What should you know before recommending Bitcoin to a friend?

[Uhwuchukwu53]

it is a huge responsibility recommending btc to family because if they lose money it makes the holidays pretty awkward for a few years...

It should be understood that only specialists who have the appropriate license and are responsible for their recommendations can make financial recommendations. Since we are not specialized specialists, we can only express our opinion, which is not a financial recommendation.

I think going by this what many considered recommendation is more less opinion, but even at the core for opinion individual should be able to understand the level of knowledge to which one seeking opinion is operating and the person perception because in most cases where opinion turn negative such individual can still ration blame, risk should be properly analyzed and certain level of risk management should be possessed by the individual which seek opinion, disclaimer is very crucial it should clearly state the optional level as owners risk because human is always funny once financial lost is involved and also look for area of anchor especially when the idea is perceived by close friend.

[Mr_Brilliant$]

I think one main thing we all need to know before recommending to a friend is being honest and transparent enough abiut all you know.. You have to let them know what is really involved, not just the good side.. Bitcoin works best when they think long term, not when they are chasing quick profits..

They also need to understand the little risks and volatility, and why having some basic knowledge matters.. If someone knows what they are getting into, they will make better decisions and will not panic easily…

[fabrice.btc]

Hello,

If friends are ready to read and watch good learning videos, they can use the compilation I build up, "A Bitcoin (Mini)-Guide".

You can find it in this area of the Bitcoin Forum:
https://bitcointalk.org/index.php?topic=5567482.0

[d5000]

Unfortunately, with very few exceptions, most of the last pages were only rephrasings of already existing tips. I recommend you to read the existing tips, above all if you want any kind of merit for your post here

The need to understand the purpose for which that individual intends to invest. I think it’s one of the most important aspect to any recommendation at all. This defines just how well such individual would be able to handle the huddles that would come with investing in Bitcoin.

I guess now you meant what was already mentioned in tips #25 and #27. However, I briefly thought it was a different idea and I think it's perhaps worthy to expand on it:

Try to understand the goals of other Bitcoin investors. Above all, are "the masses" of them short term or long term oriented? That can give you a hint of how the price may behave.

If the majority is short term oriented and have a certain "profit goal", they will probably sell eventually and never come back, leading to high volatility, increasing the risk of a crash.

If it is instead long term oriented, for example those expecting Bitcoin to become a global "reserve currency" eventually, then you can expect a more stable, albeit also a bit less FOMO-led behavior, with less price spikes.

How to know about that? Trying to gather the sentiment in online forums and communties in social networks. What are influencers talking about? Technical analysis & short term predictions (indicator for short term orientation) or merchant adoption, strategic Bitcoin reserves & Bitcoin treasuries (long term)? How many likes do they get for their posts and videos? To get a "snapshot" of the current sentiment, maybe LLMs are useful too.

[AYIMAN]

First you need to study and know everything about bitcoin very well.
You also need to know the rules and regulations that guides bitcoin .
It is also important to know how to identify scammers...



Then can you now think of recommending someone to bitcoin.

[I_Anime]

First you need to study and know everything about bitcoin very well.
You also need to know the rules and regulations that guides bitcoin .
It is also important to know how to identify scammers...



Then can you now think of recommending someone to bitcoin.

Well the truth is that you don’t need to go that far before recommending bitcoin to others . Because if one have to go that far before recommending bitcoin to anyone bitcoin  adoption would slow down, because there are many folks that are into bitcoin (like holding BTC ) but don’t have technical knowledge about bitcoin and they have recommend bitcoin to alot of folks.

Like me I don’t have much knowledge about bitcoin but have understand the way it works to some extent because it ain’t going to be easy to understand bitcoin completely, so when I mean I don’t have much knowledge about how bitcoin works I meant the technical aspect though ( but I’m still interested in it ) , but I have recommend Bitcoin to a lot of folks and they are literally doing great .

If the majority is short term oriented and have a certain "profit goal", they will probably sell eventually and never come back, leading to high volatility, increasing the risk of a crash

Yes there are many that are into bitcoin for just short term profit, because they don’t actually understand or see the potential of bitcoin, some still have the mindset that bitcoin is going to crash so they don’t see any future with it (BTC ) and many with such mindset are going to regret such , Bitcoin is always fond on making those that sold early feel bad , that’s always tell those I recommended Bitcoin to , to go for longterm .

[Juicyhome]

First you need to study and know everything about bitcoin very well.
You also need to know the rules and regulations that guides bitcoin .
It is also important to know how to identify scammers...



Then can you now think of recommending someone to bitcoin.

That's not enough to convince or recommend to someone, everyone can get that on social media or on this forum. Bitcoin recommendations is about evidence and prove, teaching is not enough prove is the best way to recommend Bitcoin to someone.

They have to see the result in you, when you appear let them feel how Bitcoin has helped you then you can easily recommend it to them, not about reading the rules.

