How to introduce cryptocurrency to your Indian parents
It can be difficult to persuade older generations to adopt new technologies. You often need a different approach than your friends. It takes tact, patience, and conviction to turn cautious parents into cautious investors because they’re basically trusting you with their money.
We provide a step-by-step guide on how to introduce cryptocurrency investing to your Indian parents.
Educate yourself before lecturing others
The first step to getting your parents on board is to understand the industry better. This allows you to explain things to them more intelligently. There are many online resources that can help you with this. Read blogs, studies and articles about crypto – and don’t forget to look up the terms you don’t understand. If you’re not sure what the difference between a blockchain and a ledger is, you need to know. If you feel like you don’t know your way around the industry, then you shouldn’t go see your parents just yet.
Instead, you should spend at least a month learning about all sorts of things about cryptocurrencies. It’s not just about getting your parents to invest in it — it’s about getting them to invest in the right thing.
Explain in lay language how cryptocurrency works
Your parents probably have no idea what a blockchain is – and they definitely don’t understand what a private key is. So before you spill numbers and terms, explain in layman’s terms how cryptocurrency works. Tell them that a blockchain is like a digital ledger that keeps track of every transaction made with a coin. Also, tell them that a private key is like a password that gives you access to your funds. Once you understand these two terms, you can proceed to explain how the system works. You can tell them that instead of a central authority like a bank controlling the money, a network of computers called nodes does it – and those nodes are visible to all. This means that every transaction made with cryptocurrency is visible to everyone – and therefore scammers cannot manipulate the system.
Find out what exactly scares your parents about cryptocurrency
There might be something that scares your parents about cryptocurrencies and you don’t know about it. If you don’t know what scares them, you won’t be able to calm their fears. So, before you try to convince your parents to invest in cryptocurrency, find out what scares them about it. You can do this by casually mentioning how much you love investing in crypto and asking them why they are not investing. If they tell you they’re afraid of cheating, loss, or anything else, address their fears and let them know you’re working to avoid them. If they’re afraid of something you can’t address, you should probably find another way to convince them.
Don’t mention the word “Bitcoin”
This may seem like a no-brainer, but don’t mention the word bitcoin to your parents while explaining the cryptocurrency. This is a term they’ve probably already associated with scams and pump-and-dump schemes. Your parents will probably think that you are trying to scam them or make them lose their money. Instead, talk about how cryptocurrencies are revolutionizing the financial sector. Also, tell them that this is the future of money and that it is here to stay. If you want to specifically mention bitcoin, talk about how it’s just one of the cryptocurrencies out there.
Mention how much you trust the company you are introducing them to
Instead of telling your parents about all the scams in the industry, tell them how to invest in a reputable company. When you invest in a company, make sure you trust them. You can do this by reading their white paper and understanding what they do. If you don’t trust a particular company, you shouldn’t invest in their cryptocurrency. You can also search for companies online to see what others have to say about them.
Trust is important when it comes to handling your parents’ money. If they don’t trust the company you’re investing in, they won’t invest in it. If you have confidence in the company you invest in, your parents will have confidence, too. Show them a few articles that talk about the company and why you trust them. If there’s a specific reason you trust the company, be sure to let them know.
Full disclosure of cryptocurrency volatility and taxation
Your parents probably don’t want to invest in something as volatile as cryptocurrency. They are probably afraid of losing their money. It is very important to show them how volatile the market is. You can do this by telling them how much the market has grown over the past year and how much it has fallen over the past few months. Once they realize that the market is volatile, they will know that investing in it is risky, but volatility can also be profitable.
It is extremely important to disclose the current taxation rules for trading cryptocurrencies. Tell them that space is not regulated in the country and also discuss the legalities. Full disclosure is very important to avoid future problems.