There are multiple ways to make money with cryptocurrencies. You can even build your own blockchain. But when it comes to investing in coins, I differ between 3 unique styles. The 3 archetypes of cryptoinvestors.
They differ in how much time they consume, how much money you can make over time (altough that also depends on the money invested) and how easy they are or not.
You should definitely decide to choose one of them. You can try multiple, depending on how much money you are comfortable losing, but at some point, you should choose one and stick to it.
There are also a lot of myths out there, which way is more profitable and especially on Twitter, I don’t buy half of what people are saying about how much winning trades they are doing.
Keep in mind, you get more followers if you only post your winning trades and if you stay nicely quiet about losing trades. Because nobody can check how you trade. So there is no real proof.
The three forms of trading aren’t anything new. The equity market knows all of them and that’s pretty much where they originate from. Since the cryptocurrency market acts pretty similar to equities, we can use those for both.
These are the three archetypes. Click on the pictures or the links below to learn more:
Or click on these links:
You can trade such big swings, that it is almost like being the investor. But that doesn’t count. If you – like me – accumulate in bear markets and sell in bullruns, that’s not really swing-trading. That’s just good investing.
I like none of these
If you don’t like those archetypes in any form or can’t see yourself doing any of these forms of trading/investing, no problem.
The cryptocurrency space has lots and lots of possibilities to contribute and make money.
- Create content (like this blog)
- Create a service
- Create your own asset (your own blockchain)
- Create a new technology in this space
- Create media (like a podcast, magazine, youtube)
- Create jobs
Maybe you can come up with even more possibilities. This space is still very young and lots of possibilities to make money are yet to be found.
Why choose one of them?
Switching too much between your professions or skills is usually a bad thing. I’ve learned this the hard way. You need to master one skill, before jumping to the other.
You can go the upwards route if you wish: Start as an Investor, upgrade to a Swing-Trader and ultimately become a Daytrader and make money every day just for fun.
Or you learn how to Swing-Trade and jump right into that. Totally up to you, but you should definitely try to master that skill. Otherwise you might lose a lot of money.
I want to know more
Sure, I am glad. A wise person always wants to know more. Click through my blog to find more info about the archetypes or investing and subscribe to my completely free newsletter.