What are Low-Risk Investments?

Learn all about traditional and crypto investment options that help you manage your risk.

While there is no such thing as a no-risk investment, in today’s financial markets there are numerous ways to spread and manage the risks entailed with investing and trading. 

Investing is an important financial tool that can help an individual gain financial stability. If done correctly, investing can be a good source of passive income. However, a lot of people are very wary about placing their hard-earned money in various investment vehicles. A recent survey notes that more than half of Canadians, for example, are apprehensive with investing. That’s because they aren’t confident with their ability to make investment decisions, and aren’t aware of their options.

In addition, a lot of people are also afraid of losing their money through risky investments. While there is no guarantee that a low risk investment vehicle will provide risk-free unlimited returns, there are several low-risk investment choices that may appeal to those just dipping their toe in investing.

Gold ETFs

Gold has long been considered a safe haven investment for a reason. The prices rarely fluctuate much, and there are multiple ways to invest in it. While the traditional way is to own physical gold assets, more investors are choosing gold ETFs. Simply put, gold ETFs are commodity funds that are traded like stocks.

 What’s great about gold ETFs is that these are made up of various assets that are backed by gold. This also provides diversity to your portfolio. In addition, gold ETFs may be less risky than investing in physical gold since you won’t have to scour the market for a reputable dealer and you can forego storing your gold in a secure facility and skip paying a premium charge when you trade gold bullion. Moreover, the physical gold market operates at different prices in different locations. This means that the buy and sell rates vary depending on where you are.


You may have heard about Bitcoin’s volatility and how its price can quickly drop by 25% or more. This is all true. BUT, statistics show Bitcoin has been one of the best performing assets ever created. If held for a long time, Bitcoin tends to outperform gold and FAANG stocks like Facebook. Apple, and Amazon. 

Common stocks

Another low-risk investment option for consideration is common stocks that offer dividends. These stocks represent your share of ownership in a corporation and can provide you with a regular income through dividends. In addition, common stocks allow you to vote on company policies and procedures. This gives you increased control over your investment outcomes. Common stocks may be relatively safe options if you want relatively high yields but don’t want to rely on luck too much to make a big return. 

Some examples of lower risk common stocks utility stocks and real estate investment trusts (REITs). These have a history of low volatility and have reliably provided investors with their dividend payments. When choosing common stocks, be sure to trust companies that have performed well in the market and pay reliable dividends.

Cryptocurrency Funds

As crypto markets mature, we find that the industry as a whole is achieving many milestones. In 2021, for instance, cryptocurrency funds outperformed hedge funds. Crypto funds help to spread the risk by enabling investors to invest in multiple assets and not just one cryptocurrency. Digital asset markets still experience quite a bit of volatility and speculation. But as they evolve, crypto funds become a more viable low-risk investment alternative.

Staked Stablecoins

Speaking of cryptocurrency, stablecoins, which are generally cryptos that are pegged to the USD or another more stable asset (or basket of assets), offer investors a passive way of low risk investment. Many exchanges and platforms allow you to simply hold aside some stablecoins and earn an interest rate that far exceeds that of the now irrelevant “high-yield” savings accounts in traditional finance.

The stablecoin can earn an APY as long as it’s held in your account in the exchange, or sometimes in a special wallet or vault. At any time, you can trade the coins or exchange for fiat and in some cases, if you agree to hold it for a certain period of time, you may enjoy a higher APY.


Investments are one of the most effective ways to earn a passive income, and you don’t need to treat them like a high risk casino game. If you are interested in low risk investing, we hope the above low options prove useful.


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