How can I invest in crypto baskets for my kids?

Most exchanges require the investor to be over the age of 18, but a parent or guardian can invest in a crypto basket on behalf of minor children if they submit some extra documentation.

Could you please guide me on crypto baskets and how to get them? I am a pensioner from Lesotho. I want to invest in them for my kids.

  Profile         Mail

Dear reader,

Thank you for your question.

A cryptocurrency basket can refer to a collection of digital assets such as tokens that investors can buy and manage as a bundle. In this manner, investors can monitor their digital assets as a whole, rather than oversee them individually. Cryptocurrency baskets are tailored for investors who are looking for an effortless and convenient investment option that provides them with exposure and diversification across multiple cryptocurrencies. The basket of cryptocurrencies will include a carefully selected group of digital assets that meet a strict criterion.

Although investing in cryptocurrency seems like a good idea it is important to know that the industry is very risky to invest in considering that it is not real money and that it remains unregulated. However, in South Africa, the crypto industry is expected to be regulated by the end of 2022. Once that is done, advisors will be able to propose the investment to clients.

In the meantime it is not difficult to find a platform that provides crypto baskets. Among these product providers are Jaltech, Easy Equities, Revix and so on.

There are a few advantages of investing in a crypto basket:

  • Diversification: You are not limited to one type of cryptocurrency, there are several types of crypto you can invest in like bitcoin, ether, Polkadot, Chainlink and so on, all in one investment!
  • Investment management: If you are not well informed on the market and do not like to do a lot of research or track market movements or gamble on your investments, there are people who can manage your portfolio for you.
  • Cryptos are managed based on market movements: Cryptos are added or removed based on how the market performs.
  • Storage: The crypto is kept in storage where there is no exposure to occurrences like cyber attacks and losing coins on digital platforms.
  • Affordability: You do not always require a large sum of money to start investing. The minimum investment amount can range from as little R100 to R50 000 depending on the platform you choose to invest with.

How to invest in a crypto basket?

Investing in our basket of cryptocurrencies requires the completion of an application form and submitting all the required Fica documents (ID/passport, proof of residence not older than three months, and a tax number).

As for your question about investing for your children, most exchanges require the investor to be over the age of 18. However, with a crypto basket, a parent/guardian can invest on behalf of their children and may be required to submit some extra documentation, in addition to the normal Fica documents, such as:

  • The guardian to sign the application form on behalf of the child;
  • The guardian to sign a Foreign Account Tax Compliance (Facta) form;
  • The child’s birth certificate and ID;
  • The guardian’s ID;
  • An affidavit stating that the child lives with the guardian; and
  • If the guardian is not the parent or if their name is not on the birth certificate, an affidavit stating that they are the legal guardian of the child.

Should you require more info, you are welcome to contact our office.

Happy investing!

Was this answer by Michael helpful?
23  

COMMENTS   1

You must be signed in and an Insider Gold subscriber to comment.

SUBSCRIBE NOW SIGN IN

The supply of tulip bulbs was relatively restricted during the 17th century. They could only “mine” tulip bulbs at the natural cultivation rate. A bulb that grew from seed would take seven to 12 years before flowering. The cultivation methods were kept a secret. Today we would describe the cultivation methods as an “algorithm”. This “algorithm” determined the supply of bulbs.

If you have recently purchased a $6 million tulip bulb on credit, would you bury it and cover it with soil? The supply was restricted, supporting the value and the allure of bulbs.

Tulip bulbs severed as an alternative form of currency for enlightened and wealthy Dutch traders. Traders extended credit with tulip bulbs as collateral in 1634. Tulip bulbs even changed hands on the Stock Exchange of Amsterdam. People began buying tulips with leverage, using margined derivatives contracts to buy more than they could afford.

Dutch parents even wrote letters to a prominent financial magazine, asking for advice on how to invest in tulip bulbs on behalf of their children.

“The only thing new in the world is the history you do not know.” ― Harry S. Truman.

End of comments.

LATEST CURRENCIES  

USD / ZAR
GBP / ZAR
EUR / ZAR
BTC / USD

Subscribe to our mailing list

* indicates required
Moneyweb newsletters

Instrument Details  

You do not have any portfolios, please create one here.
You do not have an alert portfolio, please create one here.
INSIDER SUBSCRIPTION APP VIDEOS RADIO / LISTEN LIVE SHOP OFFERS WEBINARS NEWSLETTERS TRENDING

Follow us:

Search Articles:
Click a Company: