What should you know before recommending Bitcoin to a friend?

[d5000]

This thread was inspired by this one, where a forum user talked about him regretting to have recommended Bitcoin to a friend because some lost their coins or Bitcoin didn't hold up to their expectations.

The idea is to collect things which are useful to know before you recommend Bitcoin to friends and relatives.

It can be absolute "musts", or simple tips to make your Bitcoin journey better.

And just to clarify: It's probably not a good idea to aggressively try to drive friends or relatives into Bitcoin. I'd mainly recommend Bitcoin to people who already are showing some interest in the topic, or at least in related topics, for example if they are asking directly about alternative investment opportunities, being conscient about the risks.

I start with a couple of absolute "musts" everybody who wants to recommend Bitcoin to someone should know and tell the new users.

1) Not your keys, not your coins! That's perhaps the most basic sentence everybody should understand before engaging with Bitcoin. Coins hold on an exchange or a custodial wallet do not really belong to you -- if the company behind them gets bankrupt or is hacked, you can lose coins.

2) Back up your keys and seeds. You should have at the very least one or better two physical items (paper is okay for low amounts you can afford to lose, but not the best option, metal-based items are better!) where you've written down your seeds or keys from your main Bitcoin wallet.

3) Don't think that the Bitcoin price will always go up. Above all if the price is already bullish for several years, it is likely that it will eventually correct.

4) DCA is perhaps the best method to buy BTC and avoid problems with its volatility. Buying Bitcoins all at once is risky, especially if the price is already high. Buy them in chunks, regularly, for example once in a month.

5) Do not reuse addresses! This is above all valid for addresses you use for HODL purposes. Reusing addresses means to receive funds once you have sent coins from the same address. This can expose you to privacy risks and to quantum computers once they are available.

6) Bitcoin payments cannot be reversed (like credit card payments for example). Check all info, like addresses, and the trustworthiness of merchants and service providers, before you make a payment. It is your own responsibility to deal with the consequences. If something goes wrong and the payee doesn't cooperate, your only option is to go to the police.

7) Only use Bitcoin from safe devices. If you have only the slightest doubt your device can be infected with malware, or you're engaging in unsafe Internet usage (and use Windows ) then move your coins ASAP to a safer location! Consider a hardware wallet or dedicated device for larger amounts.

User contributions in this thread:

8 ) Test Biitcoin with small amounts first.
9) Tell your friends facts, don't get too excited.
10) Security first & educate yourself about Bitcoin before investing.
11) Be sure to understand Bitcoin before recommending. Be aware of scams.
12) Invest what you can afford to lose, understand the difference between long-term trend and short-term movements.
13) Keep coins separate & don't panic, use mobile wallets only for small amounts..
14) Use open source software.
15) Prevent physical attacks.
16) Don't post your Bitcoin address in public (until necessary). (Very important! Above all HODL addresses should never be revealed!)
17) Clarify the difference between Bitcoin and altcoins. Be careful with centralized exchanges.
18) Learn how to consolidate UTXOs. Store keys in different locations and use a passphrase on your main device.
19) Be aware of ponzi schemes and malware on untrustworthy links
20) Be careful with airdrops, don't connect a wallet with significant funds to untrustworthy actors.
21) Try to be emotionally stable before taking decisions. Monitor market trends.
22) Know how transaction fees work, to avoid under/overpaying.
23) Learn from experienced Bitcoin users.
24) Store your seedphrases and keys only offline, never online.
25) Elaborate a strategy and a long term plan.
26) Do not use wallet software on public unprotected WiFi networks.

Can you add something? Good tips will be merited and linked in the OP!

[Rufsilf]

Always test small first.

That’s what I always do even now. If I’m sending a big amount, I make sure to test it with a small one first. I’ve had an experience before where I lost money because of a phishing attempt. I don’t even know how it happened, I was using Electrum (probably got faked after upgrading), copied the right address, but when I pasted it, it turned into a different one. It all happened fast and the money was gone instantly. Since it’s irreversible, I couldn’t get it back anymore. So now I always double-check everything before sending.

[Shineup]

Always test small first.

That’s what I always do even now. If I’m sending a big amount, I make sure to test it with a small one first. I’ve had an experience before where I lost money because of a phishing attempt. I don’t even know how it happened, I was using Electrum (probably got faked after upgrading), copied the right address, but when I pasted it, it turned into a different one. It all happened fast and the money was gone instantly. Since it’s irreversible, I couldn’t get it back anymore. So now I always double-check everything before sending.

Precisely,  the point is to double check before sending very nice one to be included in the op.

One thing we should also know or have in mind is that Bitcoin is a speculative asset so we don't panic on seeing others speculation compared to yours.

[stadus]

If you have friends or family who are interested in Bitcoin or you want to encourage them to invest, don’t be too excited trying to convince them. Give them all the info they need. Don’t just push them, give them facts, which is way more important.

Teach them how the market moves, that it’s not some ponzi scheme that guarantees returns. It can be volatile, and we can lose money too. But with basic education and real trust in Bitcoin’s long-term future, their investment will likely grow, especially if they choose to HODL.

[katanic97]

If you have friends or family who are interested in Bitcoin or you want to encourage them to invest, don’t be too excited trying to convince them. Give them all the info they need. Don’t just push them, give them facts, which is way more important.

Teach them how the market moves, that it’s not some ponzi scheme that guarantees returns. It can be volatile, and we can lose money too. But with basic education and real trust in Bitcoin’s long-term future, their investment will likely grow, especially if they choose to HODL.

That’s really hard to do. I tried to explain in detail to a friend who isn’t into it how it works and how he could make a profit by HODL-ing. He simply didn’t want to listen and said it was a waste of money and that he couldn’t wait that long. I told him he could at least put a part of the money he usually spends on useless things into BTC, but again, he didn’t want to listen. Since then, i’ve lost my patience and don’t bother explaining anymore. But if any of my acquaintances, friends, or family members ever want me to explain it to them, of course I’ll do it.

[Itz-prisigold]

That's a really great list already and I totally agree with you 💯💯. And I will just add a few simple things I've learned along the way.

1.  security first , always: Don't just start telling them " keep your seed safe" - you should explain why. Some folks still take screenshots or store it in the cloud. Tell them that if it's not offline, it's not safe.

2. Make sure they really understand Bitcoin before buying: A lot of people will just jump into Bitcoin because of all these fake online posts or hype. Before anyone buys Bitcoin, please learn what Bitcoin is and how it really works. And also tell them why Bitcoin is different from altcoins or banks, it will go a long way.

3. Don’t expect miracles overnight: Tell them bitcoin is not a magic ticket to quick money. The prices go up and come down, that is just part of the system. If they are here for long term, patience really pays off more than luck.

4. Protect you Privacy: Always avoid reusing addresses, don't show off your wallet balance online and try to keep your holdings secret. When people don't know how rich you are, then you'll be safe

5. When your keys are safe with you, you're in charge: See there is no customer service in Bitcoin. If you mess up or lose your seed, then that's on you. You should be prepared to take responsibility very seriously.

6. Last but not the list keep learning : Bitcoin is not something you will learn today and stop. There's always something new to pick up. New updates do come up, tools or a better way to stay safe. So you should always be ready to learn.

[Cryptohygenic]

Can you add something? Good tips will be merited and linked in the OP!

Responding from the title of your thread, before you recommends bitcoin to anyone, yourself should be well experienced and understood with the risk factors of volatilities and admits bitcoin is not a get rich quick but best profitable when Investing in it with a long time goal due to market uncertainty.
You must understand the insecurity threat's about online scammers and have the ability to store your bitcoins in a safer wallet such as non custodial wallets such gives you the access to your seed phrase and be in control of your funds and understand the risk of holding your funds in the centralized platforms.
You should also understand how to manage your investment risks so as to diversify your assets without having to put all your money in one source.

And after being aware with all these, you can share your knowledge with friends to also take it so that they can always be independent to their risk managements.

[Kasabus]

While it could be a good idea to recommend bitcoin to a friend, but it's also not a loss if you won't adopting that kind of thought. My point is, people will find their own means if they really want to learn about bitcoin, but they will also have their excuses if they don't have serious intention to learn about bitcoin.

That remains my stance regarding bitcoin. I don't want to recommend bitcoin to them especially that the government is not positive about it. But of course if they'll ask me to educate them, I will not be selfish and feed them what I understood about bitcoin.

[Halifat]

Honestly, I'm so convinced with all your have listed because all tips that are mentioned should be the first thing they will know.

By the way I have some to add what Op have written if necessary.

1) Invest What You Can Afford to Lose: This is also one of the key factors which need to be considered when recommending Bitcoin to your friend or relative. They shouldn't think it a way they can escape poverty.

