Convincing My Cousin to Invest $20,000 in Bitcoin

[SatoPrincess]

I don’t know how much is portfolio is but I’m sure 20k usd is a huge amount of money in Malaysia. Which makes me wonder if convincing a novice into investing an amount they obviously can’t afford to lose is a good idea. In my experience, it always come back to you if bitcoin dips or they lose their coins due to their own carelessness. Are you prepared for that?

[TedMosby]

Although I've made profit with Bitcoin, at a rate I can't gain elsewhere, I prefer not to convince somebody to invest in it. Especially to somebody who still has suspicions or doesn't understand it yet, suggesting that he/she invests in Bitcoin could have a tragic ending. It could end your healthy relationship, too.
[...]

Yeah, that's a risky move. I prefer not to have a business with or give financial advice to family. Even if I'm asked to give them advice, I always state that it's based on my POV and I could be wrong about it. I just don't want to be the influential side in someone else's future life. I do not want to feel burdened if, at some point in the future, my advice does not work out as expected. They should first have an interest in Bitcoin and Bitcoin investment before I can sit together with them and discuss more serious things about it.

The same thing also applies when I am the one who becomes the subject they try to convince about something. For example, I often get invitations to join MLM where my family/friends become the upline. And I state explicitly to them that I don't want to ruin my relationship with them just for short term profit. Gladly, they understand.


Speaking of DCA, I vibe coded this tool to simulate and compare DCA and lump sum strategies.
https://btcdcastrat.vercel.app

[endut15]

I’d be careful here, especially since he was hesitant to begin with. If that $20,000 dropped to $10,000, would he feel he made his own decision, or that you talked him into it? Hopefully he agreed because he understands what he’s buying, not just because he trusts you. That’s worth clearing up before any money goes in

[JoyceBTC]

Convince? Why go ahead to convince him since he’s not too sure of bitcoin, what if things go wrong? You will definitely be blamed because you convinced him. Again hope he will have high risk tolerance for market volatility, because someone that wants to invest and doesn’t know how to control his emotions will likely sell off his bitcoin and end up with regret. With the approach you gave him, you made it look like profit is very certain, which we all know one can make profit in bitcoin but not all who invested in bitcoin were successful in it because profit isn’t guaranteed because of market volatility.

[Oshosondy]

I don’t know how much is portfolio is but I’m sure 20k usd is a huge amount of money in Malaysia. Which makes me wonder if convincing a novice into investing an amount they obviously can’t afford to lose is a good idea. In my experience, it always come back to you if bitcoin dips or they lose their coins due to their own carelessness. Are you prepared for that?

Bitcoin is not gambling and not also trading which are the areas people are advised to invest the amount that they can afford to lose.

I’d be careful here, especially since he was hesitant to begin with. If that $20,000 dropped to $10,000, would he feel he made his own decision, or that you talked him into it? Hopefully he agreed because he understands what he’s buying, not just because he trusts you. That’s worth clearing up before any money goes in

Bitcoin is around $85000 today, do not expect it like the altcoins that can dropped 50% for now after falling from $126000 to $57800 and and then followed by some bull runs to where it is today.

If bitcoin decreased by 20%, expect the price to later increase back and get to all time high.

[promise444c5]

Don’t convince .. and only try to explain it to them when they seek an advice else be ready for whatever happens next when they hold till a bear market , it’s just a matter of time so far you yourself  gave them the direct advice to invest in Bitcoin.

Even you yourself can start blaming your decision in a bear market if you have no clear plans.. talk more of someone you convinced 

[Dr.Bitcoin_Strange]

You already mentioned Bitcoin to him and if he says he doesn't like it, you don't have to convince him to, maybe you can just give him some article to read and also tell him to do more research on him own, let him also look at the history price data of Bitcoin and if the person really have interest in something that can give them a great yield, they will make research on both assets you mentioned to them and they will chose the one that is much suitable for them. If someone seeks my idea in times like this, I would definitely recommend Bitcoin for them but when they want me to convince them, I advice them to do their own finds and let the results of their research convince them.

