Convincing My Cousin to Invest $20,000 in Bitcoin

[Jaycoinz]

I don’t think that it is  good idea to convince anyone to invest in bitcoin and considering the amount that your friend started with i wouldn't really say that is a good idea because he hasn't really developed the psychological capacity to invest such an amount in bitcoin. The real question now is, do you think he is going to be able to handle the bear market? if he cannot control his emotions he is going to end up incurring losses.

[348Judah]

I may try my best to introduce bitcoin to people, but not to really convince them to invest, because if you make any silly mistake by any chance, they may hold you responsible. This is where, after I might have informed them about bitcoin and all the necessary things that need to be done, I leave them to their decisions on whether to invest or not, so that they will be fully responsible for the risk they are taking, and not me.

[Hamza2424]

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?

Yep, if we force our idea and they face a loss, then friendship could be broken over forced advice. Therefore, as a friend, I don't force anyone, unless I know the outcome and I convince my friends. And if they don't agree, I might make them a deal like I will cover some percentage of the loss or something just to make sure they invest, because true friends want their friends to grow.

But investing $ 20k directly is not good advice, but I can't say if it is because I need to know about the friend's financial status. If his friend's entire savings is $20k, then he should never invest it all in BTC.

[Issa56]

Definitely that's you trying to help a cousin brother and it's not a bad idea to offer a brother some valuable help.

My family members know that am into crypto also, so I don’t try to help them. I don’t even introduce bitcoin to people, I only teach anyone that comes to meet me and want to learn about bitcoin. You might try to help some people, but at the end they just going to turn you to a bad person, but if they come to meet me, I will make sure I tell them everything which they are suppose to know, incase if they lose money, they not going to blame me for that.

When some people are making profits, they not going to complain, they going to remain silent, but immediately they start losing, you going to see them blaming people that introduced them to bitcoin investment.

[JoyMarsha]

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.

He will surely, if he remains calm, trust the process of Bitcoin price movement and be security-conscious about how he stores and transacts with his Bitcoin(whether he stores his Bitcoin on an exchange or not).

Making profits out of Bitcoin investment is not something that happens in the blink of an eye. I hope you have let your cousin be aware of it, because Bitcoin volatility can make someone who has no basic knowledge of it lose their mind and give up their Bitcoin investment journey, and start thinking about how to sell, to save themselves from the mental stress Bitcoin price has caused

[r_victory]

Your best option would have been to recommend a financial market professional who could advise your cousin on how to multiply the money he had already saved. I believe in Bitcoin as an asset that can appreciate even more over time, but I also know the risks that can arise in this process. If something goes wrong, he will certainly blame you for influencing him to buy BTC. What guarantee do you have of the advice you gave? Now you are in a delicate situation...

I don't recommend investments to anyone; I can give an opinion and explain the reason for my decision, but I prefer to advise the person to research and seek professional help.

[DPHOR]

I don’t find it funny when people keep convincing their fellow to invest in bitcoin because they could end up regretting at last because the price may not go as they wish since the bitcoin market is so volatile. It’s important to know when to invest and when not to invest because when you convinced someone to invest at the wrong they may all pushed their blames to you and if they don’t have right knowledge they may possibly accused you for luring them into investment they knows nothing about. However, when you talked about $20k dollars that is extremely huge enough to convinced someone to invest in bitcoin without the right knowledge of investment. I have benefited from bitcoin investment because I invested at the dip, but right away I can’t even convinced a desperate person to venture into bitcoin investment because they may not know what it takes to have patient while their investment keeps growing gradually for them to make the required profits from their investment.

[Findingnemo]

I don't know what is the significant amount that you are talking about because you said for starter he is investing $20K and will increase over time. I get that we are trying to help the people we know to get better returns but investing on bitcoin witout any knowledge at all is kind of risky, if they get panic during the FUD situation then he will end up losing the capital instead of getting returns. You can suggest bitcoin as an asset but convincing is a bit stretch which I personally don't recommend.

[Nanga Parbat]

There are enough replies with everyone having their own view about giving advice or investment ideas, but I have never gone ahead with anything like this because here too many risks are involved, which can ruin your cousin's investment, as he is still new and has no idea about how to handle things in bitcoin investment.

Even once if he is going to invest then still he needs to have enough knowledge about wallet risk management and always need to keep things in balance its never been easy to have good profit without many things to manage understanding of wallet security and managing is also never been easy for anyone who is new try to give some good knowledge and understanding about handling things then still if he feel comfortable then heading for this journey is always best option.

