Topic: Why recommend when they don't understand the risks? (Read 214 times)

When you are advised to choose a cryptocurrency without being adequately informed of the risks and challenges involved, it sounds like the most annoying aspect of cryptocurrency. This is frequently compared to half-baked bread when information is not fully provided to educate others about a particular new system, and when such newbies have fallen, they regret taking the step in the first place. If we must introduce new people to the cryptocurrency world, then we should educate them on the risks and challenges involved in choosing it.

They blame the person who introduced them to cryptocurrency, just like you said, but just think about what they would do if you are the one that help them choose the exact project to invest money on? I believe that is what OP is trying to say, the pressure will be much and the hate will be out of this world,  you are a bit safe if you just introduce them to crypto and they make decisions of choosing a project.

Some people believe that trading Bitcoin and cryptocurrency is a sure way to make money, so they jump in without any background knowledge, and when they fail, they blame the person who introduced them to cryptocurrency, despite the fact that they were supposed to learn before they started trading.

I always tell people that it doesn't really matter if their favorite project made people tons of X's in regards to profit gained from investing in the project, such results doesn't mean the project is great. Infact scams give people more profits then real businesses especially in short term. This people that gets lucky are of a small percentages therefore a majority lost their money but that's the reversed when the project is authentic. Therefore it's best to stay away from the scams as you're likely to end up in the unlikely side thereby losing all your capital invested.

With Bitcoin there's no loss, if your coins value fall, it doesn't really matter as you are still holding 1 (or any other amount you hold) out of the limited 21 million supply of the rarest digital coins that'll even exist. I don't think any other individual or group can replicate what Satoshi did. We'll always have other lookalike or wanna beings but none can replicate Bitcoin and what it's to achieved globally in the future. We might even get it adopted as the payment system of the internet someday without any other competition available or even greater achievements.

I don't quite agree with you, whilst many altcoins (not all) might somewhat follow BTC's price movement, they are not similar in any other way, the only argument of altcoins being similar with Bitcoins can only be made in terms of price movements. Having said that, majority of altcoins do not have a strong network, are centralized and also pump and dump coins, thus even if Bitcoin depreciates in price and many altcoins follow suit, not all of them rise again when Bitcoin starts appreciating, so many of them die off because they have zero use cases.

These are some of the reasons why altcoins are more or less gambling, whilst Bitcoin isn't, because Bitcoin has an actual utility and a secure network, yes the price is volatile, but it cannot go extinct, neither can a flaw occur in the network that would lead to people's funds being stolen, but these can happen to most altcoins. Even if all of these are true, people should never forget the rule of thumb of investing only what they can afford to lose.

I really don't like it when someone asks how to invest in bitcoin, while he himself doesn't understand from the basics, let alone understand the risk, it's the most difficult to explain, but he still insists on doing it, sometimes I need a broad explanation, even if what I say isn't understand by him different talk with people who already understand about crypto the chat will continue to be interesting because of mutual understanding.

For me, it's always better not to advise anyone because this is a big risk or to say gambling is true because you don't know how the bitcoin price is even though you know the prospects are high, but it's better to leave that person because after all it will be a burden when they don't want to blamed for the loss of assets due to price declines.

It's better to appreciate those who understand more because it will be a friend to confide in.

It is obvious that you were having conversations about cryptocurrency with your friends incorrectly, as they perceived them as financial advice on investing in cryptocurrency. Otherwise, they would know how risky such investments are and that there is a high probability that they could lose their money.

I agree with the OP. To recommend something, you need to be an example. If you yourself doubt your knowledge or whether it is really worth the risk, then why bring those who are completely weak in knowledge to this? I will gladly talk about bitcoins, but I will not advise on investing, even if I see that a person has free money. I think that if there is a beginning of interest in bitcoin, a person will come to a decision about what to do next.
And speaking of altcoins, today's Telegram channels are just full of ads and put pressure on people to invest their money as quickly as possible. There are many channels, but after the first crash, they all disappear, leaving people with empty pockets. So again, we are all adults, and everyone has their own head on their shoulders. Everyone should decide for himself whether it is worth the risk or not.