2) Self-Education: This is also important because despite convincing them, they have to be encouraged to do further research on how it works.

3) Long-Term and Short-Term: They have to really understand how bitcoin works because some of the people that hear bitcoin for the first time, they always believe it is a shortcut to success which requires patience and resilience.

4) Understand What Bitcoin Is : Up to this moment now there are a lot of people who are highly educated but they still see Bitcoin as a way of scamming because that is what the media always say about it, because they see it as a weapon against the government.

5)Highly Volatile: this part is also important because as bitcoin rise to it all time high to $126k, and within few days it drops below $100k. This is what so few people think about Bitcoin, they believe it Rises continuously which is not so.

I will be happy to see more tips like this which I expected it because forum is a place where you learn more.

[Joy- maker]

Can you add something? Good tips will be merited and linked in the OP!

Here are things i can think of to add to the existing list

KEEP YOUR COINS SEPARATE: When you're investing in Bitcoin always avoid mixing someone's funds with you investment, it makes life easier and avoid stories that will touch the heart.

WATCH OUT FOR SCAMS: Anybody that chat you up and claim to be a customer care, to ask for your seed please avoid them, or when someone is promising you guaranteed profits, That person is a big red flag. Because Bitcoin works without middleman.

DON'T PANIC WHEN THE PRICE MOVES: Bitcoin volatility is part of the system so always still calm when the Bitcoin price is fluctuating dramatically.

MOBILE WALLETS ARE FOR SMALL AMOUNTS: These wallets are good for spending Bitcoin, but not always the safest for holding large amounts of Bitcoin. So in that case Just treat the wallet like your pocket cash.

DON'T PRESSURE PEOPLE: If you're telling people about Bitcoin, just simply tell them about your personal experience and let them make the decision. People learn better when they are curious about something and not when they're pushed.

Am also adding this one's to the existing list:

DON'T INVEST YOUR EMERGENCY FUND IN BITCOIN JUST BECAUSE YOU WANT TO TAKE ADVANTAGE OF THE DIPS : As a newbie to Bitcoin don't get triggered by a dip and accumulate Bitcoin with your emergency fund just because you want partake in the dip buying, because if do so you going to endanger your bitcoin investment, and it can lead to selling off your bitcoin investment at early stage of accumulation and in lost when emergencies arises and there is no emergency fund to handle those emergencies.

ONLY INVEST YOUR LEFTOVER MONEY IN BITCOIN, AND NOT MONEY MEANT FOR SETTLING YOUR BASIC NEEDS AND EXPENSES: most newbies always get it wrong when they are new to Bitcoin, let's take for instance most newbies who have already decided that they will be buying bitcoin on a weekly basis or monthly basis, which DCA, and it happens that after removing money from their income and allocate to different things, and they end up not having a leftover money to buy bitcoin as they promised themselves, they will end up buying bitcoin with money meant for settling their basic needs and expenses just to fulfill the promise they promised themselves, but it's wrong, if they don't have any  leftover money to purchase Bitcoin for the week or for month, they should just leave it and allow the Bitcoin buying slide for that week/month.

DON'T START YOUR BITCOIN JOURNEY WITH BORROW MONEY(LOAN): I don't know how others will see this my opinion, but as for me I won't advice newbies to start their bitcoin journey with borrowed money (loan) because when the loan due and there is no other way to pay off, you might like have to sell off your bitcoin investment to pay off the loan, because in life you must definitely face challenges, and challenges may come and take away the money you intended to use to pay off the loan.

[Shineup]

If you have friends or family who are interested in Bitcoin or you want to encourage them to invest, don’t be too excited trying to convince them. Give them all the info they need. Don’t just push them, give them facts, which is way more important.

Teach them how the market moves, that it’s not some ponzi scheme that guarantees returns. It can be volatile, and we can lose money too. But with basic education and real trust in Bitcoin’s long-term future, their investment will likely grow, especially if they choose to HODL.

That’s really hard to do. I tried to explain in detail to a friend who isn’t into it how it works and how he could make a profit by HODL-ing. He simply didn’t want to listen and said it was a waste of money and that he couldn’t wait that long. I told him he could at least put a part of the money he usually spends on useless things into BTC, but again, he didn’t want to listen. Since then, i’ve lost my patience and don’t bother explaining anymore. But if any of my acquaintances, friends, or family members ever want me to explain it to them, of course I’ll do it.

