What should you know before recommending Bitcoin to a friend?

[Outhue]

Always test small first.

That’s what I always do even now. If I’m sending a big amount, I make sure to test it with a small one first. I’ve had an experience before where I lost money because of a phishing attempt. I don’t even know how it happened, I was using Electrum (probably got faked after upgrading), copied the right address, but when I pasted it, it turned into a different one. It all happened fast and the money was gone instantly. Since it’s irreversible, I couldn’t get it back anymore. So now I always double-check everything before sending.

The problem was likely from that copy and pasting, did you do it on a smartphone or your PC? You either need to restart that device by formatting it or scanning for the malware, most of the time I would format it because that malware might be a tough one to battle, I have a brother that lost a lot of money because of this.

[sotelorene]

This thread was inspired by this one, where a forum user talked about him regretting to have recommended Bitcoin to a friend because some lost their coins or Bitcoin didn't hold up to their expectations.

The idea is to collect things which are useful to know before you recommend Bitcoin to friends and relatives.

It can be absolute "musts", or simple tips to make your Bitcoin journey better.

And just to clarify: It's probably not a good idea to aggressively try to drive friends or relatives into Bitcoin. I'd mainly recommend Bitcoin to people who already are showing some interest in the topic, or at least in related topics, for example if they are asking directly about alternative investment opportunities, being conscient about the risks.

Op, someone will definitely feel bad when they recommend something to someone and then the thing doesn't go as expected even though is not their fault that made the thing went wrong they will still feel guilt and every reasonable person will always feel same way unless people who don't really care about the happiness of others. The thing is some people are so careless sorry to say but that's true and I'm sure the reason for the loss was due to negligence and the motive or aim to make quick profit. Bitcoin is a long term investment so anyone who is not planning to hold for long will definitely make a mistake.

I start with a couple of absolute "musts" everybody who wants to recommend Bitcoin to someone should know and tell the new users.

1) Not your keys, not your coins! That's perhaps the most basic sentence everybody should understand before engaging with Bitcoin. Coins hold on an exchange or a custodial wallet do not really belong to you -- if the company behind them gets bankrupt or is hacked, you can lose coins.

I totally agree with you and that is why we should be very careful when chosing or selecting an exchange or wallet to use for our Bitcoin investment because some of these exchange and wallet are Chloned or not original and any detail been put there can be exposed I mean it is exposed and anything can happen maybe, restriction of having access to your asset or..., but honestly it will take years for an exchange to go bankrupt unless they are been hacked like you said and I haven't heard of such before.

2) Back up your keys and seeds. You should have at the very least one or better two physical items (paper is okay for low amounts you can afford to lose, but not the best option, metal-based items are better!) where you've written down your seeds or keys from your main Bitcoin wallet.

You are absolutely correct but we should know that nothing in this world is safe or hidden because in one way or the other someone will definitely get access to it as a result of any slightest mistake, remember there are scammers and hackers everywhere and writing our seed phrase on paper isn't the best because it can be misplaced, it can tire or touched by water or rain mistakenly.

3) Don't think that the Bitcoin price will always go up. Above all if the price is already bullish for several years, it is likely that it will eventually correct.

Yea, here is where some folks get it twisted, they think and expect the price of Bitcoin to keep surging but that can never be possible because it is a volatile asset which means it will vary in price or value which is the up and the down and sometimes when the price is seriously going down some will began to panic and be afraid that the price won't go up again and sometimes they sell at loss and later regret their actions so we should be patient and hold.

[Inior]

We may discuss about Bitcoin with friends, relatives, workmates, and others if we must. We may provide them a long list of dos and don'ts, very basic things, reminders to always keep in mind should they decide to go into Bitcoin, but I guess we should never exhort them to buy.

Basic thing like not your key not your coin, some of them need to know the best wallet to use to hold their coins for long term, using exchange wallet to hold your coins for long term is not safe for newbies because the owner of the exchange have right to have access to your coins if anything happen that will make the team to withdraw your coins from the exchange, Some of the users that survived here applied patience to become who they are today, which I know newbies can also do the same thing to overcome any challenge that may come their way, for you to recommend anyone to bitcoin, make sure you have seen good results or you have benefited from bitcoin because some people need to see evidence from you before they will believe that you have the knowledge of bitcoin.

