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The 4 Kinds of Bitcoin Investors, Which one are you?

Photo for the Article - The 4 Kinds of Bitcoin Investors, Which one are you?

Bitcoin has been around since 2009. After eight years, it gained some mainstream recognition, so much that it reached its highest trade value at 1 BTC = $19,000+ in December 2017. Naturally, investors flocked in. According to Mr. Rey Lugtu, Co-Founder and Counselor of Caucus Inc., there are 4 kinds of bitcoin investors.

Four Types of Bitcoin Investors

Note that this can also apply to cryptocurrency investors.

1. The investor who is informed

These are the investors who do their research thoroughly. They look at the cryptocurrency’s whitepaper, browse through multiple Reddit threads, check the founders’ credibility, and the platform or app’s “disruptive” abilities.

Investors who are informed also know how to read a crypto coin’s fluctuation in the trading market. Knows when to buy, sell, or even “hodl”. In short, these are the type of investors who take their time studying before investing.

2. The investor who is misinformed

Misinformed investors are the people who think investing in bitcoin is an easy way to make huge amounts of money. They thought that trading bitcoin and other cryptocurrencies will net them profit without any effort at all.

3. The speculator

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The speculator “speculates” the flow of trade and the cryptocurrency’s future in terms of money.

4. The Gambler

The name says it all. Gamblers want to test their luck. Think of it like a slot machine, you put a penny in (or a Php 25 worth of chip) and expect a win.

“The latest investments from Bitcoin are mainly (from) the gamblers. They don’t know what they’re getting into. They just put their money in.” –ย Mr. Rey Lugtu,ย Co-Founder and Counselor, Caucus Inc.

Bitcoin’s Volatility

Mr. Lugtu stated that in the current Bitcoin trades, speculators and gamblers are leading the pack. And because of that, you can expect volatility.

Thoughts

I can even add another type of investor in BTC. People who just dip their toes to test the water. We can call them “FOMOs” in the modern millennial term. FOMOs or Fear Of Missing Out type of people just wants to have a piece of this for them to be “in”. Some spectators want to know what’s the hype is all about and get a piece of it. Some might just want to have it as a collection, an accidental “hodl”.

To wrap things up, whatever type of bitcoin investor you are, make sure that whatever amount of money you’re trying to put in the cryptocurrency system is okay to lose. A spare change. As of the moment, trading cryptos are still very volatile even though BTC’s dancing around $8,000 to $9,000. Again, only invest money you can afford to lose.