Investing vs speculating

When I first got into crypto, I thought I was investing.

Recently I’ve been learning the differences between investing and speculation.

Turns out, I’ve been doing a bit of speculation.

Apeing into projects (entering a project and throwing a lot of money in) based on a first impression or seeing others talking about it.

Lazy guessing. Get emotional with price volatility (both highs and lows).

Short-term gamble, make a quick buck, get out of the project, then move onto the next new thing that’s gaining traction.

Selfish. Not adding value to the project. Only in it to make self rich, usually off of others newly entering (pseudo-ponzi).

This is what I’ve been seeing in the wild side of crypto.

Due diligence. Not just investing money, but also investing time to research. Or investing time to be part of the community.

Deliberate placement of funds.

Long-term vision. Less emotional during ups and downs before the finished product or sustainable project. Other people in world benefit indirectly.

Adds value. Either directly financing the creators, giving them helpful advice, or taking on other responsibilities, like marketing or community engagement.

I’ve speculated in a few projects which have failed. Luckily they were not rug pulls, so I got some money back. Now I spend a lot of time (too much) participating in a few metaverse gaming Discord servers, reading up on all the news, and helping out newcomers by answering questions.