The crypto market is a diverse industry that includes all types of interesting people. When you examine the stats regarding crypto users, you can see that the younger generations are leading the pack. However, there are a lot of other generations that are starting to show signs of growing adoption.
Now that the market is 14 years old, you can start to see certain types of crypto users emerging from the pack. These crypto user types span the market from newbies to those who were there since Satoshi Nakamoto posted on Reddit. Here are just a few of the many different types of crypto users you’re likely to encounter in 2023.
The experimenter is a crypto trader that is new to the market. They want to see what all the fuss is about. In most instances, they have a friend or family member that has been preaching the benefits of crypto to them for years. Now they’re finally ready to see for themselves why so many people are making the change.
Crypto experimenters are great for the market for multiple reasons. For one, they mean that new minds are entering the sector. Their experiences and feedback can help to shape the market and improve certain roadblocks to adoption. Additionally, they provide a breath of fresh air to a market that can sometimes get political.
HODLers (Diamond Hands)
The term HODL (Hold on for Dear Life) is synonymous with cryptocurrency traders. Hodlers are those traders who only trade projects they feel have longevity. These are traders that are setting +10-year goals. HODLers serve a vital role in the market. They are liked shooting stars in that can help new traders navigate the crypto waters and avoid the most common pitfalls.
Most HODLers have been around for a long time, so events like bear markets and crypto winters don’t bother them at all. These are traders that have seen Bitcoin go from $20k to $3K and back up to $60k in a matter of 4 years. As such, they are wise in their methods and have mastered the skill of evaluating projects and trading without emotion.
HODLers also make up the backbone of venture capital going into projects. These traders believe in the tech and understand its shortcomings and benefits equally. They’re keen to help out startups and other crypto ventures that can help drive adoption and innovation. This attitude also helps to keep the market exciting and growing.
Day traders are those that conduct multiple trades daily. In most instances, day traders are professionals. They may even work for a trading firm or broker. These traders meticulously monitor the market for emerging trends. They are skilled at reading charts and using indicators to make predictions. In many instances, they will leverage a variety of tools to say ahead of trends.
Day traders make their profits from the culmination of their days’ events. They may make tiny trades hundreds of times a day to achieve their profit goals. Day traders are essential to the market because they are responsible for much of the liquidity of the market. These traders provide fast-paced and responsive action to the market.
Day traders are usually among the first in the market to see a trend forming. They’re also the first to get out of a token if they sense a downturn. Part of the reasons is that they are looking for repetitive small wins rather than that big pay day.
Antsy Traders (Shaky Hands)
Antsy traders are those that get into a position and only minutes later begin to second guess their decision. They will often trade in and out of a project like day traders but without any of the insight. Antsy traders are known to trade on gut feelings rather than charting out stats or learning the market.
The market has a lot of antsy traders as you would expect with any new tech. In some cases, a trader gets antsy because they are trading with funds that can’t support losses. For example, if you’re a college student and you trade your tuition payment, you are going to be very antsy if the market starts to drop.
Antsy traders are also called shaky hand traders because they don’t believe in the projects they trade. They’re simply looking for a way to make profits. Sadly, antsy traders will often buy high and sell low. This situation occurs because they experience FOMO (Fear of Missing Out) with every passing news story or Tweet.
Social traders are another interesting type of crypto user. These traders make their existence and trading maneuvers available to the public via social media. The social trading paradigm is made up of influencers and followers. The influencers will recommend what projects to trade and the followers will usually follow suit.
Social trading is a powerful way for large groups of traders to organize and affect market prices. There are social trading groups that attempt to conduct malicious trading activities like pumps and dumps. However, the majority are just traders discussing a project’s key points and disadvantages.
A new trend that has emerged regarding social traders is copy trading. This strategy enables traders to sign up for a leader. The system will then duplicate the leader’s trades on the follower accounts. This strategy enables users to secure returns and learn the trading strategies of effective users.
The Long Shot
The long-shot trader is the user who only goes after that one in a million projects. They’re quick to hype a project that is nowhere near its technical goals. In many instances, they will dive right into projects that lack even the slightest bit of credentials like a white paper.
Long shot traders are the most likely to take losses because they aren’t trading, there gambling. These traders can easily get swept up in the hype of projects or long-shot promises. However, in some rare instances, long-shot traders do make out and see some impressive returns. This is not the norm.
Long-shot traders may seem counter-productive to the market but they also bring valuable liquidity to the sector. Additionally, they are often the ones supporting the next-gen tech long before the average trader would even think of participating. Notably, there are two main types of long-shot traders, HODLers and Shaky Hands.
