Crypto child savings account

[Saisher]

I have recently started investing in crypto, and I have now decided to create crypto savings accounts for my children. Is it possible to create accounts/wallets in their name, that I can control while they are minors, and that they automatically will become owner of when they turn 18? Or will I need to create a crypto account for myself and just manually gift it to them when they become of age? What might be the smart solution?

I'll be depositing funds in their accounts regularly, which will keep sitting there for about 6-10 years, so I'll be looking to accumulate some sort of interest during that period. What options should I consider for this?

Just use a noncustodial wallet where you have total control of your portfolio, you only need to give them the private keys, but before they reach the age where you will hand them the private keys, be sure to educate them on how Cryptocurrency works and the whole situation in the Crypto industry, what I mean is the many hacking, scamming, and dramas, I'm sure these will still exist and they know how to secure their wallets and of course how to trade.
I prefer hardware wallets to store coins for the future.

[1715009361]

1715009361

[Darker45]

What do you mean you're "looking to accumulate some sort of interest during that period?" If you're thinking of a bank-like scenario, that's something not advisable as it means you will entrust your funds to a custodian. It's risky and not worth it. The best way is to have your funds kept in a cold wallet. Forget about interest. It could mean your children might not be able to enjoy it.

I'm aware that it doesn't work like a bank account. I've been reading about possibilities to earn more crypto simply by holding it. One option is staking, but it sounds like there are other possibilities as well, but I haven't looked that deep into it yet, and it also seems a bit complicated. That's why I'm asking.

Yeah, there are indeed a number of ways to earn from your savings. And, yes, staking is one. But all of them are risky. And the longer you keep your funds there, the higher the risk. In the end, everything might not be worth it. So, save yourself from that complication and save your children's future.

You must have encountered the likes of BlockFi, Voyager, and Celsius in the news. Those are where you could invest your savings. Those are giants in the crypto industry. Those are all dead, clients' money included.

Also, since this is for the next 6-10 years, you might want to focus only on Bitcoin. Avoid altcoins as it could mean they're already worthless by the time they're given to your children.

I was thinking something like 50% BTC, 25% ETH and 25% others (is there some sort of crypto index of the 20-50 most popular or valuable coins that you can invest in?) Does that sound sensible?

75% BTC, 25% ETH is tolerable. But you might want to consider 100% BTC. But 25% others is courting unnecessary risk.

[traderethereum]

It is better for you to create a personal wallet for each of your children so that you can control it properly and make a schedule for investing in Bitcoin for your children.
Later when they grow up, you can hand over the wallet to them or use the assets based on their needs.
For this, you need a hardware wallet for your kids and keep it in a safe place until the time comes.
Don't forget to teach your children to use crypto if they are getting older so they can use it well later.
If you buy bitcoins on an exchange, send them immediately to a personal wallet, hardware wallet or other wallet and do not store your bitcoins on an exchange.
You can keep only bitcoins in that wallet because investing in altcoins carries a higher risk because we don't know which altcoins will last for the long term.

[salad daging]

A hardware wallet is a good choice. Create an address for each one of your children. You can even name those addresses with their names. Give them the private keys as soon as they reach 18. Keep the seed phrase safe and offline all the time. You're saving for your children.

Also, since this is for the next 6-10 years, you might want to focus only on Bitcoin. Avoid altcoins as it could mean they're already worthless by the time they're given to your children.

This is exactly what a lot of people have been suggesting about having a hardware wallet to store money in bitcoins and like a savings fund for the OP's kids, I think this is the best way to stay consistent with investing early.
About the seed phrase, however, this must be learned by keeping it very safe and no one should know except later after the adult child can give it, just store it in a place where no one else knows.

The 6-10 year term is a good term, it should still be in bitcoin and not recommended for altcoins because it will kill your investment when choosing altcoins.
Choose bitcoin and do DCA much like saving

[tech30338]

This is a very good idea, its a bit risky since the price goes up and down all the time, but once bitcoin and other cryptocurrency will be accept by all public, it will be worth millions of dollars that depends on the coin you'll be investing in, few pointers:

• Don't invest on shitcoins
• Invest on top 10 coins in the market, you can see them in coinmarketcap
• Since its for the future of your children, study well before putting the money  for less risk
• put 50/50 on real-world asset, and digital assets, its okay to gamble but put some security at the end

Hope this help welcome to crypto/digital world.

[Sakanwa]

Initially it's a great idea making preparation for your children better tomorrow that a very nice one I will say.
But I guess you should know the risky that implies in doing such and also the either profit or lost it can also cost.
In other to make this work out for you is to make trier on what the other investors has open up so as to avoid future regret on you investment.

Making sure you create a hardware wallet with there names and have it kept secured.

[NotATether]

Use a timelock, and subtract the current age of your child from 18.

That will tell you how many block you're going to have to lock your transaction for. For reverence, a block is mined approximately every 10 minutes.

The only downside to this is that the bitcoins become locked (as implied by the name) until the specified block has been mined, so you can't take the bitcoins out before that time. And since this is a child savings address we are talking about here, there is really no reason you should be doing that anyway.

[Wapfika]

Use a timelock, and subtract the current age of your child from 18.

That will tell you how many block you're going to have to lock your transaction for. For reverence, a block is mined approximately every 10 minutes.

The only downside to this is that the bitcoins become locked (as implied by the name) until the specified block has been mined, so you can't take the bitcoins out before that time. And since this is a child savings address we are talking about here, there is really no reason you should be doing that anyway.

This is a very cool idea. Being untouchable of the money is the main feature that OP need to have or else he will just end up spending his kids savings once the price pump or he experienced a tight spot which he needs money badly.

Is this timelock feature possible to do using hardware wallet? And also can you suggest a perfect smart contract code or step by step tutorial on how to do this in our Bitcoin wallet?

[Spaceman1000$]

I don't think crypto works like your normal bank account, I believe you can achieve this by opening a Crypto wallet for your kids, keep up with the routine progress on the wallet till they come of age, share the password and login details with your spouse should in case of any eventuality.