NFTs or Non-fungible Tokens are on the rise as people purchase more digital products, collectibles, music, and art. Sometimes kids want a modification or attire that they can have for their online games and other activities, so it is not surprising that people of all ages want to purchase an NFT. But how old do you have to be?
The consensus for most platforms is that the buyer needs to be 18 years old or older. There are a few exceptions depending on what state you reside in the United States. So the age may vary in some areas, but most platforms require you to be 18. The same holds for some of the best-known NFT “clubs.”
However, there are specific things to watch out for, including potential loopholes. In general, the creative minds of youngsters should be nurtured once they get engrossed with NFTs, whether from the creative or commercial side. We discuss some specific questions in this regard below.
The laws and rules are constantly changing, with NFTs and cryptocurrency relatively new. Here is everything I have found most recently…remember, regulations and policies are constantly changing.
Disclosure: I’m not an attorney, and the following is not legal advice. If you need legal advice, consult with an attorney. Do not misconstrue this article as legal advice.
How Old Do You Have To Be To Buy NFTs?
In general, NFTs are an emerging digital market that are major components of DeFi. As such, there are no specific state-by-state regulations across the board governing the market, though there are some states that have enacted laws and guidance.
Most states follow federal guidelines restricting those under 18 (or 13 for certain activities) in terms of how they can create, buy, hold and sell NFTs.
Also, there may be cases when the age restriction on a platform refers to “the age of majority,” which is defined for every state (e.g., In IL, the age of majority is 18). This link shows “the age of majority” in every state.
So, for the most part, you have to be 18 years old or older to buy an NFT. For the most part, you can’t even set up an account or activate a crypto wallet if you are younger than 18.
States With Different Age Limits
I found that though most states in the United States require you to be 18 years to buy an NFT, a few states require you to be a little older. These states include the following:
Alabama, Delaware, and Nebraska require that you are 19 years of age to sell any NFTs, while in Mississippi, you need to be at least the age of 21 to sell an NFT. These restrictions are because you have to be a certain age to invest in stocks, and NFTs can be considered stocks.
These age restrictions don’t stop people from trying. There isn’t always an in-depth verification process for your identity, so you could easily pretend to be older or even pretend to be a parent as long as you have a way to pay for the NFT.
Most platforms, though, require verification. This may be via credit card number or a bank account. But since NFTs and cryptocurrencies are relatively new, smaller or newer platforms may not require it.
In general, NFTs are an emerging digital market. As such, there are no specific state-by-state regulations across the board governing the market, though there are some states that have enacted laws and guidance.
If NFTs can be Art Why are There Age Restrictions?
There is no restriction on the creation of art. There are many cases where collaborating artists are teenagers and are creating and selling art through someone in the group which holds an NFT account.
However, as with other NFT activities, selling NFTs may be restricted for minors below the age of 13, while buying may be restricted below the age of 18 (due to the need to have compatible wallets).
If you know nothing about NFT wallets, this article will get you up to speed: Top 9 Crypto Wallets to Buy and Collect NFT Art.
The reasons are similar – there may be statutory filings and tax requirements from buying, holding, and selling NFTs that are beyond the capability of the average minor.
Can You Gift a NFT to a Minor?
One can debate the answer theoretically, but the answer in practical terms is “no” or “rarely.”
In order to hold an NFT, one needs to possess a compatible digital wallet. The process of gifting is similar to giving a person cryptocurrency. Therein lies the rub. Since most wallet apps, exchanges, and/or brokerages will not allow anyone under 18 to create an account, gifting an NFT to a minor person is tricky at best and often close to impossible.
I’ve heard of people adding NFTs to trust, but that’s a whole other topic.
Why Can Minors Buy Baseball Cards but Not NFT Collectibles?
The best answer to this question may be that an NFT is a digital asset whose owner should demonstrate responsibility above and beyond what a typical minor person may be capable of at that stage in their life.
An NFT owner must understand what they are taking ownership of, how to access it, and how to keep it safe. Otherwise, if people allow irresponsible or fraudulent use of NFTs, it could cause havoc and lack of trust in an emerging market. There are also concerns about the recipient getting scammed.
Unlike NFTs, baseball cards are physical objects – regardless of their value. As such, where they are stored and how they are displayed or traded is unlikely to have an impact on the market for those objects.
Can a Minor Buy NFTs for NFT based Games and Metaverses like Decentraland?
While there are situations where minors may gain access to NFT based games and metaverses, the general consensus is that anyone below 18 should not be allowed free access.
