot of money from it.

You didn't get my point I think, I wasn't saying 15 years old is too late. I just said that amihada doesn't need to wait this age to allow his child to use cryptocurrencies. As you said yourself "the age doesn’t even matter, a child can learn about cryptocurrency at any age", you should agree with me and disagree with amihada then  :-\

Welcome to the forum, it's good to know that you are worried about your children's future. I would suggest you first acquire the complete information then invest in savings. Must be known that the regulatory rules aren't against it.
Also, the future of these sites is always uncertain so we can't rely on them completely. But what I can suggest here is to go for hardware wallets. As they are more reliable.

Children are children and they will always behave as one.
In DEX, we don't create wallet there, we only connect our already created wallet to the DEX exchange. Only CEX allow you to create wallet on there website, all some assets in it before you can trade. Which is far more suicide because this CEX website can go down and never bounce back again.

IMO, I think hardware wallet is the best option here.