If someone looks at the 4 years circle of Bitcoin and also read about the characteristics of Bitcoin and understand it properly, they don't need to be persuaded or convince by anyone else but they will feel convinced on their own and also understand other aspects of Bitcoin much better, rather than waiting for someone to spoon feed them with just a shallow knowledge.

[Sammye3]

A cousin of mine working in Malaysia called me a while back; he had accumulated a significant amount of money in his bank account and wanted to move it elsewhere, so I suggested investing in gold and Bitcoin. He understood the idea of ​​investing in gold but felt that Bitcoin was too risky. I explained to him that while Bitcoin investments could yield higher returns than gold, there is indeed some risk involved due to the asset's high price volatility; however, many investors avoid panic and remain patient. One shouldn't sell Bitcoin simply because the price suddenly spikes or drops; holding it for the long term is crucial for making a profit. So, I suggested he start with an investment of $20,000. He eventually agreed to invest in Bitcoin, and I hope he sees profitable results.

It's a good idea to invest im bitcoin at this point, but an important factor that should also be considered is how long he wants to keep his investment because that would determine what the price of bitcoin would be at that point. For a $20,000 investment, that's a good startup that would yield good profits rather than the money sitting idle.

The fourth quarter of this year should experience a surge in the price of bitcoin and he should make some profits, there's no reason to panic.

[OsaiEmma]

A cousin of mine working in Malaysia called me a while back; he had accumulated a significant amount of money in his bank account and wanted to move it elsewhere, so I suggested investing in gold and Bitcoin. He understood the idea of ​​investing in gold but felt that Bitcoin was too risky. I explained to him that while Bitcoin investments could yield higher returns than gold, there is indeed some risk involved due to the asset's high price volatility; however, many investors avoid panic and remain patient. One shouldn't sell Bitcoin simply because the price suddenly spikes or drops; holding it for the long term is crucial for making a profit. So, I suggested he start with an investment of $20,000. He eventually agreed to invest in Bitcoin, and I hope he sees profitable results.

Well, what you've said is the truth, and I haven't seen anything wrong with what you've written here—but I'm sure you guys had a lengthier conversation, and this is just like a summary. I'll also suggest that: since he has his skepticism about Bitcoin, he should diversify his investment—probably include gold which he finds more logical (P.S this is NOT financial advice).




I see a lot of us here giving a stern warning on introducing someone to Bitcoin, that's true. But the OP pointed out and validated his cousin's concern, and grounded his recommendation in the truth—I'm speaking based on what is in the OP, and not the full context. If the OP just pointed out Bitcoin or Gold, and told him the down and upside of Bitcoin, that's a good thing IMO, it is left to the cousin to accept or reject the idea. Since he said this:

I explained to him that while Bitcoin investments could yield higher returns than gold, there is indeed some risk involved due to the asset's high price volatility

So...I feel the OP is very clear and well grounded in the reality of investing in Bitcoin, without trying to sound like they are persuading the cousin to invest in a risk free asset.

Although, I'll still flag his monetary recommendation, but I don't know if that recommendation is logical based on the cousin's net worth or not—it probably might be, not much context were provided.

[arwin100]

A cousin of mine working in Malaysia called me a while back; he had accumulated a significant amount of money in his bank account and wanted to move it elsewhere, so I suggested investing in gold and Bitcoin. He understood the idea of ​​investing in gold but felt that Bitcoin was too risky. I explained to him that while Bitcoin investments could yield higher returns than gold, there is indeed some risk involved due to the asset's high price volatility; however, many investors avoid panic and remain patient. One shouldn't sell Bitcoin simply because the price suddenly spikes or drops; holding it for the long term is crucial for making a profit. So, I suggested he start with an investment of $20,000. He eventually agreed to invest in Bitcoin, and I hope he sees profitable results.

