Imagine this
Someone you know says, "Hey! I am getting into trading stocks!" or "Aloha! I am super interested in buying Bitcoin!"
As a cryptocurrency connoisseur, your ears perk up.
Now, what do you do?
Silly question, you know exactly what to do.
You begin to tell them how it has changed your life and encourage them to give it a try!
Encouragement definitely helps out a lot, of course, but now what?
Some of us may know what to do next but may not remember important details.
You are going to want to have a checklist of things to go over with them in case they do decide to jump on board.
This article will act as that checklist for you to use or come up with your very own checklist to help out others looking to give crypto a try.
You need to be prepared!
How in the world is your friend going to be prepared if you're not prepared either?
Which leads to tip number one on the "How to Help a Friend Get Into Bitcoin" guide.
1. Always Be Prepared
Always be prepared!
You may not need a physical checklist like this and you might not always be able to whip a checklist out of nowhere.
Come up with a checklist like this one or save this article here for later if that is easier!
It is important to go over your checklist carefully so it can embed itself inside of your brain cells.
Just like you should have a trading plan, you should have a well-organized process for being a mentor to someone that trusts your judgment.
Another important tip and please don't take this the wrong way.
This is just tough love, however, if you don't physically have a trading plan to show someone; you are not at all prepared to help someone that trusts you.
2. Create Examples
You are leading this person to believe you by being the great example that they think you are!
This means it is important that you are ready, willing, and able to show them great examples when they are ready.
If privacy is a concern and you do not want to show them how much money you have that is totally understandable.
However, money is the foundation of this industry. So you better be able to show them something.
Find examples from others that have taught you, find Youtube videos, or if you're up to it create your very own examples!
(source: binance.us Academy)
People are very visual and hands-on learners.
You might even want to have a second account handy if they are begging to see more.
Rather than talking someone's ear off, show them examples they can see for themselves!
Us humans are far more fascinated seeing something as opposed to trying to listen and picture it in our heads.
(example of one type of plan schedule)
3. Never Forget Referrals
Many of you reading were probably waiting for this one but too often I see the opportunity lost.
Some people might think referrals make you look bad or sound cheesy.
However, that only applies to those that are not using them correctly or abuse referrals.
Referral programs are huge for both you and the person you are helping!
Never forget the fact that if you complete a successful referral both of you will be rewarded with money you would not have had otherwise.
Have your referral links ready and be prepared to use them.
And please for the love of all things holy, use them respectfully.
Nothing is worse than someone that tries to cram referrals down your throat.
It's pretty easy to spot someone who just wants to get referrals without actually helping anybody.
Don't be that guy/girl!
Lastly, I think it is important you have referrals from many different places to give someone options.
Occasionally you will find a friend or family member already did their research and were already prepared to use a website that is not one you use as often.
That is totally okay since everyone has their own preferences!
If you are prepared, both of you won't have to worry about missing out on referral bonuses.
Looking for referrals to get started?
- Coinbase (Earn up to $161) - https://www.coinbase.com/join/balthr_y
- Binance.us (Earn 40% in trading fees) - https://www.binance.us/?ref=35049952
- Binance.com (Earn 10% in trading fees) - https://www.binance.com/en/register?ref=A6LEFJR2
- Brave Privacy Browser (Monthly BAT Airdrop) - https://brave.com/tre153
- Blockfi (Deposit $100+ & Get $10 in BTC) - https://blockfi.com/?ref=b2db60a1
- Kraken (Earn 20% in trading fees) - https://r.kraken.com/TrevorBalthrop
4. Do Your Research
This one is sort of an obvious one but it is worth mentioning that way it can always be beaten into your own head.
Stay up-to-date on everything as much as possible!
Do your homework on each exchange, what options are out there, the pro's and con's, and the latest buzz in the news.
