"Like most trends, in the beginning, it's driven by fundamentals, at some point speculation
takes over. What the wise man does in the beginning, the fool does in
the end."
Warren Buffett
The level of risk is the main difference between investing and speculating. While investing requires digesting data and evidence to to understand the underlying assets risks and return potential often seeking assets that are relatively low risk and often lower return in the short term. Speculation, on the other hand means putting your money in assets or trades that are expected to deliver high returns in short to medium-term; this expectation of high return comes with high risk too.
Professional speculators understand this high-risk high-return scenario and use advanced risk management tools while also preparing for high losses.
Many of us are attracted to quick, high returns but we never consider that this makes us speculators.
Putting money in the hottest new crypto or a stock tip for a new/unknown company are more obvious instances of speculation but even with more credible assets, we often invest for quick gains without understanding the risks a.k.a. speculation.
While investing and speculating are both means of making money, it is important to recognize what path one is taking.