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11 Reasons Most Americans Fear Investing in Crypto

Fear can be crippling, especially when it comes to investing and even more so when you bring up crypto

Circle American flag with a gasmask in front and the reflection of a Bitcoin on one lense.
Image courtesy of Author

Crypto? Don’t you mean cryptic? No thanks.

I’ve got income, it goes into the bank, and then I pay my bills. I don’t need anything more complicated. Life is brutal and relentless, and busy. So, the easier handling my money is, the better. Don’t come at me with investing either, especially in crypto. Are you kidding?

It’s tough. I get it.

The risks of investing can range from low to pretty high, but crypto is comparatively worse. With spastic volatility and the fact, it’s a new market, who’d blame someone for staying away.

However, there’s a lot of fear when you don’t have enough good information about a subject. Or, perhaps not fear but apathy. The important thing is to realize what happens if you ignore crypto investing?


You’ll get what you’ve always got. And you’re here probably because you want more. And you can have it. But it comes with risk, and I understand the fear. I mean, we’re talking about your money. You spent your energy on those funds, and they’re all you’ve got to survive.

But you can do more than survive. You can strive and, someday, thrive. So, we’re going to look at some common objections to crypto and address each one, and afterward, you decide what you want for your future.

Let’s get it.

#1: No need or uninterested

We have the U.S. Dollar, so why do we need anything else?

It’s simple, right? You get paid, money goes to your account, then you use the money to live your life. After that, you buy essentials like food, shelter, medicine, and clothing. After all, the U.S. Dollar has always been there. And a dollar is always worth a dollar inside the U.S. Also, every state accepts the dollar.

It’s solid, stable, and will never die. So why should you bother with anything else?

Because if you keep doing what you’ve always done, you’ll get what you’ve always got. And there’s no guarantee the dollar will always be there.

And how far have you got with putting your paycheck in a bank, then spending it? You never build wealth. You have conversations daily about how you wish you made more money because you can’t afford this or that. Maybe you want a better home for your kids, but you can’t do it because you don’t make enough money.

Well, that’s the problem.

Not that you don’t make enough money, but that you don’t make your money make money. Poor education taught you the mindset of income-based wealth. And I’m here to tell you there is no such thing. You will not solely work your way to wealth.

It would be best to adopt a mindset of not money but assets because asset-based wealth is how the wealthy people, whose money you wish you had, did it. And that can start with investing just $10.

#2: That’s fine, but it’s still too complicated

Paychecks, deposits, debit cards, and banks are simple. But, investing in crypto is too complex. There are many more moving parts, and if you don’t have the proper knowledge, you’ll lose your money. With banks, you don’t lose money, and there’s no risk.

If you deposit $1000 and don’t touch it, you’ll have that same amount tomorrow. So, why would you risk getting involved with something new you must learn and might get wrong? It might be different if you were learning a new language. If you mess up, and you will, it’s okay. You can still eat and have a place to sleep whether you learn Mandarin or not.

But if you don’t make the right investment, you might not eat or make rent or mortgage.

Investing is complicated. There are so many financial fields, and within those fields, so many complexities, you could look at some of the math and think you’d need to be a genius to interpret it. Below is the formula for the arithmetic mean. And while it may be easy to use, if you don’t do it for a living, it might look crazy.

Arithmetic mean formula.
Arithmetic mean formula — screenshot from Google

However, it’s not like that unless it’s your job. As a retail investor, crypto exchanges made the process so easy. It’s as easy as starting a bank account. Even better, though, is you don’t have to go anywhere to do it. For example, with the internet and communication between institutions, you can invest $10 into Bitcoin on Coinbase right now, today, in 15 minutes.

I wrote you a detailed tutorial with a video to guide you through the process. Then, all you have to do is click on the story below.

It’s easy, and once you get it set up, you can even automate when and how much money you invest in Bitcoin (as an example), and you don’t need to re-access your account.

How easy is that?

#3: Okay, but I don’t know what to do with it afterward

So, you’ve invested, but don’t you need to make trades to make money?

You can. And it takes a lot of knowledge and skill to do it. It also takes luck. So, you can be talented and make the right moves and still fail and lose money.

