There are many types of people who are trying to enter the crypto world: gamblers, traders and investors. They’re all very different with different goals. It can be confusing to know the difference between these three, so you need to understand what they want out of the coins they buy and hold. The first step in taking your cryptocurrency journey to the next level is figuring out what type of crypto investor you are.
The crypto trader is a speculator, looking to make a short to medium-term profit. Their goal is not necessarily to hold onto their investment for any particular length of time, but instead simply to make as much money as possible. Sometimes this might mean going into and out of an investment within hours or days. They may often use technical analysis, relying on tools such as scanners and charts that tell them when a coin has “hit bottom” or is “oversold” so that they can quickly buy-in.
Everybody and his dog talk about crypto trading and it’s no secret - the crypto media is dominated by ‘Trading Language’. It goes back to the early days where traders pioneered the markets and drove its popularity. While the public has caught on to crypto as retail investors, this ‘Trader language’ remains and is hard to decipher, often, with little or no context.
I have met many people who are crypto enthusiasts identifying themselves as traders. They have spent time on charts looking at ups and downs of the market waiting for buy or sell. Talking about the movements and potential of many different coins.
Spoiler Alert. In reality, 99% of traders probably lose money. And 99% of day-traders always lose their money and do not make a profit. Not because they don’t understand how to trade or how to read price charts – in my experience, more than 95% of traders lack the required discipline to consistently place trades according to a set of rules. Whether it's crypto, CFDs, FX, or shares. In short, it takes tremendous skill and knowledge to enter this arena successfully and is definitely not an avenue for the faint-hearted.
Be a long-term investor. Not a gambler.
Everyone else who falls outside of the definition of trader, including everyone in Dacxi is either a crypto-gambler or crypto-investor.
Crypto-Gamblers: The Crypto-Gambler has more in common with roulette players than they do with an investor. Crypto gamblers think of cryptocurrency simply as a lottery ticket that pays out in quickly increasing amounts. They don’t invest for the long term so don’t care about fundamentals or technology. They buy crypto because they want to have a lucky bet and get rich-quickly. They are not really into learning about this space and so have no confidence in the future. Crypto Gamblers will:
1. Usually only buy a small amount of crypto because it’s a bet and not an investment.
2. Worry about when they can sell because they have a short-term mentality due to no understanding of a sensible price future.
3. Worry endlessly about the price they are buying in at.
Crypto Investors buy and hold their crypto to build their wealth. They do not treat crypto as a lottery; they treat it as a serious component of a diversified portfolio to build long term wealth. At Dacxi, we believe that cryptocurrencies have the power to transform personal prosperity through a solid, educated and long-term approach. We are creating a community where everyone can learn while also focusing on delivering a seamless investing experience. We are a work in progress, but we are getting there!
Last word for Dacxi Crypto Investors
There is one mindset however I would like to cover for Crypto Investors that I find is a common problem I encounter daily, and that is of people worrying about what price they are buying in at. (like crypto-gamblers)
We get a fair amount of email from people regarding the ability to be able to ‘buy now’ in so far as people deposit funds and panic if their deposit is not credited immediately.
Apart from the fact we obviously would like deposits to go through as soon as possible. I also understand that sometimes these issues are down to the banking systems. But people being human panic. The FOMO (Fear OF Missing Out) is unleashed! They think if they don’t buy now, they will miss out on the big price rise.
Customers see a coin price rocket to $35,000 and panic buy. They send the deposit. They see the price going to $37,000 and then the consternation sets in. “I deposited my cash at midnight Saturday night, and I needed to trade on Sunday!”
In reality, the following few days usually plays out like this …..
On Monday the coin price is $38,000.
Until on Wednesday, and the coin price is back down at $32,000.
By Friday, its back at $35,000.
Or maybe it’s $31,000.
Or maybe $40,000.
Focus on the trend rather than timing the market
KEY LESSON – It’s easy to panic buy. With cryptocurrency reaching new highs or lows every day, it can seem like a natural reaction. But be careful – if you panic buy, there is a 50% chance you will be wrong. “No-one has any idea where the price will go in the short term.” Which can sometimes make for some difficult decisions.
At the end of the day, you must always buy for the trend (where the underlying business is going) and not worry about your buying price today because you have no idea whether you are buying early or late. This is why it is better to focus on ‘buying for the trend’ rather than on timing the market.
We started Dacxi to help people capture a path to prosperity that focuses on a long-term view, in order to maximise your wealth-building potential. We've always been about taking a measured and long term approach to the cryptocurrency market. We feel it's better backing 10 horses than 100 long shots. Hence our tightly curated Blue-Chip Bundle. It works.
With Dacxi, you ‘buy now’ because you agree with us that the crypto market has a lot more potential and huge milage. You are buying the Blue-Chip coins because that is what the institutions are buying. The institutional activity alone precipitates high transaction volume, liquidity and reputability and that’s the only credible analysis that matters. Everything else is noise.
I cannot emphasize how important this one concept of buying for the trend is. It is one of the fundamentals of wealth building and it is key if you want to sleep well at night and not worry about whether you bought at the right price.
Today is the right price for you. You know this because it's the right price for you based on what you know today.
So cut through the noise, the panic buying, and piggyback on industry and global long-term trends that you know will compound your gains over time. In short, keep calm and crypto on. We are still at the beginning of this crypto boom and the path to a more prosperous life lies just ahead
Rock n roll