What should you know before recommending Bitcoin to a friend?

[GeorgeJohn]

My friend recommended Bitcoin and cryptocurrencies to me, but I learned some things on my own. He didn't explain certain things in detail.

Actually you most learn on your own to know about Bitcoin, everyone who knows about Bitcoin, learn about bitcoin on their own, why acquire 10% or 15% of the knowledge through whosoever that introduces them...

Once you are dealing with bitcoin, the more you are getting more experience on bitcoin...the must important thing is for you to know your keys...And also not to be able to detect scams.

[Charcol]

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But being a "proven investor" is imo not necessary. You could also be someone using Bitcoin for idealistic reasons (censorship resistance, criticism of the State etc.), and not for profit, although I admit this is very rare nowadays (At least there are some "profit-aware idealists", I think). And even if you didn't make a profit yourself or much less than one could expect, the experiences are also valuable for your friends who want to invest.

You are right. I also think that it is possible to share valuable experiences without being a 'proven investor'. But one thing is for sure, in the end, the market does not see whether you are an idealist or a profit hunter. Volatility is the same for everyone. So even if someone uses Bitcoin for ideological reasons, if he honestly shares his wrong decisions, mental stress, experience during the bear market, and how he took risks openly, then it is much more useful for beginners, than the ''I made so much profit'' type story. When we talk about Bitcoin with friends, they are actually making economic decisions along with ideology. So whether idealist or profit oriented, it is very important to clarify your limitations in both cases. For example, I am not very successful in profit, I rather follow the technology and system side more. If there is such transparency, no one will take your words the wrong way and go in blindly. Being a professional or proven investor is not a requirement, but being as honest as possible about your position and experience is the real responsibility.

[Tonimez]

My friend recommended Bitcoin and cryptocurrencies to me, but I learned some things on my own. He didn't explain certain things in detail.

Actually you most learn on your own to know about Bitcoin, everyone who knows about Bitcoin, learn about bitcoin on their own, why acquire 10% or 15% of the knowledge through whosoever that introduces them...

Once you are dealing with bitcoin, the more you are getting more experience on bitcoin...the must important thing is for you to know your keys...And also not to be able to detect scams.

Bitcoin investment is a very complex process that is hardly understood by mere asking questions. As a beginner, you may have received an introductory lecture from your friends or whoever has introduced you. However, the most important aspect of bitcoin is always learned on your own. This is why you are usually advised to do your own research DYOR about every single step you want to make. Individuals will always advise you based on their personal understanding and encounters and so is what you also need to know. Do not rely completely on any investment advice because you may not also have the same financial means as the person advising you.

What matters always is cultivating the mindset of an investor. Understanding that the longer you hold the better! If you understand this, then you will see the reason why you don't need to invest beyond your financial capacity and you will also have a happier experience because you won't easily go bankrupt and Start considering whether you will sell your bitcoin (probably prematurely) or not.

[Bright0515]

I'm beginning to wonder what will happen after recommending Bitcoin to a friend or family and the person didn't get what they are expecting from investing into Bitcoin. Their trust on you will no longer be the same, they will think you have scammed them and trust will no longer be there at that moment (because they are beginners) until you explain everything to them and make them understand before they know the reason for their loss.

I can not make anyone invest into Bitcoin unless they show interest on it, I will not even make them know I'm into Bitcoin investment. Let it not be that because I'm into it they too will join the crypto market because they know someone who is into the investment.

I will do these two things which I believe are important.

• Carefully join online communities

: Currently there are so many crypto communities that scammers are operating, right now I think there are more scammers hunting for crypto (Bitcoin) enthusiast and beginners are more vulnerable to scammers than people that have been into it for a long time. Scammers will not take long to scam someone they find any weakness on and vulnerability. At first what they will do is make the beginner believe that crypto currency is a get rich quick scheme, they will also feed the person with a lot of wrong informations so that the person will put money and that's it

• Know how to use Bitcoin explorer to track your transactions

: Invertors overlooked this but it is important because you can monitor your transactions to know when it's confirmed. Another crucial thing about blockchair exploring is that you can check your balance without exposing your private keys if you want to login to your Bitcoin wallet. Knowing how to use Bitcoin explorer help you monitor your crypto assets without any need to login your wallet and exposing your seed phrase or private keys.

[astar0th]

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.
32) Be aware that dealing with Bitcoin wallets is your own responsibility. Different to banks and finance service providers, there's nobody who is obliged to help you if something goes wrong.
33) Know and practice the recovery of your keys from a backup.
34) Be very careful when accepting help with technical problems like backup recovery. Know which items to post and what not. Be also careful with chatbots like ChatGPT in general.
35) Introduce close persons (family/friends) at least to the very basics of Bitcoin, in case something goes wrong.
36) Know strategies to deal with inheritance (related to 35)

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

Always Research the market and whats going with the current world. It has a huge correlation to bitcoin prices going up and going down. And maybe also ask your friend if he or she may have that risk tolerance to handle potential losses or gains. Youre gambling your personal savings here.