What are inflationary and deflationary cryptocurrencies? Find out their differences and the best inflationary and deflationary cryptocurrencies to trade here.

 continues to be a hot button today as it impacts the purchasing power of currencies around the world. In the process, it affects the financial decisions of both businesses and private consumers. With inflation, it requires more fiat or cryptocurrency to buy the same item today than it did previously. 

At a lower level, inflation can be healthy, such as by encouraging economic growth. However, a high rate of inflation can have devasting effects. While many people have a solid understanding of inflation as it relates to fiat and fiat-based purchases, they may not be familiar with inflationary cryptocurrencies and deflationary cryptocurrencies.

An inflationary cryptocurrency is one that decreases in value over time through its tokenomics. Essentially, inflationary cryptocurrencies have an increasing or unlimited supply to keep up with or even exceed demand, and this creates downward pressure on the coin’s price.

The number of coins in circulation for an inflationary cryptocurrency rises over time, and there may not be an upper limit on how many coins can be minted in some cases. When an inflationary cryptocurrency issues more coins, investors and other users are more encouraged to participate in the platform’s activities. This places downward pressure on the price of the coins. For long-term investors, or HODLers, the pressure on the price of an inflationary cryptocurrency to generally rise over time is disadvantageous. However, volatility presents 

How Does an Inflationary Cryptocurrency Work?

The buying power of inflationary cryptocurrencies declines over time. This occurs because more coins are continually being minted. Based on a basic economic principle, the price of something decreases when it becomes scarcer. Because there is always a growing number of inflationary cryptocurrency coins available, however, the coin never becomes scarce. The unlimited supply means that the buying power of an inflationary cryptocurrency decreases over time.

A deflationary cryptocurrency is one that has a fixed supply of coins available. When demand increases, only a limited supply of coins may still be available for release, and this leads to increased value over time.

Because these cryptocurrencies have a fixed supply, there will be a point where no additional coins can be minted to keep up with demand. As a result, those who hold deflationary cryptocurrency coins may be compensated at a higher level when selling their in-demand coins. This upward pressure on the value of deflationary cryptocurrencies could make them more advantageous for HODLers than an investment in inflationary cryptocurrencies. In addition, you can generally expect to see an increase in purchasing power with deflationary cryptocurrencies.

How Does a Deflationary Cryptocurrency Work?

Once the set supply of coins for a deflationary cryptocurrency coin has been released, no additional coins can be created. The same principle related to price and scarcity that applies to inflationary cryptocurrencies also applies here. As the demand for a deflationary cryptocurrency increases, investors and users will pay more because the supply is limited. No deflationary cryptocurrency coins are being minted to keep up with demand. Over time, you may be able to purchase more goods with a deflationary cryptocurrency than you previously could.

How to Determine Whether a Cryptocurrency Is Inflationary or Deflationary

When you research cryptocurrencies for your next investment purchase, it is essential to pay attention to the inflationary versus deflationary nature of the options available. The price of cryptocurrencies can swing wildly within a short period of time, but you may also need to assess what a specific cryptocurrency’s value may be over a longer period of time. Since a deflationary cryptocurrency has a limited token supply, the coins may be more suitable for a long-term hold. What are the factors to review in order to determine if a cryptocurrency is inflationary or deflationary?

 of all cryptocurrencies online. One of the key pieces of information to look for is the cryptocurrency’s maximum supply. A deflationary cryptocurrency has a 

 on its maximum supply of tokens. This means that once that specified number of tokens has been created, no additional tokens will enter the supply from mining, minting or other methods. The maximum supply is usually clearly detailed in a cryptocurrency’s white paper.

Through your research, you will also see a specific cryptocurrency’s circulating supply. This describes the number of coins that are available at that point in time for buying or selling. These are tradable coins, so coins that are 

 or otherwise off the table are not considered in the circulating supply count. A platform can encourage its users to stake their coins in various ways, and this can decrease the number of coins in the circulating supply.

