Explaining digital currencies to your parents can be a daunting task. The major risk factors involved while investing in Cryptocurrencies, such as high volatility and cyber threats, create fear in the parents’ minds.
There are already various myths regarding Cryptocurrencies, and this prevents young investors from investing in this valuable asset. However, when I started investing in Cryptocurrencies for the first time, it was very difficult for me to explain to my parents about this virtual currency.
Just imagine, you are explaining to your parents about digital currencies that do not exist in reality. They will laugh for sure at the beginning, and this was the same case as mine. My parents laughed at me when I explained to them that I have invested my funds in Bitcoin. However, later they had realized its value when I gained massive investment returns.
Ways To Explain Cryptocurrency Investments To Your Parents
It may not be difficult for everyone to explain Cryptocurrency investments to parents. It is because some older people are more enthusiastic to know about modern technology and its applications.
Now, let’s not make you wait any further; here are some of the ways to explain to your parents about Cryptocurrencies such as Bitcoin.
1. Cryptocurrencies Are Strictly Digital
Tell your parents that Cryptocurrencies are strictly digital, and you cannot store them like your traditional currencies. It is like online cash (you cannot see in reality) that you can only store in a digital wallet and use to buy online stuff.
These virtual currencies are completely based on technology, and it remains anonymous. It has various benefits than traditional banking systems. Anyone with an internet connection can do Cryptocurrency transactions at any time.
2. It’s Not Truly A Coin
This is a fact that Cryptocurrency is not truly a coin. It is actually a valuable asset that serves as a mechanism of exchange. This coin has no physical existence, unlike fiat currencies issued by the government.
Explain to your parents that this currency is valuable for people who don’t have any authority in traditional banking systems. Even major firms have started using this valuable asset, and so you must also give it a try!
3. They Are Not Completely Regulated
In the United States, Cryptocurrencies are not completely regulated, and you need to make them understand this at the beginning of the chapter.
Unlike traditional currencies, digital currencies are not authorized tender in any field. The most satisfying part about investing in this Cryptocurrency is that you have complete power over your money. No government or banks can make your payments or transaction delay.
4. Cryptocurrencies Can Be Used to Buy Stuff
Cryptocurrencies can be used all across the globe to buy online goods and services. According to websites like green profit system, several institutions in the United States have started accepting Cryptocurrencies such as Bitcoins for the payment of fees. Even merchants and companies have realized the value of this asset and started accepting the same.
This currency eliminates the need for any financial intermediaries in between and thus, makes the payments fast and secure all across the world.
5. Cryptocurrencies Offer Various Advantages
Show your parents the good side of investing in Cryptocurrencies. The advantages that Bitcoin and other digital currencies offer is truly remarkable. Some of the most common advantages are low fees, fast payments, easy international transactions, more accessibility, high investment returns, and much more.
One of the prime benefits that attract almost every investor to invest in Bitcoin is the ROI. The returns that you are going to receive are truly worth and with no intermediaries. There are many individuals in the US who are considering Cryptocurrencies as their retirement portfolio.
The Final Thoughts
The above-listed factors will help you to explain Cryptocurrencies to your parents. Nowadays, it is very difficult to ignore the developing demand for Bitcoins and other Cryptocurrencies. Hence, this will help you to convince your parents to make Crypto investments in 2021.