Are you trying to convert your parents to crypto traders and don’t know where to start? Here is a summarized guide to introduce our tech-ambiguous parents to the crypto world.
It might be hard to get older generations to use modern technologies. Converting skeptical parents into cautious investors requires subtlety, perseverance, and confidence because you are ultimately asking for their financial trust.
Before you teach others, educate yourself.
If you don’t know enough about the cryptocurrency sector to persuade your parents to invest in it, you should spend at least a month learning all you can about it. There are numerous sites online that can help you with this. Read blogs, research, and cryptocurrency stories, and don’t forget to check up on words you don’t understand. You’ll need to communicate with your parents more intelligently if you want to educate them. It’s not only about convincing your parents to invest; it’s also about ensuring that they invest in the appropriate one.
Explain in layman’s terms how cryptocurrency works.
Tell them that a blockchain is a digital ledger that records every transaction involving a currency. You can explain how the system works after they comprehend these two words. You might explain that instead of a central authority, such as a bank, a network of computers controls the money — and that these nodes are accessible to everyone, making it impossible for scammers to influence the system. Tell them that a private key is similar to a password that gives you access to your funds.
Find out why they are not investing
Before you try to persuade your parents to invest in cryptocurrencies, find out what concerns them. You may accomplish this by casually stating how much you like investing in cryptocurrency and inquiring as to why they aren’t. If they tell you they’re afraid of scams, losses, or something else, address their concerns and let them know you’re doing everything you can to avoid them. If you can’t address their anxieties, you should probably find another technique to persuade them.
Don’t even bring up the term “bitcoin.”
When introducing cryptocurrencies to your parents, avoid using the term “bitcoin.” This is possibly a word they’ve previously connected with fraud and pump-and-dump tactics. Instead, discuss how cryptocurrencies are transforming the financial industry. Tell them that this is the money of the future and that it is here to stay.
Trust is key
You need to have your parents’ trust when it comes to handling their money. In the event that they lack faith in a company, they will not invest in it. Ascertain if they are aware of any particular justifications for your confidence in the company.
Before investing, be sure the company is a reliable one. By reading their whitepaper and being familiar with their business practices, you may do this. If you have doubts about a corporation, you shouldn’t buy its cryptocurrency. To find out what reviews a company has received, one may do an online search for it.
Disclosure of the volatility and taxes of cryptocurrencies
Most likely, your parents are reluctant to invest in a market as unpredictable as cryptocurrencies. Most likely, they are concerned about losing their money. It is crucial to demonstrate to them the market’s turbulence. This might be accomplished by informing them of the market’s expansion over the previous year and its decline over the most recent few months. When kids become aware of the market’s volatility, they will understand that investing in it carries risk but that the volatility may also be rewarding.
The present tax regulations governing cryptocurrency trading must be made public. Inform them that there are no laws governing the area in your nation and go over the legal issues.