Convincing My Cousin to Invest $20,000 in Bitcoin

[boyptc]

@OP, I will praise you for having that balls of telling a figure to your cousin to invest to bitcoin. Because if it's me, I have never convinced nor told any of my relatives to invest huge amounts.

I told them to start with a couple of bucks if they have a spare maybe $5 or $10 or whatever is required minimum amount on an exchange.

You should be prepared for some backlash from your cousin if the price plunges without a notice.

[panjul07]

I'm wondering where and how did you get the specific number ($20k) as suggestion to your cousin? Do you know his total wealth so you consider that this $20k is small portion of what he has collected in his bank account?
Instead of suggesting someone to invest specific number of money, better to suggest others to invest based on their own financial situation because every investment is risky including bitcoin and there is also no guarantee to make profit as well although there is also always a chance.
I'm not sure if it is a real story or not but lets say it is a real story and since your cousin is agreed to do it, I'd like to suggest you to ask him again to make sure that the amount he invests is not a huge portion of his wealth especially if the main idea is a long term investment.

[salad daging]

Are you sure about the idea you were given? Indirectly your cousin is still a layman towards bitcoin Investment, has not yet understood how to buy and hold assets, let alone directly invest large amounts, is this story real?

It's not about investing - holding assets on an exchange is also a risk.
Using a non-custodial wallet or hardware, he must first understand how to secure his seed phrase.

Have you already taught your cousin this with a deeper purpose? I think the way to directly invest in my opinion is not good, so let him learn first until he understands what to do.
Unless your cousin bought bitcoin with the help of someone else, or it was done by you, it might be a different story.

[Rengga Jati]

Honestly, one of the most daunting things is recommending that someone invest in something. Especially involving a significant amount of money, and particularly with Bitcoin. I know Bitcoin is highly trusted and valuable. But it carries risks and is highly volatile. What if the person doesn't fully grasp just how volatile Bitcoin is?

But, it really depends on the individual. There are newcomers who are fast learners. They quickly gain a solid understanding of Bitcoin and its various characteristics, allowing them to be prepared for all the associated risks right from the start.

[Powerjumboo]

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.

We know that Bitcoin is a volatile asset and its price can fluctuate greatly at any time. For someone who has never heard of Bitcoin and has no idea about Bitcoin, investing directly in Bitcoin is very risky. Because, if a new person has no experience with Bitcoin, he cannot ensure proper security for Bitcoin. As such, it is not right to advise your cousin to invest $20,000 at once; even though he has a lot of money in the bank, I think he should have invested a very small amount first.

[bakasabo]

I dont think convincing to invest in Bitcoin was a good idea. Not because Bitcoin is a bad investment, but because imposing your own point of view about something financial to someone, especially a relative, might not end well. If a person wants to invest in Bitcoin, let it be his own choice, decision, taken risk. There should not be "convince me if I am wrong or right" kind of moments when it is about money. Imo its not good to take responsibility for someone else financial decision, unless its your job and a customer is in front of view, not a relative. If anything goes wrong with investment, it will be always remembered and never forgiven.

[Qhunman]

I'm wondering where and how did you get the specific number ($20k) as suggestion to your cousin? Do you know his total wealth so you consider that this $20k is small portion of what he has collected in his bank account?

Same question I wanted to ask Op,how did he know that his cousin has $20k to invest in bitcoin? The amount is too much especially since his cousin is still skeptical about bitcoin. Even if his cousin is very rich,$20k is way too much for someone who doesn't trust bitcoin. What he should had suggested for his cousin since his cousin is skeptical of bitcoin is start with a little amount, something like $1000 monthly, once his cousin has develop trust in bitcoin,he can invest as much as he wants. Once the trust is there,his cousin can even invest more than the $20k provided it Is what he can afford to lose because bitcoin isn't guarantee.

[atookz]

I think it would be nice to have both bitcoin and gold. $20k isn't pocket change, though, so before he purchases I'd throw a couple of things his way.

