OG Bitcoiner James Howells says crypto newcomers are jumping into the space without understanding what they’re buying, long-time holders are enjoying rising profits without driving broader adoption, and skeptics are dismissing the industry with little real knowledge.
Howells is best known for his years-long legal battle to recover a hard drive buried in a landfill that contained 8,000 Bitcoin—now valued at around $700 million. Although his efforts were unsuccessful, Howells told Cointelegraph that he refused to let the loss define him, and he shared his advice and 2026 resolutions for crypto newcomers, veterans, and skeptics alike.
Newcomers need to understand crypto before investing
Many beginners jump straight into buying cryptocurrencies on exchanges, but they should first take the time to understand what they are investing in and the real-world problems the technology aims to solve, Howells said.
“Learn how blockchains operate, why decentralized finance exists, and what problem it solves.”
Howells said traditional fiat systems tend to concentrate power in governments and financial intermediaries, while blockchain technology offers individuals a way to opt out of that structure without needing permission from third parties.
“Understanding why this matters is more important than buying any coin,” he said.
After grasping the fundamentals, Howells advised newcomers to experiment cautiously with different crypto protocols, services and wallets—without risking significant capital.
“You will make mistakes and you will lose money. That’s part of the learning process,” he said. “The key is making sure those lessons cost pennies, not paychecks.”
“Nobody cares about losing $0.10 if they learned something valuable. People do care when they lose $20, $30, or more on a bad app and then blame the entire technology.”
Avoid leverage trading
While Howells encourages newcomers to explore and experiment, he made one clear exception: leverage trading.
“Stay away from it entirely,” he said, warning that leveraged platforms profit from inexperienced traders’ mistakes, effectively turning them into liquidity for more sophisticated players. According to Howells, traders who lack an understanding of market structure, liquidation mechanics and risk management often end up becoming the product.
Veterans should test wallet backup and recovery systems
For experienced crypto users, Howells stressed the importance of regularly testing wallet backup seed phrases to ensure funds can still be recovered if needed.
“Test them. You don’t want the first time you rely on a backup to be the moment you discover it’s unreadable, incompatible, outdated or incomplete,” he said. Howells added that he has seen countless wallets created between 2013 and 2015 become inaccessible due to software decay and obsolete formats.
“Hardware changes, software evolves, and best practice evolves. If your entire setup depends on one device, one seed copy, or one location, it is not robust.”
Use crypto in everyday life—and bring others along
Howells urged experienced crypto users to focus on real-world adoption by helping newcomers learn the basics, such as setting up wallets and making transactions, rather than concentrating solely on technical analysis.
“If you’ve made significant gains, reinvest in the ecosystem,” he said. “Start a business, build a service, run infrastructure, or accept crypto for existing goods and services.”
Howells said crypto adoption should be “much further along than it is,” adding that long-time participants share responsibility for slowing progress.
He also cautioned against seeking validation from Wall Street or Washington, arguing that financial institutions and politicians tend to embrace crypto only when it aligns with their own interests. “None of them are acting in your interests,” Howells said.
“Their focus is control, influence, and risk management on their own terms.”
Howells warned that the current “gravy train” in crypto may not last indefinitely, arguing that many of today’s pro-crypto regulations could eventually become “the very cages that trap users later.”
“They are not on your side,” he said, urging veterans not to base their convictions on institutional acceptance or regulatory milestones, but instead to prioritize expanding peer-to-peer crypto adoption.
Skeptics should try crypto before judging it
Howells also advised skeptics to engage with crypto firsthand before forming opinions based solely on misleading or incomplete headlines.
“Use it genuinely over a meaningful period of time. Set up a wallet, make transactions, experience custody, and understand what it enables.”
He said that most criticism targets scams and bad actors, which shouldn’t be ignored, but neither should the underlying ability to hold and transfer value without permission.
“Judge the system by what it can do, not by how badly some people use it.”
Watch actions, not words
Howells concluded by pointing out that much of the repeated criticism of crypto comes from financial institutions and governments that are quietly building blockchain infrastructure for custody, trading and settlement behind the scenes.
“That contradiction is worth paying attention to,” he said.
