Helped my neighbor to purchase some Bitcoins

[Sanitough]

It's great that the op mentioned the high risk of investing in Bitcoin and importance of being ready for long-term holding. It's also good that the money was withdrawn from the exchange, and the new investor now knows the rule of 'not your keys, not your coins'.
I hope the part about risks didn't sound like there's a guarantee that long-term holding will bring profits, though, because there isn't. We can believe that Bitcoin will recover, but history doesn't always repeat itself, and nobody knows what the future really holds.

Op did a great job really by informing his neighbor first about the risks involved when investing into bitcoin. But I think it seems that his neighbor was quite aggressive to invest in bitcoin because he eventually purchased a portion of bitcoin even when he has not made a thorough research about it. I just hope that he won’t blame OP in the future if ever his investment will not work well because we all know bitcoin investment is not all about profits. Sometimes you have to endure some losses at first and when you have overcome all of those, eventually you will learn on how to invest for profits by hodling it long term and never get bothered by price drops.

[panganib999]

When it comes to educating someone about crypto, it's very important that you let them know of the dangers that come with investing in this volatile market. Props to you for never missing that. It's more important being upfront about it and saving yourself of the trouble and the blame when shit hits the fan and he loses a considerable amount of money through investing than you keeping the truth from him just to reel him into the industry. In any case, since I reckon you're a seasoned trader, I suggest you help him as well with the ins and outs of investing so he could get himself a reliable mentor.

If they heard crypto through the sources that you listed, then what is the difference of it from us when I think all of us do also started like that. Like me for example, I heard crypto through a friend but that didn't convinced me at first. I then saw it again on an ad online and that is the time I made a move to research and try it. But, sorry because I think your response about Bitcoin to your friend is wrong.

You shouldn't say that it was high risk because how can we encourage more people to join at it? Bitcoin is actually the most safest crypto because its value can always recover and it is decentralized so we are sure that no people behind it will pull the plug and scam the investors but I like the rest of your advice.

I get where you're coming from but to me this doesn't look like fearmongering at all. If anything I'd do the same thing as him because first and foremost, you don't wanna lie on your friends let alone over money. Second, that sets his expectations up so he doesn't get any idea that bitcoin or investing for that matter is all rainbows and butterflies and winning huge sums of money over trading. There's a huge risk with money on the line here, it's just fair that you know what you're getting yourself into, pronto.

[Minor Miner]

You shouldn't say that it was high risk because how can we encourage more people to join at it?

And if in that case, bitcoin doesn't go up and their investment loses, how would you explain it to them? Why try to lie to them? What benefit do we get from that? You will be a scammer if you don't talk about the risks of investing in bitcoin, not only that it can damage bitcoin's reputation.

Bitcoin is actually the most safest crypto because its value can always recover and it is decentralized so we are sure that no people behind it will pull the plug and scam the investors but I like the rest of your advice.

Yes, it is the safest cryptocurrency in the crypto industry, but what proof do you have to show them bitcoin is absolutely safe and risk free? In the past, bitcoin has always increased in price after every drop, but is there any evidence that bitcoin will increase in price in the future? We don't have that proof.

[Nwada001]

Thou you mentioned the golden rule of storing Bitcoin "Not your key, Not your coin" but seems it's risky because you are using a mobile wallet which is still prone to scams, most especially personal mobile phones that every day you've used.
Hardware wallets have strong security features on their own and that's worth it to store your asset, not on the phone or more worst custodial wallet/exchange.

For the most part, is a mobile wallet not safer than an exchange wallet for someone who doesn't have a hardware wallet?
Even I, who directed and helped him purchase the bitcoin, don't have any hardware wallets at hand.
Assuming he is a PC owner, I could have guided him on how to create a desktop offline wallet.

[drwhobox]

For the most part, is a mobile wallet not safer than an exchange wallet for someone who doesn't have a hardware wallet?
Even I, who directed and helped him purchase the bitcoin, don't have any hardware wallets at hand.
Assuming he is a PC owner, I could have guided him on how to create a desktop offline wallet.

Yes, a mobile wallet is way safer than an exchange. In a bitcoin wallet, you have control over your assets but in exchanges there is nothing you can control from your side, no matter how big or trusted the exchange is. With the recent incident of one of the biggest exchanges, I don't think it is a good idea to keep your assets on the exchange.

Assuming he is a PC owner, I could have guided him on how to create a desktop offline wallet.

Well, if he has a computer you can help him to install an electrum wallet, it is safer than any exchange or online mobile wallet.

[kro55]

hough I know it's not a good idea to store assets on exchanges, I really disagree with OP's approach. As a newbie with small capital, they will not be willing and satisfied to accept such a loss, this will make them uncomfortable and very easily lead to negative thoughts. In my opinion in this case, if OP can't sell bitcoins directly to him, then we should leave bitcoin on Binance, and we will move them to the non-custodial wallet on the next purchase when the number of bitcoins our more.