The total supply of tokens describes the total amount that has been 

 or created. This includes the tokens that are in the circulating supply and tokens that are reserved or locked. However, tokens that have been lost, destroyed or burned must be subtracted to reach an accurate total supply number. A deflationary cryptocurrency can also burn some of its tokens to reduce the total supply available. An example of a deflationary cryptocurrency that did this is 

 (XRP). On the other hand, an inflationary cryptocurrency has an unlimited or increasing supply of tokens.

Inflationary Cryptocurrency vs Deflationary Cryptocurrency

The key differences between the inflationary and deflationary status of cryptocurrencies could impact your investment decisions as well as the long-term returns that are generated by your token purchases. To get a better understanding of inflationary vs deflationary cryptocurrency, a review of their differences and similarities is in order. Inflation describes the growth in price while deflation relates to a reduction in price. However, when you compare inflationary and deflationary cryptocurrencies, both are directly related to the token supply. A closer look at the mechanisms driving these different types of cryptocurrencies can highlight their unique traits.

The token supply for a deflationary cryptocurrency token is fixed. Once the total supply has been released, no additional tokens are available. This is in direct contrast to inflationary cryptocurrencies. These cryptocurrencies have a floating or unlimited supply. Because there is always a possibility of new tokens being created and the mechanisms in place to do so with an inflationary cryptocurrency, demand will never be higher than supply.

Whether a cryptocurrency is fixed or floating directly impacts supply and demand. The supply of inflationary cryptocurrency coins is said to be floating because it increases over time. By doing so, it keeps pace with demand. As a result, the token price may not be driven by the supply and demand mechanism. On the other hand, the supply of deflationary cryptocurrency tokens is steady or fixed. Demand may increase, but there are only so many tokens available to meet that demand. This causes upward pressure on the value of deflationary cryptocurrencies over time.

It is important to note that some inflationary cryptocurrencies are designed with deflationary or limiting mechanisms to moderate the effects of inflation on token prices. For example, some cryptocurrencies have a burning mechanism, which could rein in the supply when demand is high. Others mint and destroy their tokens as needed to maintain a stable price. These are referred to as stablecoins. In addition, some cryptocurrencies charge a transaction fee. By burning this fee, they are able to continue releasing tokens from an established supply while maintaining a deflationary status to minimize inflation.

Generally, the value of inflationary cryptocurrencies decreases over time because more tokens are being released. As the value of an inflationary cryptocurrency token declines, the purchasing power of the token drops as well. Essentially, it may take more of those tokens to purchase a product a few years from now than it takes today. Deflationary cryptocurrency tokens generally will increase in value over time. Demand for a limited supply of these deflationary tokens drives the value higher. As a result, the purchasing power of these tokens tends to increase. It may take fewer of these tokens to buy a product a few years from now compared to what it takes today.

Many of the top cryptocurrencies in use today are inflationary. Due to the extreme volatility of cryptocurrencies, shorter-term investments may make sense for some investors. In addition, some of the inflationary cryptocurrencies have mechanisms to limit the effect of inflation, and this may make them more appealing to some investors. What are some of the best inflationary cryptocurrencies available on Bybit?

 rose to popularity several years ago. While it quickly became well-known that it was created as a joke, investors have continued to flock to this 

. Soon after its debut, a large online community developed, and this community continues to be active today. Dogecoin’s popularity largely drove the token price upward initially. In fact, in August 2021, Dogecoin was recorded as the 

 by market capitalization. As of Jan 26, 2023, its ranking has dropped to ninth place. The value of DOGE is expected to decline steadily over the course of time. 

There are currently more than 137 billion DOGE tokens in circulation today. This supply increases annually by five billion, and there is no token supply limit. Dogecoin does not have any mechanisms to rein in inflation, such as a burning mechanism. Its value has been highly volatile throughout most of its history. The current 

 supports digital gaming and other forms of entertainment, and it uses FLOW as its native token. The platform has been specifically designed for ease of use by users and developers, and it has a built-in structuring mechanism to make it modular for future growth. FLOW can be used in the apps tied to the platform, and the tokens can also be traded, held or staked. FLOW is used to complete network functions and is in constant demand. 