Big players do lose. You don’t hear about it, but they lose. They lose, and they learn. But you don’t have to go through the learning curve to enjoy the benefit of investing. And what I’m saying is you don’t have to do a damned thing with your investment but continue to put money in it.

Warren Buffet is one of the wealthiest people in the world.

How did he get there? He picks stocks and uses market analysis plus teams of people compiling data, but the most important thing he does is invest in the long-term.

I’ll repeat it. Buffett invests long-term.

He endures the low points and enjoys the high ones. In fact, he looks forward to the low points in the market because he can buy stocks cheaper and make money when they rise again. And that’s the way you need to think about it.

However, you don’t even need to do that much work. All you need to do is set and forget your scheduled contribution to your crypto portfolio. That’s it. Don’t touch the damned thing. You figure out how much money you need to keep in the bank, and then you put the rest in your portfolio.

You do that for years. And what you’ll come to find later on is that because the price of Bitcoin went up, you’re sitting on a nice pile of money.

#4: It’s too high risk

Well, that’s all fine and good, but what if Bitcoin goes down in price? Or, and I know this is true, it jumps up and down way more than stocks. What then?

It’s true. Bitcoin is more volatile than stocks, and it could plummet. Let’s say you’ve been doing everything I’ve told you, and a few years from now, you know, after you’ve built up a nice amount of money, Bitcoin drops like a rock. Well, you’ve lost all that money, and you feel sick because you made a dumb decision listening to me.

All of that could happen. But here’s the thing, it can happen to stocks, bonds, real estate (see 2009 or China right now), and yes, even the dollar can become worthless. You see it on the news all the time about how America and other countries print money like mad. It’s insane. And the more of something there is, the less it’s worth.

So, yeah, it’s risky. But it is a definitive fact that you cannot make significant gains in this world unless you take big risks. However, I’m not telling you to take a considerable risk in the grand scheme of significant crypto risks. Bitcoin is considered a store of value among all other cryptos. Even big institutions like JP Morgan are calling Bitcoin a hedge against inflation like gold.

And other big banks have applications into the SEC to sell a Bitcoin ETF. So, they’re in the game. Do you think they would get involved if they were going to lose? No way. And you’re taking less of a risk than they are.

#5: It’s too expensive

You already know you can get in the game for $10 but let’s talk about why.

Out of the box, Bitcoin came with the ability to be broken down into smaller units. People call these units satoshis (named after the creator). And 100 million satoshis equals one Bitcoin, always. Of course, the price will fluctuate, but I assure you that you can always buy and spend (if needed) down to one satoshi.

For example, right now, one dollar equals 1,652 satoshis. And one penny equals 16 satoshis.

Of course, the conversion will change, but you understand that you need not buy one whole Bitcoin to invest in it. That’s why you can start with $10 depending upon the exchange. Some might require more or less, but I believe $10 is the typical minimum. I know Coinbase is $10 minimum.

Now, you might object and say you can’t afford to invest because you’ve got bills, food, and other things to worry about. And I get it. I do too.

So, you have to take a hard look at your budget. I recommend this budgeting tool. It helped me a lot. Not that my finances were complicated, but it laid things out nicely. It’ll help you visualize better.

When you detail your budget, you’ll find you might buy something you don’t need during a week or month. For example, my previous food expenses are below (making bean burgers for one week).

  • 7 cans of black beans = $7.63
  • 2 loaves of oatmeal bread = $8.58
  • 1 container or rolled oats = $5.99 (the oats last a month, so we could divide this by four)
  • 7 avocados = $12.81
  • 7 tomatoes = $10.71
  • Total = $45.72

I left out garlic and onion powder because they last so long. So now, let’s look at my new dinner plan for one week.

  • 4 boxes of thin spaghetti = $5.16
  • 1 42 oz. jar of sauce = $5.99
  • Total = $11.15

Now, I can invest $34.57 a week into Bitcoin. Also, I love Kombucha. But a 48 oz. bottle now costs $9.99. So, I cut it out and only treat myself once a month instead of once a week. So, if you’re willing to take some hits, you can find the money. And yes, I know not everyone can, but most of you can. And you should.

