Which Type of Crypto Investor Are You? The 11 Crypto Archetypes
Self-awareness is critical in investing, especially in crypto. By understanding the type of investor that you are, you can choose an investment strategy that matches your goals and risk tolerance. While no archetype is ever a perfect match, these investor types can help you identify some tools that are especially useful to you. Let’s start with a quick preview of the eleven different investor types.
The 11 types of cryptocurrency investors
- The Beginner
- The Bitcoin Maximalist
- The HODLer
- The Trader
- The FOMOer
- The Hunter
- The Traditional Investor
- The Ecosystem Expert
- The Crypto Native
- The Early Adopter
- The Whale
So, which type of crypto investor are you?
Take a look at the description and traits of each investor type and see which one matches you the best. Then, once you’ve found your type, check out the tools that similar investors use to make smarter decisions.
1. The Beginner
Everybody starts their investment journey as a beginner. While the first step can be the hardest, it’s the most important. Luckily, this beginner’s guide to building a successful crypto portfolio will help make it as easy as possible.
Traits of a beginner:
- Interested in crypto but not sure where to start.
- Looking to increase their wealth, and their knowledge.
- Excited to start investing.
Tools that can help a beginner:
- See our beginner’s guide to blockchain.
- Get an overview of the crypto ecosystem.
- Learn how to start small with crypto micro-investing.
- Grow your portfolio with dollar-cost averaging.
2. The Bitcoin Maximalist
While the crypto community is building many exciting technologies, bitcoin maximalists consider the secure, sound money of bitcoin to be the most important. Inspired by the brilliance of the blockchain and Satoshi’s invention, they came for the technology, but stay for the revolution.
Traits of a bitcoin maximalist:
- Buys every dip.
- Can see the importance of sound money.
- Satoshi is their hero.
Tools that can help a bitcoin maximalist:
- Stack sats with dollar-cost averaging.
- Live a more crypto focused life and pay your bills with bitcoin.
- Make sure you’re using the best bitcoin wallet in Australia.
- Learn from these bitcoin success stories.
3. The HODLer
The HODLer can watch the value of his coins double in a month or dip 30% in a day and never even think about selling. Well, they may think about selling, but they have the discipline to keep HODLing through the highs and the lows. Despite sounding deceptively simple, HODLing has been one of the most effective crypto investing strategies and has produced many crypto millionaires.
Traits of a HODLer:
- Here to get rich, not get rich quick.
- Focuses on fundamentals, not FOMO (Fear Of Missing Out).
- They are (mostly) unfazed by extreme volatility.
Tools that can help a HODLer:
- Learn exactly what it means to HODL.
- See why bitcoin can be a long-term store of value.
- Discover how you can invest in crypto with a Self Managed Super Fund (SMSF).
4. The Trader
The trader is both an opportunist and intellect, using careful analysis to take advantage of profit-making trades when they present themselves. While it’s easy to get excited in crypto, a good trader always tries to stay cool, calm and collected — and makes the best decisions possible.
Traits of a trader:
- Buys the dips and sells the rips.
- Checks the technical signals daily.
- They love to win.
Tools that can help a trader:
- Cointree’s price alerts and auto trade features.
- How to evaluate a cryptocurrency with five key financial metrics.
- How to use on-chain analysis.
- How to use the Moving Average Convergence Divergence (MACD).
- How to use the Relative Strength Index (RSI).
- Check the market sentiment with the crypto fear and greed index.
- Make sure you read our weekly market update and technical analysis.
- Take profits in stablecoins like USDC and USDT.
5. The FOMOer
FOMO is the Fear Of Missing Out. It’s an emotional state that’s all too easy to succumb too, especially as prices skyrocket and create crypto millionaires overnight. They can feel late to the party and then over-invest in a coin that’s already up 1,000%. Importantly, a FOMOer with self-awareness can be a genius. By understanding their tendency to FOMO, they can make a plan and ensure their emotions don’t get the best of them.
Traits of a FOMOer:
- They get overly excited or fearful.
- They buy high and sell low.
- They apply investment strategies to help prevent FOMO.
Tools that can help a FOMOer:
- Check the crypto fear and greed index to see if you’re being influenced by the market sentiment.
- You can remove emotion from your investment decisions and diligently invest through the dollar-cost averaging strategy.
- Instead of getting caught up in the hype, learn how to evaluate a cryptocurrency with the three types of cryptocurrency analysis.
- Many FOMOers consider making a long-term investment through a Self Managed Super Fund (SMSF).
6. The Hunter
The hunter searches for undervalued projects and makes big bets, although they’re quick to sell when they realise they were wrong. They can switch between being a natural sceptic and a true believer when they need to. Ultimately, they want to be a great crypto investor.
