The word ‘cryptocurrency’ does not frighten the majority of us anymore and a greater number of people are getting involved into investing crypto.
At first glance it might seem that only whales are able to play a venturous crypto game for whom losing a couple of Bitcoins won’t spoil the whole financial image.
However, in reality it is quite diverse. Even possessing a little money you can try investing crypto and time will show whether this is positive experience or useful. In this article, we will have a closer look at the categories of people who are already a part of the digital world.
You might think that there is a spelling mistake, but actually, it is all correct. The word ‘hodler’ was created in 2013 because of misspelling of the word ‘holding’ on one of Bitcoin chat forums.
Today when talking about ‘buy and hold’ strategy this word is commonly used. Crypto investors who buy and hold their digital assets regardless of price are called hodlers.
These are true believers of Bitcoin’s potential. They cover a prominent part of owned Bitcoin and stay invested and confident in the long-term value of crypto.
Generations Y and Z were born at the times of digital evolution. During their lifetime, the last innovations do not have such precautious effects on them in comparison to the fears of the previous generation.
Therefore, these younger generations are open to new ideas and innovative ways of earning money. Enthusiasts are no longer looking for complicated ways to gain the highest financial ambitions.
Earning rewards, investing crypto by little funds, using crypto faucets, writing programs, venturing and learning. These are only some of the principles distinctive for these two generations.
Not long ago financial experts would exclaim a sort of ‘bubble theory’ addressing to Bitcoin. However, today they tend to believe to the concept of Bitcoin and cryptocurrencies.
The Fidelity Global Institutional Investor Survey reveals the following numbers: as of 2019, 47% of institutional investor had an ‘overwhelmingly favourable’ opinion of cryptocurrencies.
Experts forecast more institutional investment in Bitcoin and other cryptocurrencies this year. They assume that some whales and retail investors might exit, but institutional investors will keep on entering the crypto market.
It is not easy to make money by investing crypto, and it is not the matter of good luck. The knowledge of the whole system, its analysis and rich experience can make it profitable. These features belong to professional traders.
What’s important for them is volatility that increase their chances of profit and, certainly, for loss as well. Traders use the classification of two groups: day traders and swing traders. The first type of trading is characterized by the act of buying and selling crypto within the same day.
Swing trading is based on identifying swings in stocks and cryptocurrencies taking place over a period of days. Both types require knowledge of the crypto subject.
Retail investors regard crypto assets as alternatives to stocks. This is a group of people who are eager to expend their portfolio with Bitcoin.
This interest is quite prominent for the crypto world as it helps to support the development of various mobile applications, projects and platform. The last ones make it easier to complete any operation of the digital assets.
The increasing number of retail crypto investors boost Bitcoin popularity and enhance interest in cryptocurrencies.