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Hey Money Scoop: How do cryptocurrency wallets work? Are companies creating more user-friendly wallets? Example: A wallet connected to a credit card that I can give to a dependent?—Crypto Curious

Dear Curious, if I read your three questions in order, it sounds like you’re asking if you can connect a user-friendly cryptocurrency wallet to a credit card and then give that credit card to a dependent.

If I assume that by ‘addicted’ you mean ‘my child, who recently got into crypto’, I’ll start by explaining what you may already know. In order to give your minor child access to a credit card, you must make them an authorized user on one of your own credit accounts. This allows your offspring to make purchases on your line of credit and gives you the legal responsibility to pay back anything they might buy.

This means that if your little one decides to buy a Bored Ape, you pay for it.

You will also pay a lot of fees. When you connect a credit card to a cryptocurrency wallet, which is extremely possible, since fintech companies are actively competing to create the ultimate user-friendly cryptocurrency transaction interface, you don’t actually put the NFT on your credit card. You use your line of credit to buy cryptocurrency, which will then be used to purchase the NFT. Your credit card issuer will code this transaction as a cash advanceand you will have to pay cash advance fee and cash advance interest rate on the transaction, not to mention all the fees associated with converting USD to crypto and all additional fees associated with the actual purchase.

You will also need to find a third-party crypto credit service that allows minors to make purchases. It will be difficult. In theory, cryptocurrency is accessible to anyone of any age. In practice, most reputable crypto exchange apps prohibit minors from creating accounts.

Why? Well, the fact that there are grown adults losing money to crypto scams is bad enough. No one wants kids to get involved in the big crypto casino. I mean – there’s probably someone out there doing it, but they just want to exploit your child for money, so steer clear.

My real advice is for you and your dependent to watch this video. It may change the way you think about cryptocurrency – and, as a bonus, it includes a very detailed explanation of how cryptocurrency wallets work, which is the one question I haven’t had the space for to respond.Nicole Dieker, Money Scoop guest columnist