Cryptocurrencies (or cryptos for short) and blockchain technology will reinvent and revolutionize many industries, including finance. It’s already happening. You can already use various tokens and coins to purchase goods and services such as food, real estate, and travel expenses.
With that in mind, it should be noted that this is still a young industry, with many people involved purely for speculative purposes. So, let’s take a look at the most basic types of crypto investors, but remember that nothing in this blog should be construed as investment advice. Its sole purpose is to provide educational information to the general public.
1) The Beginners
They are new to the world of cryptocurrencies. They probably learned about Bitcoin during one of the most recent bull markets, specifically at the end of 2017. They frequently lack specific knowledge and experience, which leads to their naiveté. This is why it is critical for beginners to educate themselves, but they often struggle to distinguish between good and bad information.
If they are fortunate and make a successful investment, they become overly optimistic. However, if the market falls, they become extremely pessimistic. In short, their attitudes toward cryptocurrencies fluctuate in tandem with market conditions.
No one should invest more than they can afford to lose; especially beginners. Despite the tremendous upside offered by cryptocurrencies, they must be aware that there are risks associated with any investment.
Don’t just blindly follow the crowd. Conduct your own research and due diligence.
We believe trade platforms like GTI Trade are ideal for beginners because they offer simple and secure platform for buying, selling, using, storing, and investing cryptocurrencies.
2) The HODLers
They typically have more experience, but they do not always have the ability or interest to trade or invest cryptos on a regular basis. Instead, they (sometimes vehemently) believe in cryptocurrencies’ long-term potential.
They are aware of the volatility of the cryptocurrency market and are prepared to weather the storm. Hodlers accept the inevitable ups and downs of the market and react less emotionally to bear and bull market scenarios.
They are waiting for a good time to cash out because of their long-term investment strategy. The most ardent hodlers are even looking forward to the day when they won’t have to cash out, instead using their cryptos as . With hodlers, the question is how long they are willing to wait. One, two, or three years?
3) The Traders
They frequently have the most experience, are well-read, and closely monitor every aspect of the market. Traders create detailed prediction models based on mathematical principles. They are prepared for even the smallest price changes, which is why they are not afraid to take big risks.
Some crypto investors want to invest for the long term, while others want to invest for the short term and cash out as soon as possible.
They typically pay more attention to market-related news, such as government regulations, because it allows them to see the big picture. Even professional traders, however, are unable to predict the future. What they do have is the knowledge to increase their chances of success in this market.
4) The Early Adopters
They bought bitcoin before it was hip, and they saw its potential when others dismissed it as a sham or a tool for unlawful internet transactions. The more formal definition is that people begin employing a product or technology as soon as it is available. This can happen by chance, but they are usually interested in the aforementioned technology and can be prepared once it launches.
Early crypto users are frequently anonymous since it would be unwise to reveal that they have millions of dollars in bitcoin or have already cashed out millions. However, early adopters are sometimes significant crypto influencers who may change values simply by tweeting about a token or coin.
What kinds of platform do we recommend to crypto investors?
In this state, we recommend the services of GTI Trade, a licensed trading platform that works for any kind of investor. In particular, we recommend them to two types of crypto traders.
Beginners; because GTITrade.com provide a lot of educational and up-to-date content as well as exceptional customer service and security, which includes KYC and AML standards. Their processes from start to finish work just right for any investor (beginner or otherwise) looking to get into the crypto world.
Hodlers; because they can keep their cryptos in safe hands for long term, continuously earning on the coins kept. Hodlers can decide to reinvest the earnings on their investments, making their cryptos multiply even more.
Looking to start on being a crypto investor? GTI Trade can take the heavy lifting and give you just the end results. Click here to sign up and join the low risk high returns train.