It's always a thankless job in case of profit, he will be happy he has done good, but in case of any type of loss, you could be the scapegoat.

[Queen uloma]

For me, bitcoin can have a good potential but the risk involved isn’t actually small because bitcoin price isn’t stable, it’s goes up and down. Patience is very essential but it doesn’t mean that you will put a big money like $20,000 into it.  A person is suppose to understand bitcoin properly, keep emergency funds in a corner, and only invest what you can afford to leave for longterm.

[Byebyebtc]

I can tell someone about Bitcoin, and it is led for them to pick Intrest, it's his hard earned money and he has to mentally and emotionally be ready to invest the money somewhere, worse case scenario Bitcoin fails and all the blame will be on you,
Telling him alone is enough, he could later think about it and probably find Intrest in it, when I discovered about Bitcoin it took me some levels of knowledge, understanding and time to finally invest my money, if someone just convinced me to do it I wouldn't do it with a clear mind and I could probably sell early and make other mistakes that will cost me.

[Mpamaegbu]

OP, you took a huge gambling on consanguinity. Even in the US and UK, $20k is a huge amount of money. In Malaysia, it will be worth more just like it's in my country. Asking your cousin to invest such amount could expose him to great financial predicament if things went wrong. Not everyone has that fortitude to bear losses, even when they've the disclaimer read out to them. This is why it's not a good idea to coax family members into investments they aren't used to.

Yes, Bitcoin is the surest of all the crypto investments to make but it doesn't mean people don't suffer losses investing in it. I wouldn't take such risk asking anyone to invest that huge on it.

[Iranus]

Your best option would have been to recommend a financial market professional who could advise your cousin on how to multiply the money he had already saved. I believe in Bitcoin as an asset that can appreciate even more over time, but I also know the risks that can arise in this process. If something goes wrong, he will certainly blame you for influencing him to buy BTC. What guarantee do you have of the advice you gave? Now you are in a delicate situation...

I don't recommend investments to anyone; I can give an opinion and explain the reason for my decision, but I prefer to advise the person to research and seek professional help.

Idk, I don't think he necessarily needs a financial pro here. All OP has to do is walk his cousin through Bitcoin, the upside and risk both. Give him enough info and let him make the call himself, instead of pushing him to buy when he does not really get what Bitcoin is yet.

And this applies to any financial advice , not just Bitcoin . We shouldn't make the call for someone else. Help them understand their options and let them decide what's right for them.

[Peanutswar]

[....]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.

Actually this price was so huge if he make an investment with just one buy only and the market price of the bitcoin are still around ranging between 80k personally if you think that the bitcoin will go for a long term its really good to have that amount in a long term basis but unfortunately your cousin are still in doubt for the bitcoin so why not take him time to do a DCA strategy by this possible he will appreciate the market volatility of the bitcoin even in a short period of span.

We keep often see the bitcoin has a potential of course but its part too of being an investor is to check until where we would make a risk because its hard to invest to a thing you dont know yet, you doubt, and you feared so I do recommend too start small.

[taufik123]

-snip-
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?

It can be a long-lasting problem, as I once did this when my brother asked about How to invest in Bitcoin because he saw me being quite successful in bitcoin in recent years.
But I always refused to suggest he invest before he learned how Bitcoin works, how crypto works and what the risks are.

If he is sure and understands what the risks are I would only suggest investing directly by opening his own Exchange account and making a deposit to his account,
I never accept deposits for other people's investments because the risk would also be greater.

And about the story of the OP with his cousin's $20,000 investment fund, he needs to know how to do good and correct fund management as well,
because he is worried that he will go straight in with 1 Order worth $20,000 and it will be a big single purchase.

[Leahized]

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.

If this is your cousin highest saved amount in his career. Then it is best to refrain from investing the entire amount. Because there is a high risk in Bitcoin and he has no real knowledge and experience about Bitcoin. As a result: he will be frustrated in various crisis situations and will lose all confidence in Bitcoin. We know that, currently Bitcoin is not in a very bullish season and therefore the upward trend is not really effective.

If he is able to bear high risks and has long-term plans, then good luck. Still, I think, the entire amount should never be used all at once. We are not sure now, that Bitcoin will not go down. If there is any situation where DCA will be needed. Then what kind of advice would you give?