There is a difference between investing in a business and speculating in any other type of financial asset.
A business is dynamic and operates with motivation and intent and has a purpose, which is to sell products and services at a profit. It does this through constant change and adaptability to the environment and situations. Cash flow is essential, customer satisfaction inevitable and profit is how it measures its success. This is what I consider investing.
Financial assets like gold or crypto are different. They have no intrinsic purpose. They are not capable of making a profit. Their value depends entirely on how much, at any given time, people are willing to pay for them. This is what I consider speculating.
Prudent wealth building, is based on 4 factors: knowledge and control as well as appreciation and income. In other words, we should give preference to investments that we understand and have some control over. Further, we should look at investments that have a chance to appreciate and generate an income.
I suggest a good balance between investment (business) and speculation (other financial assets) of approximately 75%-25%. Your portfolio should show direct correlation between the amounts invested in each of the 4 factors of knowledge/control and income/appreciation.
The largest portion of your investment portfolio should hold the following assets, exactly in this priority order:
1. Income-producing businesses (knowledge, control, income and appreciation)
2. Rental real estate (knowledge, control, income and appreciation)
3. Stocks (knowledge, income, appreciation but no control)
4. Bonds (knowledge, income but no control and no appreciation)
5. Gold (knowledge, appreciation, but no control and no income)
6. Crypto and NTFs (knowledge, appreciation but no control and no income)
This type of investment strategy is not a get rich quick scheme, but rather real wealth-building. It does offer the advantage of a great degree of relative safety, where you can pretty much guarantee that your wealth will continue to grow, year after year.
This strategy also does allow you to speculate and take advantage of fast appreciating markets but only in the right proportion to your overall investment portfolio. When you speculate assume that you are going to lose all of your money. With that thought in mind as a starter you will enjoy your speculation without needing a positive outcome.