You must be an investor of Bitcoin with prove, that's the only way people will listen to you. Show them how Bitcoin has changed your financial life and better your life. With this you don't have to talk too much about Bitcoin, they will all follow up and investment to be like you in the future.

[Ishicryptic]

I think that the first thing that anybody that wants to go into Bitcoin investment should know is that it is not a get rich quick scheme because investment is about making money. New investors needs to know that Bitcoin should be a long term investment, they might be highly disappointed if they have have high expectations to become very rich in a short period of time through it. New investors should also know the difference between Bitcoin and altcoins, they are all cryptocurrency but Bitcoin has proven to have far more potentials than altcoins that it can always reach ATH. Bitcoin doesn't have a rival in the crypto market it stands alone at the top, no altcoins comes close to it's market cap.

In agreement with every information and tips in the OP this is my little addition for newbies who don't know to take note so they won't make avoidable mistakes or fall for scams in the name of making quick money in Bitcoin investment.

[Cleanslate_]

If you have loved ones that you really want to introduce to bitcoin, you must be a good example yourself first before trying to convince them since experience is the best teacher.

* Praticalise everything about that you must have learnt or see so that you will have a good proof of evidence and backups when explaning to them.

* Inform them about the risk involved, that it is not a get rich quick venture, therefore should be taking slowly and not to rush to be make profit which might not be forth coming as expected and how volatile bitcoin and how long it is suitable for investing into bitcoin
* Transactions can't be reversed if mistakenly transferred into a wrong account .

They should only invest what they can afford to lose, study and do your own research and don't be a victim to scammers.

[MagnificentX]

So much has been said and I've got a lot already but I think there is still somethings that needs to be considered mainly alongside the good ones mentioned. There is one thing about going venturing into Bitcoin and there is another about making, persuading or recommending it for someone else. If you are the person investing, with the knowledge you have, you know that Bitcoin isn't a bond to bring profit but however, it is a case of balance. But if you introduced it to someone and the person finds it interesting, then trust me you've got to be extra careful because these people do not have the solid knowledge you have concerning the concept you have introduced to them. Certain things people should know about Bitcoin investments should also include;

1. THE ISSUE OF IRREVERSIBILITY: I would have started with something else like a gradual step but with the knowledge that many newbies do not have the time to read thoroughly, I will first point out the one I think is very vital. New bitcoiners should know that there is no way to reverse something that has been done most especially when it comes to transfer of assets to a wallet address. It is very important to be extra careful when making transactions or operations on your wallet because the tiny mistake you make can cost you a lot. If for example you miss a figure of a wallet address, then that's it. You can never seek for a reverse because it is done already. In simple terms, there is no "UNDO" button and if they send coins to the wrong address, they cannot reverse it.

2. THEY SHOULD BE CONSCIOUS OF THE ALLOCATION: Some of them may think Bitcoin to be a one way ticket to wealth and they'll decide to go all in instead of investing or let me say starting up with a portion first. They fall in love so deeply with the testimonies other investors give and become so anxious to start it also. It is advisory to maintain proper portfolio allocation.

3. THERE IS NO PROTECTION: There is no form of bank or customer service that you can cry to in case something goes AWOL or off. They should know that the first point to consider about Bitcoin is that it is an option filled with risk. I call it an option because it is not mandatory to go into Bitcoin investment. So it is all about risk and there is not a form of protection and you are on your own.

4. THE BLAME GAME: As a friend recommending Bitcoin to someone, I believe it is because you have real intentions for your friend and you also want them to win alongside you but however, you should consider the level of which the person can take responsibility. Some people tend to pour out blame on others when things are not going well and this same act can cost your friendship if in time the profit they expected when they start do not come.

So it is not just about recommending to someone but how well prepared is the person who wants to embark of the journey.

[ancafe]

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.

I'll explain this to people who want to get involved in Bitcoin investment, especially when they understand the investment process. This means they're not completely ignorant, but rather have some knowledge, even if it's not comprehensive. Many people invest without prior knowledge. Many of them hear or see other people's success stories, so their decision to get involved isn't based on sound knowledge.

Investment risks, asset storage and how to enter the market are all things we need to explain to them so that when people begin to approach investing, they have a much clearer direction. Never teach others to get rich quick by investing in Bitcoin, as this approach generally leads to failure and ultimately frustration.

[Sambitcoin01]

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.
27) Ask yourself / your friends what your goals with Bitcoin are.
28) Know the crypto legislation of your country, for example regarding taxes.
29) Prepare yourself and your friends mentally, e.g. for the volatility.
30) If your friend is technically interested, propose them to try out a Testnet before using the real software.
31) Try to understand if the sentiment of most Bitcoin investors is short or long term oriented, to prevent false expectations of the future price/adoption behavior.

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

That was educating thanks for bringing all this to my knowledge now i know what to do before going into bitcoin investment.

