4 tips to avoid an awkward Thanksgiving as a crypto holder
Thanksgiving is a time for family and friends to get together and count their blessings. It’s also when our relatives ask us how our crypto portfolios have performed since last year.
Unfortunately, most crypto owners won’t have much to brag about this year. Markets were hit hard by rate hikes and the bankruptcy of a number of centralized entities, culminating in the spectacular FTX meltdown.
Despite claims of stealing user funds, Sam Bankman-Fried is still likely getting better treatment from the media than many people are getting from their relatives this Thanksgiving — especially after they told them to invest in crypto last year .
Under pressure from disgruntled relatives, many traders may be tempted to sell their tokens while still at the turkey table. That’s why we’re bringing some tips to help owners get through Thanksgiving dinner.
put things in perspective
Bitcoiners are notorious for their devotion to “digital gold,” and many will share it on Thanksgiving.
His performance could have been better in 2022, to say the least. The digital asset has lost 71% since last year.
However, it is important to put things in perspective. Despite the ups and downs, Bitcoin’s returns have been spectacular so far.
For example, over the past six years, its return on investment (ROI) has been 2,158%, compared to 49% for gold and 82% for the S&P 500.
Putting things in perspective should help avoid any Thanksgiving embarrassment. Crypto holders may not be able to win this year. But in the long run, they usually come out on top.
Bitcoin’s performance, however, only tells part of the story. Just because BTC has done well doesn’t mean most Bitcoin holders have.
The problem is that most people only invest when the hype is at its peak, which is usually when the market is at its peak. When prices crash, they sell only to be back on top of the next wave of hype. Instead of buying the hype, it is better to do independent research and buy and hold tokens from promising projects.
However, it is also important to be realistic. The average trader doesn’t know what’s going on in every crypto company and can’t really assess the risks. That’s where diversification comes into play.
Diversification is key to getting the best returns as a retailer. By investing in multiple blue chip tokens, investors can capitalize on the rise of decentralized technology. At the same time, they reduce the risk if one of them goes under.
Talk about technology, not tokens
Talking about certain tokens inevitably leads to awkward conversations with relatives. Instead of talking about prices and trades, it is better to focus on the potential of the technology.
Educate friends and family about the importance of self-custody and how to avoid scams.
Thanksgiving is a good time to explain the phrase “not your keys, not your coins.” It’s also a good time to educate people about the dangers of yield farming platforms that offer unrealistic returns.
Lack of education has burned investors in Terra-Luna and FTX. The only way to avoid this in the future is to educate crypto users.
Don’t talk about crypto
Sometimes it’s better to avoid the topic of crypto altogether. There’s a reason people avoid discussing finances over dinner.
Most people don’t just talk openly about their stock portfolios or the value of their home. Why should crypto be any different?
Thanksgiving is a time for family and friends, so use it wisely. At the end of the day, all that matters is a hassle-free Thanksgiving dinner with loved ones.
See original on DailyCoin