#6: Scam / Bubble / Bad investment

There are so many crypto scams out there. It’s unfortunate. But, it’s no worse than Wall Street. However, those scam altcoins don’t pertain to Bitcoin.

Bitcoin is the backbone of crypto.

Now there are some great altcoins out there. But there are thousands of coins, and some are scams waiting to happen. They’re called shitcoins. And they sprout up with big promises and get a lot of investors, or they invest their own money and create hype which pumps the price up, then they pull the rug. Make off with a load of cash and you with nothing.

However, you can avoid these coins with education. I’ve got an article on some ways to spot bad coins, and I’ll post the story below.

As for bubbles, yeah, crypto can have bubbles like the stock market. However, with Bitcoin, you should know, many private investors hold Bitcoin in offline wallets. And although that leads to them controlling the way Bitcoin can sway, it also generally means there isn’t as much manipulation as occurs on Wall Street. Yet, we are getting BTC ETFs sometime soon. So, that will allow price suppression to an extent from big institutions.

Now, as for a bad investment, I can’t argue with you if you don’t like crypto. You feel how you feel. The only thing I would ask is that you look into the details of it, specifically Bitcoin? Don’t discount something because of ignorance, or you could miss out on an opportunity.

But if you did the research and it just doesn’t sit right with you, I get it.

#7: It’s too late to invest

First, it’s never too late to think rich. If not now, when?

Second, I’ll bet people in the Great Depression didn’t think there would be a future for investing ever again. But, here we are. It’s not too late.

Third, I’m 51-years-old. I can never benefit from investing as much as a 21-year-old. But that doesn’t mean I roll over and die. It doesn’t mean I give up. There’s still a benefit to be had. If I’m lucky, I’ve got 30 years left, barring accident or illness. And I’m going to live like I’ve got the time.

Therefore, the first step to success is to act successfully. Do things successful people do. And think as they think. Then, you will start to see that successful things occur, not because of some magic but because of your habits.

“Did you know that Warren Buffett made over 99% of his fortune after he turned 50? And over 96% after he qualified for Social Security, in his mid-60s.” — Bogumil Baranowski, Siccart Associates.


Compounding, persistence, and longevity are the three components of Buffett’s success, as I told you earlier, the long game, the long-term investments. People who don’t know the power of compounding interest can’t see its power.

But you might ask, “how will I see compounding if I just put money in Bitcoin?”

You won’t. But, what you’ll see is the price go up as Bitcoin becomes more scarce and new developments to its technology come into play. That’s the benefit of persistence and longevity. If you want to get more involved, you can use compound interest with your Bitcoin, but that’s beyond the scope of this writing.

So, it’s not too late. You can invest today and end up being the person who got in on Bitcoin when it was only $60,000.

#8: You’re waiting for more people to adopt it

There are over 75 million wallets tied to the blockchain as of 2021, according to Statistica.

Fidelity has over 26 million customers managing $8.9 trillion in assets as of 2021, and they opened their Digital Asset Division this year. In addition, JP Morgan is supporting Bitcoin and is also attempting to launch their coin.

Adoption is happening.

And after an official BTC ETF hits the shelves along with the price pump BTC will get in 2023 from the next Bitcoin halving, you’re going to see some crazy price action.

However, only 11% of average Americans indeed invest in crypto at all. And that stems from media coverage instead of self-education. It’s critical, especially in today’s world, that you educate yourself. I know the whole, do your research line is tiring. It is for me too. But it’s the truth. You have to go out there and see what people are saying. And not from one source but many.

Don’t just read my posts, but read others. Find people who dislike crypto, such as Peter Schiff. Listen to what he has to say.

It’s going to come down to a feeling you have in your heart about risk. Are you willing to do something you haven’t done before? Because you can look up data for weeks and months and paralyze yourself into inaction.

Being willing to take a risk comes from the kind of person you are. The data helps affirm your feeling and give you the nudge you need to take action.

#9: Government crackdown (regulation or banning)

Oh boy.

Regulations are coming to crypto. But that doesn’t have to be a bad thing. It’s only bad if there’s too much of it. And I know the government is excellent at doing too much with regulation. However, banks and private companies own politicians. So, if a private company with a senator on the payroll also has a significant stake in crypto, that senator will advocate for crypto. It’s the same for banks.

Regulation brings greater adoption as institutions don’t like to invest in something with no protections. I mean, can you blame them? It’s good business sense. So, when regulations come, and they come moderately, then we’ll see a great boon to crypto.

Now, what about a worst-case scenario where the U.S. bans crypto as China did. Well, that’s pretty much an endgame unless you’re willing to relocate or move your account off-shore. Most wealthy people have assets off-shore anyway for the very purpose of security — and taxation.

However, while you’re just beginning the game, then you’ll, unfortunately, be susceptible to government tyranny. Let’s hope we have enough time to build some wealth and have more options before that happens, if ever.

The point I’ve made to friends in the past few days is some banks have an interest in keeping Bitcoin alive and thriving, while other banks (mainly central banks) see Bitcoin and other cryptos as a threat to control. I wrote about this in the below story.

And so, we have a unique opportunity to have some private banks fighting in our favor. Certainly not intentionally but let’s take what we can get. As Littlefinger said to Olenna Tyrell in Game of Thrones,

“Our interests are aligned.”

The infighting between central banks and private could buy us enough time to gain wealth and solidify a position. It’s an opportunity.

#10: There are too many fees

Bitcoin is the worst for fees. They can jump up and down depending on transaction activity. The higher the activity, the higher the fee. There are cases where a transaction fee can put you in the hole if you make one. So, you have to be strategic.

However, your plan, in the beginning, is to sit still. So, you won’t have that problem. You’ll pay a fee to the exchange when you buy your BTC. But after that, you pay nothing because you do nothing. You aren’t touching your investment. And I’ve neglected to explain what this is until now. But what you’re doing is called dollar-cost averaging.

For example, you bought bitcoin over ten years, and you’ll buy it when it is high and low. But as long as the price goes up over the whole timeline, you’ll earn.

There can be painful fees if you trade heavily. But you would also have some education on the matter, so it’s not a big deal.

#11: You never heard of it

I mean, it’s possible, right?

There are going to be areas of the country where people don’t talk about Bitcoin or crypto. Mostly rural areas. However, if they’ve seen even a spot of news, then they’ve seen Bitcoin mentioned.

Still, they might have disregarded it as some crazy internet money and went about their day.

I just realized I’m writing this as if you know what Bitcoin is. I’m assuming you do, or you wouldn’t even be here. But I don’t want to assume too much.

So, there is a thing you can invest in called Bitcoin. And it’s computer code that keeps track of money transactions. It runs on something called a blockchain. Think of a block in a blockchain as a piece of paper with lines written on it like this,

  • Dan owes Jim $10
  • Tyrel owes Tara $30
  • Etc.

Except the block scrambles all the letters and numbers with some extra random letters and numbers, so no one can read it who isn’t supposed to. It’s a digital way to keep a record of transactions, and it’s encrypted.

Bitcoin exists because, after the 2009 housing crash, some developers got together and said, how can we break away from all the corruption in America’s financial system. Then, they came up with Bitcoin. After that, other developers got better or different ideas and came up with their coins, like Ethereum. Those are called altcoins.

And today, there are thousands of different cryptocurrencies. However, only a handful of them is worth your time.


There are many understandable reasons people don’t want to touch crypto. But, you can assuage many fears through education. And it doesn’t have to be an arduous task.

Getting in on investing in crypto is easy. All it takes is the decision to do it and a plan. Figure out your budget. What can you change to free up an extra $10? No, you won’t get rich tomorrow. No one gets rich tomorrow. It takes time.

Like going to the gym, you wouldn’t expect one day of working out to make you a greek god(dess), so why would one day of investing make you rich?

It’s about making it a habit. Make investing like depositing into the bank.

In fact, investing is your new banking. Honestly, with inflation, your money loses value sitting in the bank. So, keep only what you have to in the bank and protect the rest with a crypto investment. It’s time for you to build your future.

It’s you and only you that can do it.

Take charge.

Oh, one more thing, if you’d like to support my writing directly, you can do so by signing up to Medium through my link. When you do, part of your subscription goes to me.



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