Methodology
THE CORE PREMISE
Most investment tools measure what you do — your portfolio, your returns, your risk exposure. CRTX measures why you do it. The thesis is simple: every repeated trading mistake has a psychological root. Before you can fix your strategy, you need to understand your decision-making architecture.
CRTX is built on one belief:
Self-awareness is the most underrated edge in crypto.
THE PSYCHOLOGICAL FOUNDATION
CRTX draws from three established frameworks in behavioral finance and personality psychology:
1. Myers-Briggs Type Indicator (MBTI)
The binary axis model — each axis has two poles, and your score places you somewhere on the spectrum. We borrowed the structure but replaced the axes with ones specific to financial decision-making.
2. Kahneman's System 1 vs System 2 Thinking
Daniel Kahneman's Thinking, Fast and Slow distinguishes between intuitive fast thinking (System 1) and deliberate slow thinking (System 2). This maps directly to our Signal and Process axes — are you reacting or reasoning?
3. Behavioral Finance Biases
Each of our 4 axes captures a known class of cognitive bias:
| Axis | Bias it captures |
|---|---|
| Signal | Confirmation bias, narrative bias |
| Horizon | Present bias, loss aversion |
| Process | Overconfidence bias, rule-breaking under pressure |
| Exposure | Diversification bias, concentration risk |
THE 4 AXES — DEEP DIVE
⚡ SIGNAL AXIS
Data-Driven (D) ←————————→ Vibe-Based (V)
This axis measures the source of your conviction. What makes you pull the trigger on a trade?
A D type anchors decisions in on-chain data, fundamentals, technical indicators, and verifiable metrics. They need evidence before acting.
A V type responds to narrative momentum, community sentiment, social signals, and gut feel. They read the room.
Neither is wrong. In bull markets, vibes often lead data. In bear markets, data protects capital. The danger is not knowing which one you are — because both types will rationalize their behavior as rational.
The 5 questions measure:
- Do you check data before acting on a tip?
- Do you trust community sentiment as a signal?
- Can you act without confirmation from metrics?
- How do you respond to influencer recommendations?
- Do you experience FOMO before or after you verify?
🕐 HORIZON AXIS
Long-Term (H) ←————————→ Short-Term (T)
This axis measures your relationship with time. Not what you say your time horizon is — what it actually is under pressure.
An H type plans in cycles. They can hold through 60% drawdowns without changing their thesis. They measure in years.
A T type is alert to short-term price action. They capture moves, rotate capital, and stay liquid. They measure in weeks or months.
The trap: most people think they are H types until the market drops 50%. This axis is designed to reveal what you actually do, not what you intend.
The 5 questions measure:
- How do you feel when a position goes sideways for 3 months?
- Do you have a target price or a target date?
- How often do you check your portfolio?
- Do you adjust your thesis based on short-term price action?
- How do you think about the 4-year Bitcoin cycle?
📋 PROCESS AXIS
Rules-Based (R) ←————————→ Intuition-Based (I)
This axis measures how you execute. Once you decide to act, do you follow a system or adapt in the moment?
An R type has written rules. Entry criteria, position sizing, stop-loss levels, rebalancing triggers. They follow the system even when it feels wrong.
An I type trusts their read of the situation. They adjust in real time, override rules when context demands it, and pride themselves on flexibility.
This is perhaps the most important axis for risk management. The market is specifically designed to make rule-following feel stupid at exactly the moment it matters most.
The 5 questions measure:
- Do you have a pre-defined stop-loss and do you honor it?
- Do you log your trades and review them?
- Have you ever overridden your own rules mid-trade?
- Do you change strategy when you're on a losing streak?
- How do you make decisions in fast-moving markets?
🎯 EXPOSURE AXIS
Concentrated (B) ←————————→ Diversified (P)
This axis measures how you size your bets. Where does your conviction go — deep into one position or spread across many?
A B type (from "Big Bet") has high conviction in a small number of positions. They believe diversification dilutes returns and that you should only invest in what you know deeply. Think Buffett.
A P type (from "Portfolio") spreads exposure across multiple assets, sectors, or strategies. They believe no single bet is worth catastrophic loss. Think Dalio.
Both can win. Concentration amplifies returns in bull markets. Diversification preserves capital in bear markets. The problem is when a B type diversifies out of fear, or when a P type over-concentrates out of greed.
The 5 questions measure:
- What % of your portfolio is in your top holding?
- How do you feel about having more than 10 positions?
- Can you hold through a 40% drawdown on a single asset?
- Do you invest in projects you haven't deeply researched?
- Is missing a 10x worse than a 40% portfolio loss?
WHAT THE QUIZ DOES NOT MEASURE
Transparency builds trust. Be honest about limitations:
- ❌ It does not measure intelligence or skill — a VTIP can outperform a DHRB in the right market
- ❌ It does not predict returns — no personality test can
- ❌ It is not a clinical psychological assessment — it is purpose-built for crypto investor self-awareness
- ❌ It is not permanent — your type can and likely will shift after major market cycles
- ❌ It is only as accurate as your honesty — socially desirable answers produce useless results
VALIDITY & LIMITATIONS
CRTX has not been independently peer-reviewed. The system is based on established behavioral finance frameworks and designed by expert practitioners with over 30 years of combined experience in crypto markets. We recommend retaking the quiz after each major market cycle — bull and bear markets rewire how you make decisions.
