What do you do if someone trusts you and wants to Invest in you?

[EluguHcman]

Someone I introduced to the crypto world said he wants to invest his funds with my holding as a top up or contributing to my accumulations after which I told him about the risks and the potentials of the crypto coins.

He claimed he is being afraid and believe he might not be so careful enough to maintain such Privacies demanded while holding the crypto assets.
He is a risk taker and can stay unpanick for a long time but can not just keep to that privacy. So now I think of creating a new wallet for him and get him invest on it while I take control of his assets holdings and privacies.

Advice please!

[Zed0X]

One thing that you should have thought him well about the advantage of crypto is self-custody. It just negates that when he insists on you taking care of his money and his investments.

Unless there's an incentive (commissions) for you to control his assets, my take is let him handle it on his own. You never know what's going to come out if something unfortunate happens to the pooled funds or the wallet that you control.

[Lucius]

This whole thing is wrong from the very beginning, because I personally think that it is wrong to talk to people about such things, considering all the risks that can arise from it.

Do you even realize what kind of responsibility you are taking on if you agree to his proposal? You will be responsible for keeping someone's digital assets that can be hacked at any moment, whose backup can be lost, not to mention the possible long-term implications that can arise one day in the future.

I assume that everything would be based on a verbal agreement, and who's to say that one day your friend won't tell you that he gave you ten times more money than he actually did and that you owe him much more than what you should actually give him.

Your life, your risk - but I wouldn't do something like that even if someone paid me and we signed a contract.

[jeraldskie11]

Someone I introduced to the crypto world said he wants to invest his funds with my holding as a top up or contributing to my accumulations after which I told him about the risks and the potentials of the crypto coins.

He claimed he is being afraid and believe he might not be so careful enough to maintain such Privacies demanded while holding the crypto assets.
He is a risk taker and can stay unpanick for a long time but can not just keep to that privacy. So now I think of creating a new wallet for him and get him invest on it while I take control of his assets holdings and privacies.

Advice please!

My only advice is don't ever let you make the wallet, he should make the wallet and advice him don't ever let someone to know the key, even you, because this is the very key to avoid losing his funds. And if ever there is something happens to his funds because of his fault, he can't blamed you. Aside from that, if I were you, I will teach him what I learned in crypto so that he will not experienced the same mistakes of mine.

[Aanuoluwatofunmi]

Someone I introduced to the crypto world said he wants to invest his funds with my holding as a top up or contributing to my accumulations after which I told him about the risks and the potentials of the crypto coins.

He claimed he is being afraid and believe he might not be so careful enough to maintain such Privacies demanded while holding the crypto assets.
He is a risk taker and can stay unpanick for a long time but can not just keep to that privacy. So now I think of creating a new wallet for him and get him invest on it while I take control of his assets holdings and privacies.

Advice please!

There's no way you can help someone manage his bank account, his money in the banks belongs to him and so the password to access the account, then if he is truly interested in bitcoin, then he must learn it understand it and be ready to take the risk in it, invest in bitcoin and hodl on his own personal wallet which i believe to be a non custodial wallet, then also, if you handle such for him, there can never be a perfect transparency and trust in what you either does to him or how he feels about the way you handles his asset with you, so the better way is for such person to learn and be independent with his holding.

[LogitechMouse]

~
He claimed he is being afraid and believe he might not be so careful enough to maintain such Privacies demanded while holding the crypto assets.
He is a risk taker and can stay unpanick for a long time but can not just keep to that privacy. So now I think of creating a new wallet for him and get him invest on it while I take control of his assets holdings and privacies.

Advice please!

There's a famous quote that we all know already. It says “If you give a man a fish, he will be hungry tomorrow. If you teach a man to fish, he will be richer forever.”

I always believe that teaching them would be better than just investing for them. Teach him, guide him, and let him learn. I don't agree to a scenario where you will invest for the sake of them because it might affect your privacy because there might be a time where many people will know that you're investing as well because he said it to other people. TBH, I don't think that this is a good idea OP. Well, if that person trusts you then it's good, but don't invest for them, but teach them to invest for them.

[Faisal2202]

That might seem not a big deal but my dear friend it seems like you are a good guy and don't want bad for anyone, but you are thinking for yourself too (that's a smart move) as most of people take the responsibility blindly and then some bad stuff happen they are the ones facing legal cases against them. There are some cases in my sight, and that have taught me the lesson that never taking responsibility for someone else's funds but you should sign an agreement (the government approves if you have that thing in your place or country) here we call that stamp paper.

And then you should keep the responsibility if that person really trusts you then he will agree to the agreement otherwise you should not do this. I am just sharing the lessons I learned the rest is on you so DYOR. But if you really trust the dude like if he is one of your relatives and so close to you and you know he can't harm you in any way, then there is nothing bad in buying the funds for him and keeping them in your holdings, but yeah responsibility is responsibility so you have to fulfill it with care.

[vegasus]

Someone I introduced to the crypto world said he wants to invest his funds with my holding as a top up or contributing to my accumulations after which I told him about the risks and the potentials of the crypto coins.

Several of my cousins have also said the same thing, wanting to invest in crypto, but don't want to bother with it. What this means is that you don't want to think about how to create an exchange and wallet, choose coins, buy them, and then invest them, and when and at what rate to sell them. So they just want to receive the net profit someday. So they just left me the money, then told me to do it and manage it. However, they only made the application on their cellphones so they could check it at any time.

