Save to protect your money.
Invest to grow your money.
Speculate to gamble your money.
Are you Gambling or Investing?
Investing vs Speculation; what's the difference? They are very much the same thing but there are also some distinct differences.
Investing - is productive projects - like growth or expansion; maybe you're investing in a new factory or new machinery or investing in a business startup. i.e. money being put to work to gain a return. Investing wise you often don't know what your return is until its crystallised.
Speculation more akin to gambling. You might not really care why the price will go up, you just want to buy low and sell high or buy high and sell higher. Cryptos are very much akin to speculation. Speculation is usually shorter-term; involving more often than not buying and selling something that can be bought and sold relatively easily.
Investment
- Fundamental factors for making decisions
- Long term commitment
Speculation
- Hearsay, technical charts and market psychology for making decisions
- Short term phenomenon
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