The introduction of cryptocurrencies in 2010 marked the beginning of a new era in digital finance, offering investors the freedom to make decisions that best suit their financial needs. This has given rise to four main categories of crypto investors, each with a distinct approach to crypto investments. These include maximalists, hodlers, fomoers, and traders.
Maximalists are investors who are devoted to their preferred blockchain and cryptocurrency, such as Bitcoin (BTC), Ethereum (ETH), Dogecoin (DOGE), Shiba Inu (SHIB) or XRP (XRP). They believe that their chosen asset will eventually replace the traditional fiat economy. Maximalists often advise the crypto community to buy the dip, which means investing during a bear market.
Hodlers are those who make long-term investments in cryptocurrency and stay resilient during market fluctuations. They are often aiming to accumulate at least 1 Bitcoin over time.
Fomoers are those who are easily influenced by market movements and make impulsive buying decisions. This approach often leads to buying the top and selling the bottom.
Traders focus on day-to-day prices to identify opportunities for profits. They analyze market sentiment, new developments, and regulations to make informed decisions. However, they need to store a large amount of assets on exchanges, making self-custody the ideal way of storing cryptocurrencies.
Overall, successful crypto investing requires individuals to have an understanding of the market and a well-defined strategy. Advanced machine learning algorithms and news indicators can help traders make significant returns.
