No matter where you invest, stocks, mutual funds, ETFs, real estate, bonds, cryptocurrencies, your own business or someone else’s business, all types of investments carry risks. The only difference is the level of risk each of these assets carry. Some investments are high-risk, where as some are low-risk. For example, cryptocurrencies are considered high-risk because they are not tied to tangible assets and lack physical value, where as bonds are considered low risk as they offer fixed returns. The major risk of an investment is of course financial. You will lose money when your assets lose value. However, there are ways to minimize these risks. One of the best ways to minimize investment risks is by investing in multiple assets.