A lot of persons might think they're smart by using an exchange to keep their coins and probably add bitcoin to their portfolio as well. The truth is, exchanges can decide to close or shutdown your account or the possibility of hack is very realistic compared to using a non custodial wallet. A lot of persons including myself probably like to make transactions from an exchange but that doesn't mean it has to remain there. It's smart to move you coins to a non custodial wallet where you have full control of the coin.

[Awaklara]

You are absolutely correct but we should know that nothing in this world is safe or hidden because in one way or the other someone will definitely get access to it as a result of any slightest mistake, remember there are scammers and hackers everywhere and writing our seed phrase on paper isn't the best because it can be misplaced, it can tire or touched by water or rain mistakenly.

I think all these mistakes are entirely within the holder's control. If the holder is not knowledgeable enough about how to store it properly, of course, the risk of losing the assets we have will be even greater. 
For me, the most important thing is not to store it online. If you do, you will be very vulnerable to losing all your assets. 
Your assets are under your control. If you don't want to lose your assets, then you need to think about how to keep your assets safe in your hands.

[d5000]

Hmm so, we have to evaluate someone trustworthiness before we buy Bitcoin when we're supposed "to not trust, verify?" I think we're doomed, more and more we treat Bitcoin like the way centralized site treat Bitcoin.

I think if someone buy Bitcoin without KYC, they have to sell Bitcoin without KYC too, so they don't have to think about scam or illegal coins.

Valid opinion imo, and I think if a friend had at least some advanced technical (not necessary Bitcoin) knowledge and I'd trust them to really be able to assess risks, I could recommend this strategy to them, because it means to treat Bitcoin like a fungible asset. There are however two problems from a practical point of view, when we're talking about recommending Bitcoin to beginners.

First, most beginners will want to buy and sell their Bitcoin fastly and with less friction as possible. So they would like their BTC being accepted everywhere. They will also probably not be very good at separating KYC/non-KYC funds for some time even if a more experienced user instruct them so, so it's possible that a simple mistake when buying "dirty" Bitcoins "infects" many of their other Bitcoins too.

Second, beginners using P2P without foreknowledge and strategy would be exposed to the worst cases: buying directly stolen or hacked coins (which will be confiscated even by the most lax exchanges, and they will have to sell with a big discount if selling them P2P) or to sell Bitcoin to someone operating a stolen bank account. This could even drive them into legal problems, like some forum users reported (I heard at least from two cases from the German community, although they were power users with high P2P exchange volumes, this can also happen to beginners being not careful enough).

So I would definitely mention P2P as an option, but clarify these risks to them. And the strategies to avoid dealing with users with stolen bank accounts are relatively straightforward but you have to be very strict and never be tempted by a good exchange rate. Stolen/hacked coins can be harder to avoid. So while "don't trust, verify" is a good general guideline, it should also not be followed dogmatically, imo.

[Findingnemo]

The very first thing I want to ask them is why Bitcoin? I mean for investment purpose or as an alternative to the existing middleman system. Guess what 90% of the people will choose the former but I am very eager to teach for someone who is not interested only in returns, but other things.

Very recently, I talked about Bitcoin to a female colleague, she had been asking for a while to explain Bitcoin, even though I gave necessary resources to read, which can help her understand what Bitcoin is.

No matter if they chose bitcoin for returns or investment, it is necessary to keep their funds under their custody, which isthe  most ignored thing among new ones who join this journey.

[Adams0001]

If someone is interested in investing in bitcoin or i will like to introduce the coin to a friend the first thing I will like him to know, is that anything about crypto is all about risk and if you are not capable you should not try to start. And as for me I need to get enough knowledge and experience before I can guide someone to invest in the and again i need to show some of my benefits that u achieve in bitcoin so that if am trying to guide anyone they won't feel like the coin don't have benefits because they have some people that anything you tell them they won't believe with you since they don't have the interest to invest they will always find a way to complain so that try won't invest. Investing in bitcoin you need to get knowledge and ready to take risk because bitcoin is volatile and you can't get profit in bitcoin easily you need to invest for the long term before you can achieve your goals.

[Cookdata]

A lot of persons might think they're smart by using an exchange to keep their coins and probably add bitcoin to their portfolio as well. The truth is, exchanges can decide to close or shutdown your account or the possibility of hack is very realistic compared to using a non custodial wallet. A lot of persons including myself probably like to make transactions from an exchange but that doesn't mean it has to remain there. It's smart to move you coins to a non custodial wallet where you have full control of the coin.

