#VALOR a coin 🪙 its value increases or decreases based on its purpose, some coins are speculative in nature and others are functional
Speculative coins 🪙: as implied, the value of these coins is not based on practical usage fundamentals that these coins may provide, but rather on speculation about them since their demand will depend on speculative projections. The buyer trusts that someone else will be willing to buy their coins at a higher value, even though there is no guarantee that this will be the case, anticipating a rise in the market price 💹, a rise that occurs due to FOMO, or conversely, a drop due to FUD. This is how the prices of these coins fluctuate.
Functional coins 🪙: functional coins, unlike speculative ones, have a real usage purpose, and their value will be subject to strategic developments and practical uses of the coin 🪙. Since if solutions can be implemented in the real world 🌎 with this coin, its demand will increase, and this will directly impact the price, causing significant rises and generating an appreciation in that asset. Furthermore, if the circulating supply 🉐 is limited, this will cause the coin 🪙 to appreciate with a greater valuation.
By understanding this, we can analyze what type of investment I made when buying my coins and what to expect in the future regarding my investment, thus understanding the difference between
$BTC and
$PEPE or
$ETH ....invest intelligently 🧠🧠🧠🧠