Storage first. Don't buy a hardware wallet from any random person or website. Take the seed phrase to paper, offline, no photos, no cloud. Never give it to anybody, if they ask for it, they are a scammer, it's as simple as that. Send/Transfer a small test amount first and then the rest.

The other thing is the volatility. It can easily drop 30-50% at some point and it has happened in the past and it will again. If he is aware from the start it doesn't hurt so much when it happens. Only invest money he doesn't need for years, purchase in small increments rather than all at once and don't price check daily, tbh it just creates a lot of anxiety.

It might not be a guarantee, but with these fundamentals he's much less likely to lose money due to panic or scams. Hope it helps him out!

[Tetu100]

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

He haven't even started yet but you have started praying for him to succeed already. Mate, are you sure you're not making the mistake of your live because you might be making a mistake but you wouldn't know. Maybe you should reconsider your decision because this your friend or brother you are talking about is yet to understand bitcoin investment very well and you have already lead in to put such significant amount in it without knowing the do and don't involved. What if things didn't go as you guys plan it, what would be the outcome of your relationship with your brother? Think about it, moreover bitcoin is very volatile and can be barely predicted.  I will suggest you tell him the way everything is. And most importantly, don't sugar quote anything. Then If really he still has interest to go ahead, let it be from his own willingness and not from your you. I'm just speaking from experience.

[wapwapwendy]

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.

$20k is a pretty big amount to put into Bitcoin at once, especially for someone who is still unsure about it. I’d probably start smaller and see how comfortable they are with the volatility before putting in that much.

[Jankuokm]

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?

Yes, I agree with you; reading your post helped me identify my own mistakes. I admit it would have been better to advise against rushing into a Bitcoin investment and instead introduce the concept gradually by sharing some basic information first. That said, if the price drops to $60,000 and he incurs a loss, it is natural that a rift might develop in our relationship. However, he also needs to understand that in the crypto world, the risk of loss is often greater than the potential for high returns. For now, I should stop him and help him gain some knowledge about Bitcoin. Thank you for such an insightful and well-explained post.

[Hatchy]

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?

Who knows if OP' story is true, but regardless of that, I also agree with you. Bitcoin investment is something personal. I can advise someone on what Bitcoin is and how to invest, but I would not try to persuade a complete stranger to invest in the market. Many people have gotten themselves into serious problems in the past because of this kind of good intention. Most beginners do not really understand the idea behind Bitcoin investment, and what usually attracts them is being told that they can make money from it. What they often fail to understand is that they can also lose money and success is not guaranteed from investment in the market..

[EarnOnVictor]

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

Congratulations to your cousin for agreeing to invest in Bitcoin. If I were to chose between starting an immediate business, invest in Gold and in real estate, I would gladly choose Bitcoin. I can bet it with your cousin that when Bitcoin might have easily handed him 3x of his money, Gold might not be able to deliver 2x. And if lucky, real estate might have given him about 30% ROI.

[EL MOHA]

Congratulations to your cousin for agreeing to invest in Bitcoin. If I were to chose between starting an immediate business, invest in Gold and in real estate, I would gladly choose Bitcoin. I can bet it with your cousin that when Bitcoin might have easily handed him 3x of his money, Gold might not be able to deliver 2x. And if lucky, real estate might have given him about 30% ROI.

While I totally agree with you that bitcoin is definitely up there as one of the best investments and I personally can confidently invest more than $20k at a go into bitcoin I still think that putting out this numbers of saying bitcoin can do more then other assets doesn’t seems well when introducing someone to bitcoin.

This is because with this kind of narrative the new investor might probably have set up a target some of which are unrealistic and can lead to panic in periods of bearish conditions. For me I do think the best way to go is actually telling the investor the dangers around their investment there is a possibility of the investment not yielding profit in short term

[ZAINmalik75]

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.

I hope that your friend's investments turn out to be profitable and he doesn't face any problems at all, but to be honest, if I was you, I wouldn't do what you did. The reason has been said multiple times by multiple people, but since I share the same thought process, I would still like to say it again. I believe that we should never suggest or give financial advice to people for investing their hard-earned money into something, especially when we know that the thing we are suggesting contains risks, even if the risks are not that high and it depends on their level of patience and composure, but it still means they can lose money.

