I bought crypto for the first time a few months ago, so I’m learning this too. I got Solana when it was $70, and now it’s around $150, so I’ve made a decent profit so far.
I told my friend about this, and now she wants to invest in crypto and is asking for my advice. The issue is, I’m not sure what to tell her, lol. I want to suggest Bitcoin, Ethereum, or Solana since they seem stable, but their prices are so high now that I worry they might drop suddenly.
What do you think? Please be kind; I’m still figuring this out.
No one really knows. Listen to everyone, but take everything with a grain of salt. Also, don’t advise anyone on what to buy; encourage them to research and make their own choices. This way, if things go south, you won’t hear “You made me lose money!”
DanielClark said: @Westley
Thanks! I’ll remember that. I did remind her the chance of losing money is just as real as making it.
That’s the issue—you’ve made it sound appealing, and that’s all she focuses on. She might ignore the potential losses. You need to explain the risks, like how Bitcoin dropped nearly £40k overnight and that many coins can fail completely. Plus, a ton of scams out there can take her money, and there’s not much you can do about it. Don’t forget to mention the security risks of crypto and the high fees involved.
Don’t offer anyone advice on what to buy. You can help her set up an exchange account and share reliable information on wallet security, but recommending specific coins is risky.
Avoid giving advice unless you want to be liable for their losses because they’ll likely blame you if they lose money. Also, stop talking about crypto unless you know the other person is into it too.
All three coins you mentioned have seen huge ups and downs over the last three years. Even though the gains in the last six months have been impressive, there have also been significant downturns. You were lucky to catch a rise, but being new, your decision was probably influenced more by FOMO than careful research. I suggest not giving any financial advice to anyone unless you want to risk the friendship. In the future, it’s best to avoid sharing your financial decisions with friends to prevent comments like “I told you so” if things go badly.
Totally, I’ve noticed that in past charts. The only reason we discussed it was that I was shocked by Bitcoin hitting 71k earlier; she asked what surprised me. lmao. I think I’ll just suggest she does her own research if she really wants to go for it, just like some of the comments here mentioned.
Avoid giving advice to avoid ruining your friendship when the market falls, and they start losing money. Just encourage them to research projects and find what interests them. Use multiple sources, as there’s a lot of false info and hype designed to pump and dump.
I usually suggest having most of the portfolio in Bitcoin. Then maybe adding any coins in the top 20 and a small amount in meme coins like Shiba Inu or Dogecoin, but only less than 5% of the portfolio.
At least you know it’s not the best time to buy. If you really want, maybe invest 20% maximum and try to dollar-cost average lower with the rest. Or if you’re ready for wild swings, just buy and hold but be ready for ups and downs.
You got lucky, so make sure your friend knows that. Anything bought now should be watched closely, sell the investment and keep the profits. You can reinvest when the price drops. This strategy can work for short-term trades. But if you prefer a hands-off approach, just stick to investing in top 10 coins.
VanEck predicts Solana could reach $3000 by 2030. So, it really depends on your investment timeframe. Pantera wants to acquire FTX holdings, which could solve some centralization issues and improve sentiment toward Solana. But they must address their current problems to make that happen.
While I prefer Ethereum, Solana is still developing, so betting on its future might be worth considering. It’s not an Ethereum killer, but if they clean up their act, it could be a solid investment. If Pantera comes in and buys part of the supply, that could change the game. They wouldn’t be able to sell it for at least four years, which lowers the available supply in the short term.