Investing Is Always Risky – But How Much Risk To Take Is Up To The Investor

Shiavon Chatman
May 28, 2022

Investing is a great way to build wealth – but it DOES come with risk, especially if you don’t know what you’re doing. 

Not every investment carries the same amount of risk, though! Here’s a breakdown of common investment types, from highest to lowest risk.

High Risk: Cryptocurrency

Cryptocurrency comes with a lot of ups and downs. It’s entirely online, so being scammed or the victim of a cyberattack is high. Cryptocurrency performs without a central bank, meaning there’s nobody in charge – and values can fluctuate frequently, sometimes multiple times a day.

Some Risk: Stocks

Stocks are very popular, but the rate of return isn’t promised. If you throw your savings into a hot, well-performing stock, you could gain a lot – or lose everything if it tanks soon after. A better way to invest in stocks is buying “portfolios,” collections of different stocks meant to minimize investment risk.

Low Risk: I-Bonds

I-bonds are great investments that offer a decent return – at 9.62% in May 2022! – without too much risk. They’re protected from inflation, and provide a MUCH better return than a standard savings account. 

High and medium-risk investments, like cryptocurrency and stocks, can bring investors decent returns. But I-bonds are much safer, and offer better returns than a savings account. To build wealth, your investment should match the risk you’re willing to take!

We have a quick favor to ask:

PushBlack Finance is a nonprofit dedicated to raising up Black voices. We are a small team but we have an outsized impact:

  • We reach tens of millions of people with our BLACK FINANCIAL NEWS & ECONOMIC EMPOWERMENT STORIES every year.
  • We fight for ECONOMIC JUSTICE to protect our community.
  • We run VOTING CAMPAIGNS that reach over 10 million African-Americans across the country.

And as a nonprofit, we rely on small donations from subscribers like you.

With as little as $5 a month, you can help PushBlack raise up Black voices. It only takes a minute, so will you please ?

Share This Article: