Published on July 20th, 2020 | by Sunit Nandi0
How to Teach Your Parents about Cryptocurrencies
If you look at history, you will find that the stock market has been one of the major sources of wealth for most of the investors. It is considered as a great way to invest your money. However, cryptocurrencies have set a new trend. Moreover, bitcoin has made a mark with the highest ever return on investment. Day by day the number of investors is increasing and the future investments are majorly going to be on cryptocurrencies.
Although cryptocurrencies have impacted the investment landscape, there are still many people who don’t understand the concept and how they work. The problem is the complexity of the underlying blockchain technology. Well, for that reason, I have decided to guide you with simple tips on how to teach your parents and children about cryptocurrencies and how they work.
Simple Ways Teach Your Parents about Cryptocurrencies
First of all, don’t try teaching them about programming or coding knowledge of blockchain. It will take some time to teach them about the concept of cryptocurrencies. You can follow these 5 simple steps to make them understand about the crypto coins as well as about blockchain technology.
- Start with the Comparison Between Traditional Currency and Cryptocurrency
- Give a Brief Idea About Blockchain Technology and Decentralization
- Tell them about Bitcoin and other Crypto Coins
- Introduce them to Crypto Wallet
- Application of Cryptocurrencies and Future Potential
Compare Traditional Currency with Cryptocurrency
You can start with what is similar between the digital currency and cryptocurrency. Because it will be easier to make them understand and they can easily relate to it. For example, both traditional currency and cryptocurrency are fundamental can be called money. Both are used as a medium of exchange which is mainly used for storing and transferring value. Traditional currency and cryptocurrency can be used for the exchange of goods and services. Both currencies are operated by different economic factors such as supply, demand, etc.
Then you can share how cryptocurrencies are different from traditional currencies. How cryptocurrency can be transferred from one account to another account without the help of a bank or financial institution. Even to open a cryptocurrency account, there is no need to visit a bank. Because cryptocurrencies are operating though a decentralized public network where no authorization is required. Then introduce them about the concept of decentralization and blockchain technology. Well, don’t worry if they get skeptical about it try to answer all their questions with patience.
Blockchain Technology and Decentralization
Next, you tell them about the underlying technology behind the cryptocurrencies. First of all, they may not understand what a decentralized network and what is blockchain. You can tell them with simple examples of a network where everyone has the same voting rights and nobody is an authority. There is no central authority and the members have the sole authority for storing and transferring money within the network. Well, it is very hard for them to understand if they don’t have any technical background. So try to make them understand through simple terms.
Bitcoin and Other Digital Tokens
Once they get a brief idea about digital currencies, introduce them about bitcoin. How it started in 2009 and became one of the most valuable investment assets in the crypto market. Share some statistical data of the value of bitcoin rise and also share some knowledge about different popular crypto coins. Make them understand the application of different digital coins and how they are used.
Introduce them to a Crypto Wallet
Finally, get a crypto wallet. Show them how to create a digital wallet. This will help them understand the concept better and how it works. You can also make a transaction to show how the works. When you create a crypto wallet, you have access to a number of crypto markets and you can get acquainted with different cryptocurrencies.
Application and Future Potential of Cryptocurrencies
Giving a brief idea about the application of cryptocurrencies and blockchain can help them understand its utility. How different industries like the financial industry, healthcare industry, supply chain management are getting benefits from cryptocurrencies. So investing in cryptocurrencies can be beneficial for the future. If you want to invest in cryptocurrencies then bitcoinslifestyle.com provides a secure platform.