types of bitcoin investors

The 8 Types of Bitcoin Investors

Today, we look at the 8 different types of bitcoin investors and the psychology behind the minds of those who have and the ones who don’t.

Unlike gold, bitcoin is not something one grasps upon hearing it for the first time. This makes for an interesting case, because out of this comes a variety of investors, each with a different view and approach towards the bitcoin phenomenon. Some will find the time to understand it better, while the majority usually just skip the hurdles and jump right in.

In coming up with the following types of bitcoin investors, we realise that not everyone will fit into just one of the profiles below. In fact, most will often find themselves in more than one profile at the same time.

In describing the profile, you may notice that a few are not actually bitcoin investors, either because they have never bought any bitcoin, or they may no longer own any bitcoin today. Nevertheless, they are included here, because it describes their thoughts and approach towards bitcoin as an investment.

We will start our list with these profiles first, and work our way down towards the true blue types of bitcoin investors. We assume the male gender in the descriptions below, but it applies of course to females as well.

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8 Types of Bitcoin Investors

The Skeptic

bitcoin skeptic

The Skeptic may have heard about bitcoin many years ago, but has not been able to wrap his head around the idea of decentralised digital money.

He thinks bitcoin could be a huge Ponzi scam, and that the Greater Fool Theory applies. That is, he believes that bitcoin is only worth what another fool is willing to pay for it in the future. He may trust in the paper dollar and other hard currencies, and his motto is “If you can’t hold it, it is not real”.

Some Skeptics eventually become Converts but usually find it difficult to move to Bitcoin Maximalist status. The Skeptic is also often a precious metals guy, be it gold, silver or platinum.

He has a strong disdain for bitcoin either out of sheer ignorance, or a deep-seated concern that bitcoin would rob and divert the market cap and other’s attention away from the precious commodity he has a huge stake in. The only Proof of Stake that matters to him is the intensity of warm yellow glitter in his private vault.

He may ultimately own some bitcoin, but only in minute quantities as insurance.


The Dollar Man

bitcoin haters

The Dollar Man has faith in the dollar and in any of the other strong fiat currencies as well. He sees no reason for anyone to pay attention to another form of money, whether it is bitcoin or gold, even though he understands what they are.

Even at times when it seems that the fiat currency experiment is coming to an end, he sees no reason to fear and that markets will ultimately rebound, as they always have in his lifetime.

He knows that the dollar had been taken off the gold standard and is aware of the depreciating value of the dollar, but dismiss that simply as inflation, a natural occurrence.

The Dollar Man is often a part of the machination of the financial world, helping the elites to get richer through the financial system we are all familiar with, and either out of ignorance or disinterest, he doesn’t care about the ill effects of wanton quantitative easing, fractional reserve banking, or wealth disparity.

Like the Skeptic, the Dollar Man could own some bitcoin in small quantities too, as a “just in case”.


The Trader

cryptocurrency trader

The Trader trades part-time or full-time in stocks, options or forex, and saw the volatility in cryptocurrency markets as a plus to make huge gains.

He enters the cryptocurrency market without a basic knowledge of how they work, only to quickly realise that cryptocurrencies behave like a beast he had never encountered in his years of trading.

The Trader makes the occasional big gains, only to later see huge losses elsewhere that supersede his gains.

Nevertheless, he soldiers on and believes his years of experience in trading, chart reading and technical analyses will eventually make him a trading god. Traders who ultimately don’t make it either become Bitcoin Maximalists or Surrenderer.


The Gambler

types of bitcoin investors

The Gambler doesn’t know much about bitcoin and cryptocurrencies, and sees only the up and down movements of bitcoin price.

He doesn’t understand fundamentals, charts and technical analysis (which separates him from the Trader), and reacts primarily on hype and FUDFear, uncertainty and doubt..

The Gambler buys bitcoin because his friends bought some, or he heard his neighbour talked about the taxi driver who bought some a few days ago, and as impulsive as it may be, he wants to get in on the action.

He enters the market without any study and with a chunk of money, and makes either huge gains or huge losses. Depending on the path he chooses next, the Gambler ultimately becomes a Trader, a Bitcoin Maximalist, or a Surrenderer.


The Surrenderer

types of bitcoin investors

The Surrenderer, as the name implies, is one who has given up on the idea of bitcoin and cryptocurrencies in general.

He may or may not have been a strong advocate of bitcoin at one time, but due to repeated bad experience, he has decided to relinquish all his holdings in bitcoin and never to touch it again.

Bad experience could include losses in trading, scams, hacks, forgotten wallet passwords, or simply out of fear due to loss of capital gains due to high entry price and prolonged bear market after a crash.

The Surrenderer may revisit the idea of bitcoin later, probably when it goes into mainstream adoption.


The Convert

types of bitcoin investors

The Convert is well-versed in the principles of money and how the global economy works.

He started as an investor of hard assets, whether it is real estate, precious metals or any of the other physical commodities. Due to his astute investing nature, he may have some exposure in stocks as well.

He may have only discovered bitcoin fairly recently, or heard about bitcoin a long time ago and was a little skeptical, but yet still kept one eye on the mother of all cryptocurrencies.

The concept of decentralised digital asset and blockchain is like a revelation when it becomes clear to him, and he decides to have a not-so-small stake in bitcoin and maybe even in a few other top altcoins.


The Technologist

types of bitcoin investors

The Technologist has a strong grasp and deep understanding of the concept of bitcoin, cryptocurrencies and blockchain and has no qualms about placing a sizeable portion of his investible funds into bitcoin and a number of other potentially promising altcoins.

His faith in bitcoin is never shaken even in an extended bear market, and he trusts in the security of decentralisation and the distributed ledger. With the ubiquity of smartphones and the internet, he believes that bitcoin and cryptocurrencies will open up the global economy to the unbanked population of the world.

Some Technologists ultimately become Bitcoin Maximalists. Others capture the idea of good new crypto projects easily and quickly and see the potential in becoming an early adopter in new ventures, and diversify some of their bitcoin or fresh funds into altcoins.


The Bitcoin Maximalist

types of bitcoin investors

The Bitcoin Maximalist is the ultimate bitcoin investor and sees bitcoin as one of the most important phenomenon ever to be invented by man, perhaps only second to the Internet. The wheel and sliced bread don’t even come close.

Some Bitcoin Maximalists postulate that blockchain technology even trumps the Internet, if not already then sometime in the near future.

The Bitcoin Maximalist has most of his investible funds in bitcoin, and may even go to the extent of refinancing his own property to have a higher stake in bitcoin. Some people may ridicule him for his kamikaze approach towards bitcoin investing, but in his mind, he believes he will have the last laugh when bitcoin reaches $100,000 or $1 million.

The Bitcoin Maximalist believes in HODLing for the long term and sees little to no appeal in any of the other few thousand altcoins.


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Right off the bat, we are able to relate a few key figures to some of the profiles above. Robert Kiyosaki and Mike Maloney are Converts, while Andreas Antonopoulos is a Technologist and Max Keiser is a Bitcoin Maximalist. Can you think of one Skeptic?

We are sure there are other possible types of bitcoin investors. Do you know which you belong to or do you have any to add? Do you have other key figures in mind and which profiles they belong to? Let us know in the comment section below.

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Ledger Nano X - The secure hardware wallet
Ledger Nano X - The secure hardware wallet