Cryptocurrency is rapidly gaining recognition in the world today, both the young and old are curious to know about all it entails, but still, it can be quite difficult to explain what it means, as cryptocurrency is vast and I've only come to know a little knowledge of what crypto is, thanks to some selected authors here on the hive blockchain, who regularly share crypto related knowledge for us to learn also, who never fails to update us on latest trendings in the crypto world also breaking down some ambiguous words to the simplest of terms, even a child could understand.

_{Image edited using canva}

It didn't come as a shock to me when a curious eight-year-old boy suddenly walked up to me to explain what cryptocurrency really is. According to him, his friends told him it is where a huge amount of money is stored online and needs some codes to be cracked open then you become suddenly rich, Of course, this is a funny and wrong assumption to be given on what cryptocurrency is. He asked how is the code gotten, so he could also become a crypto enthusiast in the future and be rich as well.

I asked him how he came about this funny definition, and he said his friends at school told him that, apparently, it can be seen that their young minds developed this theory of what cryptocurrency means, and they definitely need some guidance and orientation on what the right knowledge/ foundation on what cryptocurrency means, after all, the world is changing and I'm also among the percentage of people that believe cryptocurrency will change the face of financial structure of different countries, I see cryptocurrency overtaking the financial space in the nearest future, even though most countries are yet to accept it legally as a form of transaction, so every child needs guidance on financial literacy to help them be more grounded financially as young teenagers and adults. It is quite surprising that cryptocurrency is one of the less visited topics often discussed with children in my part of the world as most adults too are yet to seek this knowledge and embrace it.

Children are easily exposed to social media these days, even though they can get valid information online, there are also numerous influencers who spread fake news about cryptocurrency for the main purpose of exploiting these young curious minds for their selfish purposes. So when I'm faced with situations like this, I'm more than happy to satisfy their curiosity. I even did more research on the simplest way to answer and satisfy their curious minds.

Introducing cryptocurrency to a child

I made known to him about the first cryptocurrency created in 2009, which is also the largest currently BITCOIN how it started at a small rate, and its current price over the years.

I started by explaining to him that cryptocurrencies are digital currency/ money, meaning they can't be held physically, like our naira for instance but are rather built on a decentralized blockchain, we can see the amount we own on the blockchain or digital wallet also on they are not controlled by our traditional banks or government rather we are in charge of our asset, and the value(price) of the cryptocurrency depends on the demand in the market.

Also, though crypto is gradually being accepted as a means of exchange in some countries, it isn't yet accepted in ours (Nigeria), The reason why we change ours to fiat before using it to purchase any form of transaction here, except in rare cases where we meet a fellow crypto enthusiast who is willing to accept a crypto token as a means of payment.

Furthermore, they should be aware that most cryptocurrencies are volatile, meaning a token can be worth $100 today and it can either decrease or increase in value, depending on the demand, It is not controlled by any regulatory body, any investment or transaction is at your own risk.

Also, to earn crypto, it can either be mined, bought as a form of investment to hold till the price rises, or earned through a blogging platform like Hive, and so many other ways, even Play to earn games, etc.

Going Practical now

The easiest way for him to understand what cryptocurrency at his age level is in a more practical way by introducing p2E( play to earn) crypto like games, like Minecraft or any other ones played online, where tokens are earned while playing the game, the token earned are valuable in-game, they may not own monetary value but could help him buy more weapons, crafts or level up, crypto can be likened in such way to them at this young age because overwhelming them with all the knowledge at ones can be cumbersome and even leave them more confused than before, so it is best to take it on slowly.

Also as times go on, they should be aware that not all cryptocurrencies are worth investing in, there is also risk involved in cryptocurrencies, as some are shitcoins, which is why it is important for them to get basic and first-hand information from us as parents or guidance, so as not to get misinformed and fall victims of exploiters or phishing sites. TikTok doesn't make things better, as most influencers make cryptocurrency seem like a get-rich deal once you start investing in any random coin.

I'm sure by now, he has a basic and general knowledge of what cryptocurrency means, I know the questions are not ending, instead more are coming, At least, I'm more assured, that he is not misinformed anymore, and won't easily fall victim in the nearest future.

I could use more suggestions here, How would you explain cryptocurrency in a fun and understanding way to a child, Do let me know in the comment section as it will be deeply appreciated. Have you ever encountered such a situation with a curious kid? How did you handle it, I would love to learn as well.

Thank you for reading