The Investor (easy)

The Investor is the first archetype and I coined it the easiest, because you have the least to do really. There are multiple layers to this, from doing literally nothing to accelerate the profits.

The Investor makes money in chillpill-mode. He chooses some projects with great detail and deep research because they have to provide long-term growth.

He works hard once to make the market work for him afterward. This is the slowest way to make money out of the 3 archetypes.

Profile

The Investor is a big fan of passive income and working hard once to get results over time later.

What he does, is, doing deep research on coins with the following interests:

  • Actual real world use-case for the project
  • Maybe working product already there
  • Partnerships
  • Future possibilities for growth
  • The team behind it
  • Usability
  • Supply-price-correlation
  • Value (price) of the coin right now, compared to the market

It is basically like searching for the next Amazon.com, only in a shorter timespan due to the fact that crypto is generally faster than equities.

The gameplan

The plan is to buy a great coin when it is cheap and wait for the next bull run or for great announcements / updates of the coin and sell very late.

The investor is searching for 100x coins which don’t die in between, because he doesn’t want to be bothered with checking price and development constantly.

It is fire and forget. Buy it, come back a year later, reap profits.

Therefore it is the most relaxing way of making money with cryptocurrencies, but also the slowest. You really plan long-term this way. Medium-term is for swing-traders.

The layers

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There are multiple layers of being the Investor-Archetype. You can just play the ETF game. Buy a coin, might even be Bitcoin, and check back 10 years later. Since the overall trend is always up, you are fine with this technique – why it’s always up is explained with the market cycles.

Almost every person in the cryptocurrency-space is at least a “Bitcoin-Investor”. Even if you daytrade altcoins, you only trade them to get more Bitcoin out of it. And you hold your Bitcoin, because you see it rise in the future and or think it will be the money of the future.

Apart from changing it into fiat to buy your lambo ofcourse.

You can be The Investor kind of short-term as another layer. But that means like a year or two. If you don’t want to wait 10 years for profits, you have to ride the market cycles.

That means you invest into great coins in a bear market and come back when the bull run sets in to reap your profits. That is also my way of making money in this space.

It’s a mixture, pretty chill, but not waiting multiple years (unless the bear market lasts that long) to get your profits.

Note: This only works so fast for now, when crypto is that volatile and quick. The cycles are way faster in crypto than in traditional markets. If this settles down in the future, you have to adapt accordingly.

Pro’s and Con’s

Pro:

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  • Pretty easy, you do nothing most of the time
  • More time for other stuff
  • Price movements and volatility short-term don’t bother you
  • Almost guaranteed profits, since the overall trend is always up
  • Pretty low risk

Contra:

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  • Very slow, patience is key
  • If you bet on the wrong horse, you likely won’t notice and can’t act in time (like selling at small losses)
  • Fewer profits than a good (!) Daytrader or Swing-Trader
  • Takes a lot of research skills

If this is all too slow or not enough profits in time, the Investor is not your archetype. You might want to check out the Swing-Trader then.

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