From here, I personally immediately refused and said I didn't want to. Even though they asked for it several times, I personally emphasized that I still didn't want it.

There are many reasons why I rejected it:
- too risky, if the profit doesn't match their expectations, or even a loss, then I'm 100% sure they will blame me, even though they said it wouldn't be like that.

- Let someone investigate with their awareness, with their knowledge and analysis, and with what they do themselves.

- Investment is not just putting money in and getting profits, but how someone can learn to do it.

And crypto is a high risk thing. As much as possible, I think when they want to make an investment, it is not only about putting money in and withdrawing profits, but also how they do it, with good knowledge, and also good management.

So, for me, it's better to just teach them (even though I'm not that good at actually analyzing crypto), but to invite them to learn in more detail about crypto, all the risks, how it's managed, and so on. So from there, there were my cousins who persisted and ended up continuing it until now, there were also those who didn't do it because they said it was complicated. 

[joniboini]

He claimed he is being afraid and believe he might not be so careful enough to maintain such Privacies demanded while holding the crypto assets.
He is a risk taker and can stay unpanick for a long time but can not just keep to that privacy. So now I think of creating a new wallet for him and get him invest on it while I take control of his assets holdings and privacies.

What is this privacy you speak of? The steps to securely store his wallet seeds? How do you avoid doing KYC for exchanges, or what? I'm pretty sure others' comments already told you how dangerous your plan is, I'd also suggest you drop that idea and focus on educating what he lacks. If he asks you to act as a custodian after that, just say that you don't want to be responsible for his actions. Don't believe him if he says he won't blame you or whatnot, that's impossible to happen even if there is a contract. He will blame you and show that in one way or the other if your investments fail.

[Thyplaymaker]

Just as others has been saying I don't think would be a smart move to accept such proposal, is better to put him through on how things work in this cryptocurrencies space, like the risk attached to it , we all know that is not every time market go in one way . So you put him through how he can create his non custodial wallet, and how he can manage and secure his asset when investing.

too risky, if the profit doesn't match their expectations, or even a loss, then I'm 100% sure they will blame me, even though they said it wouldn't be like that.

  yeah that's humanity for you . At first they will be like yeah I can tolerate the risk and if any chances I endup with losses you are not be blamed, but if such endup happening every thing will turn to you , blaming you that you're the one that encourage him to invest and all that. That why anytime impact anything concerning this space to Any one I always advice them to their own personal research for better understanding.

[TomPluz]

He is a risk taker and can stay unpanicked for a long time but can not just keep to that privacy. So now I think of creating a new wallet for him and get him invest on it while I take control of his assets holdings and privacies. Advice please!

Generally speaking, it is not really good to take someone to ride with you in crypto investing and it is because, for one, we don't know how the market will be a month from now or even three days next and two, if expectations are not managed well this can create trouble in your friendship or connection with the person. Now, with that in mind, seems to me that this guy know already the basics with cryptocurrency and he certainly does not have a weak hands but just concerned on issues of security and privacy therefore I would say that you should set things clear for him before accepting his request. Make sure that he fully grasp things and that there is always that scheduled communication and updates for him on the portfolio you are managing on his behalf. As long as things are defined and terms are explained well then maybe give it a go. Still, you must careful with everything and treat him like a customer.

[Mr. Allcrypto]

Someone I introduced to the crypto world said he wants to invest his funds with my holding as a top up or contributing to my accumulations after which I told him about the risks and the potentials of the crypto coins.

He claimed he is being afraid and believe he might not be so careful enough to maintain such Privacies demanded while holding the crypto assets.
He is a risk taker and can stay unpanick for a long time but can not just keep to that privacy. So now I think of creating a new wallet for him and get him invest on it while I take control of his assets holdings and privacies.

Advice please!

I will say you should be very careful about that, and also on what conditions do the both of you agree before giving you the money?

[JoyMarsha]

What are you trying to do is a good thing but it has a bad part of it that you can't define or control what the future holds for it.

The risk in crypto and the wealth that comes with it, it's not something one should hold for the other. I am thinking from the angle of, bitcoin soaring in price and the number of the accumulated bitcoin you have for your friend has increased in price won't you be tempted to trade some of the bitcoin holdings for your friend in his absence since you know that, he knows nothing much about bitcoin.

To avoid such a scenario, tell your friend to hodl his bitcoin by himself in a crypto wallet address and he should keep his seed phrase safe.

[bayu7adi]

Explaining what I can do, what opportunities I have taken and also how much profit is possible from the opportunities I have taken. I also don't forget to explain the biggest risks so that they don't expect too much from me.

Someone who wants to invest through us, maybe they are confused and just want to test our strategy. Therefore, apart from being ready to get big money, he must also be prepared to lose if that happens. If it's of his own accord, that's even better, I don't have the burden of having to make every plan perfect, therefore I want to make his expectations not too high first so that he can accept all the risks and shortcomings in the opportunities I take.

[Dr.Bitcoin_Strange]

@OP,you can actually teach him how to go about his privacy and security rather than being the one in charge of his asset. If you hold his asset and something happened that led to some issues, what will be your explanation to him, and does it mean he will just allow you to go Scot free without asking you to provide his asset? We don't pray for bad things to happen, but you cannot determine something all the time. In my opinion, I will just suggest you let him be in charge of his asset. Teach him how to handle his assets, and let him make security his priority.