Now, the main thing about this is that if case the person you suggested Bitcoin to makes the investment, but then the price starts going down instead of going up, and even though you told them to stay patient and don't sell at a loss, but they can't control themselves and their anxiety and they go ahead and sell their assets when the price is down, and lose some money. Even if they don't say it on your face, deep down, they will always be blaming you for those losses, and that's why I wouldn't do this at all.

[Ndabagi01]

$20,000 is a very high amount that even myself won’t put it into bitcoin all when that’s the only money I want to use for investment. Despite bitcoin being a very good asset to invest into, it doesn’t stop it from facing some downturn that could limit you taking profit at some time you may need the investment to take profit due to emergencies. I will definitely diversify my investment into other options.

You have given your cousin a good advise but i still do not feel comfortable encouraging a very close family to invest in bitcoin, let them do it at their own will and won’t use my words about bitcoin being the reason they want to invest. Let them invest what they can afford to lose according to their strength and what they’re willing to set aside for the investment. Bitcoin will grow but can they be patient to hold em through?

[Powerjumboo]

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

Congratulations to your cousin for agreeing to invest in Bitcoin. If I were to chose between starting an immediate business, invest in Gold and in real estate, I would gladly choose Bitcoin. I can bet it with your cousin that when Bitcoin might have easily handed him 3x of his money, Gold might not be able to deliver 2x. And if lucky, real estate might have given him about 30% ROI.

If those who know about Bitcoin and have tasted Bitcoin are asked to invest in Bitcoin, they will gladly accept Bitcoin and will not accept anything else. If I am also asked here, then of course I will invest in Bitcoin. I will not invest anywhere else because I have fallen in love with Bitcoin from the idea that I have about Bitcoin. But I can say this much: if I were asked to invest in Bitcoin, I would not invest this twenty thousand dollars at once. I would follow the DCA method step by step. I would not invest the entire amount at once.

[Bright0515]

That's a very huge amount of money, if I may ask does this friend of yours have any experience with investing in Bitcoin because if he doesn't you shouldn't expect him to be patient when the price of Bitcoin starts crashing, it takes someone that's not new to it to be able to wait patiently during the bear market. I would advise your friend not to start with such a very high amount of money because if that's the first investment he is making he would definitely sell his coins out of fear of losing everything to the bear market.

[Ever-young]

I don't care about the story;  if your cousin invests $1, it makes no difference; there's no need to try to convince anyone to invest in bitcoin. Everyone has to make their own decisions.

Make your move (or whatever play you choose) based on your own convictions.

This your idea of “ there’s no need convincing anyone to invest in bitcoin doesn’t make sense to me. The approach counts, and aswell the knowledge and information passed. You saying you don’t care what the story is is unsettling but I will not question your opinion.

It is very most people here, bitcoin was introduced to them by someone, and i know that they didn’t gain interest just by one line of sentence.

The only problem I see in what the OP did was giving him a specific amount to invest which is quite outrageous for a beginner and not building enough knowledge before convincing him to invest. Is okay to advice someone to invest in bitcoin but at same time you have to put them through how the market really works.

Like you said everyone has to make their decisions and yes he did. He was only convinced not forced. If investment in bitcoin was bad afterall you’d have given up on it. It’s just to be knowledgeable about the thick’s and thins that surround it.

[Slow death]

Speaking of giving investment advice to relatives: a few years ago, when the price of Bitcoin was very low somewhere under $20,000 I advised some friends and family members to invest in it. When the price hit $20,000, they all praised me highly; however, when the price later crashed, they turned on me and blamed me for their financial losses. They would call me every day asking when the price would go back up, as if I had a crystal ball to predict Bitcoin's price with exact precision.

They eventually stopped speaking to me; it was a strange situation. No matter what I explained, they had convinced themselves that I had caused them to lose money on purpose. That is why you have to be very careful about which relatives you give investment advice to. Some people have a distorted perception of reality and a tendency to always blame others for their own mistakes. That is why I stopped giving investment advice.