Convincing My Cousin to Invest $20,000 in Bitcoin

[jaberwock]

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.

This is something I worry about. I can invite a number of my friends and colleagues to invest in bitcoin or at least try learning how to invest but I always worry, what if they end up in loss or some negative situation? The very first thought that will cross their mind is me, because I was the one to introduce them to this space. I don't want to take that risk because I know that will somewhere affect the relation. For this very same reason, I never mix my finances with my relations because I have had a few worst experiences in the past.

Yes, we can definitely educate them to open the possibilities of profit but we should try and avoid forcing them to invest somewhere. I think OP might have made one of the biggest mistake by inviting his close friend to invest such a big sum at a very initial stage.

[Makus]

The title that says convincing already puts the OP as a middleman between his cousin and whatever happens to his investment, convincing anybody to invest is so very wrong to do, without excluding Bitcoin, even though it has a lesser chance of failing.

Whatever is put out there should be seen as a suggestion, let the interested party decide for themselves to willingly risk their money in it.

Persuading people to invest is completely weird, if it wasn't in Bitcoin someone might think that they are being exploited because of the way they are being convinced. Telling him to invest such an amount of money in bitcoin for someone that's a newbie is dangerous. Perhaps OP thought that the l little introduction he gave to his friend about Bitcoin is enough to make him mentally ready but that's a wrong assumption to make.

Like he said, he hopes that his friend makes profit from it but in my opinion there is a high chance that he might make some mistakes.

[goldkingcoiner]

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 think he might be happier with a DCA investment instead of a lump sum investment. What if Bitcoin goes down right after he puts his money in? He panics, sells on a loss and then blames you.

Or maybe not. I don't know him.

Just some advice.

[JunaidAzizi]

That's your trust in BTC that you gave the idea to invest all the money in BTC as compared to gold, and he invested a handsome amount. But if I were in your place, I would never force him to choose BTC; rather, I would suggest both gold and BTC, tell him the consequences of both, and then let him choose what he understands best. I know BTC can give him profits in the long term, but what if he loses? Then all the blame will be on you, and it's a significant amount. But now, hope for the best and encourage him to invest for the long term so that he can achieve some good profits.

[Obulis]

Be careful about your choice of words when suggesting bitcoin or any other speculative asset class to anybody. Because ultimately they will connect that asset to you and in case and when they lose money, they will crib to you about losing money.

The person who is informed well, will not do so because you did not attempt to force it on them.

So the better way to do this is to lay out the pros and cons of the asset in front of them and allow them to decide.

Even when they're able to keep calm, the vibe will be so loud in their inside that you have led them to mistake, what will make it cordial is just their calmness and managed words towards you. Even among siblings, it might not even go than easily, a friend or sibling might jokingly put it to you that you have deceived them.
Much easier way is them coming to you by themselves not you going to them to convince them.

[TheUltraElite]

Even when they're able to keep calm, the vibe will be so loud in their inside that you have led them to mistake, what will make it cordial is just their calmness and managed words towards you. Even among siblings, it might not even go than easily, a friend or sibling might jokingly put it to you that you have deceived them.
Much easier way is them coming to you by themselves not you going to them to convince them.

Maintaining a straight face during the discussion of BTC is tough for most of the people but even it gets done, people need to be clear about their pros and cons. The person who is investing might end up taking your words at face value, ending up buying at the top and making sure to again sell at the low leading to a massive loss in a short period of time.

One should be careful about these possibilities and hence not be forceful about recruiting people into bitcoin so openly. Discuss the good and bad with them and allow them to make a decision.