It's not a problem to mention bitcoin to your friends, but it's important how you explain to them what bitcoin and crypto are.
We are often carried away by the euphoria of our successes and we want to share this happy news with our friends, but that is not good.
Especially stories about possible big profits and getting rich overnight should be avoided.
When I talk to my friends about crypto and bitcoin, I first explain to them that it is a very risky investment in which they can make money but also lose everything.
If after that they still want to continue, I will send them links where they can learn more about crypto and based on all the information and analysis obtained, make the best decision for themselves.
I always tell my friends that it is important to analyze everything well, have a concrete investment plan and a clear exit strategy.
If I know some of my friends are not ready for crypto and don't have the patience to analyze and learn, then I won't even tell them anything to protect them from themselves.
Crypto is definitely not for everyone.

Well, I would argue that if my family members are interested enough to learn and know the fundamentals of cryptocurrencies, I would not hesitate to explain it to them. Remember that all types of investment have risks- whether it be gold, stocks, bank notes, etc. You would just have to choose on which risk you are willing to experience and face in the future.

I would also keep my mouth shut but the opportunity of having to invest in BTC is just huge especially with the incoming fork in the next year. If my friends ask questions about it, I would not hesitate to explain it to them BUT I would never compel or force them to invest. Everything will still depend on their personal decision whether they want to invest or not.

Why do you say, anything different from Bitcoin is pure gambling. I don't understand.  You mean all cryptos are gambling games except Bitcoin?
It can't be true because all cryptos follow the same movements including Bitcoin, so if they are some kind of gambles, Bitcoin is also a casino game. Hence it's a little bit useless to take those precautions with altcoins, if you are not doing the same with bitcoin because you'll face exactly the same issues at the end.

Make them understand the risk by not telling only but also showing how risky the market is. For sure they realize that over the time when they are trying to participate and take the risk. But also make sure that the person you told about this information is really open for the consequences since if you just hype that guy and telling that he can earn money here without acknowledging the risk provably he will end up blaming you for losing his money because of what you tell to him.

If you can't take to teach and bare the situation maybe focus on yourself and let them discover bitcoin so no blame game will happen.

Yes and no. Bitcoin is still risky too. Clearly not in the way it was 8, 10 or more years ago, but still risky, let's be honest. Some accept and embrace that risk, some get scared and end up buying high and selling low. Some don't even understand that if Bitcoin will be an even bigger success than now, it will be even farther than now from what it was 10 years ago (as privacy - KYC, as hacks, as technology - see LN for example). Plus the war and a (bad ass) blizzard can still drop the hash rate significantly in 2023!

So bitcoin is still fair to be seen as a risky investment. Riskier than some others (like buying a house and renting it out, for example). Better than some others (imho bitcoin is less risky than many stocks!).

Altcoins, omg, yes, much, much riskier. But pure gamble? No, I wouldn't call them that. I would call 95%+ of them scam, simply because their sole use is to get money flowing for no good reason. Then there are the actual altcoins that may worth attention. Now and then they have good gains even vs bitcoin. Now and then they fall badly. A skilled trader or even investor can earn nicely. Some are strong projects that even worth more support. But gamble? A beginner, probably he can see them as a gamble and they will most probably lose in that. For somebody with enough experience it can be.. just a higher level of risk.

So if one wants to go that route.. it needs years of research before the first move is made. Clearly at that point one is no longer beginner. Before that... yes, avoid.

If you consider crypto(alt coins) investment as gambling, yes I agree on that part. but bitcoin investment is not gambling and other altcoin investment is like gambling to me. Only a few altcoins have a strong base but the majority of them are really very much unpredictable.
I felt that kind of burden once and I was suggesting people to buy altcoins at that time, which somehow turned out bad for some of my friends. So, now if anyone seeks advice regarding crypto investment, I told about them the bad side first. But I encourage everyone now to involve only in bitcoins not going for any cheap and hyped altcoin.

The truth is that you should never tell people that they will become wealthy after investing in cryptocurrency, not even bitcoin. The risk of assuring them outweighs the fear of entering the market. When things don't go as planned, you've not only lost the person's trust, but also you’ve made the person create a negative notion towards bitcoin. You can only warn them about the risks, then let them trade with caution and an eye out for red flags. Let them know that  personal discoveries and knowledge about cryptocurrency would be an added benefit in serving as a guide for them when they begin investing.

