Bitcoin feeder types: Hodlers, traders and criminals
The crypto-ecosystem is diverse and combines very different types of feeders. A view of crypto currencies through the psychological lens.
Broadly speaking, there are four types of people who buy crypto currency. The first is the genus Hodler. These are people who have a deep understanding Crypto Bull of the underlying block chain technology and are eternally loyal to their coins. Hodlers are with us for the long haul – be it to the moon or to the bottom of the valley.
The second type of people who buy crypto currencies are private investors. These are the people who tend to follow a trend and stumble into the crypto market with short-term investment strategies. When crypto currencies like Bitcoin rise, they quickly jump on the bandwagon. But if the hoped-for profits fail to materialise and the market consolidates, they exit just as quickly and liquidate their assets.
The third type of people who buy crypto currency are institutional investors. These can be hedge funds, investment firms and banks, or public figures like Twitter CEO Jack Dorsey. The reason why Dorsey is included in this list is that he probably does not personally call Bitcoin exchanges like Coinbase or Binance and buy crypto currency through them. It is much more likely that he will buy through an OTC counter with an intermediary such as a financial advisor. These people get on and off the train according to their needs and their wallet.
The fourth type of people who buy crypto currency are criminals. Unfortunately, crypto-currency and Bitcoin in particular are associated with illegal activities in the eyes of many people. Although criminals use Bitcoin for their activities (especially hackers), they tend to turn to privacy coins like Monero, which better protect their privacy. They also represent an increasingly small percentage of crypto users, as more and more people hold digital currencies.
The psychology of crypto-dealers
The crypto market never sleeps and this has similar effects on people who actively trade in crypto currency. Investors can only protect themselves from highly volatile prices by using stop loss and other useful tools found on most crypto-exchange platforms.
Then comes the problem of crypto-custody. Although buying, trading and storing crypto currency is easier than ever before, it is still far from being a process that can be quickly learned by an inexperienced person. Even for experienced users of crypto-currencies, the idea that a single mistake in a wallet address could lead to the loss of the hosted coins can cause much anxiety.
The future of crypto currencies
People who have crypto currency are all waiting for the day when crypto finally becomes a common term. The reality is that this will only happen once a healthy balance between regulation and freedom has been found, either internally within the crypto-currency community or with the support of governments. Furthermore, crypto-currencies need to be better explained and marketed to outside interested parties.
Fortunately, these problems will be solved gradually over time. How quickly these processes take place is ultimately up to us. Trench warfare between supporters of different projects and Coins stands in the way of the big goal of a global crypto-adaptation. Instead, the community should network and together proclaim the good crypto message to the world.