Its good that you introduce Bitcoin to your cousin and understand the risk. So maybe the first thing he need to do is to understand lots of things about Bitcoin, good that you stated the risk because with this he would realize that there's no always happy ending on Bitcoin.

Maybe best for him not to start putting big amounts, since this might give him a problem.

Start with small and learn from his own experience, maybe in future once he gain experience and confidence he knows what other best thing to do with his bought Bitcoins.

[Oasisman]

That's a good start, but you should be guiding your cousin how to accumulate more by using the DCA method. Also, show him the historical data of Bitcoin's price so he can have a big picture on how long he would be able to make a significant profit, and to avoid panic selling during sharp dips.
People who are skeptical about the risks associated with Bitcoin, tends to panic sell as they lack the patience and knowledge, as they normally get overwhelmed by how volatile this asset is.

A $20k start is a huge amount, so you should be guiding him in his early Bitcoin investment journey, since you're the one who introduces it to him. So, it's like, he's your responsibility for now until he can confidently say he can handle it on his own.

[m2017]

A cousin of mine working in Malaysia called me a while back; he had accumulated a significant amount of money in his bank account and wanted to move it elsewhere, so I suggested investing in gold and Bitcoin.

Is your cousin a Malaysian citizen, or is he there on a work visa? The situation with bitcoin is clear; there shouldn't be any issues with "moving" that asset out of the country. But what about gold? Might your cousin face difficulties taking gold out of the country (the 100-gram limit is roughly equivalent to $14,000)? Also, the physical gold needs to be stored somewhere safe.

He understood the idea of ​​investing in gold but felt that Bitcoin was too risky.

What makes bitcoin risky? Is it the volatility? In the context of long-term investing, that matters very little. Gold carries risks too, owing to the physical nature of the asset: it requires storage and transport, and one must also sell it profitably (in some countries, gold sales are subject to tax).

I explained to him that while Bitcoin investments could yield higher returns than gold, there is indeed some risk involved due to the asset's high price volatility;

Also shouldn't forget about volatility, which affects gold as well: in February and March of this year, it was priced at around $5,300, whereas now it is around $4,100.

however, many investors avoid panic and remain patient. One shouldn't sell Bitcoin simply because the price suddenly spikes or drops;

Beginers will have to grasp this truth for themselves.

holding it for the long term is crucial for making a profit. So, I suggested he start with an investment of $20,000.

$20k? I’d suggest starting with $20 ($200) - just to get a feel for the inner workings of buying, selling, and storing, and only then increasing investment amount using DCA.

He eventually agreed to invest in Bitcoin, and I hope he sees profitable results.

I’m not one for "pushing" people to invest in bitcoin, though I do understand your desire to help your cousin out with a recommendation. But now you’ll have to play babysitter for a while - explaining things and offering support (calming him down, keeping his spirits up, and urging him to keep the faith) when the going gets tough. I’m sure he’ll be calling you more than once when the price of bitcoin drops - and likely right in the middle of the night, too.

By the way, what storage method for the bitcoin did you recommend to him? Storing $20k. without a hardware wallet would be reckless.

[davis196]

A cousin of mine working in Malaysia called me a while back; he had accumulated a significant amount of money in his bank account and wanted to move it elsewhere, so I suggested investing in gold and Bitcoin. He understood the idea of ​​investing in gold but felt that Bitcoin was too risky. I explained to him that while Bitcoin investments could yield higher returns than gold, there is indeed some risk involved due to the asset's high price volatility; however, many investors avoid panic and remain patient. One shouldn't sell Bitcoin simply because the price suddenly spikes or drops; holding it for the long term is crucial for making a profit. So, I suggested he start with an investment of $20,000. He eventually agreed to invest in Bitcoin, and I hope he sees profitable results.

