Discover the stages every crypto investor journeys through—from skeptic to savvy Voyager—to master the digital currency world.
Cryptocurrency isn’t just about money or coins—it’s a transformative journey. Behind every trader’s screen lies a personal evolution, moving through distinct stages of understanding, risk tolerance, and engagement with the crypto ecosystem. Whether you’re brand new or halfway there, knowing these seven layers helps you navigate crypto with confidence, avoid common pitfalls, and build real digital wealth. In this guide, you’ll learn about each level, from the skeptical no coiner to the adventurous DGEN, and how blockchain technology ties it all together.
Level 1: The No Coiner – The Skeptical Observer
Everyone starts somewhere. For many, the journey begins as a no coiner—someone who hasn’t yet invested in crypto and might dismiss Bitcoin or Ethereum as scams or fads. This skepticism stems from lifelong trust in traditional banks and institutions, which we now see faltering.
Investor takeaway:
Low trust in traditional finance often sparks curiosity. Watch for when you start questioning old assumptions, as this signals a potential move toward crypto engagement.
Level 2: The Newbie – Taking the First Steps
Newbies take that first leap by opening accounts on centralized exchanges like Coinbase, Binance, or Kraken. These platforms resemble traditional banking or stock trading, offering an easy entry point. However, centralized exchanges (CEXs) hold users’ private keys, meaning you don’t fully control your crypto. Withdrawals can be delayed; some accounts get frozen.
Investor takeaway:
Understand that owning crypto through a CEX isn’t full ownership. This realization often drives investors to seek more control.
Level 3: The Hodler – Long-Term Mindset
“Hodling” began as a typo meaning “hold” but evolved into a long-term strategy: Hold On for Dear Life. Hodlers tune out daily price swings and focus on accumulating crypto over time.
One practical tool here is Dollar Cost Averaging (DCA)—investing a fixed amount regularly to reduce market timing risk.
Investor takeaway:
Hodling and DCA help build stress-free wealth, cutting through noisy hype that can derail beginners.
Level 4: The Voyager – Onchain Navigator
Now it gets technical. Voyagers operate directly on blockchain networks instead of relying on centralized platforms. This means:
- Holding private keys in hardware wallets for security.
- Sending and receiving crypto onchain yourself.
- Using decentralized applications (dApps) for trading, swapping assets, buying NFTs, or earning yield through DeFi protocols.
Hardware wallets are physical devices securing your keys offline, greatly reducing hacking risk.
Data callout:
Onchain transaction volume hit over $1 trillion in recent years, showing growing mainstream use beyond simple trading.
Investor takeaway:
Mastering onchain activities elevates control and unlocks new opportunities beyond buying and holding.
Level 5: The DGEN – The High-Risk Meme Coin Gambler
The “Degen” (short for degenerate) thrives on meme coins, hype, and quick flips. Examples include Dogecoin and the notorious “Trumpcoin.” These assets rely heavily on internet sentiment and pop culture trends.
While some DGEN trades hit massive peaks (Dogecoin’s market cap peaked around $88 billion), this realm is highly volatile and speculative.
Investor takeaway:
Meme coin trading can be fun but risky—approach it as entertainment or collectibles, not your main investment.
Levels 6 and 7: (Preview)
The video transcript cuts off before describing these, but common advanced levels include:
- Level 6: The Trader — Focused on technical analysis and short-term movements.
- Level 7: The Builder or Innovator — Developing projects, contributing to blockchain infrastructure, or shaping crypto’s future.
What Is the Blockchain?
At the core of all this is the blockchain—a digital ledger recording every crypto transaction transparently and irreversibly. It guarantees that Bitcoin and Ethereum don’t just vanish, while a growing ecosystem of dApps and protocols expand what crypto can do.
What Could Go Wrong: Risks to Consider
- Centralization risks: Using centralized exchanges means trusting third parties with your funds.
- Volatility: Crypto prices often swing wildly; emotional investing is dangerous.
- Security: Losing private keys or falling for scams can mean permanent loss.
- Speculation traps: Meme coins and hype can burn you quickly. Always do thorough research.
- Regulatory uncertainty: Governments worldwide have diverse and evolving stances.
Answer Box: What Does “Hodling” Mean in Crypto?
Hodling means holding your cryptocurrency long-term without selling during market dips. It originated from a typo of “hold” and encourages investors to stay calm and accumulate over time, reducing the risk of reacting to short-term volatility.
Actionable Summary
- Start by questioning old financial assumptions; it’s a common first step in crypto adoption.
- Avoid total reliance on centralized exchanges—consider moving crypto to a hardware wallet for security.
- Use dollar-cost averaging to build wealth steadily while ignoring hype noise.
- Explore decentralized apps to broaden your crypto experience beyond simple trading.
- Treat meme coin speculation carefully, as it carries significant risk and volatility.
Step Up Your Crypto Game with Wolfy Wealth PRO
Ready to move beyond the basics? Wolfy Wealth PRO delivers timely market signals, deep research, optimized portfolios, and risk management rules designed for every crypto level. Get the full playbook for smarter investing and maximize your digital wealth journey with weekly PRO briefs.
FAQ
Q1: What is a hardware wallet and why do I need one?
A hardware wallet is a physical device that stores your private keys offline, protecting your crypto from hacks and theft. It's essential once you want full control over your assets beyond centralized exchanges.
Q2: How does Dollar Cost Averaging (DCA) reduce risk?
DCA spreads your investment over time by buying fixed amounts regularly. This reduces the chance you buy all at market highs, smoothing out volatility impacts.
Q3: Are meme coins a good way to make money?
Meme coins can spike quickly but are highly unpredictable and risky. They are better treated as entertainment or collectibles rather than primary investments.
Q4: What’s the difference between centralized and decentralized exchanges?
Centralized exchanges act like traditional platforms holding your keys, while decentralized exchanges let you trade directly on the blockchain, maintaining control of your keys.
Q5: What’s the “Voyager” level in crypto investing?
A Voyager actively navigates the blockchain using hardware wallets and decentralized apps, engaging in sending, swapping, staking, or collecting NFTs instead of just trading on exchanges.
Understanding these seven crypto layers gives you a roadmap to confident investing. Each step builds on the last, helping you move from cautious observer to a savvy participant in the digital economy. Keep learning, stay secure, and enjoy the journey.
By Wolfy Wealth - Empowering crypto investors since 2016
Subscribe to Wolfy Wealth PRO
Disclosure: Authors may be crypto investors mentioned in this newsletter. Wolfy Wealth Crypto newsletter, does not represent an offer to trade securities or other financial instruments. Our analyses, information and investment strategies are for informational purposes only, in order to spread knowledge about the crypto market. Any investments in variable income may cause partial or total loss of the capital used. Therefore, the recipient of this newsletter should always develop their own analyses and investment strategies. In addition, any investment decisions should be based on the investor's risk profile
