When it comes to adopting new and emerging tech, I think there are four kinds of consumers in every conversation. Early Adopters, Pragmatists, Neophiles and Laggards.

Which One Are You?

After reading this Medium article by Stephanie Buck on the Diffusion of Innovations, I started thinking about behaviours I've noticed in Crypto investors and skeptics. Here's my theory.

Two factors influence consumer behaviours and determine which of these four categories you fall under.

FUD/FOMO and risk-tolerance.

• Early Adopters - These guys are usually knowledgeable and deeply curious about the projects they follow. This allows them to avoid the pitfalls of FOMO and accept a higher level of risk than most. Although they get burned often, they're an excellent resource for developer feedback and news on projects you've probably never heard of.

• Neophiles - These guys can look a lot like early adopters. They happily throw money at new, shiny toys and are perfectly satisfied with a general description of why something is worth having. They're trendsetters. They bounce around from project to project and are vulnerable to getting burned by FOMO. However, they're instrumental in testing and recommending products to Pragmatists and Laggards because their reviews are often candid, accessible and enthusiastic.

• Pragmatists - These guys have a very low-risk tolerance and like to learn as much as possible before making a purchase. However, once a Pragmatist is on board, it's a safe bet you're looking at a successful project. They have a strong 'bang-for-your-buck' mindset that makes it unlikely they'll get swept up in FOMO, and they're much more likely to get on board once the buy-in is less prohibitive.

• Laggards -  These guys. Laggards have a difficult time embracing change and often have to be dragged kicking and screaming into the 21st century. However, they serve a useful purpose in tech adoption. Their extreme FUD helps temper enthusiasm around a hyped-up project, allowing starry-eyed investors to pause and review the pros and cons. They also tend to be low-income, so once they finally come around, you know your project has reached a happy medium where it's reasonably priced and widely available.

Knowing your level of risk tolerance is an essential part of making successful investments. This is why I think it can be beneficial to know what kind of consumer you are.

Why It Matters

Early Adopters tend to be slightly elitist, especially when it comes to Laggards and Neophiles. These two types of consumers are generally under-informed and don't share the Early Adopter's passion for the tech, which can be infuriating.

However, understanding Neophiles' essential role in promoting new technology can help ensure an early adopters' favourite projects get the hype they need to succeed.

Likewise, pragmatists signal to early adopters that a project is reaching peak popularity as they are generally a part of the 'late majority.' If you're trying to sell off an investment, pragmatists are your lucky charm.

While laggards are unlikely to become millionaires, they still benefit from innovations and usually pay the least for tech. So, if you're looking at a project that's finally managed to pull in the stragglers, that's a key indicator that it may be time to ask your favourite early adopter what new and exciting projects they've been following.

And to keep an eye on projects that might improve upon or replace an already successful project laggards have latched onto.

✌️But that's just my theory. What do you think?