Highest risk assets

Adyen Noters

Anyone familiar with financial markets knows that investing in assets not only does not guarantee profit, but also carries the risk of losing capital. Investors who invest in instruments subject to high volatility are particularly at risk. The value of such assets is unstable and is capable of both growing and collapsing in a short time.

Successful investors distribute the bulk of their portfolio among low-risk assets, choosing from reliable and time-tested tools:

● stable currencies (dollar, euro);

● goods (precious metals, raw materials);

● shares of companies from developed markets (USA, EU);

● bonds.

These assets have a long uptrend and imply long-term profitability.


Assets with high risk value


Risky assets on the example of cryptocurrency

High profitability with high risks accompanies emerging markets. A vivid example is the cryptocurrency market. He was born along with Bitcoin in the recent 2009, and quickly gained popularity. Cryptocurrencies are known for their high volatility, which is why they are popular with investors who like to take risks. In just a week, the price of a digital coin can change at times – both rising and falling down.

The same Bitcoin in 2017 increased by more than 20 times. In January, the first coin cost about $ 1,000, and in December of the same year, its exchange rate approached $ 20,000. Quick-moving investors sold Bitcoin at a record price, increasing the initial investment by several times. In parallel, altcoins also increased in price – the demand for crypts was overwhelming. Someone believed that this was not the limit and dreamed of new records of the cost of cryptocurrency, investing significant amounts in a unique asset.

The triumph of cryptocurrency investors did not last long – in the same month the trend of Bitcoin and almost all altcoins turned and rushed down. By the new year, the Bitcoin rate fell by half. Digital gold was traded in the range of 7-11 thousand dollars before the summer, after which it entered into a long flat in the region of 6.5-8 thousand. On the eve of the new year, a wave of cryptocurrency sales began, and the BTC rate dropped to record lows – below $ 3 per coin.

The one who started investing in the cryptocurrency in the summer and did not manage to sell it before the collapse, is now in the red. He is forced to remain in a long position on Bitcoin, hoping that the cryptocurrency will grow. Only point purchases and sales of assets allow you to have an income even when the market falls.

How to make money on the fall of high-risk assets ?

Binarium offers a trading platform for analyzing financial assets. Customers can watch currency pair, commodity and cryptocurrency charts online. By concluding contracts on how the price will change after a certain period of time, users of the trading platform have the opportunity to earn money.

Optimum conditions have been created for trade – affordable market entry, unlimited investment amounts, a set of analysis tools, and a wide range of deposit and withdrawal methods. The Binarium site in Russian, there are also English, German, Turkish, Thai and other language versions of the platform.

Experienced traders appreciate Binarium not only for its wide functionality, but also for its unique analytical applications. On the trading platform, the “Trading Room” tool is in demand, where each user can receive signals from professional analysts. Judging by the reviews – this is one of the most profitable tools in trading on the Russian market.

Separate attention on the trading platform is paid to the training of beginners – an introductory course in trading has been developed here, after which you will learn how to make deals based on your predictions. More advanced training will introduce you to strategies and indicators, as a result, you will more clearly understand the market and enter into more lucrative contracts.

Which assets to invest less risky ?

The dollar is a stable currency, and if you compare it with the ruble, it has less risk. Let’s look at the chart for a pair of dollar / ruble for all time. We see a long upward trend of the US currency to the Russian. The dollar is rising in price, having a solid economic foundation.

For example, in December last year, a dollar cost 58 rubles, and at the end of 2018, its rate was close to 70. The euro has a similar positive trend, which also grows steadily against the ruble, supported by strong positions in the domestic market. Therefore, we recommend keeping your capital to invest in dollars and euros (part in one currency, part in another).

Stability and profitability provide shares of US companies. The US stock market has a long upward trend. Turns happen from time to time, but the bears quickly leave the market and the bulls return.

But stocks of Russian companies are a vivid example of high-risk assets. Before the crisis in relations between Russia and the West, the Russian market was very attractive for investors. Now the situation has changed – the ruble is subject to pressure due to geopolitical tensions. Against Russia, all new sanctions are being introduced that affect many sectors of the country’s economy.

Financial markets are in perpetual motion. Trends follow each other – after a fall follows growth and vice versa. The task of the investor is to predict when it is profitable to buy an asset. Ideally, this is done when the price of an asset approaches a minimum level, below which it is difficult to fall.

To earn on assets with a high level of risk, you need to be able to predict where the price will meet the level of support and turn around. The movements on the charts of the high risk assets are more sweeping, which, given a successful scenario, promises a good profit. The danger is that unrecorded negative factors may force you to step over support and sink even lower, which will bring losses to the investor.

Buying high-risk assets is undoubtedly part of the investment culture. It is worth to allocate no more than 10-15% of the portfolio to this area so that the capital gains on the course can cover possible losses. Short-term profit should not be regarded as a panacea, but only as a nice bonus to the main dividends.


“General Risk Warning: Binary options and cryptocurrency trading carry a high level of risk and can result in the loss of all your funds.”