Help people to avoid the noob mistakes you made!
I think the bottom line is crypto is still niche, still building it's foundation. It will no doubt be meta one day but I think right now we should be lending a hand to those that are new to the space, if anything just to avoid the mistakes we made.
Maybe you didn't make all the noob mistakes, you had someone there for you to show you the ropes! exactly my point, if you didn't, you have an opportunity to be that person.
At minimum you have a chance to bring your friends in and give them a good foundation, it will make your future network that much stronger.
A Few Ways to Help Noobs
Here's a few things that come to mind for helping your friends or colleagues that are new to crytpo.
- How To Safely Buy Coins
Is buying crypto still hard? Apparently so, I have a friend who is techy, the guy leads a development and automation team for one of Canada largest retailers and wanted to buy 1k in crypto and had issues. He tried through Binance on a day when they had glitches, which is once in a while, so bad luck really.
The beginner meta is probably go to Coinbase and use a CC to get your first coins. Here in Canada I also recommend Kraken as I have personally used their fiat gateway services and all was good.
Fee's - I do make a point of letting people know Coinbase may be convenient but you'll pay some of the highest fee's. Once you're in I suggest that they grab a major exchange account like Binance, and then find an exchange for Alt down the road.
I'm not a great example to explain to people how to buy crypto as I have never really bought any with fiat. I was lucky enough to work for a crypto start up in 2017 and was paid very well and have never had to actually buy any. I've never put fiat into crypto ever.
- How to tell a good coin vs a shit coin
I always have a good laugh when my friends will text me something like "Buddy says I should buy some DASH what do you think?".
Where to start, personally I just explain the big two should be a good starting point, 80% BTC 20% ETH and go from there.
To find and understand good coins is to look into their tech and road map, what product do they have, what do they plan to deliver, what are the chances they deliver etc. How does that product fit within the overall market, does it solve a problem.
How the hell is DASH going to grow in this day and age, how is it even relevant right now? Or better question, what role does it play in your portfolio.
- Trading vs Hodling
I find people new to crypto often could use a word or two about active vs passive portfolio management.
Are you going to be available to make trades, if not then you going to hold, and you'll want an exit strategy. I think the easier place to start is build a portfolio that you can hold through the bull run, and have your exit strat in place.
On the other hand an experienced trader will know what to do. They'll be looking at the charts are selling the tops and buying the bottoms to acquire more coin on the way up.
I think the main problem I see is people buy and then start trading not knowing what they're doing and end up loosing out on gains, not making more money, and not acquiring more coin, where just simply holding would have been a better strat.
- Acquiring coins vs acquiring dollars
Do you want more dollars or more coin, take your pick based on your situation is what I say. But understand there's a difference.
I think it comes down to the investor and do they need the money or can they hold long term, like years long term.
For those looking long term more coin is better right? BTC is where it's at, if there's a peak and you sell, your goal is to simply buy back at a lower price and therefor acquire more coin.
- Exit Strategy
Don't bag hold through crypto winter. Help your friends find an exit strategy that work for them. Periodically take profit on the way up.
Greed can over power logic and it becomes hard to sell because you're sure there's more pump action to come. Be happy to take profits, you'll be able to buy back through DCA through the crypto winter and be in great shape come 2024.
- Exchange Wallet Vs Your Wallet
Not your keys, not your crypto. People new to the space need to know this, and what the difference is.
If you're actively trading it's ok to periodically keep funds on the most trusted exchanges but understand the risk that you're exposing yourself to.
If you're holding during this bull market then park your coins behind keys that only you have access to, it's as simple as that. Recommending some secure software and cold wallet options is good too. They can explore the market and see what's out there.
What am I missing from this list?
Let me know if there's other topics that should be included in that crypto noob discussion..
Cioa for now,
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the not your keys, not your crypto is the biggest thing I think anyone should be told and told often. With these cefi places like nexo we need to be more aware.
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Fair point,.. and it also demonstrates one of the important features of crypto,.. ownership and self management of your assets!
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