My two oldest sons are adults, one in his early 20’s and the other is 19. Both working full time and both still living at home. I love that I still have them at home, and I have always encouraged them to stay at home so they can save for a deposit to buy their own homes.

And saving is what they must do. They want to be able to buy their first home, and with it being harder than ever to get on the housing market, they need to save, invest, and earn.

There are a few options out there to save /earn money for a deposit, i.e. my boys both have a Lifetime ISA, to which they save a little each month. However, instead of putting all their eggs into one basket, they also look to save/earn and add to their ‘deposit pot’ in different ways. And, Cyprocurrency is one that they have been earning a passive income from. It’s a modern (albeit volatile) way to save/invest, and they get to to use any profits from it to add to their house deposit pot.

My boys have grown up in a digital world, and for them non-physical currency is something they’re much more confident and understanding off than us parents are. You hear and read of more and more young people turning to cryptocurrency as a way of saving money. Due to this, it has made me realise I too need to understand how earning passive income from bitcoin works, to understand the risks etc. so I can guide / help my boys if needed.

So my novice beginners guide on how to save with Cryptocurrency:

Research

Research. Research. Research! Buying cryptocurrency is similar to buying stocks (but without the protection). With thousands of currencies out there, you'll have to look into individual coins for yourself and decide which ones you believe will be profitable.

Pick a Crypto Trading platform

There are a few available in the UK, but it is important to find a Cryptocurrency Exchange that are beginner friendly; check if they are secure (against hackings), insured, and what their fees are.

Tax on Cryptocurrency

Understand you may have to pay Capital Gains Tax - Anyone who makes a profit from selling cryptocurrencies will pay taxes on the portion of the profit above £12,300 there is information available on the .gov website. Please note that this amount also applies to investment gains from stocks and shares.

Finally, it’s important to understand that Cryptocurrency can decline in value, making it risky, it can be a volatility way to save. It can also be a passive way to earn. Thus, I encourage my boys to save most of their money into their ISA, and to look at Cryptocurrency as a passive way to earn, to ultimately add to their house deposit savings.