What Type Of Crypto Customer Are You?
When it comes to cryptocurrency, knowing the type of customer you are could help you understand which factors to consider when getting started.
First off, it might be wise to ask yourself; do you want to see relatively quick asset growth, or are you in it for the long haul? Are you going to accept the risks of making a quick impulse decision, or do you need more time to think it over? The answers to these questions vary for each type of crypto customer and inevitably, the result depends on the action taken.
We must bear in mind that identifying with a specific type of customer doesn’t make you any better or less than your crypto companions, but gaining a better understanding of the different types that exist may help you realize a few important aspects.
Let’s have a look at what we perceive to be the top six categories of crypto customers. Grab some popcorn and get comfortable!
Please note: This article is not financial investment advice, but rather examines the similarities and differences of various crypto purchasing behaviours.
- The Toe Dabbler
- The Questioner
- The Risk-Taker
- The Short-Termer
- The Long-Termer
- The Tactical
The Toe Dabbler
If you’re a first time buyer, you might find you’re a Toe Dabbler! These are often younger people who are typically newcomers to the crypto world. Obviously, the Toe Dabbler can come in all ages and forms, but the key characteristic they have in common is that they are buying for fun and not much else. You’ll find many of these people buy into ‘interest’ coins like Dodge or Hello Kitty coin. Toe Dabblers don’t feel 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 probably started out as a Toe Dabbler, so don’t take this kind lightly!
Ironically, Toe Dabblers usually learn so much that they can end up making a decent profit. The sooner you begin, the more time you can spend learning as much as you can. If you’re looking for a good resource to start learning, check out Dacxi Learn! However, with all that being said, the more that Toe Dabbler continues to trade, the quicker they’ll transition into a different type of crypto customer who’s accumulated more knowledge and experience. Before we get ahead of ourselves and compare our styles to others, we must remember that everyone started somewhere. Are you a Toe Dabbler? Well then, you’re just starting your journey to becoming a spectacular trader.
Be patient, stay motivated, aim to acquire as much knowledge as you can, and enjoy the process!
If you don’t share the same level of immediate enthusiasm and anticipation that Toe Dabblers and other traders have, then you may just be a Questioner. These are typically people who understand that skepticism is the real job of a trader. Considering how many scams, hackers and shitcoins that exist in the crypto world today; it might be valuable to take each fragment of crypto news with a slight dose of caution. Questioners do just that and more, by actively looking for any and every reason to view a new project with a grain of salt. In fact, other types might not want to hear what Questioners have to say, as it often contradicts their generally positive outlook on cryptocurrency. Only when something is 100% accurate and lacks any reason for doubt, will a Questioner endorse it.
No matter what you think about Questioners, it’s clear that they can attest to the notion of “facts before feelings,” reminding the rest of the crypto community to be patient before acting too soon on a new project.
Some of the most well-known, successful traders would call themselves Questioners, so don’t think that they are by any means negative! Would you call yourself a Questioner when it comes to investing in crypto?
The Risk Taker
The Risk Taker tends to enjoy something with a little more risk and thrill involved. Your Risk Takers are typically those who aren’t afraid to let it all fly in hopes of the best gains. You might know some Risk Takers yourself, as they only talk about the crazy purchases they make. One of our customer service staff invested into Bitcoin on a spontaneous whim, and ended up buying an MG! (hyperlink to video). However, it’s not always the case that people are this lucky.
Some might argue that all crypto customers are Risk Takers to begin with, but this group takes the reputation to the next level. Naturally, they are under a lot of pressure, otherwise they wouldn’t be Risk Takers. Remember, the absolute golden rule is to be willing to lose all of the money you’re spending and don’t risk anything you cannot afford to lose! Our beloved Risk Takers tread lightly on this very fine line.
A Short-term Trader is commonly someone who is looking to get out of their cash positions in a coin in a relatively speedy manner. These types are involved in what’s called short selling, which is the practice of selling first and then buying it back later. This trader’s expectation is that the price will fall; the price they sell at is higher than the price they buy it at later. What differentiates the sale price and the buy price produces a profit or loss. This form of selling is one strategy you could use if you believe the price of the underlying asset will decrease in the future and you are seeking to profit from that decline.
Considering how volatile the crypto market is, this type would have to dedicate their time to continually tracking the price movements of their crypto. Short-term Traders boast large gains in a short amount of time, which is what attracts many to this kind of practice. Don’t forget, just as fast as they can make a profit, they can lose it even faster. As we’ve seen, the price of an asset can drop instantly in crypto markets, often when least expected; which leaves Short-term Traders drowning in red. Become a Short-term Trader at your own risk, and understand everything that you need to do in order to succeed before getting started.
Unsurprisingly, “The Long-term Trader” is someone who performs in contradiction to a Short-term Trader, so, you might already have gathered where this is heading. Long-term Traders purchase an asset and own it with the expectation that the price is going to rise. These traders normally HODL (Hyperlink to Dacxi HODL video) and have no plan to sell the asset in the near future. A key principle of a long-term crypto is the ownership of the asset. This contrasts with Short-term Traders, because they buy coins with the expectation of selling and then repurchasing at a lower price. A key difference between a long position and a short position is what the buyer expects to happen to the price of the asset.
Long-term Traders are in it for extended time periods, understanding that it will take some time before they can see massive returns. More often than not, Long-term Traders put in large sums of money with the hope of gain, regardless of the time before they see a return. Do you buy cryptocurrency in the hope of making a lot of money in the distant future? You might just be a Long-term Trader.
The Tactical Trader
Last but definitely not least, we have the Tactical Trader. Similar to the Questioner, Tactical Traders take time before making any large moves. This is because they’re methodical in all of their actions, formulating precise plans and strategies for their ‘enter’ and ‘exit’ cash positions. These people know exactly what they’re getting into, sometimes even overthinking their plans (I’m sure we’ve all been guilty of that!). Some people associate the Tactical Trader with the Smart Trader, since both tend to have the best returns. Rarely will you see a Tactical Trader feeling down with large losses, since they’re usually racking up green signs or at least breaking even.
At this point you’re probably asking, “so how do I become a Tactical Trader?” Well, it’s actually simpler than it sounds, but it will take some time. To be a Tactical Trader, you must accumulate a wealth of experience to the point where you’ve developed and tested your own strategies to achieve consistent success. Tactical Traders are by no means perfect, so don’t be surprised if you see someone who you thought to be a Tactical Trader fail at times.
Would you consider yourself a Tactical crypto trader?
Whichever type you consider yourself to be, you’ll certainly be able to identify with at least one or two of the types above. The more you know about the different types of traders and their typical personality traits; the more successful you will become in the future.
Do not just take the advice of ‘diversifying your portfolio’. Aim to find the best combination of all types in order to diversify your own style.
Till next time team!