For sure no one should be forced in to investing in Bitcoin because without that self conviction it will be hard to navigate all through the market uncertainties, anyone forced will never put the necessary efforts in making his or her investment a successful one and when things goes wrong they look for who to blame. To be frank not all can be tolerance enough to risk anything in Bitcoin and that is their own level of risk which can differ from others.

 1. Another tip is that there must be self conviction.

 2. You are responsible for your actions of investing in Bitcoin.

[joniboini]

I'd add that open-source wallets or apps should be preferred. Even if you don't know coding or debugging, having the option to build and a community around you to find bugs is always good. The number of zero-day exploits on closed-source apps is numerous these days, and while open-source isn't immune to that, I think the chance we found the bug earlier is higher. Not to mention, we have many options for Bitcoin atm.

[d5000]

Good tips already, keep it going (the posts not linked were repetitions of those tips which were already mentioned.)

If I’m sending a big amount, I make sure to test it with a small one first.

I would be a bit more precise here.
I would definitely recommend my friend to first try small amounts of Bitcoin first, perhaps some dozens of $ up to $300-400ish dollars, to get a feeling for the software.
When I change or update software, like a new wallet version or a new operating system, it is also a good idea to first do a small transaction before making that big $20,000 $ deposit to an exchange.

But your post sounds a bit like if you're trying out a merchant, you should first send them some satoshis for free and then buy things. That would be overkill I think. It may be of course only a wording problem.

I would also probably try out a new merchant or exchange first with relatively low amounts or cheap items, above all if it's a quite unknown service, and if this is not possible, try to gather experiences with that business. And recommend my friends to do the same thing.

Also it's a good idea in wallets like Electrum to use the advanced mode, to be able to control twice where your money goes. That gives at least a small chance to prevent clipboard hacking and similar malicious techniques.

Also look if the merchant website registers the payment. Most merchants do that even before the first confirmation. If not, then re-check the transaction again. In the worst case, if you're sure you were hacked, you can even double spend the transaction (Electrum for example has this feature built-in).

[BlackBoss_]

The idea is to collect things which are useful to know before you recommend Bitcoin to friends and relatives.

We need to understand about Bitcoin, at least basics, already used it in practice, had enough experience with it, before recommend it to friends and relatives. After our introduction, friends and relatives will ask us many questions, ask for help on how to choose a wallet, create it, store bitcoin, and so on.

One important to know before making any introduction to anyone else, are risk of physical attacks which are dangerous, and risk of be indirectly responsible for their actions, profit or loss. It's their money, it's their responsibility but most of them will try to find someone to blame on especially if they have losses and you will be a first person they think about.

Physical Bitcoin attacks.

Can you add something? Good tips will be merited and linked in the OP!

Points on security and privacy are too many, and even people talk about a same point, there are some extra information for learning from different resources, so let's me share.
Cryptocurrency security checklist.
Bitcoin security resources.
Secure your wallets.

[Natalim]

Don’t post your Bitcoin address in public, especially on social media. Criminal-minded people are always watching. Flexing that you own Bitcoin can put your safety at risk, so it’s better to keep it private. At least that way, you can enjoy investing in Bitcoin with some peace of mind.

And if you’re spending Bitcoin, try using different wallets for different purposes - like one for online shopping or payments, another one for gambling. Small things like that help improve your privacy.

[GreatArkansas]

Can you add something? Good tips will be merited and linked in the OP!

Here are things i can think of to add to the existing list

KEEP YOUR COINS SEPARATE: When you're investing in Bitcoin always avoid mixing someone's funds with you investment, it makes life easier and avoid stories that will touch the heart.
(....)

I don't find this relevant. How come you will mix your funds with other people's? Like in your personal Bitcoin wallet? And someone asks to store their Bitcoin with your own wallet?
Why just tell them they can create their own wallet so they are the only one has access to it and they have full control to their funds.

[Razmirraz]

I would act as a teacher when teaching someone about something they have never known before, so it is necessary to have sufficient knowledge before recommending Bitcoin to friends. It is necessary to understand the basics of Bitcoin, such as how Bitcoin works, blockchain technology, and how to store it safely.
Bitcoin security must be strictly maintained, if necessary using a strong password and activating F2A. It is also important to note that the Bitcoin market is always moving in two directions, and ensuring that all information is clearly understood allows for informed decisions.

[Mr Reporter]

All this list that has been stated here are all good points from different perspectives which it’s nice to hear well so I guess just drop a couple more of my own points.

