Convincing My Cousin to Invest $20,000 in Bitcoin

[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.

[PERtua]

I believe the biggest danger here is not only volatility of Bitcoin, but the person investing an amount of money that he or she doesn't fully understand. If your cousin is a believer in Bitcoin's future, he or she might have more stability in dipping in with $20,000 at a time when the market is in a major correction. It might be better to get an introduction to self-custody and to begin with a smaller amount. You wouldn't just buy something because someone you trust said to do so, this is the same with Bitcoin.You shouldn't blindly trust someone's recommendation to purchase something, especially Bitcoin, when you have not done your own research.

[Jaweria parveen]

For this, you need to tell him things to make him as profitable as possible and also tell him things to avoid losing his money so that his $20,000 is not damaged. In addition, if you are taking him all the money in the trade, it can be quite dangerous because the Bitcoin market is quite fast, if the leverage exceeds 2x, the loss will also happen so quickly and in addition, it is not right to put all this money in it. If you are not a good trader, then trade with a third of this money so that even if you sink, you have 2 parts. In addition, you can also give him a trade demo in a sufficient way so that he can be satisfied that you or any of your references will turn his money into profit. If he himself knows trading, then you will not need much for him to invest his money in Bitcoin. When some things are fulfilled according to him, he can invest his money in trading.

[uneng]

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.

If he is really going to invest in BTC with that big sum of money, he must have a long term mindset, while aware about the fluctuations on short run which may drive this investment to loss. To just tell someone to invest in BTC isn't enough. It's necessary to point the risks, history of the asset and future events which may have a decisive impact over it.

In case he doesn't wish to hold that investment for few years, I wouldn't suggest investing in Bitcoin. Therefore, it's important to understand the goals and expectations of the investor regards the amount he has in hands before advising how he should invest.

[DanWalker]

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.

If he is really going to invest in BTC with that big sum of money, he must have a long term mindset, while aware about the fluctuations on short run which may drive this investment to loss. To just tell someone to invest in BTC isn't enough. It's necessary to point the risks, history of the asset and future events which may have a decisive impact over it.

In case he doesn't wish to hold that investment for few years, I wouldn't suggest investing in Bitcoin. Therefore, it's important to understand the goals and expectations of the investor regards the amount he has in hands before advising how he should invest.

Honestly, the best thing we can do is not throw financial advice around so casually. None of us knows what market is gonna do next.
It's their money. So let them decide what to do with it. We cannot guarantee any returns so don't go shilling Bitcoin to people just because we think it's gonna pump.

Like some folks already said, what we can do is give them the knowledge they need about Bitcoin, upside and risks both. The decision to invest or not should be theirs.

[WatChe]

If he is really going to invest in BTC with that big sum of money, he must have a long term mindset, while aware about the fluctuations on short run which may drive this investment to loss. To just tell someone to invest in BTC isn't enough. It's necessary to point the risks, history of the asset and future events which may have a decisive impact over it.

In case he doesn't wish to hold that investment for few years, I wouldn't suggest investing in Bitcoin. Therefore, it's important to understand the goals and expectations of the investor regards the amount he has in hands before advising how he should invest.

If you are convincing anyone to invest in Bitcoin then make sure you tell him about both sides of the picture. We are investing in Bitcoin today and we are convinced because we have seen Bitcoin price going up and down over the period of time. The reason why I never go and convince anyone in my circle to invest in Bitcoin is because I know its not an easy path and chances are high that my relations with that person might get disturb. If anyone ask of assistance then there is no harm in sharing our knowledge but final decision must be the their own. 

[Junii]

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.

Now a days investment is very necessary because inflation is increasing day by day and investment fights against inflation. Your suggestion regarding bitcoin is good but before investing in bitcoin tell him to make a proper mindset and a proper strategy plus timeline because financial market works differently also bitcoin market is volatile not too much like we were seeing in the past but it is. His capital is quite good if he invest it with a proper strategy in a bitcoin in future bitcoin will give him good returns.

[Nanga Parbat]

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.

Here are a few things that are always very important, trading is always highly risky, and jumping into trading through Bitcoin is a double edged sword. Always have all related stuff and do your proper homework because if things never go as planned, it always hurts badly in relationships and investments which have never been easily recoverable, and life can also face many low points as well. Giving just suggestions can make a serious mess up, but still always be careful about everything, especially while talking about investment. No doubt, always talk about all good and bad things because these will increase knowledge and understanding, which is the most important factor for investment.

[YOSHIE]

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.

Yes, capital of $20k if your brother understands the differences in the crypto market, of course with that amount of capital there is a big possibility of making big profits, but because his current position is working in Malaysia, the situation may not be possible.

Of course $20k is a good move if he wants to invest in Bitcoin.
Rough calculation.
Capital of $ 20 investing in Bitcoin buys at the current price of $ 81,417. Your brother has 0.24556 Btc, which is not bad for a long-term investment.
Wait in the next 2 years, if the price of Bitcoin rises to $150k, of course he can sell and make $36,834. Your brother already has a profit of $16,834.

For me, it is a good step to consider taking a long-term investment in Bitcoin.