Here are some great trustworthy places to start:
- CryptoPanic.com (Crypto News Aggregator)
- CoinMarketCap.com (Top 100 Crypto Markets)
- CoinDesk.com (Crypto News & Research)
- Google News (Great for Headlines & Searching)
- Twitter (Whale Watching & Hashtag News Searching)
Most notably, try to understand as many of the more recognizable Cryptocurrencies like Bitcoin, Ethereum, USDT, Ripple, Tezos, and many more.
This is again because of preference since the way you invest might be different than how someone else invests.
Although everyone invests differently, you are still going to want to help your friend stay informed.
This is especially true when trying to steer clear of scams!
5. Help Them Avoid Scams!
This one cannot be stressed enough and yet I see it happen way too often.
It is extremely important to teach newbies as much about online safety as possible.
Not taking the correct steps to stay safe still continues to be the biggest letdown in the Crypto world!
You shouldn't fall for scams either and you definitely don't want to pull someone you know into a scam.
That's just recipe for disaster as you can imagine.
Take it from someone like me who has been an online security expert for over 10+ years now.
Here are some of my own Pro Tips to stay safe:
- If it sounds too good to be true, 99.9% of the time it is a scam
- Be extremely careful clicking on links
- Always get a second opinion from a trustworthy friend if possible
- Avoid unpopular websites as much as possible
- Get in a good habit of checking your Address Bar for mistakes or the Not Secure warning (http vs. https)
- Enable 2FA Two-factor Authentication whenever possible
- Using a longer password is always better
- Don't use the same password for all of your accounts
- Avoid using Public Wifi
- Never share your login information
- Never share how much money you have
- Direct messages or friend requests from random people are usually scam artists
- Never go "all-in" with all of your money
- Uninstall any Programs or Apps that are not popular
- Use a Privacy Browser like Brave
- Avoid using Browser Extensions and clean up any you are no longer using
- Clear your Browser & your Phone's history, cache, cookies, and saved passwords
- Avoid letting websites or your browser remember your password
- Get in a habit of changing your passwords at least once every 3-months or more
- Use Ethernet instead of Wifi if possible
- Change your network's Wifi password often
- Make sure your router/modem's is not using the default gateway login
- Check your router every 2 or 3 months for firmware updates
- Check for updates on your laptop or phone at least 1 time a week
- Keep sensitive information offline in a safe place and/or use a thumb drive (also called Cold Storage)
- Consider investing in a VPN like NordVPN
- Purchase Anti-virus Software like Malwarebytes or Norton
- Be careful joining Telegram or Discord chat groups
- Never pay someone else to help you invest in crypto and/or make quick gains
- Stick to trusted & popular assets such as Bitcoin and Ethereum
- Avoid giveaways (especially on YouTube)
- Be extremely careful with airdrops
- Avoid Cloud Mining for now
- Avoid all Mining in general until you are more seasoned
- Consider creating an extra "Junk Email" account for testing & safety purposes
- Many ICO's (initial coin offerings) are often exit scams
- Avoid using Trading Bots
- Google everything just in case!
Whew!
It is quite a hefty list but it's urgent you practice these habits as much as possible.
This is especially true if you're unfamiliar with technology or it has been a while since you have lived online, so to speak.
6. Risky Business
Like with anything there is a certain amount of risk involved.
With trading or investing there is an even greater risk.
Now with Bitcoin and Cryptocurrency, there is even more risk on top of that.
You might be prepared but remember, someone else may not know as much about this as you do.
Be realistic and be honest!
It is easy to forget because we get excited to help someone out financially.
This is great and you should definitely be excited for your friend or family member!
Except you should not let your excitement get in the way of accidentally setting unrealistic expectations.
Set the expectation that they will lose money.
I specifically tell people they will see their money go down immediately after their first purchase.
Get in the habit of telling them not to expect too much!
Get in the habit of telling them this is not a get-rich-overnight deal.
Get in the habit of telling them everybody has bad days.
Get in the habit of being there for them in case they need you.