Rather than creating and distributing tokens to recruit validator node operators, Flow runs off of decentralized communities. This results in Flow's inflationary structure. However, it stands out with its unique structure to minimize, but not eliminate, inflation. Specifically, 100% of FLOW’s inflation is 

 to its stakers. This means that dilution is kept in check as long as a user is an active participant. 

The circulating supply of FLOW is 1.04 billion, and the maximum supply is 1.41 billion. The current 

 has quickly risen to prominence since it debuted in 2020. It supports the development of DApps on its network. It also serves as an exchange for transactions without the need for a middleman. Polkadot is often compared to 

The circulating supply of DOT is close to 1.2 billion, and the total supply is nearly 1.28 billion. There is no maximum supply. However, Polkadot uses 

 to minimize the effect of inflation. This is accomplished through long-term staking rewards. Because of this unique mechanism, the price of DOT is relatively stable in comparison to many other inflationary cryptocurrencies. As of Jan 26, 2023, 

A deflationary cryptocurrency has a fixed supply of tokens. As a result, the value of the token will increase over time as demand increases. Cryptocurrency prices are highly volatile overall, so there could be wild swings in prices from day to day. However, over a longer period of time, the value may generally trend upward. This makes deflationary cryptocurrencies a reasonable, long-term investment option for some people. However, other factors impact cryptocurrency values as well, and all factors should be taken into consideration before buying any crypto coins. Here are some of the best deflationary cryptocurrencies you can consider buying on Bybit.

 is a digital payment network that functions with its native token, XRP. Unlike many other platforms, it does not use blockchain mining. Instead, its consensus mechanism is used to confirm transactions. This mechanism operates off of several bank-owned services. It is known for its fast processing times and low transaction fees. Ripple is often considered to be an alternative to the international payment system 

The circulating supply of XRP is 50.8 billion, and its 

 is $0.4111 (as of Jan 26, 2023). XRP has a maximum supply of 100 billion tokens, which were premined. 55 million of these tokens were locked up by Ripple and are slowly being released from their escrow status via 

. A very small transaction fee is charged for each Ripple transaction, and this fee is burned. 

 is a Layer 2 scaling solution that aims to support connections and networking of blockchains. By doing so, it has built an Ethereum-compatible, multi-chain blockchain ecosystem. It is comparable to Ethereum in that transaction processes use a 

 (PoS) mechanism. In addition, Ethereum supports the security of activities on the Polygon blockchain platform. The native Polygon token, MATIC, is primarily used for staking and paying fees. 

An important update to Polygon occurred in January 2022. At that time, the cryptocurrency introduced its new 

. This burning mechanism serves the important function of stabilizing the Polygon token supply.

The circulating supply of MATIC is close to 8.98 billion. The total supply and maximum supply of MATIC are set at 10 billion. The current 

 is a cryptocurrency exchange that allows users to buy and trade cryptocurrencies. Its native token is BNB, and some users choose to hold BNB as an investment. BNB can be traded on other exchanges, including Bybit. In addition, BNB can be used to purchase services and goods in the real world. BNB is subject to automated burns. This maintains its total supply near a fixed number. The number of tokens burned is adjusted as needed. Further, gas fees are collected on each transaction made on Binance, which are then burned. 

 is $305.33 (as of Jan 26, 2023). The circulating supply of BNB is almost 135 million, and the maximum supply is 200 million while the total supply is roughly 157 million.

Bitcoin is by far the most popular and well-known cryptocurrency in use today. To date, 19 million of its total supply of 21 million coins have been released and are in circulation. Some may argue that Bitcoin is actually inflationary because while it may seem like Bitcoin is close to reaching its limit, it has built-in mechanisms such as 

 to stretch this out. In fact, it is said that the limit is not expected to be reached for more than 100 years. 

However, as the amount that Bitcoin miners receive for their efforts gets smaller with each halving, the circulating supply is kept from growing too much at one time. Further, since there is a fixed supply of BTC available, there would be a limited supply once all BTC coins have been mined. This would result in the value of BTC gradually increasing over time. Hence, Bitcoin is ultimately a deflationary cryptocurrency.

