Topic: My own way of advising crypto newbies (Read 215 times)
These two sentences have the same meaning, but I think it might be easier to understand if we say what investment can lose, because when beginners hear that sentence, they will be able to accept if one day there is a loss in their portfolio, but if we say to the beginners with the phrase investing money that is not needed for the next 5 years, they might misinterpret this sentence so that some of them might decide to use their savings to make an investment because they hope to get a definite return when they have invested 5 years.
I would start with the opposite. Tell the stories of those who have lost their bitcoins and how, including incorrect storage of passwords and seed phrases, the great volatility of bitcoin that no one can predict in advance, as well as all the probabilities of life problems that can arise within five years, The last one, especially. Who can be sure that investments in bitcoin will remain intact for five years? It is impossible to predict the future.
And only after these "horror stories" can a person soberly assess his capabilities so as not to blame the agitator later.
Telling all the advantages of Bitcoin is very cool, but as they say, only a friend can tell you the whole truth because he cares, so that will be the surest act.
And only after these "horror stories" can a person soberly assess his capabilities so as not to blame the agitator later.
Telling all the advantages of Bitcoin is very cool, but as they say, only a friend can tell you the whole truth because he cares, so that will be the surest act.
Many people advise newbies to invest only what they can afford to lose but I have done this a few times before and as time goes on they get tired, if I ask them why they reply, 'I don't know it's going to take this long, I have come to realize that telling newbies to invest only what they can afford to lose is incomplete because they don't know how long it will take anyway and most aren't prepared for that.
You don't need to just tell newbies to invest what they can afford to lose. First of all you need to make them understand bitcoin first and the market, how the market is unpredictable. Make them understand no one can predict when is the bear and the bull market, and how long it will last. You need to make then understand the market first. If newbies understand the market they won't be expecting to make profit in a short time, they will exercise some patience because they have know how the market is like. Understanding the market will help one to decide to invest or not.
Both statements are true: it's okay to invest money you can afford to lose. However, investing in bitcoin carries risks of its own, and when you lose money, you learn valuable lessons. Additionally, the best course of action is to invest money you won't need any time soon because the majority of people who invest in bitcoin these days don't want to hold it for very long, which is a very bad mentality when it comes to investing in bitcoin.
If one invests in Bitcoin he is not going to lose money anyways, the worst case scenario is holding longer than they prepared for, I am sure that everyone knows that the risk of losing money invested in Bitcoin has gone down a lot, keep buying with FIAT or Stable coin you don't need for the next 5+ years and you will be 🆗.
Thats for people who have extra money to use for that purpose. But if you dont have money or at least uses your personal money to gamble on investment then you have a problem with that. Yes the fact that bitcoin and crypto can boost our financial freedom but still werent sure of what could be the movement on the market. Long term is always better when we fit to see it. 
Many people advise newbies to invest only what they can afford to lose but I have done this a few times before and as time goes on they get tired, if I ask them why they reply, 'I don't know it's going to take this long, I have come to realize that telling newbies to invest only what they can afford to lose is incomplete because they don't know how long it will take anyway and most aren't prepared for that.
Instead, I tell them to invest the amount they won't be needing for the next 5+ years, this prepares them mentally and physically, and those that are weak will give an answer instantly saying no way.
Instead, I tell them to invest the amount they won't be needing for the next 5+ years, this prepares them mentally and physically, and those that are weak will give an answer instantly saying no way.
It is better to advise them to invest only what they can afford to lose to do risks the Bitcoin investment involves especially security purpose, when you don't have much knowledge as newbie how will you provide your Bitcoin investment with strong security against scammers, so all this risk is not just about the price alone. So advising newbies that they can invest the money they don't need from now to 5years in bitcoin maybe so risk because nobody know what the future will come up with so don't assure anybody.
I don't think it is necessary to in invest in Bitcoin when you have not gather good knowledge about it. Don't be too greed to invest in Bitcoin because you think others are making profits from it by investing what you can afford to lose. Always know when you have good knowledge about something it will always be easy to handle. Crypto is not a rush investment many have failed in crypto industry due to that they want use the Bitcoin price opportunity but now they can't access their wallets again because scammers have take it over from them.
By telling them to invest only the money they won't need in the next five years, you are implicitly promising that they will get the invested money or more after that period. I wouldn't do that to be honest. No one knows what will happen in or after five years and you don't want to be held responsible if something wrong happens and they lose their money.
By telling them to invest only what they can afford to lose, you are preparing them mentally for the worst case scenarios.
Exactly,and also,before investing,please make sure you do proper research on the particular coin you want to invest in,because if you just invest in any coin,there is every tendency that you might end up losing your money,therefore in order to avoid such scenario,always make sure you read more about the coin that is doing well at the period of time,or the coin that has the potential of doing well in the nearest future,so that you can always benefit or gain.And secondly,invest a little,do not use all you capital to invest in a particular coin.By telling them to invest only what they can afford to lose, you are preparing them mentally for the worst case scenarios.