Traits of the hunter:
- Likes to be ahead of the crowd.
- Always on the lookout for a new coin to invest in.
- Can name 50 coins most crypto investors have never heard of.
Tools that can help a hunter:
- Price alerts so that you can take advantage of market moves.
- Evaluate each project using the three types of cryptocurrency analysis.
- Explore experts' predictions on the future of cryptocurrency.
- Since you’re already an expert on specific coins, take the time to get a big picture view of the entire crypto economy.
7. The Traditional Investor
The traditional investors simply treat crypto as another asset class alongside real estate, equities, and precious metals. When evaluating cryptocurrencies, they apply the same evaluation methods that they use in their traditional investments, including discounted cash flows, relative valuations, and growth prospects. With crypto’s similarities to technology companies, they’re quick to focus on the network effect of different blockchains.
Traits of the traditional investor:
- Treats crypto the same as any other asset class, managing risk and maximising profits.
- Invests with a long-term investment horizon of 3+ years.
- They always plan and prepare, they never panic.
Tools that can help a traditional investor:
- An overview of the difference between the stock market and cryptocurrency.
- See exactly what cryptocurrency is.
- Expert predictions on the future of cryptocurrency.
8. The Ecosystem Expert
There’s so much going on in crypto that nobody can keep track of every single project. Instead, the ecosystem expert dives deep into a specific community, such as DeFi, NFTs, play-to-earn gaming, or a specific blockchain ecosystem like Cosmos.
Traits of an ecosystem expert:
- They’re the go-to expert on one area of crypto.
- They know how to identify a promising project in the space.
- They religiously stay up to date on the latest ecosystem news.
Tools that can help an ecosystem expert:
- Explore your favourite sector, such as DeFi, infrastructure, web3, oracles, NFTs, the metaverse, or stablecoins.
- If you’re an ETH expert, learn about the Ethereum 2.0 upgrade.
- Use on-chain analysis to get an insight into how an ecosystem is performing
9. The Crypto Native
The crypto native has been into crypto so long that they remember when DeFi was only a dream and not a reality. They’ve been there to witness the rags to riches stories, rug pulls, and real-world adoption. With in-depth experience, they’ve learnt not only how to profit as an investor, but how to make meaningful contributions to the entire crypto community.
Traits of a crypto native:
- Lived through multiple market cycles.
- Used to the high volatility.
- Understand the technological and financial aspects of crypto.
Tools that can help a crypto native:
- As the crypto native is much more comfortable with crypto’s volatility, it pays to check the current sentiment of all market participants with the crypto fear and greed index.
- Compare the different ecosystems with on-chain analysis and DeFiLlama.
- Relive some of the most infamous crypto memes.
10. The Early Adopter
The early adopter recognises that we’re in the early stages of an important new technology. As such, they’re expecting lots of trial and error from different protocols and new competitors to continue to emerge. While they’re certain that the blockchain is going to make a huge impact, they’re open to new technologies and projects gaining momentum. Ultimately, they can see that despite the incredible success the crypto industry has had so far, we’re still early.
Traits of the early adopter:
- They are extremely bullish on the future of crypto.
- Part of a thriving crypto community on Twitter, Discord or Telegram.
- They’re in it for the tech… and the profit.
Tools that can help an early adopter:
- Early adopters are some of the most important people in the crypto community as they help educate newcomers. This article on the digital economy can help with that.
- Get familiar with the technology adoption life cycle, so early adopters can see how they drive the industry forward.
- Check out our referral program and see how you can earn up to 70% commissions for bringing new people into the crypto community.
11. The Whale
Every crypto investor starts as a beginner, on a journey to become a whale with enough wealth to last many lifetimes. Crypto whales have built their wealth in many different ways, whether HODLing for a decade or trading every day. Ultimately, any investor wise enough to become a whale has learnt many valuable lessons along the way.
Traits of the whale:
- High-net worth.
- Experienced investor.
- Manages risk carefully.
Tools that can help a whale:
- See how Cointree can help you access deep liquidity through our world-class OTC trading desk.
- See how crypto is taxed in Australia so you can manage your capital gains.
- Allocate a portion of your wealth into crypto with your Self Managed Super Fund (SMSF).
What matters most about your investor type?
It’s incredibly obvious, but it’s always worth repeating: What matters most about investing is making money. That’s why the most important thing about identifying your investor type is using it to help you find the right tools and investment strategies to help grow your wealth. While a trader might be best monitoring the market 24/7 with price alerts, a beginner may benefit most with a dollar-cost averaging strategy.
Moreover, as we continue to grow our knowledge and wealth with the world of crypto, our investor type is likely to grow with us. Remember, every whale was once a beginner.