You can figure it out by reading this post. To help you understand what will work best for you as an investor, we use the case studies of WazirX and Mudrex.
So let’s go!
Financial kind
Different models have been created in the behavioural finance sector to categorize different sorts of investors. The Pompeian behavioural model, created in 2008, is one such example. This model divides investor behaviour into four categories.
A non-keeper
Passive keepers have a low threshold for risk and adopt a prudent approach to investing. Investors in this group typically steer clear of losses. In other words, it strives to maintain the capital’s worth.
Positive supporters
An approachable following suggests a prudent investment approach and a low-risk tolerance. However, they take more risks and are more conservative than passive keepers.
This type of investor detests introspection in general. In other words, they avoid making decisions out of fear of being proven wrong. Consequently, people favour sticking with the systems they are already comfortable with.
Autonomous individualist
In contrast to passive keepers and friendly followers, independent individualists exhibit a more active investment approach and moderate risk tolerance. Investors who fall under this category tend to be arrogant, confident in their abilities, and more willing to risk their money.
Battery with active storage
Comparatively speaking to other accumulators, active accumulators have a higher risk tolerance and a more aggressive investment approach.
Investors who fall into this group are typically overconfident, lack self-control, and have a very high level of faith in their talents. As a result, they are more inclined to take significant risks.
WazirX
Foreword
A centralized cryptocurrency exchange is WazirX. (CEX). Users can purchase and sell different cryptocurrencies, and the trading application includes graphing tools to aid decision-making.
You can even develop your trading bot using automation techniques. You can set investment rules using this connectivity option based on an API.
You are still in charge of the currencies you decide to invest in and the trades you make. Advertisement and the target market
Retail investors want a “stock market” trading experience to making up WazirX’s target market. The idea behind this is that investors may choose what to invest in and feel secure choosing when to enter and exit a position.
In other words, the platform makes the transaction possible; it does not take a position in the investment process.
The tone and content of advertisements reflect those mentioned above. It’s a location where everyone may effortlessly realize their ambitions. The French saying “Audere est Facer” perfectly captures this. It means “doing something brave” in the translation. Therefore, our target market is the more adventurous investor with a high-risk tolerance and a propensity for an independent investigation.
Mudrex
Foreword
Automated investment solutions for cryptocurrency are offered by Mudrex. Simply put, we provide a carefully curated variety of investment products from which you can choose according to your risk tolerance.
Mudrex provides the following four types of products:
- A coin set is a collection of cryptocurrencies that have been selected to represent a specific topic. These coin sets are an investment in your ideas.
- A trio of his products collectively referred to as Mudrex Mints, follow a mutual fund formula. As a result, mudrex traders struggle with money management while earning passive income as investors.
- The Mudrex Algosare trading bot, powered by technical analysis, is available to traders on the Mudrex platform. Since our automatic investments come with various techniques, there is no need to learn TA or find time to trade actively.
- An interest rate account is comparable to a bank savings account, except that it is deemed low risk and pays an interest rate of 14% annually.
Advertisement and the target market
Individual investors are Mudrex’s primary audience; however, unlike WazirX, Mudrex also offers commentary on the investment process. The fundamental tenet of their product line is that expertly planned and managed automated strategies are preferable to self-managed ones for individual investors.
The tone and content of the ad should match the one above. Other than being labelled a foolish investor, other excuses are given for why you lack the time or expertise necessary to trade your account.
Not to dare risk financial loss is the message. So instead, unwind and let us handle it.
Therefore, a more risk-averse investor with a limited tolerance for risk and a lack of interest in doing their research makes up our target market. So what’s ideal for me? You may believe that.
After reducing both services to their bare minimum, consider the following questions.
- How at ease are you with financial loss?
- Are you at ease doing research and experimenting with new things?
- Do you feel confident in your abilities and knowledge?
- How well-versed in crypto would you say you are?
- How much time a day can you dedicate to trading?
- Do you ever second-guess your choices?
- Do you follow other people’s investment advice or strike out on your own?
You can identify as one of four behavioral investors based on your responses to the above mentioned questions.
Mudrex suits those who are friendly followers or passive keepers. This is because you can overcome behavioral flaws that hold you back by giving the investment process to someone more informed and experienced than you are.
WazirX covers you whether you’re an independent individualist or an active saver. This allows you to exhibit your behavioral characteristics without growing weary of passive inertia and losing control.
last thoughts
A line from the cartoon movie Ratatouille goes, “A good cook can come from anywhere, but not everyone can be a good cook.”
The movie depicts the completely odd (and in some ways adorable) process by which a mouse is named the best chef in France!
The point is, asking yourself a series of questions is not enough. Like chefs, good traders can come from anywhere, and experimentation will tell you if you have what you need.
If you lack self-control despite all your knowledge and skill, then there’s nothing wrong with automated strategies.
Finding the right one for you is a journey. You can’t reach your full potential without experimenting.