Get in the habit of reminding them to create a trading plan.
Get in the habit of telling them there is always a lot of risks involved.
Get in the habit of sharing what you know with them.
Get in the habit of asking them what they have learned so far.
And lastly, get in the habit of telling them it takes a lot of time and dedication.
7. Time is Money
Time is money is an old saying that has stuck around because it is very true.
This common rule of thumb is often not thought about on a deeper level especially for someone new to investing.
Investing will not make anyone rich overnight, however, it will definitely make you wealthier if you stay dedicated.
Once someone realizes the true meaning of time is money, it will make you rich in the mind!
The true meaning of "Time Is Money" is to utilize and learn the importance of time management.
That could mean passive income, yes, but it also means you should strive to never let your time go to waste doing nothing.
Time is extremely valuable and with a positive outlook, anyone can turn moments into an opportunity for greater understanding.
Whether that be researching cryptocurrency, learning a new trading strategy, or even taking a break!
Remind your friends and family that burn out is real and it is okay to take a break.
As a friendly reminder though, time is always money so if you start sooner rather than later.
The sooner you will also be able to take a break and better yet take that much-needed vacation for all your hard work.
If someone you know is interested but has yet to start. Give them a nudge and beat this old saying into their head to light a fire under their butts.
Time is money!
On this same topic, there is another known fact that many experts point out is true.
It sounds cold and brutal but it is important to let your friend or family member know.
These are the most common things that consume your time:
- Friends & Family (social life)
- Procrastinating (sleeping-in or playing video games)
- Taking On Too Much (starting a lot of projects or reading the news too much)
- Poor Planning (being disorganized or improvising)
These might seem contradictory considering this is a guide about how to help family and friends start investing.
The facts here are true but painful!
In no way does it mean you cannot do the things you normally love to do.
Just be respectful of other people's time as well as your own.
Don't be a time-monster and flip out on someone for wasting your time either.
But also don't make someone else feel rushed.
Time is money is just simply pointing out the fact that the clock is ticking for everyone!
Except it is only up to you to use time wisely.
8. Fees...
Saving the best for last because this is often the most frustrating thing I hear about from people that later become more experienced.
Pesky fees!
If someone would have been there to tell me about transaction fees when I first started.
It would have saved me some money as well as a giant headache.
Fees are going to happen to people no matter what but it is important to let your friend or family member know early on about fees.
There are great ways to navigate buying cryptocurrency and investing that will minimize the number of fees someone pays.
Letting someone know this early on and they will give you great respect!
There are plenty of ways to make transactions to lower fees or in some cases completely eliminate fees.
Make sure you tell people this!
It might even do you some good to show them the best way you avoid paying too much in fees.
It will also do them some good to point out that different places have different fees!
They might have already picked something like an exchange that they had no clue what the fees were.
On top of that, it is helpful to let them know what kind of fees they should expect to see along with how they work.
Different types of fees:
- Transaction Fees
- Miner/Network Fees
- Maker/Taker Fees
- Wire Transfer Fees
- Withdrawal Fees
While you're on the subject of explaining fees it probably wouldn't hurt to help explain limits as well.
Different types of limits:
- Account Limits
- Deposit Limits
- Verification Limits
- Withdraw Limits
- Transfer Limits
- Trading Limits
While these aren't the most important it is still good to be mindful of.
New traders or investors might not understand these and it could lead them to think that something is broken.
9. The Lingo
Understanding the lingo for trading can be frustrating especially with cryptocurrency.
It is important for you to let new people understand that it can be overwhelming at first.
There is an endless amount of stuff to learn and still to this day I am learning about new stuff.
Try to think of some words you use more commonly now that you are a Bitcoin advocate.
Helping them understand the lingo will make it easier for others to understand.
Which then makes it easier for you to communicate with them going forward!
This is where examples can come in to help save the day.
