{"id":8859,"date":"2022-08-04T20:22:11","date_gmt":"2022-08-04T14:52:11","guid":{"rendered":"https:\/\/aayushbhaskar.com\/?p=8859"},"modified":"2022-08-04T20:22:11","modified_gmt":"2022-08-04T14:52:11","slug":"wazirx-or-mudrex","status":"publish","type":"post","link":"https:\/\/aayushbhaskar.com\/wazirx-or-mudrex\/","title":{"rendered":"WazirX or Mudrex – What’s the Difference?","gt_translate_keys":[{"key":"rendered","format":"text"}]},"content":{"rendered":"

On my socials, someone always asks a question which really irks me! <\/span><\/p>\n

Now I am not the type who discourages being asked questions, but what is irritating is when people don’t ask the right questions or when people don’t realize that they are comparing apples and oranges.\u00a0<\/span><\/p>\n

One such question is whether WazirX<\/a> is better or Mudrex<\/a>?\u00a0<\/span><\/p>\n

Why is this question irritating? Well, they are two different products meant for two completely different investor types!\u00a0<\/span><\/p>\n

The real question you should ask yourself is what kind of investor you are. If you know the answer to this, you will know which one is best for you.\u00a0<\/span><\/p>\n

So, this post is going to help you understand just that. We will take WazirX & Mudrex as a case study and try to help you explore what is best for you by understanding what kind of investor you are.\u00a0<\/span><\/p>\n

Let’s go then!\u00a0<\/span><\/p>\n

1. Investor Types<\/b><\/h2>\n

The field of behavioral finance has come up with various models to classify investor types. One such model is the Pompian behavioral model developed in 2008. This model classifies investors into four behavioral types.\u00a0<\/span><\/p>\n

1.1. Passive Preservers<\/b><\/h3>\n

A passive preserver has a low-risk tolerance & depicts a conservative investment<\/a> style. Generally, investors in this category are loss averse, meaning they will try to preserve their capital’s value.\u00a0<\/span><\/p>\n

1.2. Friendly Followers<\/b><\/h3>\n

A friendly follower also has low-risk tolerance & depicts a conservative investment style. However, the degree of their low-risk tolerance and conservatism is higher than that of Passive Preservers. <\/span><\/p>\n

Generally, this category of investors is regret averse, meaning they don’t like to make decisions for fear of them turning out wrong. Hence, they like to stay with familiar investments.\u00a0<\/span><\/p>\n

1.3. Independent Individualist<\/b> \u00a0<\/span><\/h3>\n

An independent individualist has moderate risk tolerance & depicts a more aggressive investment style when compared with Passive Preservers & Friendly Followers.<\/span><\/p>\n

Generally, this category of investors is overconfident, meaning that they believe in their own abilities & more likely to risk their capital.\u00a0<\/span><\/p>\n

1.4 Active Accumulators<\/b> \u00a0<\/span><\/h3>\n

An active accumulator has high-risk tolerance & depicts a very aggressive investment style when compared with the others. <\/span><\/p>\n

Generally, this category of investors is extremely overconfident, meaning that they have a very high belief in their abilities & lack self-control, which implies that they are likely to take major risks.\u00a0<\/span><\/p>\n

2. WazirX<\/b><\/h2>\n

\"WazirX<\/p>\n

2.1. Introduction<\/b><\/h3>\n

WazirX<\/a> is a centralized cryptocurrency exchange (CEX). It allows its users to buy and sell various cryptocurrencies and provides charting tools within its trading application to make informed choices.\u00a0<\/span><\/p>\n

They have automation strategies available too, whereby you can create your own trading bot. This API-based connectivity feature will allow you to set rules for investment. <\/span><\/p>\n

However, you will remain responsible for picking the coins and trading decisions you want to invest in.\u00a0<\/span><\/p>\n

2.2. Target Market & Advertising\u00a0<\/b><\/h3>\n

The WazirX target market is retail investors who look for the \u201cstock market\u201d feel of trading. The assumption here is that investors are the best judge as to what to invest in and are comfortable in making timing decisions for entry and exit. <\/span><\/p>\n

In other words, the platform itself expresses no opinion on the investment process and merely facilitates the exchange.\u00a0<\/span><\/p>\n

The advertising reflects the above in its content and tone. This is a place where dreams come true, and it is so easy that anyone can do it. Audere est Facere is the French expression that describes this appropriately. It is translated as “to dare is to do”.\u00a0<\/span><\/p>\n

The target market, hence, is the more daring types of investors with high-risk tolerance & a penchant for doing their own research. <\/span><\/p>\n

3. Mudrex\u00a0<\/b><\/h2>\n

\"WazirX<\/p>\n

3.1. Introduction\u00a0<\/b><\/h3>\n

Mudrex<\/a> is an automated investment strategy provider for crypto. In layman’s terms, they offer curated investment products that you can choose from depending on your risk profile.\u00a0<\/span><\/p>\n

Mudrex offers four broad products:\u00a0<\/span><\/p>\n