The different kinds of Crypto “Investors”

Hi guys, I have a question that maybe interesting for a lot of people.

What kind of crypto investors exist?

Let me start with the ones I know.

  1. The shitcoin investors. This one is kind of known. Buy a ton of low valued coin (ideally on launch) and hope for a wonder.

  2. The post pump and dump investor. It’s kind of a shitty coin Investor that jumps in after the first pump and dump. He expects that every coin that has dumped will rise again.

  3. The value investor. Crypto is just part of a diversified portfolio. Mostly Bitcoin and some household names in cryptocurrencies.

Do you know more kinds of investors?

All three mentioned categories are not investors, but speculators. If you buy an asset with an intention only to sell it at a higher price - that’s called speculation.

Investment is an expenditure of one’s savings towards a productive asset, in order to obtain profits. In crypto industry, an investor could be:

  • A venture capitalist financing a company that invents blockchain technology (e.g. chia network). The company profits would be shared as dividends with the original investors, or in case of an IPO - that would be their “exit strategy”
  • An individual farmer building a rig to obtain tokens and transaction fees, to be sold at a profit
1 Like

Understand where you are coming from but wouldn’t you consider someone who diversifies his portfolio with crypto is not an investor? Your definition seems to throw out a lot of people which we would consider i terms of investors.

Somebody who buys gold is not a speculator per se. Or in other words. Every investor in financial products is also a speculator.

But back to be original question: Any more known crypto investment - “strategies”? I esepcially look for the mindblowing stupid ones :slight_smile:

Ok perhaps my definition was too simplistic. Let’s suppose you buy a stock that doesn’t pay any dividends, but has a growth potential (they will invest their profits into expanding production capacity, R&D - e.g. fundamental value). If you buy it based on a fundamental analysis and hold it for long time - I guess that’s an investment, too.
If you buy a meme stonk just because everyone on reddit are piling on, without fundamental analysis - that’s pure speculation.
If you buy gold (physical) as part of diversification strategy, that’s just savings. Gold is a long term store of value thanks to its intrinsic properties and stable valuation.

But why would you “diversify” into crypto tokens? They do not have intrinsic value, so the valuation is determined either by speculation or by certain utility they provide (e.g. USDT is a medium of exchange, transaction settlement layer; Eth has smart contract utility, etc).

So why then? Help me understand (no sarcasm intended).

There is one stupid strategy to “invest” into crypto is to buy NFTs tied to a blockchain.

I think people who do that think that NFTs present a value as “works of art”. It is a fallacy. Buying real works of art (pictures, sculptures, classic/unique objects) is a way for someone to store generational wealth. Similar intent to gold, but with some upside potential and no fungibility.

The digital NFT is a fad that will leave a lot of bag holders.

But if you are on the other side of the trade (selling nfts), I guess you have a chance to get rich

Not sure how to answer this. You probably don’t want to hear my reasons to buy some chia :slight_smile: but i think having some of your savings in “respectable” Crypto (Bitcoin/Ethereum or Chia) is not the worst thing in an uncertain situation the world is in.

Ok that one belongs on the list :slight_smile: i will add more should i stumble upon more crazy things people do …

A nice interview about crypto investing (not speculating):

This video is a gem! Shows how insanely retarded the ponzi scheme helium is. The more I get into crypto the more I have to admit we are not far away from a Dutch situation.

ROI investor, seeks the best roi thats safe but risky sometimes. Some buy to hold based on the coins value increasing some seek elusive roi from staking/lping/airdrops/etc. My toke/eth pays 140%+. Nil pays 500%+, klima pays a crap load, etc. Some of these lose money some make bank.