The demand for cryptocurrency is high among parents who are looking to save and invest in something that could provide their children with an asset worth more than gold or dollars down the line.
In recent months, polls have shown increasing interest from this demographic group, with 87% now investing in crypto assets compared to just 62 percent last year - according to data compiled by CNBC.
The report outlines several strategies for parents to invest in cryptocurrency for college savings without "gambling away" their child's future. The report specifically advises parents to use cryptocurrency sparingly and with caution when incorporating digital assets into their savings strategy.
The founder of a financial advisory company has advised against using cryptocurrency as an investment for children's education.
"You don't want to bet your child's ability to go to college on a speculative bet," said Ric Edelman, a financial advisor and founder of the Digital Assets Council of Financial Professionals.
Edelman's advice to investors is clear - don't put all your eggs in one basket. He recommends a diversified portfolio with an allocation of 1-5% for crypto, warning that parents should not make it the majority share either way they go because there are too many unknowns when investing heavily into anything single source or industry-related like this type of digital currency.
When developing a college savings plan, parents should consider their student's time horizon, according to Ben Weiss, CEO, and co-founder of CoinFlip. He advised parents not to invest in cryptocurrency if their child starts college soon. However, he suggested that parents with longer time horizons, such as a decade or more, should be "more aggressive" in their crypto investment strategy.
The report also cautioned parents about the tax implications of investing in cryptocurrency, stating that they may face a "large tax liability" when they finally cash out.