Letter #3: Giving contextual advice

Learn how to give better crypto advice to newcomers, friends, and family. Providing advice is not as easy as sharing how you would react in a given situation.

Letter #3: Giving contextual advice
Strategizing which type of advice to give.

Dear FindTheWei,

Last we spoke, you mentioned your frustrations regarding your acquaintance who could not understand your newfound strategy when asked how to invest. I have read through your strategy, and I am impressed with how meticulously crafted it is. The logic is sound, and I have no doubts you will make a profit following your plan. However, I urge you not to mistake ignorance for doubt. The best advice is the advice best suited for the person.

It may feel like you are providing a shortcut from all the studying and strategizing, but recognize that high-level strategies require high-level understanding to execute. This is akin to strapping scuba gear on a new swimmer and wishing them good luck. An expert will most likely get out relatively unscathed if things do not go as planned, but the same cannot be said for those who do not fully understand their tools. Being cognizant of the tools of the person you're advising will help you provide better-suited advice.

The breadth and depth of tools and understanding should determine your level of advice. For example, when advising newcomers, dollar cost averaging is a powerful concept that everyone can understand and is visually stimulating with sites like DCABTC. From my experience, it's a straightforward, simple-to-stop strategy that is attractive to newcomers.

DCABTC.com

You may be thinking, "Sure, I get that, but my strategy will be way more profitable than just a simple DCA." I appreciate your good intentions, and I understand that you mean well, but is it wrong or surprising that the more experienced traders can utilize more advanced strategies to earn better-than-average returns? Is that not the benefit of diving deep and learning the nitty-gritty of economics, culture, and innovations?

Have faith, if your acquaintance truly wishes to understand the new world of finance and aims towards continuous learning, they will develop their own strategies and revelations. Do not worry about being the final advice they will hear and more about providing the right direction. It is less impressive to explain a strategy than it is to present a way of thinking.

In a space as hectic as crypto, where things shift, change, and morph on a seemingly daily basis, the value of suggesting particular coins and projects becomes mute. Your advice will go out of date the second the wind decides to blow the other way. Aim towards evergreen advice, not only will you provide more value to your listener, but it will keep your focus on the forest instead of the trees.

The space will look different a year from now or whenever you are reading this. But, I know you will be thriving and helping grow our crypto community the best way you can. Keep up the good work, and let me know if you ever need some help.

Regards,
FoundTheWei


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