1.You provide no proof that your story is real. You could made up such story just for the sake of getting merit and boosting your post count.
2.Giving financial advice to other people is a bad decision. They could put the blame on you, if something bad happens. This has been repeated over and over again, but some people simply refuse to listen.
3.Your cousin is definitely not a Bitcoin/crypto enthusiast. Such people tend to give up really quickly when there's a price crash on the market. Such people are also very susceptible of crypto scams.

[AmaGold70]

A cousin of mine working in Malaysia called me a while back; he had accumulated a significant amount of money in his bank account and wanted to move it elsewhere, so I suggested investing in gold and Bitcoin. He understood the idea of ​​investing in gold but felt that Bitcoin was too risky. I explained to him that while Bitcoin investments could yield higher returns than gold, there is indeed some risk involved due to the asset's high price volatility; however, many investors avoid panic and remain patient. One shouldn't sell Bitcoin simply because the price suddenly spikes or drops; holding it for the long term is crucial for making a profit. So, I suggested he start with an investment of $20,000. He eventually agreed to invest in Bitcoin, and I hope he sees profitable results.

Bitcoin is a profitable asset indeed, and it is worth taking the risk, but the truth is that , to a new investor who has not ventured into Bitcoin, there is need for strong conviction, and at the same time proper understanding of how Bitcoin investing works. For new investors withstanding Bitcoin volatility takes courage, and there are many individual who fear Bitcoin investing because of this fact. More also, to him be able to cope with anxiety, he should avoid visiting his portfolio every now, and then to avoid panic , and being emotional about his investment. Investing $20000 in Bitcoin is a good start, and considering long term track record of Bitcoin making profit on the long run is sure.

[DabsPoorVersion]

Why not advise to diversify his investment? Why did you recommend 20k$ even without knowing Bitcoin? He may have enough money but making this much investment into something unfamiliar for him is not wise. Even if Bitcoin has a high return than gold, the risk is also higher. That reason should be enough to choose to start investing with smaller amount, instead of spending that much in one go.

Instead of investing the whole 20k$ in Bitcoin, why don't you advice him to do DCA, while also investing some of his money into gold, stocks, and any other assets with potential instead of focusing in Bitcoin with large amount of money. The risk will be lessen and it will give him enough time to learn first about Bitcoin.

[serjent05]

Although I've made profit with Bitcoin, at a rate I can't gain elsewhere, I prefer not to convince somebody to invest in it. Especially to somebody who still has suspicions or doesn't understand it yet, suggesting that he/she invests in Bitcoin could have a tragic ending. It could end your healthy relationship, too.

For me, it's better to just introduce Bitcoin and answer questions if he/she's interested about it. Let interest grow naturally. It's hard to give financial advice with a market that's highly uncertain. If Bitcoin suddenly nosedives, drops all the way back to $60,000 in the next week or two, and your cousin panics, distressed, and is losing sleep, won't even listen to you anymore, what would you do?

I think suggesting is fine but convincing one is not.  For me, a suggestion to a relative about investing in Bitcoin doesn't do any harm. After all, the free will to decide is still on the person.  Just make sure that all the pros and cons are laid out and just let the person think about it.  Avoid convincing anyone, if he ever has doubts about Bitcoin, there is no reward for pushing the suggestion.

holding it for the long term is crucial for making a profit. So, I suggested he start with an investment of $20,000.

$20k? I’d suggest starting with $20 ($200) - just to get a feel for the inner workings of buying, selling, and storing, and only then increasing investment amount using DCA.

I think it is good if the person has the patience and the money to sustain his daily needs without touching that Bitcoin investment.  After all, I think the plan is to hodl Bitcoin not to do daytrade.  Besides, Bitcoin has high liquidity, if the person doesn't trust the Bitcoin investment anymore, he can easily cash out the money.  Possibly with some loss or profit depending on the price of BTC when he bought and sold his holding.