Can you add something? Good tips will be merited and linked in the OP!

* AS AN BITCOIN INVESTOR UNDERSTANDS WHAT YOU ARE RECOMMENDING: well it best that before telling others to buy make sure you understand how bitcoin works, like for example.; ( it not a get- rich- scheme to know to be a decentralized digital currency) which’s most time its best you dive deeper like saying (censorship, resistance, and scarcity) dont just be an expert but you should be able to explain the basic clearly and carefully.
 
* DONT PROMISE PROFIT: well it’s very encouraging to treat Bitcoin as a long long term investment or you tag it as Saving tools not a short term investment when bitcoin newborn investor it’s best aslo state out this that the price is volatile and can drop significantly_ which means invest in what you can only afford to lose.

* SECURITY AND PRIVACY MATTERS: making it clear to them by saying or note that Bitcoin transactions are transparent, which should mean using proprietary privacy tools responsibly, and time warn against sharing wallets information, like example sharing of wallet addresses publicly when there are no need for it, keeping recovery phrases offline, avoiding screen shots and using 2FA.

* ENCOURAGE LEARNING NOT BLIND FOLLOWING:Like sending some good educational resources for example., (The bitcoin standard, or BTC SESSIONS on YOUTUBE).

* ITS BEST TO RESPECT THEIR DECISION: not everyone is ready or interested and which most time is okay not everyone is Willing to accept the reality of Bitcoin and which should not be a big deal forcing or overselling Bitcoin can hurt your credibility, in this case it best to show Leadership by leading example instead.

* WHAT IT TO BE SCAMED AND COMMON TIPS: just like today most newbie without the help of mentorship they fall in the hands of scammers like falling for fake wallets apps, phishing links scams, or ponzi “ crypto projects” like fake airdrops it very important to in teaching them skepticism it also as valuable as teaching Bitcoin to.

* “ WHY NOT USE A BANK TO BUY YOUR BITCOINS” ways explain this questions it bit by bit most newbie might want to consider buy bitcoin from banks and some might want to compare bitcoin to traditional financial, be prepared to answer and explain the difference in control, inflation resistance and global accessibility not just the price.

Just keep learning bitcoin no matter what!!!

[Hypnotizer]

Can you add something? Good tips will be merited and linked in the OP!

Don't buy bitcoins from centralized exchanges

In terms of securing your privacy and anonymity, it is very crucial to avoid buying bitcoins from centralized exchanges and instead only buy bitcoin from P2P platforms. Before you introduce someone to bitcoin, it is worth knowing that bitcoin bought from a centralized exchange is directly linked to the data you provided to the exchanges meaning you are not more private or anonymous and other people can easily know your holdings in bitcoin.

DYOR is the best teacher

When introducing someone to bitcoin, you are supposed to tell him only the basics and allow him do his own research to know more about it, but you should also recommend good articles and books that will help him as a beginners assimilate what bitcoin is and the necessary security aspects of bitcoin.

When they’re done with their own research, you can as well elaborate some areas to help them understand with it meant if they didn’t understand.

Bitcoin isn’t a rich quick investment

It’s also worth knowing that bitcoin can’t make you rich quickly, as many people think but it can give you the financial freedom you desire overtime when you exercise patience, endurance and consistency.

Bitcoin is different from altcoins

Know the huge difference between bitcoin and altcoin before you recommend or introduce someone to bitcoin because some people termed bitcoin a name for all cryptocurrencies  especially beginners, that is why you would need to elaborate and differentiate between bitcoin and altcoin to whom so ever you’re introducing to bitcoin.

You can always start your investment even with smallest amount

Many people have the misconception that you have to purchase a whole bitcoin before you can start investing, as someone trying to introduce someone to bitcoin it's worth knowing that you can always start small with the available amount you can afford to lose .

[armanda90]

I think good ideas of all your points, firstly most important about "not your key not your coins" and you put it at the first number, its really important when recommended some one else for investing in bitcoin must guide them about how to most safety way for saving or holding bitcoin assets. Before talking about technical and way for investing in bitcoin I think teach them about saving bitcoin firstly and then telling about the investment way as short or long term depend the person target with their bitcoin investment.

Telling them about mindset in trading not quick way to be rich and another most important have to tell about risk by investing in bitcoin, due bitcoin price can up and down some one learning about bitcoin must acceptable it and we can recommended them about the right moment to buy, hold and sell bitcoin if profit target raise.