The Bitcoin Maxi is a trader that holds Bitcoin above all other projects. While some may think that Bitcoin Maxis don’t like any other crypto platforms, that’s not the case. They just believe that Bitcoin provides the most open and secure option in the market.
Bitcoin Maxis have taken Bitcoin’s goals and dream of an open economy and made it gospel. These are individuals that may have Bitcoin art around their homes or office. There are Bitcoin Maxis with license plates, Boats named, and even Bitcoin tattoos to commemorate its impact on the world
Bitcoin maxis are a crucial component of the market because they help to keep the world’s largest and first cryptocurrency operational. These traders are on the front line educating people about Bitcoin and explaining to them the differences between the many types of cryptocurrencies available today.
The Altcoin master is the trader that has a massive amount of altcoins. As exchanges like Binance continue to expand their selection of digital assets, so do traders. Altcoin masters can have +20 different types of cryptocurrencies that they monitor. They are educated on each platform and can tell you vital details about what makes each network unique.
Altcoin masters are a crucial part of innovation in the market. They balance out Bitcoin maxis and help shed light on the growing selection of functionalities and features provided. These users are usually educated in multiple exchanges and DEXs (decentralized exchanges). This knowledge allows them to collect even more altcoins from varying blockchain ecosystems
The privacy master is the crypto user that takes every step to protect their identity. These users will leverage a plethora of privacy tools to stay anonymous. They will mix their coins, and use private emails, TOR browsers, and multiple wallets. They understand the importance of privacy and they leverage their knowledge to stay under the radar.
Privacy masters have had an interesting journey in the market as privacy technology is constantly changing and adapting. This is a game of cat and mouse between privacy advocates and those seeking to unveil the data. These traders are likely to leverage privacy coins such as Z-Cash as well.
Privacy masters have embraced DEXs because they provide another layer of privacy versus CEXs like Coinbase. CEXs require users to upload personal information to their servers and funding prior to be able to trade. This data and funding can be hacked at a later date leaving you vulnerable for the rest of the firm’s existence. DEXs are a smarter alternative that help privacy-minded traders stay obscure.
The DeFi pro is a crypto trader that has mastered all the latest and greatest crypto features. These traders will be on the cutting edge of technology. You will hear them discussing items like yield farm aggregators and peer-to-peer lending. DeFi pros have earned a reputation for securing returns because they leverage DeFi low-risk options.
DeFi Pros will use features like high-yield savings accounts to provide returns without having to worry about losing their original assets. Networks like META 1 Coin provide 10% APY on META VAULT savings which are far more than your local bank. Additionally, these returns are more consistent that trading and easier to obtain.
The Digital Artist
NFTs (non-fungible tokens) have taken the art world by storm. These unique digital assets are ideal for art and other unique items because they are blockchain verifiable. This structure means that you can create rare works of digital art that can be authenticated in seconds by anyone.
The NFT art world is on the rise with more crypto artists entering weekly. These users are hip to all the latest NFT art shows and events. They know the most influential artists and what marketplaces offer what features. They are often found in the metaverse where they can offer their digital works in a more social atmosphere.
The gamer is the fastest-growing crypto user type. These are crypto users that interact with blockchain assets in their games. The play-to-earn sector has seen considerable blockchain integration which has expanded the number of gamer crypto users significantly. There are hundreds of play-to-earn titles that integrate blockchain assets today.
Gamer users may not even know that they are using blockchain technology as many titles provide access to a complete ecosystem. This structure means that players can create, discover, buy, sell, and trade NFTs within the platform. They may also take their NFTs and bring them outside the gaming ecosystem.
Influencers are another style of the crypto user that has seen serious growth in the last 3 years. Influencers are social media personalities. These users can secure returns by recommending products or services to their large user base. The larger the user base and the more they can make.
The introduction of blockchain assets expands influencers’ ROI capabilities considerably. Now, these users can issue unique digital assets that can function as souvenirs and passes to other events. There are already several blockchain-based social media platforms that provide these features to influencers.
Some networks enable influencers to issue a token that will rise in value alongside the reputation and clout of the influencer. This structure is interesting because it enables traders to get in on promising talent before their breakout. Once they gain popularity, their digital assets go up in value considerably as commemorative items.
The Many Faces of Crypto Users
This list names some of the most common types of crypto users you may find in the market. Notably, it’s common for someone who fall into multiple categories when they break down their traits. The main thing to consider is that there is no wrong way to trade and understanding your goals and personality can help you to find the trading type that fits you goals.