Here are a few examples of common terms:
- Address - Sequence of letters and numbers used to send and/or receive funds
- Wallet - A method for storing Bitcoin or any other cryptocurrencies you may have
- Bullish - The market is Green and going up (also Pump)
- Bearish - The market is Red and going down (also Dump)
- TA - Stands for Technical Analysis
- PA - Stands for Price Analysis
- SA - Sentimental Analysis
- Exchange - A platform that allows you to exchange currencies
- Open - The price at a specific time that signifies markets have begun
- Close - The price at a specific time that signifies markets have ended
- Fear & Greed - Signifies whether an asset is Overbought or Oversold
- Candles or Candlesticks - Found on charts that represent how much prices have moved
- Whales - Name for investors that have a huge amount of assets
- Volume - The total amount of an asset that has actively traded hands over a certain time period
- Volatility - How much the price has actively moved over a certain period of time
- Fiat - Traditional currencies such as Pounds or US Dollars that are free of volatility used to purchase other currencies
- Shitcoin - A cryptocurrency asset that is considered to be terrible
- Alts or Altcoins - Cryptocurrencies that are not Bitcoin or Ethereum
- Stablecoins - Cryptocurrency with small volatility that is not fiat but still backed by reserves of fiat
- Mining - Allows people to help validate the network of an asset on the blockchain in exchange for giving them a chance to be rewarded
- Staking - Allows holders to passively participate in helping the network who then get rewarded just for holding the asset
- Ponzi - Indicates something is a scam or fraudulent
- Margin - Gives users more trading power by risking their investment to use money an exchange lets you borrow
- Blockchain - Digital blocks of information on a network that are linked together using cryptography
- Hodl - This is a purposeful misspelling of the word "Hold" that means to hold onto your asset
- Chart - Bar graphs that represent the historical price changes of currencies compared to other currencies over a period of time
- Airdrops - Rewards given to cryptocurrency users for meeting certain requirements and/or for participating
- FOMO - Stands for Fear of Missing Out which just means that people are making last-minute financial decisions to try not to miss out on something
- Signal - A multitude of different things that could indicate how a market is going to perform
- Portfolio - The number of different funds you have invested in right now
- Top - When an asset is assumed to have reached its high for a certain period of time
- Bottom - When an asset is assumed to have reached its low for a certain period of time
- Rally - When a specific asset or market is gaining a lot of support pushing prices higher
There are a lot more definitions of where that comes from!
Neither one of you should be afraid to ask each other questions along the ride.
If all else fails, do a little bit of research or check out a site like www.Investopedia.com
Many of the same terms you use in traditional trading are pretty much exactly the same in the Crypto world.
10. Strategic Planning
Goals are great and everything, but without a plan or a strategy.
Without some sort of organized agenda, a goal is going to be extremely hard if not impossible to achieve.
Try to reinforce this with whomever you are helping!
Encourage them to come up with one if they have not already.
And if they already did, ask them if it is okay you take a look at it with them.
Since there is so much to learn in the Crypto world chances are both of you will learn something new from each other.
If they need a little boost or you are having trouble helping them get started.
Take a look at a few of these examples:
- Setting a Budget
- Emergency Funds
- Dollar-Cost Averaging
- Build a Portfolio
- Risk Management
- Create a Schedule
- Taking Profits
- Learning Candlestick Patterns
- Following Influencers
- Bottoms & Tops
- Resistance
- Chasing Headlines
11. Choosing a Bank & Exchange
Not everyone has the same bank account as you do of course.
This is often a very confusing ordeal that could cause frustration when trying to get someone into Crypto or Bitcoin.
Banks like Wells Fargo, for example, actively try and block connections to Crypto Exchanges.
If your buddy is looking to connect to an Exchange to get started investing be sure to let them know this upfront.
Otherwise, both of you could end up very disappointed!
Have they not picked an exchange yet?
