5 High-Risk Investments that Gives Double Returns

5 High-Risk Investments that Gives Double Returns

Deepshikha | May 29, 2022 | Views 482

5 High-Risk Investments that Gives Double Returns

5 High-Risk Investments that Gives Double Returns

Investing, especially “correctly investing,” is one of the most effective ways to generate passive income and achieve financial freedom and stability in the future. It can take many shapes and alternatives, including as purchasing tangible assets such as real estate or entering the financial market.

That being said, understanding the many sorts of investments, as well as when, where, and how to invest, is crucial. Before investing your money, stay up to date on current trends, including the potentials and risks of a particular investment instrument. Low-risk investments (bonds and certificates of deposit) and high-risk investments (stocks, bonds, and certificates of deposit) are available (options, stocks, hedge funds, and crypto-assets).

You may also choose collectables by taking advantage of fantastic offers on silver and other precious metals such as gold. The dividends/returns you receive are determined by the choice you select. The greater the risk, the greater the potential reward, and vice versa.

Let’s talk about high-risk, high-reward investments now. Although these investments may not quadruple your money in a short amount of time, the returns are quite appealing. It’s important to remember that high-risk investments might result in significant losses.


Investing in crypto assets is one of the riskiest yet most lucrative investments you can make. Cryptocurrencies have grown in popularity since their inception, with certain governments recognising them as legal tender. The market values of popular ones like Bitcoin, Ethereum, and Tether are greater. Their value, on the other hand, is not steady and very unpredictable, since it can grow or fall at any time based on market reaction and trading activity.

For example, Bitcoin jumped from $29,864 in July 2021 to $67,802 in November 2021. It dropped to $35,000 two months later, in January 2022. This means that depending on when they invested and traded, investors made both big profits and significant losses.

Aside from being an uncontrolled market, buying cryptocurrencies is a high-risk investment because they are vulnerable to cyber security issues.


Despite the possibility of big profits, options are not for the faint of heart. To succeed, you must time your move well, since if the option expires, you lose the principal. When compared to other equities, you may require less money to invest, but the profits are bigger. Despite this, there is no guarantee of success, and you could lose your entire investment. However, your losses may be lower than if you had invested in a stock. This is because investing in options requires significantly less money.

Venture capital

Raising the necessary money to start or expand a business is extremely tough for startups and small businesses. Some of these businesses may appear to have a lot of long-term growth potential. This is where venture capitalists step in to provide funding or technical/managerial experience to such prospective businesses. The performance of the firms you invest in determines your success as a venture capitalist. You may lose money if the startup fails, but the rewards are huge if it succeeds.

Because of the uncertainties in the business world, venture capital is a high-risk investment. Due to inadequate management, poor marketing techniques, and fierce competition from existing businesses, the majority of promising startups fail to attain their full potential. Before participating, investors may need to conduct independent research to determine the feasibility of a venture capital fund.

Initial Public Offerings (IPOs)

Buying stocks in a fresh company with a lot of potentials is a fantastic idea. This is what an initial public offering (IPO) does: it assists companies in raising capital from the general public. It allows the general public to purchase stock shares in a firm during an offering.

Because most companies are “undervalued,” initial stock share prices are low during public offerings, it’s a superb investment approach. After revaluation, the share price may surge, causing share prices to rise in lockstep. On the other side, some companies are overvalued as a result of hype and media attention, resulting in inflated share prices and even oversubscriptions.

This implies you can invest in an IPO without actually receiving it, because if it oversubscribes, the brokerage firms involved may impose some sort of cut-off point or condition. You will not be able to participate in the offering if you do not match the requirements.

Another risk is that you have no idea how this business will function in the future. You will lose your money if it does not turn out well. When it thrives, share prices will continue to rise, resulting in more money. For example, when Telsa’s IPO in 2010, a share cost $17; today, it costs $950.

High-Yield Bonds

To entice potential investors, most developing countries and even firms offer high-interest rates on bonds. Some high-yield bonds pay as much as 15% to 25% in interest, which is extremely risky. Some work out successfully because the governments or businesses can pay off the large interest and principal payments on time. However, some do fail; as a result, you must exercise caution, particularly when re-investing in the said bond.

Final Thoughts

High-risk investments are regarded as sacrosanct and are not suitable for everyone. It’s always alluring and seductive, but the repercussions could be disastrous. Because of the uncertainty, you’ll need some experience, competence, and fortitude to succeed.

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