There are inherent differences between inflationary and deflationary cryptocurrencies. The differentiation is determined by the token supply. In addition to specifying a hard cap or having an unlimited supply, cryptocurrencies may use burning and other mechanisms to control supply. Because token supply directly impacts the price of cryptocurrencies over a longer period of time, this is an important factor to consider when making a purchase or investment.

Intermediate

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Inflationary vs Deflationary Cryptocurrency: The Key Differences

A crypto mining rig is a standard PC used for mining cryptocurrencies. Find out in detail how to build a crypto mining rig in this article.

, one of the most popular ways to do so is through crypto mining. However, crypto mining isn’t as easy as it sounds. It requires specialized equipment known as a crypto mining rig that you would have to purchase or build in order to mine successfully. In this article, we explore what a crypto mining rig is and how you can build one. 

A crypto mining rig is a standard PC used for mining cryptocurrencies. The PC mainly relies on GPU to speed up data processing.

Crypto mining rigs come in various forms such as CPU, GPU, 

 and FPGA. The decision to buy or rent a specific type of crypto mining rig will depend on the 

A hashing power, or hash rate, is the amount of power the crypto mining rig uses to solve hashing algorithms. In theory, the more power the rig generates, the more hashing algorithms it can solve, which ultimately leads to more mining rewards.

More hashing power does not necessarily mean that you will end up with a profit. For a mining rig to be profitable, it needs to overcome the cost of electricity and the expense required to buy and maintain the crypto mining rig.

A powerful mining rig is of no use if the cost of operating your crypto mining rig exceeds its operational costs. On the other hand, if a simple rig such as your home PC is more efficient, it can give you more bang for your buck.

The simplest form of a crypto mining rig is a standard CPU in your house. In the early days of crypto mining, people could use a CPU because the hashing power required to mine crypto was minimal. As more people started mining cryptocurrency, the competition increased, which ultimately required much more hashing power than a standard CPU could offer. These days, the best CPUs can achieve only between 8 and 20 kh/s, which pale in comparison to GPUs.

GPU speed is measured in mh/s, mega hashes per second. A modern GPU can easily offer a hash rate of more than 20 mh/s. A top-of-the-line GPU such as the NVIDIA GeForce RTX 3090 is reputed to provide 121 mh/s, almost 4,000 times the speed you can achieve from a CPU. If needed, it's possible to build multiple concurrent rigs deploying numerous GPUs, to boost the hashing power.

Its speed is not the only reason why many new miners prefer GPU. There are other advantages as well. For instance, creating a GPU-powered crypto mining rig is similar to building a customized computer. If you can follow instructions, you can easily build a crypto mining rig irrespective of the experience. A rig can be upgraded, or it can be sold to others.

In 2012, ASIC (application-specific integrated circuit) miners were introduced, and one is 200 times more powerful than a typical GPU. However, its high costs and high energy consumption as well as the limited ability to mine certain types of cryptos made ASIC miners less popular. As such, most crypto miners tend to stick to GPU mining for its beginner-friendly features.

How Many GPUs Do You Need to End Up With a Profit?

Theoretically, it's not the number of rigs that determines profits. Instead, it's the efficiency of a crypto mining rig that is important.

Put simply, the cost of the equipment, the cost of electricity and the operational cost are the three main factors that determine crypto mining profits. Buying expensive equipment and adding rigs are futile if your expense is more than the revenue generated from mining crypto. In contrast, if your calculations are up to the mark, a single rig can offer consistent profits every single day.

Components Required to Build a Crypto Mining Rig

Building a crypto mining rig is somewhat similar to building a customized computer. You need specific hardware, software and peripherals, which are easily available to buy online. Let's talk about the hardware first.

A mining rig frame is the casing that holds the components together. You can get it for less than $100. Assuming that this is the first time you're building a crypto mining rig, it's recommended to buy a stackable mining frame that can hold six to eight GPUs and has enough space to mount auxiliary fans for cooling. This type of frame will let you expand your capacity if needed.

