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  1. Home
  2. /Glossary
  3. /Speculation
Back to Glossary
trading

Speculation

Buying assets hoping to profit from price changes rather than fundamental value.

Definition

Buying assets hoping to profit from price changes rather than fundamental value. Almost all crypto trading is speculation since most tokens don't produce cash flows. There's nothing wrong with speculating as long as you know that's what you're doing.

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Related Terms

Volatility

How much an asset's price fluctuates over time.

Accumulation Phase

A period when smart money quietly buys up an asset before a major price move.

Annualized Return

The average yearly return on an investment, calculated to account for compounding.

Arbitrage

Profiting from price differences of the same asset across different markets.

Ask Price

The lowest price a seller is willing to accept for an asset.

Automated Trading

Using software to execute trades based on predefined rules and algorithms without human intervention.

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