How easy is a beginner’s journey into Crypto? When the average person starts to look into this new digital currency, do they know where to find the best information? What are the odds that a crypto newcomer will end up following reputable news sources on Twitter? Will someone who really wants to learn about crypto actually discover that there are newsletters that cover the sector every day?
In order to better answer these questions, I attempted to forget everything I know about crypto and walk through the process of rediscovering crypto like it was my first time. Without a doubt, most newcomers don’t realize Twitter is the main hub of crypto information, nor do they have a sophisticated social circle providing them with the most up-to-date crypto news and education. More than likely, a curious newcomer has only had a few touchpoints with Bitcoin or cryptocurrency and likely has no idea where to start.
Buying Crypto For The First Time
A newcomer’s journey down the crypto rabbit hole would probably begin with a social media post from a friend, a recommended YouTube video, or an article from a mainstream news source. Unfortunately, this is also where the most obscure and unreliable misinformation exists, such as token shills, ridiculous price predictions, and outright FUD. If a newcomer can sift through this first wave of below-average quality content, they just might have a shot at pushing further down the path.
I believe that if a newcomer can navigate this surface layer, the next stage they are likely to hit is paralysis by analysis. Once curiosity kicks in and each new term raises more questions, newcomers may quickly find themselves lost in the technical weeds. Here they can easily spend too much time stressing over random technicalities such as SHA-256, 51% hacks, proof-of-work, staking, delegating, atomic swaps, etc. This happens when a newcomer finds a podcast filled with jargon geared towards more advanced listeners. Although these details are important, I believe they should be explored further on in the journey.
The Size Of Crypto
The next phase a newcomer is likely to unravel is the depth and magnitude of the space, they may begin to learn that there is Bitcoin, Bitcoin Cash, and wrapped Bitcoin. Or think there is Ethereum, Ethereum Classic, and Ethereum 2.0. They will soon learn there are multiple consensus methods and an emerging sector called DeFi that everyone is buzzing over. The newcomer will begin to explore token collating sites such as CoinMarketCap and learn that they are an archive of price charts and live rankings with thousands of coins tracked. It’s in this stage that a newcomer begins to build their foundation of knowledge and form their own biases. Let’s look at an example of a newcomer who searches the word “Bitcoin” on Google.
The first link populated on Google when searching “Bitcoin” is Bitcoin.org – the second link is Bitcoin.com. The first site displays strictly Bitcoin-related information, but the second site varies between both Bitcoin and Bitcoin Cash. Someone unfamiliar with the distinction and history of these coins could easily get mixed up as to which is the real Bitcoin. Just take a look at Bitcoin.com. It maintains a green layout, the same color used to represent Bitcoin Cash. It isn’t hard to imagine that someone who wants to buy some Bitcoin because they see corporations doing it ends up buying Bitcoin Cash instead because it is cheaper. It’s in this stage that newcomers slowly begin to trade confusion for biases as they become financially invested.
Reliable Crypto Information
Sooner or later, the newcomer finds Twitter, the central hub of crypto information where the OG’s share their opinions and primary sources offer the most accurate reporting. It probably takes a while for newcomers to make it this far, and many probably lose interest on the way. From here they begin to branch off into more specific platforms, websites, podcasts, and newsletters, hopefully consuming the best information available and avoiding the scams and shills.
I still believe it is difficult for a noob to navigate this space and that most won’t be lucky enough to find their way to a reputable source, let alone understand what they are talking about when they get there. As much as I want good information to be easily accessible for newcomers, there is a silver lining to all this. It reinforces that, as an investor, we are still very early in crypto when considering how walled-off and buried valuable information is in this space.
One successful strategy is stupidly simple, just buy the dip, HODL, and repeat.