There are two kinds of people in the crypto world. There are people who are looking to ride the highs and make money speculating on different coins. And there are people who truly believe in  Bitcoin and the blockchain, and look forward to seeing a time when digital currencies replace dollars and euros for making transactions.

Each group behaves in different ways. In fact, they behave in opposite ways. When the price drops, speculators rush to sell. They worry that any fall could be the moment the bubble bursts so they offload much of their Bitcoins, and push the price down further. They also lose money.

For true believers those falls are an opportunity. They might not know what price Bitcoin will reach when it stabilizes, but they do expect it to last. They know that Bitcoin won't disappear so they buy when the price drops. When the coin rises again, they'll either be able to turn a profit or they'll know that they'll have saved money when they're ready to spend.

True believers also use Bitcoin. They don't just hodl. They look for ways to accept Bitcoins in their businesses. They use cryptocurrency payment APIs to add Bitcoin payments to their websites. Even if they convert the coins back to fiat as soon as they receive them to ensure stability, each payment is a thumbs-up for the future of Bitcoin.

And true believers look beyond the price of a cryptocurrency. They look at what it's for. Cryptocurrencies aren't created to make money for speculators. They're launched to support businesses or services. They provide a way for companies to track movements of money or goods. They're a tool for increasing security and reducing fraud. Speculators bought Ripple, pushing up its price and increasing demand for more purchases. But true believers understood that the bank transfers that Ripple was created to enable didn't need the cryptocurrency. They needed the blockchain infrastructure beneath it, but it was always possible for banks to make faster and cheaper international transfers using a blockchain without using Ripple. Those who understood how Ripple worked stayed away. Speculators who looked only at the candlesticks in the graph searched for patterns and made losses.

That means believing in Bitcoin and the blockchain won't just prepare you for a future in which digital currencies are regularly used across the Web. They'll also make you a better speculator. When you believe in cryptocurrencies, you want to know exactly what each coin does. When you can't wait for the day Bitcoin stabilizes and is universally accepted, you hold through the falls and buy in the dips. When you recognize what the blockchain will do for businesses, you look for ways to install it in your own business before your competitor does.

There are plenty of differences between cryptocurrency speculators and true Bitcoin believers but there's one that stands out the most: true believers are much better placed for the cryptocurrency revolution.

Published on: Apr 23, 2018
The opinions expressed here by Inc.com columnists are their own, not those of Inc.com.