How to Make Money with Investments: Value Creation vs. Speculation

Learn the two main ways to make money investing — value creation and speculation. Discover which strategy is safer and more effective for building long-term wealth.

The Truth About Making Money Through Investing

If you’re just starting out in the world of investing, you might be wondering:
“What’s the real way to make money?”

The answer is simpler than you think: there are only two main ways to earn money with investments — and understanding this can change your financial future.

In this article, you’ll learn:

• What value creation means in investing;

• How speculation works;

• Which approach is safer and more profitable;

• Practical tips to avoid risky market traps.

Let’s dive in.

1. What Is Value Creation?

Value creation is the most solid and reliable way to make money from investments.

When you buy a stock, a token, or a cryptocurrency with real fundamentals, you're investing in a project or company that has long-term potential to grow and generate wealth.

Examples of value creation:

• Companies with consistent growth;

• Tech projects solving real problems;

• Cryptocurrencies with real-world utility and active communities.

This is the foundation of fundamental analysis — looking at the business plan, efficiency, leadership, and competitive edge of the asset.

2. What Is Speculation?

Speculation is when you buy an asset expecting its price to rise — not because of its intrinsic value, but because others might want to buy it later at a higher price.

It’s often driven by hype, fear of missing out (FOMO), or short-term market trends.

Risks of speculation:

• High volatility;

• Weak or no fundamentals;

• Potential for rapid losses.

Yes, some traders do make money speculating — but it’s a high-risk game. Studies show that only about 3% of traders consistently earn profits.

3. Which Strategy Is Better?

The answer is clear: value creation wins.

Investing based on solid fundamentals is more secure, predictable, and sustainable.
Speculation might offer fast gains, but it comes with serious risks.

Golden rule of investing:

“Never make a mistake that takes you out of the game.”

Protect your capital. Stick with solid investments. Think long term.

Conclusion

You can definitely make money by investing — but you need strategy, knowledge, and patience.

Focus on assets that create real value, avoid hype-driven traps, and always aim for the long game. That’s how true wealth is built.