There is good logic behind this reasoning. Not only should certain games and activities be age-restricted, but a minor is also unlikely to be able to handle the transactional aspects of it – especially when there are statutory and tax reporting involved (e.g., with capital gains, airdrops, and staking). This is more likely to create problems for the platform involved and the users.
As before, a key hurdle is the ownership of a compatible digital wallet, which is often inaccessible to those under 18 years old.
Do Top NFT Platforms like Opensea, Rarible and Mintable have Age Restrictions?
All of the top NFT platforms have some form of age restrictions. There may be differences in how old you need to be to sell an NFT (usually 13+) and how old you need to be to trade in an NFT (sometimes 18+).
Here are some of the requirements on three major platforms:
- OpenSea does not allow users under 13 years of age. For those between 13-18, the users can only access the platform through a Parent/Guardian account. For full and unfettered access, users must be 18+.
- Rarible, another well known open source platform, does not allow children below 13 to become users.
- Mintable does not allow users unless they are either 13 years of age or have reached the age of majority. The age of majority varies by state. For example, in Illinois, the age of majority is 18.
Marketplaces With Age Limits
You may have to research each marketplace for an age limit. Some marketplaces will ask that you are 21 years old, while others only need to be 18. It just depends on the platform and who is selling the product.
Why The Age Limit?
NFT marketplaces aren’t different from creating an account with Amazon.com, eBay, or other selling/trading platforms. These platforms generally require that you are 18 years old to sell products and have an account.
You need to attach a credit card or bank account, which those under 18 typically don’t have. This doesn’t mean that younger buyers don’t exist. There are plenty of times that a younger buyer will use their parent’s information or other ways to get what they want.
NFTs are still a new marketplace and can fluctuate in price. Some buyers and sellers treat NFTs like art pieces, selling them for thousands. There is nothing wrong with this, but it does bring out people who try to scam others for those prices. Those that are younger are more likely to be preyed upon.
If you are a new buyer for NFTs, it is good to do some research first. NFTs are constantly fluctuating in price, and some people may be overcharging for their products.
NFTs are like art pieces, and some may want to pay a large sum for one art style while others would never think about spending that much. Some may be overcharging their work, while others may be selling for a fair price. The price is all about point of view.
Tips When Buying A NFT
Buying an NFT, especially your first one, can be an exciting time, but it can be one filled with anxiety. There are many risk factors like losing all the money you invested, and if you haven’t bought before, not understanding NFTs may increase your stress.
But like buying in a regular store, there are many ways you can protect yourself and purchase the products you want. It is all about research and taking these considerations when looking at NFTs:
- Don’t click on any outside links.
- Never share your seed phrase with anyone else.
- Compare similar NFTs for appropriate pricing.
- Be cautious of scammers.
- Ensure you can protect your NFTs from being hacked.
- Make sure the account is verified before purchase, here are few ways to check ownership.
- Look at the sellers’ previous history.
- Check for any external websites. A lack of one is a red flag.
Always take the necessary precautions when purchasing from a lesser-known buyer. There should always be external information about the artist.
If you cannot find information outside of the marketplace, there is a big chance that the person you are dealing with may be a scammer.
How To Buy A NFT?
There are many ways you can purchase an NFT. First and foremost, you will have to buy tokens or cryptocurrency. You can do this with many cryptocurrencies like Ethereum and Bitcoin. Once you do this, you have now entered the digital world of cryptocurrency and NFTs.
Once you’ve gotten yourself the necessary currency, you can begin the next steps in the process of buying an NFT. Here they are:
- Establish a crypto wallet like MetaMask or Coinbase.
- Connect these accounts to a compatabe NFT marketplace of your choosing like Rarible or OpenSea.
- Look for the NFTs you want.
- Research the seller before you purchase.
- Complete a purchase.
- Enjoy your product.
Now you have purchased your NFT to enjoy. Ensure that your computer and your NFT are protected digitally. If your NFTs are not protected, you may find yourself the victim of a hacker. You don’t want that, so add defenses to your NFTs and technology.
NFTs are a fun thing to buy, but you can’t do it if you are under the age of 18. Ensure you are well researched in the world of cryptocurrency and NFTs before you make any purchases. As soon as you have a few NFTs in your collection, show them off to the world. Here are 8 awesome places dedicated to showing off NFTs.
NFTs are fun, exciting, and a new place to find so many pieces of art, music, and more! if you want to continue the exciting education of NFTs, read these viral articles:
- How to Auto Generate an NFT: 7 Methods
- 7 Reasons Why Everyone Seems to Hate NFTs
- The 3 Cheapest Ways to Mint an NFT: Full Breakdown