What is the biggest difference between an investor and a speculator? The latter focuses solely on the asset’s price and is interested in buying low and selling high irrespective of the fundamental strength or weakness of the asset.

Take bitcoins for example. A staggering rise from a few hundred dollars to more than 20,$000 per bitcoin attracted the attention of speculators from all over the world. Do these speculators care about the fundamental aspects of this virtual currency?

Certainly not. All speculators were and are interested in is whether the price of a bitcoin continues to rise or not. If you are keen on investing in bitcoins, then you need to shed the mindset of a speculator and try thinking like a real investor.

No Escaping the Technicals!

A bitcoin investor who is not interested in understanding the technical aspects of this virtual currency is like a driver who does not know the difference between the brake and the accelerator. You don’t have to be a genius to know and predict that an accident is inevitable.

So, if you are really serious about bitcoin investing, then you need to delve into the technicals. It may not be easy but it will be worth it in the long run when your knowledge and understanding helps you understand and predict market conditions better than other uninformed speculators.

Track the Latest Trends

The world of finance is never unchanging, and this is particularly true for virtual currencies. You may have heard about ICOs or Initial Coin Offering in the past. Well, investors have been burned far too many times from scam ICOs and are now moving on to IEO blockchain i.e. Initial Exchange Offering.

IEO Blockchain represents maturing of the virtual currency ecosystem with market participants coming up with innovative changes designed to make bitcoin investing safer without stripping it of the unique features that make it such a wonderful alternative to traditional currencies.

Wary of Quick Money

Investing is inherently a long-term game, which means you should always be wary of ultra-quick profits. There is no doubt that earning huge profits in a short period of time is always a fun experience. However, that’s not guarantee that the profits will indeed be sustainable.

If virtual currency becomes a widely accepted financial asset like gold or bonds, then you will rake in the moolah provided you remain patient. Speculative profits rarely justify long-term investments, which is why you must be wary of volatility caused by speculators.

You can be an investor as well as a speculator as far as virtual currencies are concerned. The important thing is to understand the difference and base your strategies accordingly.