It's a good way if you're suggesting a 5+ year timeframe in the future for the investment. Because if you don't explain how long the beginner will only hold in the short term. But this also depends on how much the target price will be achieved. If you have enough money to invest in crypto, then choose the right time frame and price. The main focus is long-term investment in bitcoin which provides better returns and is worth the waiting time. Waiting for the latest ATH might be the main target.
By telling them to invest only the money they won't need in the next five years, you are implicitly promising that they will get the invested money or more after that period. I wouldn't do that to be honest. No one knows what will happen in or after five years and you don't want to be held responsible if something wrong happens and they lose their money.
By telling them to invest only what they can afford to lose, you are preparing them mentally for the worst case scenarios.
By telling them to invest only what they can afford to lose, you are preparing them mentally for the worst case scenarios.
Actually it's same, if they don't need the money for the next 5+ years, it means they can afford to lose since it's not needed the money for short time. However I don't think there's will be a person need to think the money isn't need for the next 5+ years because it's really long to go and there's no way you can make a plan for the next 5+ years since anything can happen without you expecting.
The most simple thing just allocate 5-10% of your monthly salary to buy Bitcoin.
The most simple thing just allocate 5-10% of your monthly salary to buy Bitcoin.
I agree with your statement.
The phrase "invest only what you can afford" encompasses all possible circumstances of the person not using the money. Basically or in the most simplest terms, just think of it as throwing away money and not expecting any profit from it or anything whatsoever. In that kind of mindset, you would be surprised to see that your cryptocurrencies would slowly grow from time-to-time.
But of course in order to maximize your profits, you must be diligent enough to check its price on the market if your initial investment increased.
If you have to convince a newbie to invest in bitcoin, it is necessary to make them understand that they can lose money. Otherwise, you will be responsible for any loss and they will blame you for that.
So, it is good to tell them before they invest, but to avoid rejection you can focus on the good things about bitcoin and let them decide.
So, it is good to tell them before they invest, but to avoid rejection you can focus on the good things about bitcoin and let them decide.
It's nice to see that alot of low ranking OPs have a solid foundational idea already -- although I know OP ain't a newbie cus he's been here since 2021, even before I got registered though.
I keep wishing -- and if wishes were horses, I'd ride 'em myself just to make sure this impression is properly instilled in every rookie's head, not just some mere jokes yunno.
Someone said something the other day and he was like: he tutored peeps that finally agreed to invest in BTC after much efforts to convince them the route-wise... Then it came a time, when BTC had to diminish in market value, causing them to lose much funds.... He tried to explain that he's been called a looser and a cheat for advising them to get scammed -- it's the reasons why I'd want every newbie to read the PROs and CONs involved, to avoid something like this next time.
Sandra 🧑🦰
I keep wishing -- and if wishes were horses, I'd ride 'em myself just to make sure this impression is properly instilled in every rookie's head, not just some mere jokes yunno.
Someone said something the other day and he was like: he tutored peeps that finally agreed to invest in BTC after much efforts to convince them the route-wise... Then it came a time, when BTC had to diminish in market value, causing them to lose much funds.... He tried to explain that he's been called a looser and a cheat for advising them to get scammed -- it's the reasons why I'd want every newbie to read the PROs and CONs involved, to avoid something like this next time.
Sandra 🧑🦰
Actually it's same, if they don't need the money for the next 5+ years, it means they can afford to lose since it's not needed the money for short time.
It isn't really the same but it is almost the same. 
Can afford to lose means no problem to lose the money at all. The money isn't crucial to use in a short time or a long time.
Whereas what the OP meant, the money isn't crucial to use in a short time, but it is needed for a long time.
CMIIW
The most simple thing just allocate 5-10% of your monthly salary to buy Bitcoin.
Agree. 5-10% of the monthly salary is safe to use for investment. However, we must be careful to choose the coins to invest in, especially when we are newbies.
For newbies, I think under 5% is more than enough to use for investment. And only choose BTC for the safest investment.
Everyone has their own vision of how to advise other people when it comes to Bitcoin, and I can agree in principle that one of the good tips is "not to invest more than you can afford to lose", but the problem can arise in that many cannot properly estimate that amount and then find themselves in a problem. Ignorance and greed are often much stronger than common sense, especially at a time when we have a big bull run and when most are under the influence of FOMO (fear of missing out).
I have long taken the position that I will not advise anyone on such sensitive matters if I do not assess that this person is not aware of all the risks arising from such investments. In addition, everyone should focus more on promoting Bitcoin as a currency, and not just as a means to make a profit.