What is the meaning of better? There are coins with biger blocks, faster transactions, cheaper coins, more coins in circulation, less coins in circulation, centralized, anonymous, with partnerships, with councils, with CEOs, with market strategies and plans, with apps build on them, with side chains, with forks, without forks, with coin burning, without burning... All of them fail when compared to bitcoin, all of them have lower market caps, less users, less trading volume, less real transactions.


Aren't you describing every single investment on the planet? They all have issues, they are all risky. Fiat is risky and it has issues and so do bonds. Trusting the government is risky, holding money under the mattress is risky, owning physical gold is risky, moving to a different country is risky, buying a property is risky and renting it out is even more risky.

When we compare bitcoin to everything else, I'd say it has a pretty high chance of surviving and becoming something much bigger than it is.

All of us should think about the question. Would you feel better putting your savings on a bank account so it can lose 10% a year for the next 20 years, buying a house with it that will tie you to a country with taxes and all the maintenance that this house needs, or buying bitcoin.

Almost all crypto educators follow their content with "this is not investment advice" to tell their readers or viewers that they are not giving investment advice. In the same way, when answering questions people ask about bitcoin you give information based on knowledge you have and not advice them on what to purchase or how much to put in.

Another reason to keep quiet about crypto is to not make yourself a target for thieves or criminals.

- Jay -

According to what I understood from his words, he introduces people to Bitcoin on the grounds that it is a source of wealth and will change their lives, and that its risk is similar to the risk of gambling. This is relatively reasonable, but it is not the whole truth, nor what we can recommend the rest to do. It would have been better to introduce people to Bitcoin, given that it is a good way to achieve payments and facilitate exchanges between individuals, in addition to providing degrees of independence and security that even the largest banks may not be able to fulfill. On this basis, talking about the degrees of danger turns into another direction.

There was some of my friends before that told me to invest into a project, some were a success, but most are not. I'm glad that they what I tried were those that they recommended & I gave time to research of. Gladly those lead me to profit.
What I am trying to point out is just do not rely on anyone for your investment, if you rely though, make sure that you also understand the project first before spending money investing into it.

Well the idea of not wanting to tell anyone about crypto, or in a better word, wanting to keep it to yourself is not really a good one.  Let's see it like this, why not at the point of educating them, you also make it a priority to let them know the risk involved.  

Because if you've been investing in crypto and you've been yielding good results, then your friend is not aware about this, trust me when he gets to know, he won't take it lightly with you. it will be like, bro why didn't you tell me about this since.  So my point is, in telling them about how it is good to invest in crypto, also tell them to that there are risk involved, if they can manage their risk properly then they are good to go.

This sounds the most annoying thing about cryptocurrency when you're been recommended to go for it without being properly orientated on the challenges and risk involved in choosing it, this is often referred to an half baked bread when an information is not completely given to educate others about a particular new system, when such newbies have fallen then they regret why taking the step at first place, if we must bring in new people into the crypto world, then we should give it all the best in helping them realize the good and risk involved.

In your opinion, what could be the possible contender of bitcoin in terms of wealth creation that could work decentralized like bitcoin but with a superior one? Im thinking AI hype could unlock something powerful in the coming years which is quite scary when perfected.

More or less Ive been hearing and reading a lot of it lately that even Elon somehow tweet about it.

I like this method, and I always apply it. I'm not speaking just yet unless someone else is getting started to show how interested they are in crypto investing. One to three times I will warn them of the risks at the beginning of the explanation, bitcoin is no exception. Just want to avoid as much guilt and bad feelings as possible in the future.

What kind of gambling you are talking about here? Because there’s stablecoin and other large cap crypto like ETH that does not have high volatility compared to typical shitcoin.

Everything can turn into gamble even Bitcoin if the user that investing on it didn’t know the risk. Bitcoin has a high volatility too and it can cost a high loss when the user invest on the wrong time like on 65K. Gamble is when a user didn’t know the risk what he is entering.