[Bright0515]

If he himself knows trading, then you will not need much for him to invest his money in Bitcoin. When some things are fulfilled according to him, he can invest his money in trading.

Good point, people that develop interest in trading don't give attention to bitcoin investment and if they had such an amount of money they would not really bother to make an investment in bitcoin but here is the thing, in this case it would be dangerous to introduce trading to his friend, this doesn't mean that investing in bitcoin is a hundred percent safe but with the urgency he has to make money he would have made a lot of mistakes as a trader.

There is a 90 percent chance of him getting a good return in a few years if he follows the rules and is disciplined not to sell his coins when the market is going through a dip.

[masulum]

Like some folks already said, what we can do is give them the knowledge they need about Bitcoin, upside and risks both. The decision to invest or not should be theirs.

It’s reasonable to let the decision rest with the person who owns the money. Some will blame us when they lose their money, but they won’t remember us anymore when they make a profit. I’ve been in that position before. When my cousin lost a lot of money in crypto, I warned him not to invest if he didn’t want to suffer big losses and if he did not plan to hold onto promising coins for the long term. However, he decided to buy meme coins instead even i warn them about the risk and ended up losing money. I feel lucky that I had warned him to be careful with meme coins before, and now he never invest in crypto anymore.

[panjul07]

Like some folks already said, what we can do is give them the knowledge they need about Bitcoin, upside and risks both. The decision to invest or not should be theirs.

It’s reasonable to let the decision rest with the person who owns the money. Some will blame us when they lose their money, but they won’t remember us anymore when they make a profit. I’ve been in that position before. When my cousin lost a lot of money in crypto, I warned him not to invest if he didn’t want to suffer big losses and if he did not plan to hold onto promising coins for the long term. However, he decided to buy meme coins instead even i warn them about the risk and ended up losing money. I feel lucky that I had warned him to be careful with meme coins before, and now he never invest in crypto anymore.

This is why I don't like recommending Bitcoin as an investment to other people but if someone asks me about it, I'll share my thoughts.
I avoid taking the initiative to tell them to invest in it,  not just because I don't want to be blamed later if things don't turn out as expected, but also because I feel that I have to be responsible for it if I try to convince others to invest in bitcoin.
Even if we don't explicitly recommend a specific amount, we will still feel guilty if things didn't turn out well for them if they started to invest because our recommendation.

[Donk1]

Well it's not bad to introduce Bitcoin to someone but convincing them isn't really something you should consider, based on how the crypto space works. Because apart from the high volatility of Bitcoin there are several way more risks that are far beyond just a market dip.And with everything you just said, it feels like you explained only volatility to him without mentioning scammers,hackers, how to protect a seed phrase, and so on though I can assume you did that. Still, what drives adoption in Bitcoin is the search for alternatives not hype.​We often have to be careful sometimes making decisions outside one's understanding can end up in a negative way, and you that were trying to help out, might just become a victim of that negativity. So yeah we should let folks choose what they think is best, not what you think is best for them. That's all.....

[savetheFORUM]

I would still say $20k is a big amount and your friend should not really have trusted you with this big sum. Investing in bitcoin can definitely make us earn really good profits if compared to other financial sources but we can never ignore the risk involved. People like your friend like to play safe. These people would consider investments to be safe in any centralised asset like gold or stocks but when it comes to bitcoin, they would always have the benefit of doubt.

If this is his first investment, maybe he could have started with less than 10% of the total available funds. Even 10% seems a lot to me because I can only afford to risk 3% tops on any single trade/investment. Now, your friend has all eggs in one basket.

[DiMarxist]

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.

First of all, you told him about the risks involved so he doesn't think that it's completely risk free and also making it clear that some people sell their coins due to panic and others remain patient but giving him these two scenarios doesn't mean that he would not make the same mistake those that panic also make, I feel like he's rushing into this investment and that might be a problem.

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 clearly said that no one should sell Bitcoin simply because the price drops, that's easier said than done. Your friend hasn't learned market psychology and emotional control and you convinced him to make such a huge investment, i don't think that's a good idea. During the bearish season he might not be able control his emotions and if he ends up selling at that point he might blame you for his losses. That amount is too large for a beginner to start with.

[BTC FutureKing]

Good point, people that develop interest in trading don't give attention to bitcoin investment and if they had such an amount of money they would not really bother to make an investment in bitcoin but here is the thing, in this case it would be dangerous to introduce trading to his friend, this doesn't mean that investing in bitcoin is a hundred percent safe but with the urgency he has to make money he would have made a lot of mistakes as a trader.

There is no complete profit in trading and you are right that the friend has to be protected from maximum risk but for this he has to be an expert trader if that friend is a trader himself then he knows whether he will be able to make a profit from Bitcoin or not so he knows better. Apart from this either you will trade with his money yourself or you have a good trader with whom you will convert that money into profit. Apart from this it is quite difficult to convince a friend to invest such a large amount because only if you tell him the signs of loss are less then he will be ready to invest so much because if you invest $20,000 in one go then if you make a wrong trade out of greed then there can be a huge loss. Which will all the blame for everything will fall on you so try to make more profit for him.