This isn’t smartness, it’s dumbness mixed with zero consequences of exchange history. There is absolutely nothing palatable with keeping coins on any exchange. I don’t see it from exchange hack perspective rather I see it from what exchange can do to your account.

I have seen numbers if influencers cry on X that their account has been frozen by the MEXc exchange because the exchange claim their account were under investigation for manipulation of futures trading, just silly excuse, after many months of waiting they didn't unlock the account. The affected account decide to go public and call them out, the CTO stepped in and some accounts were unlock and they apologize for the mistakes, these are nonsense they do that makes me not save coins on any exchange, it's worth the stress when you do everything yourselves.

[Davidvictorson]

I will add that no the cryptocurrency laws in their country before investing in bitcoin. These laws include the taxes and the consequences for not paying them. This will give them the reality of what is on ground so that they do not make any mistakes because ignorance is not an excuse.

[Daniel91]

For me, the most important thing is that a person has realistic expectations and doesn't think they will become a millionaire overnight. I read daily about financial scams, often related to crypto, where many people come across an ad on social media offering big and fast earnings in crypto, invest large sums of money, and of course, end up losing everything. After that, they become crypto skeptics and believe that everything related to crypto is a scam. Besides having realistic expectations, it is important that a person is willing to learn and understand what it is about, and invest effort and time into it.

[Dareo]

I think before telling someone about Bitcoin, we should first see if the person is mentally prepared. Because the price fluctuates in such a way that beginners can easily lose their breath. Many people think that the price will always increase, but in reality, when the price decreases, they panic and make the wrong decision. So it is important to first understand whether the person we are talking to is the kind of person to ride this roller coaster. Another thing I have learned from my own experience is that no matter how much we read the theory about Bitcoin, the matter is not clear until we make a small transaction werself. I mean, the first transaction gives people a different level of confidence. Make them see that even if it is a very small amount, they transfer it themselves.

Also, beginners often avoid legal and tax-related issues, and later get into trouble. It is necessary to know in advance what the rules are in a country, how much profit is taxed. People usually think about it later, but it becomes a headache later.

Finally, I would say that we should never overdo it with Bitcoin. Many people still excite their friends by saying that this is the money of the future, it will definitely make them rich. Saying this creates wrong expectations. In my opinion, it should be clearly stated that this is a risky, but great technology. If we understand it and move slowly, we can make a profit, and if we make a mistake, we can also lose.

[d5000]

Already almost 30 tips, awesome

I will add that no the cryptocurrency laws in their country before investing in bitcoin. These laws include the taxes and the consequences for not paying them.

I would add two things here. First, if there are strict reporting laws like in some parts of Europe, familiarize yourself with coin tracking software and with the principles of FIFO (first-in, first-out) and LIFO (last-in, first-out), i.e. how the profit is measured if you sell or spend your coins.

Second, there are also some other legal topics outside of taxes which may get your into perhaps not problems, but headaches in the future if you don't know them. For example, in jurisdictions with strict AML laws it can become important to separate coins bought on CEX exchanges and DEXes or P2P exchanges, to avoid issues like to have to provide sources of funds because due to some back and forth transaction the origin of a large group of coins become unclear. Also be aware of some special laws like Turkey's "spending ban" or merchant restrictions.

[Hazink]

First thing we need to do first is protect ourselves. Don't just go out and start preaching bitcoin to someone who has shown no interest in it. Mind the kind of words you pick while expressing and explaining bitcoin to someone who knows the kind of person they are and the type of meaning they could be reading in your statement.

Security should not just be about the person knowing how to protect their coin, we should also consider our own personal safety, because teaching about bitcoin automatically you will be perceived to be one who owns and hold bitcoin which is also an indirect way of making yourself a target. Privacy and security are very important in the Bitcoin world.

[Iamgoat]

First thing we need to do first is protect ourselves. Don't just go out and start preaching bitcoin to someone who has shown no interest in it. Mind the kind of words you pick while expressing and explaining bitcoin to someone who knows the kind of person they are and the type of meaning they could be reading in your statement.

Security should not just be about the person knowing how to protect their coin, we should also consider our own personal safety, because teaching about bitcoin automatically you will be perceived to be one who owns and hold bitcoin which is also an indirect way of making yourself a target. Privacy and security are very important in the Bitcoin world.

