How To Introduce Your Friends To Cryptocurrency
Just give them a dollar.
“What is this ‘Bitcoin’ I keep hearing about?” they ask…
“Some kind of magical internet money?”
“Pretty much!” I often respond.
We in this space are so accustomed to cryptocurrency jargon and lingo, we forget that most people either haven’t heard about it yet or have no clue what it’s all about.
They read about it in Forbes, or Bloomberg, or one of the other mainstream financial outlets. It piques their interest, and they come to you. Maybe it’s your ‘FREE THE MARKET FREE THE WORLD’ Bitcoin pin you bought on OpenBazaar the other week, or maybe it’s because you just won’t shut up about it...or both!
Either way, I’ve had people come to me and say “so and so says you’re really into this cryptocurrency thing — what is it all about?”
I’ve found that the best thing to do is show them how it works first hand. All of the technical information can come afterwards.
There’s something to be said for experiencing it yourself and seeing it with your own eyes.
So, I give them a dollar.
Doesn’t seem like much, but it’s a very visceral example of the technology working right in front of you.
- You can send a very small amount, even $1, and the other side will actually get $1.
- You don’t have to go through some other institution.
- You can do it from anywhere in the world, to anywhere in the world.
- It’s instant*
*Technical details about miners, fees, and confirmation time will need to be explained, but for the purpose of a demonstration, keep it simple.
Why Should They?
Why should people get into cryptocurrency at all? Why do we want our friends and family to look into it?
For me, it is the opportunity for growth.
You can make money. It's really that simple. I like to see my friends and my family doing well, I like to see them prospering, and I have seen that you can do that through cryptocurrency if you take the time and are smart about it (and a little bit lucky)
Secondly, it's the future.
If it's not Bitcoin, it will be something else. Money is going digital, that's just how it is. Cash will always be around, I'm convinced, but the world is going more and more digital. We can be ahead of the wave by getting on board and being acquainted with it now rather than later.
Thirdly, the more the merrier.
The more people adopt crypto, the better it will be for everyone. Adoption is really key to this thing taking off and going 'mainstream', and public perception has a lot to do with it. Allowing people to have safe, comfortable experiences with these often complicated systems enhances the perception that everyday users really can use these things...and it's not just for the hacker on the dark web buying guns!
We've established some reasons why we'd want more people to get on board...
Here’s how I go about it:
Tell them to install a mobile wallet
Any old wallet will do, but I prefer to introduce them right off the bat to a decent mobile wallet that allows you to control your own seed key. Might as well start right. They can get themselves up on paper wallets and Trezor later on, if they wish.
iOS
Jaxx — this is the wallet that I highly recommend. Right now it supports a variety of the more popular cryptos including Bitcoin, Ether, and Dash, and recently announced more support for many others.
Android
Mycelium — I don’t have any personal experience with this, but I know that it comes recommended for Android users.
Once they’ve installed the wallet...
Send them $1 in Bitcoin (or your preferred crypto)
I suggest Bitcoin, since it is the most widely known and most respected (for now!). It’s also the best way, almost the only way, to get into any of the other cryptos.
This shows them how easy and simple it is to send funds from one person to another, wirelessly, and without a middleman (see asterisk above!) like a bank.
Really show them how it looks. Put the phones side by side, scan the QR code, send the funds and ask them to watch how long it takes to receive on the other side.
You are the bank!
Keep your funds secure. Now that they have a whopping $1 in their digital bank, they need to keep them safe. Suggest that they go home, into their bedroom, shut the door, and write down their seed key carefully on a piece of paper and stash it somewhere safe… like in a safe.
They will most likely end up getting more involved in the coming weeks. It's better to start with good practices than to start poorly and make a big mistake later on.
Check back in 1 week
The look of astonishment on people’s faces when I ask them “How much is your dollar worth now?” and they go “$1.30!” — now imagine it was $100, or $1000. Check back in 6 months, now you have $3. Imagine it was 100, 1000, 10,000.
You’re not getting anything like that in a bank, or anywhere really.
Of course, crypto investing is highly speculative, and many investors still consider it gambling — and I understand why. But it has proven time and again to be a viable, yet risky, way of increasing value.
Caveat Emptor. Do not take investment advice from some guy on the net. Don’t invest anything if you aren’t willing to risk losing 100%.
I view cryptocurrency as a store of value and as an investment. I don’t view them as currencies, although I have used crypto many times to purchase items and services…. I’m in most of my positions as investments, “long term” — 5, 10, 15 years. Some things will come and go, I’ll get in and out, but I’m treating them as investments. That’s how I encourage friends and family to see it too. It’s just not there yet, as a currency.
But it feels good to be in the loop, to be an early adopter. Buy, and hold. Spend some, but hold most.
Conclusion
I’ve found that a simple, visceral example works best. When a person can see the thing working for themselves and they have actual experience operating within the system, they feel closer to it. They’re now ‘IN’ on the whole thing, they’re part of it, one of us! One of us! Then when they can see the growth for themselves, it changes everything.
They will be intrigued, and they'll be hooked.
