Which type of investor are you?
Heavy price fluctuations are almost a daily occurrence when trading in cryptocurrencies. However, every person reacts a bit differently to a cryptocurrency slump: some panic and sell, others hesitate to make their decision, and then there are others who dive in to buy more!
The determined type
The determined type is not easily flustered, and especially not by small fluctuations in their favourite cryptocurrencies, Bitcoin and Ethereum. They calculate rising prices in both the short- and the long-term.
Recommendation: The determined type continues to invest in established cryptocurrencies, especially during comparatively low prices. They buy Bitcoin and Ethereum to fully maximise their profit potential.
The gambler is particularly happy when prices fall sharply. They see this as a huge opportunity to make big profits, so they often buy in situations like these. They analyse charts and anticipate trends in to find the best time to buy.
Recommendation: The gambler prefers cryptocurrencies that thrive in the shadow of Bitcoin and Ethereum. For the gambler, cryptocurrencies such as Ripple and Dash are an appealing proposition.
The cautious type
The cautious type is very careful. They react to small decreases by selling – due to fear of further price drops. If an attractive stock such as Bitcoin is low, then they hesitate to rebuy because they worry that the price could sink even lower.
Recommendation: Cautious investors should invest in crypto-funds. Through risk diversification, these funds build on a stable framework, with price fluctuations being more easily intercepted.
There is a suitable cryptocurrency and a suitable investment model for every type of investor, from the security-conscious to those geared towards jumping on opportunities. Nevertheless, it should be noted that cryptocurrencies may fluctuate greatly in prices and are therefore not suitable for all investors. Cryptocurrency trading is not subject to any EU regulatory framework. Your capital is at risk.