It is the truth you are saying here. Before anyone here can become a crusader of bitcoin, you must be grounded to some level in your knowledge about bitcoin including how best you can protect your bitcoin wallet especially when it is a non-custodial wallets and how you can also protect yourself from any possible threat to your bitcoin assets or even just to avoid any eyesaw drawn to you. Though I think unlike fiat which can be easily traced, bitcoin cannot unless you over exposed yourself to them during the cause of your tutor or conversation with them. Some of us have this character of rushing to introduce the next person into something we have not even completely understood the next thing is let me bring my people. Sometimes it is wrong especially when it comes to issues of money like this it is always better to remain greedy until when yyo think you've gathered enough knowledge to be called an expert then you can invite

[Amphenomenon]

There are many valid points added and I follow Op process, security first before buying/getting Bitcoins. Now I will add this:

Don't use yourself as a proof of high ROI from bitcoin investments, you are just risking your life, loved ones and assets. It will be better not to even share this with your loved ones especially when they have no interest or are not aware of such risks because they can casually share with a friend and soon you and them will become a prey to the attacker.

[Nathrixxx]

Like in my country of now, the government have been making policies that enact the taxation of individuals from earnings to be obligated to pay tax, which the crypto sectors are also not going to be left out, things like this have to be in consideration for us, to let the newbies know and understand why they can be more private with their adoption.

This is starting from the year 2026 though, but the announcement has been made already on this, which I also expect that users have to understand the requirements on capital gain taxation the government is introducing in my country, aside this, there are also regulations that forbids the banks from engaging in crypto activities, many only do their transactions online and privately to avoid government threats.

[SuperBitMan]

I will add that no the cryptocurrency laws in their country before investing in bitcoin. These laws include the taxes and the consequences for not paying them. This will give them the reality of what is on ground so that they do not make any mistakes because ignorance is not an excuse.

Very important you need to know the laws governing cryptocurrency in your country some set of people in my country made some mistake that led them to losing their cryptocurrency because they were not aware that cryptocurrency was banned at that time in my country, as at then in my country you are not even allowed to trade cryptocurrency so when you are trading in cryptocurrency and you want to withdraw and in your withdrawal a statement concerning cryptocurrency was written when sending you the money the government agency we immediately trace you and have you arrested so before you start bitcoin investment go through the Laws that governs cryptocurrency or Bitcoin in your country so you won't make a mistake you will regret later.

[Z390]

Many people want to make money but they don't want to face the unease that comes with making money, instead of talking about what would happen if everything goes well it is better to tell them everything that could go wrong, there is a possibility that they will start avoiding you from then on.
Many Bitcoin investors like sweet talks, they are the ones putting themselves in a bad situation among people, there is never a easy way to make money, we call HODL like it is that easy, yet no one talks about the new practice for people who have never done such thing before it is not going to be easy.
If anyone come asking you about Bitcoin you talk about Bitcoin like you don't have it, tell them it is costly but good for anyone who can invest on it, do not put yourself in a position where the other person feels like you have it all, that could endanger your life.

[Comeacross]

Can you add something? Good tips will be merited and linked in the OP!

Everything necessary to know as a beginner or advanced user before recommending bitcoin to a friend is detaily explained in this thread. What I'm yet to see is DYOR. Do your own research is one important thing to consider when recommending bitcoin to a beginner or friends. Let them know you're not responsible for the aftermath result after your recommendation. Encourage them not to rely on you, they will not grow if they limit their source of knowledge to you.

Do not create wallet for anyone. You can help and teach them how to create a wallet but do not allow them to use that same wallet you help to create as their main wallet. Let them create their personal wallet themselve and keep the private key safe as much as possible. Let them know it's their responsibility to keep it away from people including you.

Lastly, never force bitcoin on anyone. No one is paying you for recommending bitcoin to people, only recommend it in their best interests to protect yourself from unnecessary blame in the future.

[MusaPk]

Can you add something? Good tips will be merited and linked in the OP!

I would like to add that it's important to hand over details of your Bitcoin wallet to your next of kin because if you don't pass such details then all your hard work will be lost forever. If you have family then make sure they can access your Bitcoins in case you are no more in this world. Bitcoin differs from real world assets like our Bank account in a sense that their is a procedure in place to hand over your Bank balance to your nominee.  But with Bitcoin we have to do all such formalities in our life.