Are cryptocurrencies an investment or speculation?

With cryptocurrencies so much in the news, you might be wondering if you should invest in them. But “invest” may not be the right word – because, in many ways, cryptocurrencies, or “crypto” for short, are more speculation than investment.

But what’s really the difference between a speculator and an investor? Probably the main factor is the differing views of time.

A true investor is in it for the long term, building a portfolio that, over many years, can eventually provide the financial resources to achieve important goals, such as a comfortable retirement. But speculators want to see results, in the form of big gains, right now – and they’re often willing to take big risks to achieve these outcomes.