![Crypto Terms Glossary: What is Speculative Investment? Crypto Terms Glossary: What is Speculative Investment?](/img/105/1346/what-is-speculative-investment-sm.webp)
A speculative investment entails a considerable degree of risk of financial loss, both in terms of principal and potential unrealized gains. However, speculative investments are usually those with a high potential upside, making them attractive opportunities for investors with a high tolerance for risk. Many blockchain skeptics consider cryptocurrencies a speculative investment, while more traditional speculative investments include investment in early-stage startups, trading options, and certain commodities.