[Rabata]

I think one main thing we all need to know before recommending to a friend is being honest and transparent enough abiut all you know.. You have to let them know what is really involved, not just the good side.. Bitcoin works best when they think long term, not when they are chasing quick profits..

They also need to understand the little risks and volatility, and why having some basic knowledge matters.. If someone knows what they are getting into, they will make better decisions and will not panic easily…

The mistake that is usually made in most cases is that they focus only on the profit aspect of investing in Bitcoin. They present it to them in such a way that they can only profit if they invest. But the person who is recommending others in investing in Bitcoin must remember that if his friend or acquaintance invests, then he has no personal gain, but if the investor invests without understanding the fact, then he will lose because his relationship with that person will deteriorate.

If someone is being advised to invest in Bitcoin, they should be given a good idea both its positive and negative aspects so that he does not get confused after investing. Those who will be recommended for investing in Bitcoin must invest with a long-term plan. They must be aware that the possibility for loss in short-term investments in Bitcoin is very high.

[Aanuoluwatofunmi]

For someone to have more and also willing to deliver to others, then it takes a serious and deliberate efforts and commitments, which  being on this forum is one of the ways we can achieve all these done, we can also make it a personal determination, in exploring for diverse learning opportunities about bitcoin, because we cant go far without having the most resourceful and basic knowledge in bitcoin network, so that we can also have more to deliver on others willing to learn from us.

[Queen uloma]

I totally agree with you, before you recommend Bitcoin to anyone, always remember that Bitcoin itself isn't certain in making profit, note that Bitcoin is volatile, meaning it can rise and fall at any time,  so anyone you're inviting should have the mindset of losing and gaining, teach them how important their private keys are, so they won't fall for any scam,  educate them about long-term investment and not short-term investment, any money they can't afford to lose shouldn't be invested, let them only invest in money that they can lose to avoid frustration or depression.

[Hazink]

First you need to study and know everything about bitcoin very well.
You also need to know the rules and regulations that guides bitcoin .
It is also important to know how to identify scammers...


Then can you now think of recommending someone to bitcoin.

If you know the basic knowledge already about Bitcoin on your own, you can also share that same basic knowledge with the next person, and that basic knowledge includes wallet security, how to buy and how Bitcoin is not a magical asset which can turn $100 into a million dollars. The patient being the key to getting the best reward another is being able to protect your coin till when that best reward will come, and the rest of the research can be done by the peons itself.

[Alpha Marine]

First you need to study and know everything about bitcoin very well.

If you want to know everything about Bitcoin before recommending it to another person, then it's safe to say you will never recommend Bitcoin to anybody. Bitcoin is too complicated to know everything, and to be honest, if you're not a programmer or a coder, you may never understand everything about Bitcoin. Bitcoin is a very complex system.
The good news is that the basics are not complex to understand. So that is what you should know. As long as you understand how and why Bitcoin works, you know how to secure your device and secret phrase, you understand how a transaction is done and know other basic things like address, wallet, network fees and the rest, you should be good.
Bitcoin was built in a way that you don't need to have technical computer knowledge before you can understand it. It's just like a car, you don't need to know everything about a car before you can be able to drive it.

[lizarder]

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.

I agree because it's not a good idea to aggressively push people into Bitcoin investment, especially those who don't fully understand how to invest properly. I've had situations in my community where friendships soured because a friend recommended investing to someone else, but the recipient didn't do the research or learn how to invest properly. Even when Bitcoin experiences a sharp decline, this worsens the relationship between the two because the person invested all his wealth in Bitcoin without adequate knowledge.

Fortunately this prevented losses from the investment because the person who introduced Bitcoin investment didn't allow himself to sell the asset during the sharp decline, even though asset owners were currently experiencing excessive panic. While technical aspects like those you mentioned are important, I'd rather emphasize how an investor must understand the impact of the risks. Sometimes it's not the asset that's problematic, but rather the mindset of the individual who fails to understand bitcoin journey in the market.

[satscraper]

~

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

I would add the point eight to your list.

Be aware that after you give all the recommendations (^{even the best ones)} to your friend, you may face the $5 wrench problem.

To make it short. Never recommend Bitcoin to anyone even to your friends because the best friend today may become the most dangerous enemy tomorrow.

[Daniel91]

OP and others, very good advice, however I would add something that is also important, in my experience.
Many people enter crypto with unrealistic expectations, as if it is some "get rich quick overnight scheme".
Such an approach often ends badly and with financial loss.
Before investing in bitcoin or crypto, everyone should carefully analyze all aspects of the crypto market, understand that it is a high-risk investment and that previous high profits are not a guarantee of future profits.
It is necessary to have a concrete investment plan and a clear exit strategy.
The hard part is always not to succumb to emotions and stick to the plan.
There is no serious profit in crypto without a very good long-term investment strategy and control of your own emotions.