Mindset archetypes in crypto world  

Image taken from movie "Wolf from wall street". All rights belong to movie owners.

Today I want to talk about mindset of crypto enthusiasts and to show you two major archetypes that I see in crypto world. I am not trying to categorize crypto enthusiasts and don’t say that it is even possible. Some people may even find my thoughts offensive, but just try to read it with an open mind. Maybe you will find this information useful.  

Any crypto investors is a human in the first place. Our mindset is always in movement. Literally any event, person, book and etc. affects us in some way. Through our life we develop our principles, skills and rules. From my point of you, one of the most critical factor when it comes to crypto is how we make our living. There are two main categories of people here: those who work for themselves and hired workers. I don’t want to say that any category is better than the other, but it looks like one gives you mindset more suitable for crypto world.  

People with business background  

I am not referencing rich people here. I’m talking about people who are running or tried to run own business. It doesn’t mean the business is successful and that these people earn more than an average doctor, engineer, driver and etc. I just want to point out that these people are all investors. They invest their money and time to their business and count only on themselves. They learn several important things that can help when investing in crypto projects. 

First of all it is understanding that nothing valuable is given for free. You have to work day and night to start a business from scratch. You won’t believe projects like BitConnect.  

Second is that invested money doesn’t return immediately. If your business returns your investments in 5 years, it is considered good, if it is 3 years, it is just great. So why would you expect that cryptocurrency will give you gains in less than 1 year, even knowing that this market is going faster than anything else? You don’t expect too much from crypto.  

Third is that people in business always work with a plan. It may be a good plan or a bad one, but it is still a plan. Business is not developed instantly. You do it step by step in many years. Why should you act differently in cryptocurrency? You can still buy some coin/token. See its price going down and then by more if you still believe in the project and nothing but price has changed (cost averaging strategy).  

You may say that all the above is an average skillset for crypto enthusiast and everyone knows this, but you will not be fully correct. This knowledge always comes at a price. For some people it is money lost due to mistakes, for some it is just time spent on reading/watching various sources on crypto. The point is that some people have already learnt this outside the crypto world. 

People with a very different mindset

Here I want to talk about a very large group of people: hired workers of any kind and students. It is not correct to try to find a common ground for such a heterogeneous group of people, but still from the point of our discussion we can do so. I consider myself to be a part of this group (I call this blog CryptoHumster after all).  

So how do we enter this market? We here about bitcoin from news, friends and etc. We try to google it, ask our friends to tell their story in crypto world. What do we find out? We see all these stories of success. We read about people who did 200x on bitcoin in couple years. We see predictions that the price of bitcoin (or some altcoins) will go up so fast that any penny of investment will make you rich. And the real problem is that we believe it. We start to think that we can earn a lot of money without an effort. We go forward without any plan or strategy and eventually fail. So what is wrong with our mindset? 

First of all we don’t understand that cryptocurrency is business in the first place. We don’t see a company behind a crypto project (with some exceptions of course). We don’t really understand the reasons why it can succeed or fail. It is far easier to listen to a youtube channel and invest hoping that you are lucky enough. We don’t understand that you can’t be really lucky enough. 

Second is that we believe in a fairy tales that someone was so lucky to be in the right place in the right time to start a business and become rich by chance. I saw a lot of people that think the Bill Gates was just a lucky guy with a good idea. They don’t see how hard he worked to build the company. It makes us believe that we can do the same. Find the right coin and become rich instantly. I don’t need to explain how much time you need to study the market and projects to make tis guess in the first place. 

So what do you think? Does your background matter? Please, share your thoughts in the comments.  

Disclaimer 

I’m not a financial of any kind. I encourage you to check all information yourself and make decision only based on your own opinion. 

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