Which are you?
When it comes to cryptocurrency, and more specifically investing in cryptocurrency, there are several different approaches that you can take. Are you someone who wants to see relatively quick asset growth, or are you in it for the long haul? Do you make quick impulse decisions or do you need a few days to think it over? All of these questions vary for each crypto investor, and the outcome depends on the action taken and the desired results. Identifying as a specific type of investor doesn’t make you any better than those standing beside you, but knowing which types exist will help you realize a few important aspects of investing.
Let’s see which type of crypto investor YOU are…hen it comes to cryptocurrency, and more specifically investing in cryptocurrency, there are several different approaches that you can take. Are you someone who wants to see relatively quick asset growth, or are you in it for the long haul? Do you make quick impulse decisions or do you need a few days to think it over? All of these questions vary for each crypto investor, and the outcome depends on the action taken and the desired results. Identifying as a specific type of investor doesn’t make you any better than those standing beside you, but knowing which types exist will help you realize a few important aspects of investing.
Let’s see which type of crypto investor YOU are…
This is not financial investment advice.
This article will explain the similarities and differences of various crypto investing behaviors.
The first type of crypto investor you can be is the Hobbyist. Hobbyists are usually younger people who are just getting introduced to investing. Obviously, Hobbyists can come in all ages and forms, but the key characteristic is that they’re only investing for fun and nothing else. Hobbyists aren’t stressed or pressured to perform well, but try their best to learn as much as they can to perform as well as they can. Most professional or avid traders once started out as a Hobbyist, so don’t take this kind of investor for granted!
In fact, Hobbyists usually learn so much that they can end up being pretty successful at times. The sooner you start, the longer you can spend learning as much as you can. With that being said, the more that Hobbyists continue to trade and invest, the quicker they’ll transition into a different type of crypto investor who’s accumulated more knowledge and experience. Are you a Hobbyist? Well then, you’re just beginning your journey on the path to becoming a great investor. Be patient, be hungry for knowledge, and have fun doing it!
If you still consider yourself an investor but don’t share the same level of immediate excitement and hopefulness that Hobbyists and other traders have, then you may just be a Skeptic. These are crypto investors who know that skepticism is the real job of a trader. Considering how many shitcoins, scamcoins and scamprojects exist today, it might be valuable to take each morsel of crypto news and headlines with a grain of salt. Skeptics do just that and more, by actively looking for any and every reason to view a new project with caution. In fact, other types of crypto investors might not want to hear what Skeptics have to say, as it contradicts their generally positive outlook on cryptocurrency. Only when something is 100% accurate and lacks any reason for doubt, will a Skeptic endorse it and invest in its platform.
No matter what you think about Skeptics, it’s clear that they can attest to the notion of “facts before feelings,” reminding the rest of the crypto community to hold their horses before quickly jumping the gun on a new project. Some of the best and smartest crypto traders would call themselves Skeptics, so don’t think that they are by any means negative. Would you call yourself a skeptic when it comes to investing in crypto?
The Short Investor is someone who is looking to get out of their cash positions in a coin relatively quickly. These types of investors are involved in what’s called short selling, which is selling first and then buying it back later. The trader’s expectation is that the price will drop; the price they sell at is higher than the price they buy it at later. The difference between the sale price and the buy price produces a profit or loss. Short selling is one strategy to use if you believe the price of the underlying asset will decrease in the future and you want to profit from that decline.
Considering how volatile the cryptocurrency market is, this type of investor would have to dedicate their time to tracking the price movements of their investments. Short Investors boast large gains in a short amount of time, which is what attracts many investors to this kind of investment practice. Remember, just as fast as they can make money, they can lose it even faster. Prices can drop instantly in the crypto markets which leaves Short Investors drowning in red. Invest as a Short Investor at your own risk, and understand all that you have to do in order to succeed.
The Long Investor is someone who performs in contradiction to a Short Investor, So, you might know where this is going. Long Investors purchase an asset and own it with the expectation that the price is going to rise. They normally HODL and have no plan to sell the asset in the near future. A key component of a long position investment is the ownership of the coin. This contrasts with Short Investors, because they buy coins with the expectation of selling it and then repurchasing it at a lower price. A key difference between a long position and a short position in investments is what the investor expects to happen to the price of an asset.
Long investors are in it for extended time frames, understanding that it will take some time before you can see massive returns. More often than not, Long Investors pump large amounts of money with hopes to gain, regardless of how long it takes. Do you invest in cryptocurrency and hope to make large gains in the distant future? You might just be a Long Investor.
The Gambler likes to invest with a little more risk and thrill involved. Your Gamblers are typical investors who aren’t afraid to let it all fly in hopes of the best gains. You might know some Gamblers yourself, as they only talk about the crazy investments they make. Remember, Gamblers incur the highest of risks to win big, which sometimes ends very badly.
Some might argue that investing is always a gamble to begin with, but crypto Gamblers take it to the next level. These types of investors are naturally under a lot of pressure, otherwise they wouldn’t be Gamblers. A majority of crypto investors would stray away from this kind of investing, as you could easily lose all of your money. Remember, the golden rule of investing is to be willing to lose all of the money you’re investing, don’t risk anything you can not afford to lose. Gamblers tread on this very fine line.
On a totally serious note: Gambling can be an addictive behavior that some folks are not able to shake. There are resources available to help with gambling addiction — google it.
So, how do you become a Tactful investor? Well, it’s actually easier than it sounds… but it will take some time. To be a Tactful investor, you must accumulate a cache of experience to the point where you’ve developed and tested your own strategies to be successful. Tactful investors are not perfect, so don’t be surprised if you see someone who you thought to be a Tactful investor fail. So then, are you a Tactful crypto investor?
Regardless of which type of investor you are, you’ll always be able to identify these types of investors. The more you know about what kind of investors there are and what some typical traits are of each one, the more successful you will become in the future. Don’t JUST diversify your portfolio. Try to find the best mix of all investor types in order to diversify your investment style.
Have you discovered your investment type or did you already have an idea?
Let us know either way!
