💰 The difference between investing and speculating in crypto (with real examples)
In the crypto world, many people confuse investing with speculating, but they are not the same. Understanding the difference can determine whether your portfolio grows sustainably… or if you end up chasing quick profits that never come.
📌 Investing
Investing is putting your capital into an asset with the expectation that its value will grow over time, based on solid fundamentals.
• Example: Buying Bitcoin because you trust in its global adoption and its limited supply of 21 million, planning to hold it for 4-5 years.
• Characteristics:
• Patience and long-term vision.
• Based on fundamental analysis.
• Fewer trades and more accumulation.
⚡ Speculating
Speculating is entering an asset looking for quick movements to sell it at a higher price in a short time, often based more on market sentiment than on fundamentals.
• Example: Buying a new listed token just because it went up 40% in an hour, expecting to sell it 10% higher.
• Characteristics:
• High capital turnover.
• More risk and volatility.
• Based on trends, hype, and news.
🎯 Real example from my portfolio
Some time ago, I bought SOL for the long term because I trust in its technology and ecosystem (investment).
But I have also bought coins like MASK just to take advantage of a specific market movement (speculation).
🚀 Conclusion
There’s nothing wrong with doing both, but you need to know when you are investing and when you are speculating. The key is in the ratio: in my case, 70% investment – 30% speculation to balance risk and growth.
📢 And you, are you more of an investor or a speculator in crypto?
If you want to invest in $BTC you can do it here👇
#ETH4500Next? #USFedNewChair #BinanceAlphaAlert #BTCOvertakesAmazon