Teaching children cryptocurrency can be a great way to introduce them to the world of finance and technology. Here are some interactive ways to teach kids about cryptocurrency:
Start with the basics and use analogies
Start by defining and describing the nature of money. Educate your children about the different types of money and the function of banks. It is also important to teach them about the origin of money and how it came about, from paper money to digital money.
Related: What is cryptocurrency? A Beginner’s Guide to Digital Currency
In addition, analogies can be a powerful tool to help children understand complex concepts. For example, one could 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 a fun way through games. In addition to a few board games that cover the basics of cryptocurrency, there are many online games that simulate it buying and selling cryptocurrencies.
Alternatively, use real-life examples to help kids understand how cryptocurrency works. For example, start by playing a number guessing game by choosing a secret number between 1 and 100 and asking your 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 costs a lot of money.
Related: A Beginner’s Guide to the GameFi Ecosystem
Then tell your child that everyone in the world is trying to figure out the Bitcoin number, and whoever finds it gets to keep it. But they have to guess until they get it right, just like in a simple number guessing game.
However, Bitcoin presents a challenge because the number that needs to be guessed is constantly changing. Sometimes it’s really easy to guess and other times it’s very challenging. It’s like the number is constantly moving up and down, kind of like the stock market.
Did you know that bitcoins are created by a number guessing game played by a group of players? Rommel Vergara dives into how #bitcoin started here #FromtheLabs https://t.co/rXvwV1fsCd pic.twitter.com/cuHjYBWXSv
— IR (@We_Are_IR_) March 30, 2018
Keep guessing a number between 1 and 100 and explain to your kids that if they guess the number correctly, you will reward them with 1 BTC as a gift. And if the value of 1 BTC increases the next day, they will have more money, or vice versa.
#UnderstandBitcoin Having children and being completely obsessed with it #crypto he finally led me to an explanation #Bitcoin to my 5 year old daughter…it may seem easy – but I invite you to give it a try. When you find that impossible, try this: Bitcoin Money: A Tale of Bitville Discovering Good Money pic.twitter.com/O7UcxcZ0PL
— Hannah Rosenberg (@hmichellerose) October 24, 2021
Blockchain is a digital lego
Tell your kids to think about it blockchain as a type of digital building block used to track things. Instead of building towers or houses in a Lego game, internet money uses blockchain to track transactions.
Show them how to buy cryptocurrency
Find a cryptocurrency trading simulation game and go through its tutorials to show your child how to buy cryptocurrency. Explain to them the importance of opening an account on a cryptocurrency exchange, as well as websites. Additionally, inform them that if you want to buy and sell cryptocurrency for real money, you need to fund your exchange account with fiat money.
Then use the fake in-game money to buy bitcoins and confirm the transaction, just like in real life. After buying BTC, ask them to follow 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 kids have to use cryptocurrency to buy and sell different items. This will help them understand the concept of buying and selling as well the risks and rewards of investing in cryptocurrencies.
A digital wallet as a special type of piggy bank
Your kids may ask you about storing cryptocurrencies. You can explain to them that cryptocurrency is stored in a digital wallet rather than a physical one, like a special kind of piggy bank, and that the digital wallet can be accessed from anywhere in the world and used for online purchases.
A dialogue with a 10-year-old.
Me:
-Do you have a piggy bank?
Child:
-No, but I have a digital wallet.#mummifymenow— Paul Pomposiello (@pablopompo) May 3, 2022
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.
In addition, videos can help children visualize complex concepts such as cryptocurrency and blockchain and make it easier for them to understand the topic.