If OP's friend start doing DCA, he will be constantly losing 50% of his investment every new purchase on Binance, due to fees on withdrawals. That is an impractical method to accumulate bitcoin holdings on long term. If OP can't sell him bitcoins directly, I believe he could find someone reputable here on forum who is constantly selling coins to take part in the negotiation, because to keep assets on exchanges can put OP in a bad position with his friend, in case something like what happened with FTX happens to Binance.

Really worried about this OP's method because if what you say is true, then OP's friend will soon get bored of investing in bitcoin. The huge fee will kill his faith in bitcoin.
@OP, can you consider the solution that @uneng is talking about? it would be best to sell bitcoins directly to him or find a reputable local seller to reduce his costs.
But I also want to say, the FTX crash doesn't mean Binance crashed, in the past, Mt.gox died but Coinbase still existed from 2012 up to now. OP should consider a good option for your friend.

[rodskee]

He asked me why not just leave the coin on Binance so that when ever he wants to sell it, he can just use the same method; that's when I brought to his notice "Not your key, not your coin," and he was convinced. 
 

Good act of kindness mate , you have helped Him to take His chance of getting piece of cake here in crypto.
and hope that since bitcoin today increases again? your friend will consider investing more seeing how His funds increases today because of market growth.

and Good also about telling Him not to leave coins inside exchange how trustworthy they are as the risk of losing is always there .

[CryptSafe]

Telling him the "not your keys, not your coin" phrase is a good thing you did. That would keep him conscious of the safety of his wallet and assets under his custody. I would also commend you for being open and plain to him as this was the conviction he had and that also played a major role in attracting him to purchasing of bitcoin and as well making him know that third party exchanges are not safe to hold bitcoin or other assets.  If your friend can constantly take advantage of the current market situation buy buying in fractions, he can be able to accumulate a huge volume of bitcoin and i see you also told him to invest with money he can afford to loose which in the right sense you are on the safe track because if anything happens tomorrow as a result of downward market trend or maybe he suffers hack, he would not be able to blame or hold  you responsible as you have already told him ahead of time.
Nevertheless, you should advise your friend to be mindful of links he clicks since he has his bitcoin stored on his mobile so as not to get prone to hackers because the experience is very devastating.

[armanda90]

Seems OP helped his neighbor purchase some Bitcoin trough exchange market as Binance, better for up coming next time not focus with the exchange market only but also you OP should helped them how to use cold wallet or hardware wallet. First time purchasing with Bitcoin I think easy for teaching trough exchange market and next time you have educate them with another wallet use for investing in Bitcoin.

Beside have helped them with purchasing Bitcoin in exchange wallet, I think OP need to teach them risk have waiting for when investing in Bitcoin, not discuss or explain about profit only but also have transparent tell them about risk in Bitcoin.

[Tony116]

Thou you mentioned the golden rule of storing Bitcoin "Not your key, Not your coin" but seems it's risky because you are using a mobile wallet which is still prone to scams, most especially personal mobile phones that every day you've used.
Hardware wallets have strong security features on their own and that's worth it to store your asset, not on the phone or more worst custodial wallet/exchange.

For the most part, is a mobile wallet not safer than an exchange wallet for someone who doesn't have a hardware wallet?
Even I, who directed and helped him purchase the bitcoin, don't have any hardware wallets at hand.
Assuming he is a PC owner, I could have guided him on how to create a desktop offline wallet.

Yes, we all know that a hardware wallet is the best wallet, but I also believe that many people don't own it for various reasons. In OP's case, the amount of bitcoins he bought is so small, how can he think of needing a hardware wallet. Second, many countries ban bitcoin, so buying a hardware wallet is very difficult. Meanwhile, if we are careful in using it, the software wallet also brings us safety. Safety is for us to decide, don't think that hardware wallet will never be hacked. Before I owned a hardware wallet, I also used a hot wallet to store bitcoins, and I never had any problems.

[yudi09]

<snip> 

That's a good explanation of the question. Storing assets such as Bitcoin in exchange wallets is highly discouraged by various considerations that can make assets disappear without a guarantee. What's worse is that assets can be frozen despite the stability of the coins stored.
Continue to convey various knowledge about Bitcoin to anyone who is deemed necessary to explain including how to keep Bitcoin safe.

It could be their choice but yes, we have to educate them about the risk of storing our funds on the exchange because even if it was a known and reputable exchange like Binance, we can't assure that our money is safe from possible hacks and not even sure if they will refund if that will happen. Considering this situation, we better secure it with our controlled wallet which I think was safer than we keep on an exchange wallet.

I agree with you that we strongly support efforts to warn each other to keep Bitcoin assets well and as safe as possible in wallets that provide security not in wallets that can be controlled by others such as exchange wallets even though the exchange has a big name.
Inviting people to a better direction is certainly very pleasant but not in a forced state. Whoever they are, as long as they want to go in a positive direction, we must support them.

[Questat]

... 
He asked me why not just leave the coin on Binance so that when ever he wants to sell it, he can just use the same method; that's when I brought to his notice "Not your key, not your coin," and he was convinced. 
 

It is good to see that some of our locals have the courage to invest in crypto but they also need to educate themselves before committing to such a thing otherwise, this could bring them losses and even blame you. In this case, it was you who could help them and make a way for them to fully understand the DOs and DONTs. It is really a big challenge for you but I believe you can do it. What they need is guidance from an experienced trader or investor because many people wanted to invest in crypto but due to a lack of knowledge and skills, they lose confidence and even quit.