A GPU, graphics card, is the most important component of your rig. Before you order one, it's important to understand that an expensive GPU does not correlate to more profits. Instead, you can generate a high hash rate for as little electricity as possible. Keep in mind:

Profits = Hash Rate – Electricity Consumption

A motherboard is a piece of hardware that connects all the components. The motherboard should support the number of GPUs and graphics cards you intend to use. Ideally, you should buy a motherboard that can support between four and eight GPUs.

You will need enough RAM for your mining rig to store temporary data from rig operations. A RAM between 4GB and 12GB should be enough to start with. When buying RAM, just make sure that the motherboard supports the RAM.

While RAM has no impact on hashing power, a higher RAM helps in creating initial plot files faster.

It is recommended to buy a hard drive or SSD capable of storing more than 50GB of data for permanent data storage. These days, you can buy a 1TB SSD for less than $100. Since storage has the least impact on performance, it's your choice to use HDD or SSD.

You can use a standard Central Processing Unit as the processor. Since you're using GPUs for mining, the role of the CPU is secondary. It means that the Intel Core i3, i5, i7 or any other modern alternative is sufficient. Some miners use only CPUs to mine, but this doesn't offer the extensive power needed to mine most types of crypto coins.

For stable operations, you will need an efficient power supply unit, PSU. A rig with three to six GPUs consumes at least 1,200 watts of power. Under normal circumstances, 1,200W is enough to power six GPUs, a motherboard, a CPU, memory and other components.

Power supplies are class-rated: Plus, Plus Bronze, Plus Silver, Plus Gold and Plus Platinum. The rating determines efficiency. For efficient power consumption, most miners use a PSU that has Plus Platinum or Plus Gold rating.

Besides these fundamental components, you will also require supporting hardware and software to operate a mining rig.

For added flexibility, you should buy a PCI express riser. PCIe risers are slots that your GPU plugs into when needed. PCIe risers will help you attach all the graphic cards and other accessories directly to the motherboard.

From a software perspective, you need mining software such as 

 make it easy to manage the entire operation. 

 and a stable Internet connection are necessary as well.

Pros of Building Your Own Crypto Mining Rig

Cons of Building Your Own Crypto Mining Rig

How Much Does It Cost to Build Your Own Crypto Mining Rig?

The cost of building a crypto mining rig mainly depends on the cost of hardware. 

A typical crypto mining rig with six GPUs should cost anywhere from $1,000 to $4,000.

 Depending on the hardware and the hash rate desired, the price can be considerably less or more than this ballpark figure.

As you may have guessed by now, the main cost of the mining rig comes from the GPU. If you opt for a GPU costing $600, the cost to build a six-GPU crypto mining rig can reach $4,000.

In 2023, some of the best graphic cards on eBay cost between $300 and $600 per GPU. This means that if you’re strategic and resourceful in finding the best materials for less, you can build a crypto mining rig for less than $1,000.

The first step is to get a mining frame to hold components together. For convenience, you can get a ready-built frame from Veddha or Hydra. These are popular brands that offer rig frames for six to eight GPUs, and they come with a mounting place for the motherboard. You can also buy a reasonable mining frame on eBay.

Once you have the frame, follow these steps to build a crypto mining rig:

Attach the CPU to the motherboard. If this is the first time you're building a rig, pay attention to the alignment of pins. If the CPU processor pins are aligned correctly with the corresponding slots on the motherboard, the CPU should fit very easily.

Never force the pins inside the slots as they may break. If any of the pins bend, or if they're not aligned, the CPU will not work. Some processors are pinless, which means that they may need extra care. 

Apply thermal paste to the heat sink before you attach the processor. Then, connect the power cable of the heat sink to the motherboard. 

Installing the RAM should be easy. There is only one way to install the RAM, and that is to push the RAM into the RAM socket. Once the RAM is installed correctly in the right orientation, the brackets should clip in place nicely. 

Step 3: Attach the Motherboard to the Rig Frame

Once the CPU and RAM are attached to the motherboard, it's time to fix the motherboard to the frame. Some mining frames have a special slot where you can place the motherboard before screwing it in place. Make sure that the motherboard is fitted securely, and that there are no loose screws.

To prevent current shorting, make sure that the motherboard is connected tightly.

In some cases, a wooden or plastic attachment is used to avert electrical shocks. 

