This is a long post but I needed to get it out. The entry barrier of knowledge is still way too high.
It takes awhile to introduce new people into the stellar ecosystem.
It’s not a <3 min conversation.
For the last few years I’ve been seen in my friend/family circle as “the crypto guy”. So whenever there’s a bull run (like now) I get a lot more people asking me “how do I get into crypto” (USA)?
For those who I don’t want to really dive into the depths with they get the short answer – download coinbase, get verified, set up a recurring Bitcoin buy and forget about it.
For people who really want to learn, and I really want to talk to, I try to introduce to the stellar ecosystem but my intro “script” is long and looks something like this: “The easiest way to get into crypto is to buy some coin on an exchange like coinbase and simply leave it there.”
Most people have heard of Bitcoin and if they want a coin recommendation that’s obviously my choice but if they are interested in more I then have to start explaining networks and tokens:
“Bitcoin is a distributed network that allows you to send and receive bitcoin(s). That’s it. Other networks allow anyone to create a token in addition to the native currency. Like ethereum or stellar networks. Their native coins are ether(ETH) and lumens(XLM), respectively. Stellar is great because it’s cheap and fast to transact, plus has a built in decentralized exchange. Ethereum can cost over $20 just to send any amount. “
So they mostly understand why Stellar is superior but then ask “what’s a decentralized exchange?”
“Well it’s an exchange that allows people to trade with each other without any middleman or fees, and allows you to stay in control of your funds instead of having to turn them over to a custodial service. “
Now, if their eyes haven’t already rolled back into their heads you can say “so download LOBSTR app to get a stellar wallet and I can send you some crypto. “
AND NOW, it gets really complicated.
“So I’m gonna send you some XLM, which you need to pay for transactions, hold different assets, and make trade offers. I’ll also send you some USDC – but be careful this isn’t the same as the USDC you see in most other places. If you try to send this USDC to, say, your coinbase wallet, it won’t work. Most places only accept ethereum wrapped USDC, and this is Stellar wrapped USDC. The same way if you buy btc on the stellar dex you can’t just send it to another address that accepts btc. First you have to convert it to “real” btc on the Bitcoin network, like if you wanted to send it to a hardware wallet. “
And by now I’ve definitely lost them. But I still have to throw in some more disclaimers.
Everyone gets the same warning – don’t bother with day trading and try not to check the price every 5 minutes. You probably won’t get rich quick and you should HODL and go about your regular life.
“Time in the market beats timing the market”
It is tempting to want to day trade the volatility, but unless you are ready to make it your full time job it is NOT worth it. Even advanced day trading bots have difficulty beating the market. Some swing trade and medium/long term bots can do quite well, however, so I do recommend algo trading the longer time frames (weekly +).
Don’t invest more than you’re comfortable losing in its entirety.
Does anyone have a simpler way to introduce new people to stellar?