If you deal in crypto, chances are that you get asked a lot of questions about it. We would be very surprised if you made it through the holiday season without at least one friend or relative asking you what crypto means exactly, whether it is even safe, or flat out asking whether getting involved with it is a good idea. And we are guessing that you have got a lot of practice when it comes to smiling politely and giving that person some vague answer that ends the conversation as soon as possible. If you are looking for the best in trading check out Crypto SMSF trading.
But it can be very different when a friend comes to you and asks for help. We have all been a beginner at one point or another, and we all know how valuable it has been to have someone that we can ask the dumb questions. Someone who can point out those huge mistakes before we make them. And if we did not have that person on our crypto journey, we know how much we would have appreciated it. However, sometimes it can be easy to forget where the best place to start is.
So much of buying and selling crypto is about keeping up to date with the latest developments, whether that is the latest tech guru tweets or the news about Shiba Inu skyrocketing in value. It is a process where you must keep looking forward. When it comes to thinking back to those first steps, it can be a little tricky. So, if you are trying to find the best way to help a friend get into cryptocurrency, here are a few tips to help you out.
Start With The Basics
When you look for crypto advice online, a lot of the articles that you will find will have titles like “explaining crypto for kids” or “helping your grandparents understand crypto.” Your friend may not fall into either of these categories but when it comes to understanding crypto for the first time, they certainly will be a beginner. With that in mind, you should make sure that you keep things simple right at the start.
When you are dealing with specific terms and phrases, make sure that you are explaining what everything means. They may understand, for example, that cryptocurrency is an online decentralized currency, but they may not be aware of what blockchain technology is. Explain the simple concepts and break down how it works. Remember not to get too caught up in the bigger picture at first. For example, you may not need to explain that there are a finite number of Bitcoin coins available to be harvested right at the beginning.
Go With The Big Coins To Start With
We know that there are so many different cryptocurrency coins out there to invest in and keep track of, but if you are explaining how it all works for the first time, you may want to stick to the big names. Starting by breaking down what your friend needs to know about Bitcoin may help. Bitcoin is not only the most successful coin, but also the one that is most commonly referenced in pop culture, and it gets the most headlines. Ethereum may be a helpful example to demonstrate how there are many other coins out there and that they do not all have the same purpose.
Walk Them Through The Purchase Procedure
Once you have gone through the stage of explaining the basics, one of the best ways that you can help a friend get into cryptocurrency is to simply walk them through the process of buying coin. As you will know, the first step is to find a good cryptocurrency exchange. It is important to remember that, given that you may be an experienced crypto trader, you need to break down the basics of the kind of platform that they should be looking for.
For example, they need to make sure that the exchange supports the currencies they will be using. They will want to make sure that the withdrawal options available suit their needs. They will want to be able to compare pricing with ease and simplicity, and they will also want to have some guarantees about security (we will talk more about security in just a moment).
Finally, and this is especially important given that they will be encountering all of this for the first time, they are going to want to find a platform that makes things simple, and which does not have too many hidden charges. If you want to buy Bitcoin without fees, then you should look at Paxful. Paxful is a trading platform that offers real time buying options, a user feedback system to help you identify trusted peers, and a lifetime free Bitcoin wallet.
Help Them Keep Their Assets Secure
We all know that one of the big myths that certain sections of the media like to promote about cryptocurrency is that it is not safe. Given everything that has happened in the last couple of years with the rise of cybercrime, the counterargument is that everyone should be making more of an effort to keep their money and their information safe online. If your friend is not well-versed in online security, then you should give them as much information as possible before they start spending.
Talk them through the very basics about how they can improve their online safety and help them to find cryptocurrency wallets. You should also explain that it is always very important that they do as much research as possible before investing in a new coin.
Remind Them To Keep Watching The Market
One of the reasons why so many people get into crypto is because the highs are, well, very high indeed and we have seen several coins surging in value in 2021. But if your friend is just starting out, they may have underestimated the extent to which the market can fluctuate. You know that you need to have your finger on the pulse, so make sure that you impress on them how important it is that they use their cryptocurrency exchange to watch the market and to make decisions quickly and decisively.