A PSU is attached to the motherboard using a 24-pin connector. When shopping for a PSU, make sure that it has enough PCIe connectors to operate the number of GPUs you desire to install.

While it's pretty easy to attach the two components, don't mix up the GPU and CPU connectors. For GPU, PCIe connectors are used to connect to the corresponding GPU power connectors. Both the GPU and CPU connectors are labeled. You can check these labels to ensure that the right connector is attached to the PSU.

PCIe risers are extensions of the PCIe slots. They let miners install numerous GPUs on the motherboard without worrying about the limited space and connectors on the motherboard.

To connect a GPU to the motherboard using a PCIe riser, slip the PCIe riser onto the graphics card on the GPU. Next, connect one end of the USB cable to the GPU and the other end of the USB to the PCIe x1 adapter.

Subsequently, connect the USB-to-PCIe x1 adapter to the respective USB-to-PCIe slot on the motherboard. A motherboard has multiple USB-to-PCIe slots that can be used to attach a number of GPUs using a separate PCIe riser.

How to Mine Crypto After Building a Crypto Mining Rig

To achieve success in mining cryptos, you must decide the cryptocurrency you need to mine. This guide assumes that you've already decided what crypto you want to mine before building a crypto mining rig.

If not, it is important to decide what cryptos you should mine so that you can design the crypto mining rig accordingly. Depending on the price and other factors, some cryptos are much more profitable than others.

Among other reasons, profitability usually depends on the existing price trends and the type of consensus mechanism. In 2023, some of the best cryptos to mine include 

Fortunately, some tools can help determine the 

 of a cryptocurrency. You can also use these tools to decide the type of equipment that you will buy for building the crypto mining rig. 

 are examples of useful online calculators worth considering.

How to Set Up the Crypto Mining Rig In an Operating System

After the decision-making process and building the rig, it's time to set up the crypto mining rig in an operating system. Here are the steps to configure the system in a Windows operating system.

Open the device manager on PC to check if GPUs are detected. If detected, update the drivers.

. Doing this lets the system operate continuously without interruptions.

Adjust the appearance and performance of Windows

Automatically manage paging file size for all drives

 to 1.5 times or twice that of physical memory.

After configuring your operating system, the next step is to set up BIOS for mining. This step is critical if you are using multiple GPUs. Depending on the motherboard, specific steps may vary, but the following options are generally what is required. 

 Power on your computer and hold down the 

, adjust the settings for all SATA devices that do not have an SSD to 

The final step is to install the mining software. Different cryptocurrencies have different mining software. You can easily find the type of mining software that is compatible with specific crypto. 

If you think that the setup is too technical, another alternative to the Windows operating system is to use an operating system designed for mining crypto. 

 is an example of such an operating system. Not only is it easy to operate, but you can also control, monitor and manage mining activities remotely. Such operating systems come with detailed manuals and step-by-step instructions.

You should only build a crypto mining rig if you are comfortable with recouping your initial investment in six months or longer. While a mining rig can give you daily profits, it is logical to take it as a long-term investment.

Crypto miners, who are lured by promises of hefty profits, soon realize that a crypto mining rig is not a holy grail or a get-rich-quick scheme. In fact, it requires patience and management skills to keep the system running smoothly. Some crypto miners join mining pools to combine their resources and save on power consumption.

To run an efficient crypto mining rig, you need to calculate your profits and expenses accurately. Tons of online tools can help you. Likewise, you should switch from mining one crypto to another crypto to keep yourself ahead of the game. Remember, flexibility is the key to success.

If you think you can do it, crypto mining is still full of opportunities.

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What's a Crypto Mining Rig & How Do You Build One?

Are you a 12-year-old wondering if you can invest in cryptocurrency? Read on to learn about your eligibility. 

Cryptocurrency has captured the attention of investors of all ages — whether it is from the recent 

. But for whatever reasons you're interested in investing in 

, you probably wonder how old you have to be to invest in crypto legally.  

Read on to figure out if you're eligible to invest in crypto. 

