The holidays are approaching, which means most of us will be spending more time with family, friends, and acquaintances – around the dinner table, or sharing an evening around the fireplace.
With the way the crypto markets are making a comeback, chances are the conversation will pivot to crypto at some point during the December holidays. You may feel the urge to bring it up yourself, in excitement for the potential ETFs, or the next major upgrade of your favorite altcoin, or that one great uncle (mockingly) asks you how his favorite little is doing, and everyone turns to you.
I could just end the article by saying: "Don't talk about it", but it's probably best to be ready for some questions about the topic. After all, when prices go up, everyone suddenly starts to believe they can make money too – and they want your help.
Hey, weren't you doing the ‘bit coin’ thing a few years ago?
Most of us have been asked this question – in some form – at least once in our lives. In 2021, my uncles and male cousins seemed especially interested in buying the dip, suggesting the most obscure altcoins with the craziest Ponzinomics in the industry as the next holy grail. I don't expect this year to be much different, although it may still be early enough for most of them to be in the dark about what's to come: a raging crypto bull market.
Because it is still relatively early – or at least, I think so – this might be an opportune time to tell your family about the investment opportunity at hand. While I am a strong advocate for trying to help out friends and family, I believe this is something you should approach with extreme caution.
After all, crypto is a risky business, where the majority of people lose money – and when people lose money, they look for someone to blame. Odds are, that someone will be you. Money rips apart thousands of families each year – thus you need to be very careful about which people you tell what.
At this point, most of you will know that I have a strong preference for long-term market approaches, where you let time take care of the heavy lifting. This is the safest bet for new market participants as well, provided they stick to investing in proven cryptocurrencies and tokens such as Bitcoin, Ethereum, and perhaps a few top-25 altcoins.
Read this article for more context on my long-term approach.
As such, if you feel like telling your family about the opportunity, I would advise focusing on such an approach, while underlining that the market is a risky venture and that most of these investments will eventually come down just as fast as they can go up, demonstrating the need for an exit strategy.
The tricky part is that when your family is initially successful with these investments, they'll start feeling overconfident, which tends to lead to unwise decisions and eventually, being left standing with a heavy bag filled with worthless vaporware.
Side note: You could tell your family to wait for the much-anticipated Bitcoin ETF – which experts believe will go live as early as Q1 of 2024.
Education is key
In essence, if you want to convince your uncle that crypto is his way to financial freedom, you better be prepared to show him the ropes properly – as sending him into this market without the slightest clue about the dangers in the market is akin to sending him into a warzone to find a treasure, without telling him about the war part. Not cool.
Perhaps the best way to approach this conversation is to discuss what makes you passionate about crypto. Tell them about the process you had to go through before you got where you are now, the losses you had to endure, and everything in between. If they're still interested after that, I'd probably point them toward some learning resources, like the education section of the WOO blog.
In any case, no matter what you do – do not discuss price targets. I repeat: DO NOT DISCUSS PRICE TARGETS. The last thing you want is to induce or boost fomo-like feelings before their journey into the market has even begun. If you choose to discuss investment decisions with family – which again, is a tricky business! – I'd focus on why you make certain decisions, rather than the decisions & targets themselves.
All in all, I would refrain from introducing the crypto topic myself. It's the holiday season, a time to step away from all the craziness – recharging for the next year.
That being said, talking about crypto can be lots of fun – and teaching it is too – so long as you do it responsibly. Tell your family about my referral link, while you're at it.
Author's Disclaimer: This article is based on my limited knowledge and experience. It has been written for informational purposes only. It should not be construed as trading or investment advice in any shape or form.
Editor's note: CryptoJelleNL provides insights into the cryptocurrency industry. He has been actively participating in financial markets for over 5 years, primarily focusing on long-term investments in the stock market and crypto. While he watches the returns of those investments roll in, he writes articles for multiple platforms. From now on, he will be contributing his insights for WOO as well.
Check out his twitter: twitter.com/cryptojellenl
The content above is neither a recommendation for investment and trading strategies nor does it constitute an investment offer, solicitation, or recommendation of any product or service. The content is for informational sharing purposes only. Anyone who makes or changes the investment decision based on the content shall undertake the result or loss by himself/herself.
The content of this document has been translated into different languages and shared throughout different platforms. In case of any discrepancy or inconsistency between different posts caused by mistranslations, the English version on our official website shall prevail.