Bitcoin offers you a life that is beyond your imagination. Your parents may belong from a background where they have considered jobs as the ultimate source of revenue. But the matter of fact is they might have never experienced trading bitcoin.
You need to be their mentor and guide them in a proper way so that they can understand the concept of bitcoin trading in a proper manner. Your parents may have multiple questions in their minds. First, you need to clear their basic conceptions regarding bitcoin trading.
There are multiple ways that you can adopt to clear their conceptions in a proper manner. You cannot ignore their queries and doubts. Remember one thing that when you are a kid, then they have the patience to make you understand the difficult concepts. Now it is your turn to return them the same with patience.
Simple ways to explain bitcoin to your family:
There are some very simple ways available using which you can explain the concept of bitcoin to your parents. Therefore, let’s explore the ways one after the other to get a better insight into it.
1. First, explain the concept of bitcoin:– You need to start from the basics to explain the concept of bitcoin to your parents. Bitcoin is a form of digital currency or the cryptocurrency that is powered by some technologies like cryptography, P2P networks, and hashing.
There is zero presence of physical coins, and the account balances are stored in a public ledger in a distributed format. There is no tangible existence of the bitcoins, but you can own it easily.
Hence, it is a digital form of currency where you can be the owner, but you cannot store it in your bank shelf like paper currency.
2. Explain to your parents the ways to get the bitcoin:– There are various ways by which you can get the bitcoins. You can get bitcoins by mining them, or you can buy the bitcoins from the internet. You can also collect the bitcoins from various centers of Bitcoin ATMs. You can earn bitcoins from the mobile wallets or make an account in Earn.com.
You can earn the right to own the bitcoin and store it somewhere you feel safe. Hence these are some of the common ways using which you can get the bitcoins from the market.
3. From where bitcoin comes from:– Using the process of mining, bitcoins are generated. After that, transactions are reviewed, validated, and generated in the public ledger.
Hence try to clear all the possible doubts and queries that may arise in the minds of your parents regarding the concept of bitcoin trading. Do not leave any vital questions that may bother them in the future.
4. Explain to them how the value of bitcoins is determined:– It is a matter of simple economics that you need to explain to your parents. The price of the bitcoin is determined depending on the current demand and supply position of the market.
If the demand of the bitcoin is high and the supply is less, then the price of the bitcoin will increase. On the other hand, if the demand for the bitcoin is less and the supply of the bitcoin is more, then the price of the bitcoin will fall.
Hence, with the simple theory of economics, you can explain the price fluctuation and the value of the bitcoins to your parents very easily. You need to understand their mind before explaining the concepts of bitcoin properly.
5. Explain to them the location of bitcoins:– Bitcoin has no physical existence; hence your parents can be worried about the location and the traceability of your bitcoin investment. In this regard, tell them that bitcoin is located in blockchain technology, and every transaction will be monitored during the time of exchange.
Hence, if you can explain the above vital five points about bitcoin to your parents, then your job will be over. You need to understand the fact that you must earn the confidence of your parents before you start trading in bitcoins. You can also refer them to a link to know about source of wealth so that they can get a better idea about bitcoin. Assure them about your ways of trading is correct, and there are negligible chances of risk involvement.