The age requirements for buying cryptocurrency vary from country to country. For example, the minimum age to purchase crypto in the United States is 18 years old on most crypto exchanges. However, some platforms incur a higher age restriction. 

Since most crypto exchanges require users to verify their identity before making a purchase, it is vital to comply with the platform regulations before investing. This verification process helps to prevent fraud by making sure the person who is buying or selling the cryptocurrency is who they claim to be. It is also not uncommon for exchanges to offer additional measures, such as parental controls, custodial accounts, and time limits to protect minors from accidentally buying or trading cryptocurrency.

Here's a list of the age limits for the top cryptocurrency exchange:

Can a 12-Year-Old Invest In Crypto Under Parental Consent?

A 12-year-old can invest in cryptocurrency under parental consent, but it should comply with the platform's use of services. The measures are put in place to safeguard the investment. These include:

Also, minors should only use reputable and secure exchanges when investing in crypto. Being mindful of where you trade will help protect your assets from theft, fraud, and other security threats.

A reputable financial institution or exchange will have adequate security measures. Some of these measures that help to protect user funds include two-factor authentication, cold storage, and security protocols.

Further, reputable exchanges typically provide educational resources. These materials help minors understand the risks associated with investing in crypto and get deeper insights into the technology involved. 

Who Decides the Age Limit to Invest in Crypto?

Local laws and regulations of the country or region where the investor resides determine the age limit for investing in crypto. These age restrictions protect minors from making risky investments they may not be able to afford or understand.

In most countries, purchasing cryptocurrencies is considered illegal for individuals under 18. Some countries also restrict cryptocurrency investments for those under 21 years old.

The Securities and Exchange Commission (SEC) in the U.S. has set a minimum age limit of 18 for all investors, regardless of their financial sophistication. The SEC also requires investors to provide proof of their identity and address before creating an account with a broker-dealer or an investment advisor.

Further, brokers must ensure that all investors are adequately informed about the risks associated with investing in cryptocurrencies before they are allowed to purchase them.

In Europe, different countries have different regulations regarding crypto investments. Most European jurisdictions have set a minimum age limit of 18 for investing in cryptocurrencies. Still, some countries may have even stricter requirements depending on their specific laws and regulations.

By setting an appropriate age limit and requiring investors to provide proof of identity and address, regulators hope to create a safe environment for all crypto investors regardless of their experience level or financial sophistication.

 These regulations vary based on the geographical regions or areas you live in. Please check with the local authority before investing in any cryptocurrency. 

Minors should not be investing in the cryptocurrency markets on their own. Cryptocurrency is a highly volatile and risky investment and can result in considerable losses.

But, minors interested in investing in cryptocurrency could invest with adult supervision and guidance. An adult should be present to provide advice and monitor the investments made by a child.

If a minor decides to trade Bitcoin or other assets with parental supervision, they should do so with caution and only with funds they can afford to lose.

10 Reasons to Buy Crypto for Minors As an Early Investment

Here are some reasons for why minors can consider buying crypto for investment. Keep in mind that they can also apply to almost anyone.

 Crypto is an attainable asset class that anyone with an internet connection can access. All you need to do is get connected with a broker or buy crypto directly on an exchange like Bybit. 

 Cryptocurrencies are highly liquid assets that can be bought and sold quickly and easily.

 Cryptocurrency transactions do not require a third party or middleman. This feature gives you complete control over your money.

 Cryptocurrency transaction fees are generally much lower than fees charged by traditional payment methods. If you buy crypto on a crypto exchange, you can eradicate the broker fees and transact directly. 

 Cryptocurrencies are accessible worldwide, making them ideal for international payments and remittances. As more merchants and institutions like PayPal started accepting crypto as a mode of payment, assets like Bitcoin and Ether made it a good investment for diversification than just local fiat. 

 Cryptocurrency transactions are secured through robust encryption technology. All transactions made on the blockchain are transparent and decentralized. It is comparatively more secure than traditional payment methods as altering the track record is relatively difficult. 

 All cryptocurrency transactions are publicly viewable on the blockchain, providing unprecedented transparency for users and businesses.

