Investor type
Newbie has no prior knowledge or experience with cryptocurrencies yet is eager to learn and invest. He is also vulnerable to hypes, not aware of potential risks. His initial success depends on the timing of the cycle when he gets to know cryptocurrencies. Crypto market usually lure newbies in the late phases of the bull cycle, when they can experience early success, but may face the downturn, losses and frustration when market tops out. Proper research and risk management though, should help survive turbulent periods and bring long-term success.
Newbie investor tends to follow hypes and narratives. SOL was the superstar coin during the 2021 bull cycle alongside memecoin SHIB. Newbie was exploring the market and decided to diversify his investment into every emerging trend. The most popular NFTs APE and metaverse app MANA are his bets in these spaces. Play-to-earn games got the traction lately with Axie Infinity as the most played one. Finally, he added CRV as an advanced and conservative AMM (automated market maker) to cover the DeFi part of the portfolio.
During the insane volatility throughout the bull market many new investors intrigued to invest in cryptocurrencies. FOMO caused by the huge green candles every day hardly leaves them enough time for proper investment decisions and they tend to invest in the most trending cryptocurrencies. He uses news websites and social media platforms as a source of information. DOGE and SHIB as a memecoins were the most shilled coins when he entered the market. Immense LUNA gains made him invest only to be left bag-holding after the crash. AVAX purchase turned out to be the best choice of his.
New participant of crypto market often does not even understand basic terms. That is the case of our Newbie who does not want to miss the train while he is exploring the market, so he decides to build his first portfolio from the biggest,the most popular and most stable cryptocurrencies. This way he can not expect the returns that are possible in low caps, but he is not exposed to the greater risk.