A Quick Guide to Different Crypto Investing Styles

There are many different ways of investing in crypto aside from just trading. Furthermore, bear markets often provide more opportunities for profits at a later time.

Crypto fear, uncertainty, and doubt (FUD) are at their highest ever levels. Additionally, markets have crashed 70% from their all-time highs, and the media is awash with bad news.

However, that does not mean that there are no longer any crypto investment opportunities available. On June 11, crypto researcher and investor “The DeFi Edge” highlighted several styles of investing in crypto assets.

Crypto Investing Styles

These investors will go all-in on just one project or asset and berate its competitors. Bitcoin has the largest “tribe” of maximalists.

Seed Round Investors
These usually are venture capital companies or institutional investors. Moreover, they get access to early-stage projects at very low prices.

ICO/IDO Investing
This is the equivalent for retail investors. They can get access to tokens for projects before they are listed on exchanges.

Microcap Hunters
These investors seek big returns from low capitalization projects though it is very high risk.

Narrative Traders
This is an investment style that involves looking for a solid story to justify buying a certain token.

Fork Hunter
Waiting for hard forks or application launches on different chains is often profitable.

On-chain Analysts
These investors are looking for big token movements on-chain which could shift markets; essentially better traders.

New Listing Traders
Tokens often get a price boost when they’re listed on large exchanges such as Coinbase or Binance.

Airdrop Hunters
Hunters try to predict which platforms will airdrop to their users or launch a new token next.

These high-risk traders take advantage of differences in price and often use bots to do their trading.

DeFi and NFT Investing

Yield Farmers
This has become a very popular investing style that involves depositing collateral in DeFi pools for good yields.

NFT Flippers
Though not as successful as other methods, some investors make money buying and selling NFTs.

Passive Fund Investors
Investing in crypto index funds or a split portfolio is one style of making money in markets.

Value Investors
These usually institutional investors check things like price-to-earnings ratios to make their decisions.

Evil Influencers
Some unscrupulous players have built up enough of a following to move markets. They also use tactics like shilling or FUD to manipulate token prices to their advantage.

Technical Analysts
Using a wide array of technical indicators can help predict market movements. Furthermore, this technique is best for short-term trading and pattern prediction.

Day Traders
Short-term investors who use swing or scalp trading to take small profits from small trades. However, they rarely hold on to the crypto assets.

Finally, market sentiment also plays a big role in what style to adopt as does your personal situation.

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