For newcomers, I always suggest the safest, easiest, low-fee, and most reliable Exchanges such as these below:
- Coinbase & COINBASE Pro - (Deposits, Withdrawals, Wallet, use Pro to learn Trading)
- Binance or Binance.US - (Deposits, Withdrawals, Wallet, use Spot Trading to learn Trading)
- Kraken - (Deposits, Withdrawals, Wallet, use Pro to learn Trading)
Using any other exchange to start off with could be pretty confusing even if they have traded stock markets before.
I would avoid using places like eToro as they often have high-fees and terrible prices when buying in or selling.
These three Exchanges are great but they could run into issues connecting there bank account for no-fee transfers.
United State Banks that Block Crypto:
- Wells Fargo (voids terms of service agreement)
- US Bank (voids terms of service agreement)
- Citi Bank (undisclosed reasons)
- Capital One (intermediary reasons)
- Bank of America (needs approved about escalations first)
- JP Morgan Chase (needs approved by escalations first)
- Credit Unions (depends on the entity but might be approved)
- Discover (voids terms of service agreement)
- SunTrust (undisclosed reasons)
- Navy Federal (intermediary reasons)
Here are a few Crypto friendly banks:
- Goldman Sachs
- Barclays
- USAA
- Ally Bank
- Chime
- Simple Bank
- Synchrony
- Sutton Bank
- TD Bank
If you do run into any problems connecting to an exchange, chances are your bank is blocking it.
At that point, give your bank a call and ask if they can lift the block on your account.
If all else fails and for whatever reason and it cannot connect.
Here are a few crypto alternatives that you may be able to try as a workaround:
- Connect using Uphold (fees may apply)
- Connect using CRYPTO.COM (withdrawal fees)
- Connect using Celsius Network (fees may apply)
- Connect using Changelly (fees may apply)
- Connect using BitPay (fees may apply)
Another option to consider too is simply letting your friend or family member hand you cash to send to them.
Some people are pretty private with who they bank with so connecting to a Cryptocurrency Exchange might be out of the question.
In the event that happens, simply deposit whatever cash they give you, and then use your crypto skills to send it to their new address!
It is suggested you send each other funds anyways, that way people can get a feel for how cryptocurrency networks send/receive.
12. Track Everything!
Starting out it is very easy to get carried away and start losing track of funds.
This is why it is super important to remind new investors to start tracking purchases from the beginning!
Traders make money off of people that do not track what they are doing.
Plus, everyone is going to want to break even eventually and without any idea of where that is at.
Not tracking your progress will never be able to tell you if you are losing money or breaking even.
Try to do this from the beginning!
Whether you do it by hand, excel spreadsheet, notepad, or write it on your fridge.
Do what you have to do now in order to know where you are at.
Doing things manually may not be the most convenient option in the world of crypto either.
So in addition to tracking your progress manually, it is highly recommended your friend sets up an automated portfolio.
There are trusted and reliable apps that can track what you are doing for you, they are free, and can even help out when tax season comes.
Here are some of the most favorite ones out there today:
- Blockfolio
- Delta
- CoinTracker
- CoinStats
Quick Review Checklist:
? - Always Be Prepared
? - Show or Create Examples
? - Use Referrals
? - Research & Study
? - Help Avoid Scams/Fraud!!!
? - Manage Risk & Be Patient
? - Time Is Money
? - Minimize Fees
? - Learn the Lingo
? - Make a Trading Plan
? - Choose a Bank & an Exchange
? - Track Your Progress
That is quite a bit to start off with which should give everyone in your party plenty to do.
For beginners, I highly recommend not venturing off of this checklist too much!
This may seem like a lot but in all honesty, this is only the tip of the iceberg when it comes to the trading industry.
There is pretty much an endless amount of things to learn and people who have been doing this for decades still find new things out all the time.
Hopefully, this list gives you something to build off of for yourself and introducing new investors!
Thank you very much for reading, wishing the best of luck, and stay safe!
