Is Cryptocurrency Right for You? 5 Questions to Evaluate Your Investment Style

Question 1: What’s your first reaction when your assets shrink?

Scenario: You invest NT$1,000,000 in a cryptocurrency you’re optimistic about. One month later, due to a market panic, your asset drops 40%, leaving only NT$600,000 on paper. You would:

(A) See it as a golden buying opportunity: You believe in the asset’s long-term value and treat the dip as a “discount sale.” You decide to invest more to lower your average cost.

(B) Stay calm and do nothing: You’re uneasy but stick to your original investment plan, trusting the market will eventually recover. You begin to re-evaluate the fundamentals.

(C) Sell a portion: You’re anxious and afraid of further losses, so you sell half to reduce risk and keep some cash.

(D) Panic and sell everything: You’re terrified, convinced it’s a scam or bubble. You just want out and to retrieve what’s left.

Investment Style Analysis:

(A) HODLer / Value Investor – Extremely high risk tolerance and strong conviction. Suitable for long-term holding strategies. You spot opportunities during market fear.

(B) Strategic Investor – Good emotional control and a set plan. You may be a long-term holder or swing trader, but you don’t make impulsive decisions.

(C) Risk-Averse Investor – Sensitive to risk. If you’re entering volatile assets like crypto, consider conservative allocations to reduce pressure.

(D) Extremely Risk-Averse Investor – Crypto’s high volatility may not suit your personality. Emotional reactions to price swings can lead to poor decisions. Start with traditional, stable financial products.

Question 2: How soon do you expect investment returns?

Scenario: When you invest in crypto, your expectation is:

(A) 5+ years, for retirement or long-term wealth: It’s spare money you won’t need soon, aiming to capture the industry’s long-term growth.

(B) 1–3 years, for mid-term goals: You aim to double your assets through several market cycles—for a house down payment or startup fund.

(C) A few weeks to months: You follow market trends and aim to profit from short-term price swings.

(D) A few days or even hours: You enjoy day trading and seek profits in fast-moving markets.

Investment Style Analysis:

(A) Long-Term Value Investor (HODLer) – Long time horizon. You ignore short-term noise and focus on fundamentals.

(B) Trend/Swing Trader – Combine long-term vision with mid-term strategies. Willing to take moderate risks for higher returns.

(C) Short-Term Trader – Requires heavy time investment in research and technical analysis. High stress, potentially high reward.

(D) Day Trader – Highest risk and difficulty. Requires top-tier analytical skills, strict discipline, and emotional strength. Most people lose money in this style.

‍

Question 3: How much time are you willing to spend learning?

Scenario: Crypto is a fast-evolving space full of new concepts (e.g., Layer 2, RWA, DePIN). You would:

(A) Spend 5+ hours weekly learning: You enjoy tech, read whitepapers, track project updates, understand tokenomics, and try new DeFi protocols.

(B) Spend 1–2 hours weekly on news and analysis: Focused on macro trends and major tokens. Less interested in deep tech but stay informed.

(C) Only research before buying: You rely on friends’ recommendations or trending news and do quick checks before investing.

(D) Don’t want to study at all: You just want someone to tell you what to buy and when to sell.

Investment Style Analysis:

(A) Expert Investor – Has the key traits for success in crypto. Research helps you discover high-potential early-stage projects and avoid traps.

(B) Balanced Investor – Prefer mainstream assets like Bitcoin or Ethereum. Willing to learn but prefer a passive strategy.

(C) FOMO Follower – High-risk approach, vulnerable to information asymmetry. You may buy high (FOMO) and sell low (FUD).

(D) Gambler – Investing without research is gambling. Strongly advised to learn before putting money in.

Question 4: What is your main investment goal?

Scenario: Think about your financial roadmap over the next 5–10 years. What’s your top financial priority?

(A) Capital preservation and stable cash flow: You want to protect your principal and generate predictable passive income (e.g., rent or dividends).

(B) Long-term stable growth: You want your wealth to grow steadily above inflation for retirement or education funds.

(C) High returns under manageable risk: You already have core assets (like real estate or index funds) and now seek to invest 5–10% into higher-risk assets to accelerate growth.

(D) Transformational wealth growth: You’re aiming for life-changing gains and are willing to risk losing most or all of your capital to pursue it.

Investment Style Analysis:

(A) Conservative Investor – Focuses on safety and income. Prefers low-volatility, predictable instruments.

(B) Moderate Growth Investor – Focuses on long-term asset accumulation with diversification and discipline.

(C) Aggressive/Growth Investor – Has a stable foundation and financial awareness. Willing to explore crypto as a small portion of the portfolio.

(D) High-Risk Speculator – Chases high-reward opportunities. Must manage emotions and capital carefully to avoid over-speculation.

Question 5: What do you do when you profit?

Scenario: Congrats! A small altcoin you bought tripled in a month. Looking at your unrealized profits, you:

(A) Sell your principal, let the gains ride: You follow a “zero cost” strategy—take back your initial investment and let profits grow stress-free.

(B) Follow your plan, take profits in stages: You had target prices from the start (e.g., sell 20% every +50%) and now execute the plan.

(C) Hold on, hoping for 10x more: Everyone’s bullish, and selling now feels like a waste. You decide to keep holding.

(D) Sell everything, lock in gains: Excited but nervous, you’re afraid profits might vanish, so you immediately cash out.

Note: “Altcoins” refer to all cryptocurrencies other than Bitcoin. They can offer high returns but also come with extreme risks. It’s best to allocate only a small portion of your crypto portfolio to altcoins.

Investment Style Analysis:

(A) Smart Risk Manager – Balances risk and reward. A mature and strategic approach.

(B) Disciplined Trader – Has a clear exit strategy and sticks to it. Marks of a professional investor.

(C) Greedy Dreamer – May win big in bull markets but often loses everything in a reversal. Lack of an exit plan is a rookie mistake.

(D) Conservative Profiteer – Locking profits is never bad, but being too cautious may miss the biggest gains.

‍

After answering these 5 questions, you should have a clearer understanding of your investment personality.

If you mostly chose (A) or (B): You likely have the mindset and discipline for crypto investing. Consider becoming a HODLer or strategic investor.

If you picked some (C) answers: Watch out for emotional decisions and impulsive trades. Start with small amounts and set clear entry/exit rules.

If most of your answers were (D) or your goal is to “get rich quick” : Be extremely cautious. Crypto assets are highly volatile and uncertain. Only allocate money you can afford to lose, and treat crypto as a high-risk experiment—not a core financial strategy.

🚀 Ready to get started? Register with ZONE Wallet today and invest with peace of mind!

[download-app]

ZONE Wallet

ZONE Wallet is a blockchain investment gateway designed for Taiwanese users. It combines full regulatory compliance, cutting-edge security, and TWD transaction support, with a mission of making “every crypto transaction safe and secure.” Start building your crypto portfolio with ease—today.Investing in virtual assets carries risks related to price volatility and liquidity. The above content is for reference only and does not constitute any financial advice. Please carefully assess your financial situation before investing and be cautious of potential fraud.

‍