Partially true. Besides Bitcoin (that is true), Ethereum is another cryptocurrency that is not a gamble with me. They are two back bones for cryptocurrency after many years.

If I was you, I don't mind to tell anything to my friends and my family members about Bitcoin, cryptocurrency. It's headache and kind of pressure on myself. If they get rich, what will I get, maybe nothing. If they fail, they blame on me.

I have to mention another risk that they can think you are inviting them to something Ponzi. This risk is smaller nowadays than in 2017 because this industry has grown up more since 2017 and made more noise on media but I won't exclude it.

I am ready to give them advice if they knock my doors and ask for it but I'd like never proactively do this first.

You are partially correct, but its good to spread and educate people about bitcoin and cryptocurrency.When you educate people about cryptocurrencies, especially those who are unfamiliar with it, you inevitably take on some of their problems and burden as well. When things go wrong, you feel bad, and people blame you because they believe you misled them and caused them to lose money. Until you correctly explain the situation and help them comprehend the market's unpredictability. Therefore, you should not only explain the benefits of cryptocurrency and how early investors were able to profit greatly, but also the drawbacks and how many people have lost a significant amount of money. You should also help people understand that there is a 50/50 chance that they will succeed or fail so they don't have unrealistic expectations. Cryptocurrency is not a get rich quick scheme where you 100x profit in no time.

Bitcoin is still a gamble. Plus, there's no way to predict that someone might actually develop something that is better than Bitcoin, and eventually we might come to that. At the moment, it's by far the best, and the most promising in terms of increasing your personal wealth, but it's not bulletproof. We're still going to face challenges in the near future, and well into the future, and there's going to be a element of risk that we aren't successful as we'd like to be.

I think investing into Bitcoin not expecting some of these challenges is risky in itself, and will likely lead to panic when we do hit these challenges. So, while Altcoins are definitely a lot more risky, Bitcoin isn't invulnerable to issues itself. Since, I've been involved we've had to solve several issues that have popped up, and while none have them have seriously threatened Bitcoin up until now, they have affected people's perception of Bitcoin, and therefore lead to higher, and lower rates of adoption.

The thing is, don't tell people that any crypto (including Bitcoin) can change their lives and make them wealthy, doing so can put them into very grave risks, it is better to be open about it all by explaining to them what crypto is all about, and make sure to aptly differentiate between Bitcoin and Altcoins so whoever it is would understand that they do not function in the same way.

Having said that, there is a difference between talking about Bitcoin/crypto to people and giving them financial advice or recommending crypto to them for investment purposes, you can do the former, educating people on how Bitcoin guarantees financial freedom and other whatnots, but the latter puts you in a very precarious position should the investment go south.

We have different opinions regarding that. Yes risk is always present and I agree, and I even doubt those that posting 50x to 100x are all true. Possibly they are using that as a tool to do shilling and gain from it. There are really some cases of gains like that like the last bull run and I could tell that many experience it too but failed to gain due to greediness and expect a lot of return. Al2ays appreciate gain no matter how big it is. Avoid those 1000x gain when you already have 100x.

Anything different from bitcoin is a pure gamble, before you start telling your friends and family about how crypto investment can change their lives, let them know that they are in for some pure gambling.

We could act like we know what we are doing, based on how we handle research but it's still all a hopeful gamble on the future,  let's not forget that even crypto experts have fell for the bad eggs im the past too.

I prefer keeping my mouth shut, rather than ending up looking like a clown when things failed to go my way after talking about how this coin can be 50x and how the other can 100x.

Instead of carrying your burden and that of your crypto investment, imagine having to carry the burden of others that invested based on what you tell them to,  without understanding the risks involved.

And when things failed to go your way, you will have to worry about how others are feeling about you because they are also in losses. You will end up regretting taking someone along on that uncertain journey.

The only way to avoid these is to accept that you are just like everyone else with a specific interest, keep your mouth shut when it comes to crypto investment, and only open up to those that are into crypto just like yourself.

I am talking about those that already understand how the market can be highly volatile at times and how even a good project could end up in a bin of waste.

No matter how good projects look in this crypto space, the risk is always present.