[Bd officer]

A cousin of mine working in Malaysia called me a while back; he had accumulated a significant amount of money in his bank account and wanted to move it elsewhere, so I suggested investing in gold and Bitcoin. He understood the idea of ​​investing in gold but felt that Bitcoin was too risky. I explained to him that while Bitcoin investments could yield higher returns than gold, there is indeed some risk involved due to the asset's high price volatility; however, many investors avoid panic and remain patient. One shouldn't sell Bitcoin simply because the price suddenly spikes or drops; holding it for the long term is crucial for making a profit. So, I suggested he start with an investment of $20,000. He eventually agreed to invest in Bitcoin, and I hope he sees profitable results.

You advised a new investor to invest $20,000 in Bitcoin? Isn't it too risky for that person? Maybe your cousin has gone to Malaysia for work? So how can you advise him to invest so much money in a risky sector like Bitcoin? Will he be able to hold it for a long time?

Now it's not wrong to give someone an idea about Bitcoin but I feel like you are forcing him to invest? Anyway if I were in your place I would advise him to buy land and invest in Bitcoin on a small scale. Bitcoin is a profitable investment but investing so much in a new situation may not be a good decision. But if $20k is a small amount for him then it is okay.

[bitLeap]

A cousin of mine working in Malaysia called me a while back; he had accumulated a significant amount of money in his bank account and wanted to move it elsewhere, so I suggested investing in gold and Bitcoin. He understood the idea of ​​investing in gold but felt that Bitcoin was too risky. I explained to him that while Bitcoin investments could yield higher returns than gold, there is indeed some risk involved due to the asset's high price volatility; however, many investors avoid panic and remain patient. One shouldn't sell Bitcoin simply because the price suddenly spikes or drops; holding it for the long term is crucial for making a profit. So, I suggested he start with an investment of $20,000. He eventually agreed to invest in Bitcoin, and I hope he sees profitable results.

Your goals and advice are good, but a person's decision to invest cannot be forced. Because mentally if he is not yet familiar with the volatility of the bitcoin price then he will continue to blame you when the nominal balance has decreased. I used to be like you, offering investments to relatives and closest people but again that even though they see my figure investing in bitcoin and making a profit from it does not mean they are ready for what I am facing.

[Rockstarguy]

Although I've made profit with Bitcoin, at a rate I can't gain elsewhere, I prefer not to convince somebody to invest in it. Especially to somebody who still has suspicions or doesn't understand it yet, suggesting that he/she invests in Bitcoin could have a tragic ending. It could end your healthy relationship, too.

For me, it's better to just introduce Bitcoin and answer questions if he/she's interested about it. Let interest grow naturally. It's hard to give financial advice with a market that's highly uncertain. If Bitcoin suddenly nosedives, drops all the way back to $60,000 in the next week or two, and your cousin panics, distressed, and is losing sleep, won't even listen to you anymore, what would you do?

Convincing people to invest in Bitcoin normally ends as a loss, which can create enmity among people who are even related by blood. Loss of money can cause serious disagreement between relatives, and people need to be mindful when trying to convince their relatives to invest in Bitcoin. If they are eventually unable to continue with the investment, understanding won't be there, no matter how close you and the other person are.

An introduction is the best way to inform or enlighten people about Bitcoin because even if they become interested and face challenges that lead to losses, they have no one to hold responsible but themselves for the mistake. People are ready to try what they don't know, but it will be managed by the person who introduces it to them, as they will be the one to face blame when it doesn't work out in their favor.

[The Cryptovator]

Is that real story? If so, then your cousin would thank you later. I am not sure how you explained it to him about Bitcoin; it’s necessary to explain better about storing Bitcoin and potential risk. Unless he has enough patience, then he will panic and sell his holdings.

I believe he should buy an open-source hardware wallet to secure his funds and at the same time have to secure his seed phrase as well. Shouldn’t store the seed phrase on the online storage. It would be better if you introduced him to the forum for learning purposes. So he would gain more knowledge from the forum.