[CageMabok]

I agree with you that we strongly support efforts to warn each other to keep Bitcoin assets well and as safe as possible in wallets that provide security not in wallets that can be controlled by others such as exchange wallets even though the exchange has a big name.
Inviting people to a better direction is certainly very pleasant but not in a forced state. Whoever they are, as long as they want to go in a positive direction, we must support them.

This kind of thing obviously must be supported because the direction is good, especially if the person is doing a good thing based on his own intentions and not because of coercion from others. I also agree with what you say because I also like to support people who do good and want to direct more people to good things. One of them is like telling people to keep Bitcoin safe and also giving advice not to sell it at a lower price.

[Inwestour]

This kind of thing obviously must be supported because the direction is good, especially if the person is doing a good thing based on his own intentions and not because of coercion from others. I also agree with what you say because I also like to support people who do good and want to direct more people to good things. One of them is like telling people to keep Bitcoin safe and also giving advice not to sell it at a lower price.

I am more inclined to believe that a person needs help only if he asked for it himself. If you initiate such a conversation and subsequently a person will buy bitcoin, but due to his knowledge, he will not be able to wait for a profit, and will sell earlier at a loss, then he will only blame you for his losses.

This is the case when you can say that the initiative is punishable. Of course, if a person trusts you and you control his every step, then in this case something good may turn out for him, but do you need it, do you want to be a nanny for someone?

Everyone’s business, maybe someone likes this, but if someone started telling me about bitcoin without my interest in it, then it would alert me.

[yudi09]

I agree with you that we strongly support efforts to warn each other to keep Bitcoin assets well and as safe as possible in wallets that provide security not in wallets that can be controlled by others such as exchange wallets even though the exchange has a big name.
Inviting people to a better direction is certainly very pleasant but not in a forced state. Whoever they are, as long as they want to go in a positive direction, we must support them.

This kind of thing obviously must be supported because the direction is good, especially if the person is doing a good thing based on his own intentions and not because of coercion from others. I also agree with what you say because I also like to support people who do good and want to direct more people to good things. One of them is like telling people to keep Bitcoin safe and also giving advice not to sell it at a lower price.

Maybe because there are one or many factors that force them to sell when prices are cheap because the benchmark for cheap Bitcoin prices depends on when they get Bitcoin. But advising against selling includes advice to consider considering the future of Bitcoin will be great.

For me, choosing to sell or not to sell depends on each individual or it is privacy.
But we admit that holding is a better decision than letting go when the price is low.

[Rigon]

OP Thank you, for giving a newbie an idea of ​​investing and getting him into bitcoin investing. But one thing you did well was to make him aware of all the warning words of Bitcoin beforehand. Actually Bitcoin investment is something that has many ricks. There are many new people who express interest in investing and after investing they lose patience when the market goes down a bit. I say to those who invest and hold, you should never lose patience in investing. Keep it up for a long time and you will see great success from here.

OP you must provide him with a secure wallet. Ask him to keep his private key in a place where no one but him will know so that the wallet he invests in cannot be hacked in any way. If necessary you can suggest him to collect a hardware wallet.

[noormcs5]

OP Thank you, for giving a newbie an idea of ​​investing and getting him into bitcoin investing. But one thing you did well was to make him aware of all the warning words of Bitcoin beforehand. Actually Bitcoin investment is something that has many ricks. There are many new people who express interest in investing and after investing they lose patience when the market goes down a bit. I say to those who invest and hold, you should never lose patience in investing. Keep it up for a long time and you will see great success from here.

OP you must provide him with a secure wallet. Ask him to keep his private key in a place where no one but him will know so that the wallet he invests in cannot be hacked in any way. If necessary you can suggest him to collect a hardware wallet.

Yes, that is the best thing which everyone can do and that is to help our near and dear ones and people around us to buy cryptocurrencies, more importantly bitcoin.

I would expect more people will follow the same and take this example as an idea on how to spread more awareness about bitcoin. Everyone's contribution will eventually make bitcoin being used widely and it will help in adoption of bitcoin.

[doomloop]

I wouldn't, I knwo that makes me sound like a crazy person and probably made you feel like I am a bad neighbor as well. But the fact is that I can't take that risk, even if they come to me begging to learn how to buy some bitcoins, that would still not be good enough reason to help them.

Because, I would be fearing that if they buy and the price goes down and they lose money, the relationship we have may never be the same and they may think that I did something wrong by letting them have it. I know you will say "if they wanted you to help, why would they be mad at you?" but that is just how humans are, it has happened to me once, and I won't do it ever again.

[mvdheuvel1983]

Buying Bitcoin is just the beginning the true test of your friendship is what you do after you have assisted him him investing in Bitcoin. It is such a wide ecosystem that you have to first in my opinion teach him about the security risks involved and how to protect his assets before anything else.

[ektotanes]

It's inspiring.
You did a good job and you should be proud of yourself. I hope that someday I will also help someone buy Bitcoin.