Bitcoin in place of Resp

[fxtw]

i am going to be a grandpa soon and I was going to start an RESP for my new grandchild , the more I think about it the more i think I would be better buying them bitcoin and holding it for 18 years
Just wondering what the best way to do this would be, other than just opening a separate wallet  ,guessing i am not the first person to think of this , thoughts suggestions ?

[BlackHatCoiner]

One way, which is the simple one, is to download a non-custodial wallet like Electrum, install it on an air-gapped clean machine, verify the signature of the software, write down the seed phrase that it will display you once you open it up. Then, you can request bitcoins to be sent in one of your receiving addresses.

The seed phrase is what you need to keep hidden and safe. Your grand child needs it to recover the wallet you've deposited bitcoins.


The other way is more complex and not recommended. It's inheritance, so since this isn't what you want I won't go into details. You can read about it here: Using Locktime for inheritance planning, backups or gifts.

[JeromeTash]

Alternatively, you can buy them a hardware wallet by spending a few dollars and use it to make deposits. Again, it's very important to back up your seeds in case your Grandchild needs to recover the address that contains the bitcoin in future

[Russlenat]

I'm confused, RESP for me is quite different from saving bitcoin for long term. Just to be realistic, we never know if bitcoin will still exist for 18 years based on the price of our expectation, so you are putting some risk on the RESP of your grandchild.

Why not just set up an educational insurance plan and pay for the premium and separate the bitcoin for your long term investment? that way it's safer and when the time comes, it will guarantee the purpose will be served.

For storing your bitcoin, 18 years is a long period of time, so I suggest a hard wallet ( you can choose different wallets) but make sure you do backups for all important information, I'm sure you know that, and make sure you keep your hard wallet in a safe location, not only in one location, as much as possible, have at least 2 hard wallets.

[mk4]

1. Grab a hardware wallet from Ledger[1] or Trezor[2]
2. Generate a wallet
3. Write down the recovery seed or etch them in steel
4. Send the bitcoin to the wallet's address
5. ? ? ?
6. Profit! (for your grandchild)

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

[Charles-Tim]

I do not think getting a hardware wallet for a young baby will be right when only the seed phrase is enough to have access to the coins, I do not have to repeat what has been posted, follow BlackHatcoiner's post is the best. Just run Electrum on an airgapped device and generate a seed phrase, its keys and addresses, and send bitcoin to one of the addresses. All needed to access the coin is just the seed phrase.

[bL4nkcode]

I'll go for a hardware wallet just what had mentioned above by mk4 especially the use of steel seed backup. Not particularly to give it to a child and let him to save it by his/er own, but to keep it with you or to any of your family members and place it to a vault since we're talking of saving it for 18 years.

I don't think airgapped computer is better alternative like a hardware wallet for having it for such long of time. As I'm not so sure of having another computer and set it as good as untouched as not using it for 18 years. And eventually hardware wallet wont work after so many years (18 years). That's why I'll go for the use of steel seed backup. Though those options are best for security (airgapped computer and hardware wallet). But having those unbreakable backup, corrosion resistant as good for any natural disaster is a relief, just make sure you have to save it to good hands or to your family's vault or whatever you call it for future use.

[mk4]

I do not think getting a hardware wallet for a young baby will be right when only the seed phrase is enough to have access to the coins, I do not have to repeat what has been posted, follow BlackHatcoiner's post is the best. Just run Electrum on an airgapped device and generate a seed phrase, its keys and addresses, and send bitcoin to one of the addresses. All needed to access the coin is just the seed phrase.

True! But just to add for OP: if you already has a hardware wallet(lik everyone should), you can just:

1. reset your hardware wallet(make sure you have your backup!)
2. generate a new wallet for your kid, write the recovery seed down, and grab a wallet address
3. reset the hardware wallet again, then restore your main wallet

That way, you ensure security even if it's the case that you're not confident enough to create an airgapped device; because I think probably only a minority are capable and should create an airgapped device.