Do not invest what you can’t afford to lose, will always be the most basic rule in any forms of investing. However, with bitcoin which involves high risk because of high volatility, I would not advise people to invest but most likely to learn and become knowledgeable about bitcoin. That way, if they have already understood completely about bitcoin, then it’s already their decision if they still wish to invest or not. But the moment they’ll start investing, they should also be responsible enough to think that bitcoin will never give them quick profits as it could be a good long term investment instead. I have long taken the position that I will not advise anyone on such sensitive matters if I do not assess that this person is not aware of all the risks arising from such investments. In addition, everyone should focus more on promoting Bitcoin as a currency, and not just as a means to make a profit.
I don't like this statement
Mate everyone needs money at all time. So investing money that one doesn't need is an understatement, that Investment money can be taken at anytime. Because expenses is uninvitable. So you might spent that at anytime. You have money and you an urgent matter to settle won't you spend it to settle the issue?
Quote
invest only what they can afford to lose
, it is not a statement of encouragement. Instead, tell the person invest in bitcoin but there is risk because the price is not stable. You can invest today with the price of 22$ and probably by the time you want to take the funds it might be at the rate of 20$ which means you are in the losing side. So when you invest in it you have to be attentive to the movement of the price for a very long period of time. And if the person likes the risk involve allow him or her to invest and if the person is not interested then let him or her go.Mate everyone needs money at all time. So investing money that one doesn't need is an understatement, that Investment money can be taken at anytime. Because expenses is uninvitable. So you might spent that at anytime. You have money and you an urgent matter to settle won't you spend it to settle the issue?
Bitcoin and crypto investment is not something you want to get involved with without having a very good job that brings you enough money, so even if you invest some part of your salary you will be able to take your eye off the investment and wait for a long period without any worries. Many people think they can handle anything in a bear market but as time fly they become tired of it and start losing hope.
I could remember someone in my school who bought 100,000 pieces of polygon when it was in few Cents years ago, he got tired of holding and sold, I tried changing his mind but I failed, later Polygon surge so much and he regretted his decision. He was not ready for long term holding and he thought he was.
Its always easier said than done, I believe this is the right quote for this.
I could remember someone in my school who bought 100,000 pieces of polygon when it was in few Cents years ago, he got tired of holding and sold, I tried changing his mind but I failed, later Polygon surge so much and he regretted his decision. He was not ready for long term holding and he thought he was.
Its always easier said than done, I believe this is the right quote for this.
That makes sense, but also — let them focus on education. If they actually know/understand bitcoin at least with a good amount, chances are, they wouldn't be having doubts and they would know about bitcoin's cyclical nature in the first place.
This is difficult, I think nowadays a lot of people want to get to know Bitcoin because of its Value. It's not that they want to learn what bitcoin is and what it is actually for. In addition, many of them do not want to learn, even they are willing to pay for trading assistance. Because I used to be the first one too, only then did I try to learn more through this forum.
But the fact is that most beginners always invest excessively at the beginning of their investment steps. so that not a few experienced losses at the beginning of their journey in investing in crypto. they know the adage about having money ready to lose. But beginners are more likely to still not be able to control their own psychology.
That's what traumatized them, and assessed the crypto scam. They didn't want to stick around, and tried again for it which I met in my friend who studied crypto. They give up before they understand it well, probably because they have a job that is more certain to make money from the services they do.
Instead, I tell them to invest the amount they won't be needing for the next 5+ years, this prepares them mentally and physically, and those that are weak will give an answer instantly saying no way.
It depends. If it is bitcoin, that is also my advice, but some altcoins are just useless and if someone invested in it, the value can depreciate, some coins will not get to all-time-high is another thing. If it is bitcoin, it is worth investing. As for altcoins, during bear market like this, you can gamble with it with the amount of money you can afford to lose, but you can invest in bitcoin and still have the confidence that you will see positive ROI in long term. 
My first lesson when I was a beginner was understanding the risks and opportunities/potentials to be taken. Being aware of the risks that will be taken makes me ready if I have to get a loss. and when I know the opportunities/potentials that I will get, this makes me more prepared for the risks I take. And of course investing with money that you have to be prepared to lose is fundamental in crypto investing and that is something that still needs to be said.
But the fact is that most beginners always invest excessively at the beginning of their investment steps. so that not a few experienced losses at the beginning of their journey in investing in crypto. they know the adage about having money ready to lose. But beginners are more likely to still not be able to control their own psychology.
I hope beginners also learn about psychology in investing. so that they are also mentally prepared and can control their own greed or emotions in investing.
But the fact is that most beginners always invest excessively at the beginning of their investment steps. so that not a few experienced losses at the beginning of their journey in investing in crypto. they know the adage about having money ready to lose. But beginners are more likely to still not be able to control their own psychology.
I hope beginners also learn about psychology in investing. so that they are also mentally prepared and can control their own greed or emotions in investing.
That makes sense, but also — let them focus on education. If they actually know/understand bitcoin at least with a good amount, chances are, they wouldn't be having doubts and they would know about bitcoin's cyclical nature in the first place.
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