 Many cryptocurrencies have seen massive growth in recent years, providing investors with the potential to make significant returns on their investments if they choose wisely and time it correctly.

 Users of cryptocurrencies remain anonymous when transacting on DEXes, allowing them to maintain their privacy while still enjoying all of the benefits of digital currency technology. This feature is ideal for minors since there is no need to reveal personal information or banking details to third parties. Still, transacting on DEX is more sophisticated and requires a deeper understanding of blockchain. 

 By using cryptocurrency, investors have access to international markets which may otherwise not be available due to geographical restrictions or high costs for minors.

In addition to the above reasons, there are many more benefits to buying crypto for minors:

The advantage of buying cryptocurrency as a gift is that the receiver can potentially use it as an investment vehicle, delivering long-term benefits.

You can also provide children with a valuable education tool, teaching them about investing, technology, and money management principles.

Last, it offers minors access to a global financial system that would otherwise be inaccessible due to age limits.

Cryptocurrency transactions are suitable for use as college funds as they are often much cheaper than traditional payment methods.

Payments are secure and trustless, meaning there is no risk of fraud or chargebacks. You can send payments anywhere in the world in minutes, making them ideal for international students or those studying abroad.

Cryptocurrencies are highly divisible and can be used to pay for small tuition or other college expenses without incurring high-interest fees associated with traditional payment methods.

You can securely hold college funds stored in cryptocurrency over time, allowing students to benefit from the potential appreciation of the asset. This strategy safeguards against any possible currency devaluations during their college years.

Purchasing cryptocurrency as an allowance or reward for a minor can be a great way to teach them about the financial system and the importance of saving and investing. This introduction of financial education will help them develop better saving and spending habits in the future.

Introducing a minor to cryptocurrency, you are helping them become familiar with this new asset class and be exposed to digital money. This information could benefit them to get a better foundation for investment and prepare them for more significant investments when they're legally compliant with the rules and regulations. 

Cryptocurrency is easy to purchase and store, making it an ideal investment option for minors who may not yet have access to traditional banking services or stock markets.

As cryptocurrencies appreciate over time, holding onto these assets can also help minors build long-term wealth.

Beginner

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Explained: How Old Do You Have To Be To Buy Crypto Legally?

The crypto market unexpectedly turns into turmoil in 2022. But the question is, will 2023 be the year of crypto bull run? Find out more. 

The year 2021 was a high time for Bitcoin and most crypto assets following the institutional adoption and government regulatory interest. Many potential projects continue to inundate the market as a source of affirmative influences for users and investors. While the market unexpectedly turns into turmoil following the calamitous events, many investors cannot help but question when the cryptocurrency market will enter a 

Bull run or bull market is used interchangeably to indicate that the price of assets or securities such as cryptocurrencies or stocks is rising in an upward trend rapidly. A crypto bull run is no different from the traditional market. It is usually characterized by the anticipation of investors to capitalize on the asset's price appreciation that yields substantial returns from their initial capital. 

During a crypto bull run, the price of cryptocurrencies usually experiences significant growth. Looking at Bitcoin's historical price chart, Bitcoin's bull run usually happens during the 

 season, which we've seen in this timeline: 

A variety of reasons primarily drive the crypto bull market. These include: 

Still, there are plenty of other factors to consider that may result in a crypto bull run. It's an accumulation of reasons that trigger the bull and 

. Compared to the traditional market, crypto is still relatively new. Thus, it can be challenging to predict precisely when a bull run will occur.

Crypto bull runs can happen throughout the years in a sparse frequency. Since the crypto market boasts volatility, bull or bear runs could occur throughout. Depending on the market, some may expect multiple bull runs, while others may go through an extended period of bearish conditions before a reversal happens. The length of a bull run varies depending on the optimism and investor's confidence in the digital assets. The more positive buzz around the asset, the longer the bull run lasts. It could last from a week to months, but it's unlikely for a bull run to last for several years without a correction. 

The cryptocurrency market is known for its volatility, which means that asset prices can fluctuate rapidly. For example, Bitcoin or Ethereum prices during a bull run could soar unexpectedly over 100% and without warning. While past performance is a great vehicle to plan your 

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