How You Can Help A Friend Learn The Crypto Basics

When you tell someone that you buy and sell cryptocurrency, they tend to fall into one of two camps. Some people will try and tell you all about why crypto is a flash in the pan and that you are wasting your time. And the others will want to ask you for help in getting into it. The idea that crypto is a passing fad has been proven to be false, and it has become more mainstream and widespread than ever. But it can still be a little intimidating for newcomers. Here are a few tips for how to help your rookie friend get their head around it.

Assume They Know Nothing

This first point sounds obvious, but it can be easy to forget if you have been trading crypto for a while now. Ask them what they already know about crypto but err on the side of starting completely from scratch. That means explaining things that you may think are incredibly obvious, such as the fact that Bitcoin was the first cryptocurrency, not the only one, and that blockchain is not a form of cryptocurrency instead of the tech behind it. Be patient and be prepared for a lot of follow-up questions.

Help Them Be Secure

A lot of people who are just starting out in buying and selling cryptocurrency are worried about their online security. Given everything that has been going on with cybercrime in the last couple of years, this is not a bad feeling to have. Start by teaching them about the importance of having hot and cold wallets to keep their coins secure. Make sure that they are using random password generators and two-factor authentication on their accounts. You could also suggest that they use PayPal for their Bitcoin transactions and look for a trusted platform that lets them convert Bitcoin to PayPal such as Paxful. They are a secure Bitcoin platform that is a great option for newcomers with their user-friendly marketplace and over 350 payment options available.

Help Them Avoid Bad Deals

If you buy and sell crypto, then you will have come across people who claim to have found the next big coin. These people are so excited to get others on board, and then they are nowhere to be found when things go south. Make sure that you tell your friend some warning signs to look out for and tell them that it is always worth asking around about anyone who claims to have all the answers. This is just as true for cryptocurrency as it is for any other market. 

Remind Them To Start Small

One of the first lessons that any investor has to learn is that they should never gamble with more than they have. Given how volatile the cryptocurrency market can be, it is so important that you explain to your friend that the market can go down as well as up. Some experts are saying that this is the best time to invest in Bitcoin as the prices are so low, but you still need to be careful. Help them through their first few transactions by keeping things small so that they can get to grips with the basics of how it all works. Then they can make the decision about how large to go themselves.

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