Top 5 High-Risk Investments in Malaysia You Should Check Out!

Key Points

  • Cryptocurrency
  • Fiat Currency
  • Forex
  • Peer-to-Peer (P2P) Lending
  • Stocks

When it comes to investing, there is no such thing as a guaranteed return. Even the safest investments come with some level of risk. However, some investors are willing to take on more risk to potentially earn a higher return. This is known as a high-risk investment. High-risk investments tend to have the potential for higher rewards, but they also come with a greater chance of loss.

Other than that, high-risk investments tend to be more volatile, meaning they can go up and down in value more frequently and dramatically. This can make them more difficult to predict. High-risk investments can be a great way to grow their portfolio for investors willing to take on a little more risk.

What to know before investing in high-risk investments

Investing always comes with some risk, but some investments are riskier than others. High-risk investments are not for everyone, but they can offer the potential for high returns. If you’re considering investing in Malaysia, you should know a few things first.

First, it’s essential to understand the different types of risks involved in investing.

  1. Market risk: The risk that the overall market will decline
  2. Credit risk: The risk that a company will not be able to meet its financial obligations
  3. Liquidity risk: The risk that an asset will be challenging to sell

Next, you need to have a clear investment strategy. If you’re going to invest, you need to know what you’re aiming for. Are you looking for short-term gains or long-term growth? What kinds of risks are you willing to take? Understanding your goals and objectives will help you create a plan that minimises your risks while still giving you the chance to earn high returns.

Lastly, don’t forget to diversify your portfolio. Investing in multiple asset classes will help protect you from losses in any one area. For example, if the stock market crashes, your bond holdings may increase in value. This diversification will help ensure you get the most out of your investment.

Note: This list is organised in alphabetical order and not based on the level of risk.

1. Cryptocurrency

It is vital for those looking to invest in cryptocurrency to understand how it works. Cryptocurrency is a digital asset that uses cryptography to secure transactions and control the creation of new units. Cryptocurrencies are decentralised, meaning they are not subject to government or financial institution control.

Anyone paying attention to the financial news lately knows cryptocurrency is all the rage. Bitcoin, Ethereum, Litecoin, and a host of other digital currencies have taken the world by storm, and investors are clamouring to get in on the action. That’s because cryptocurrency offers many advantages over traditional investments, including 24/7 trading, global accessibility, and greater security. In addition, cryptocurrency is much more volatile than traditional investments, which means the potential for much higher returns. However, this volatility also means that there is a greater risk of loss.

But before getting into cryptocurrency investment, you must understand the risks involved and only invest what you’re prepared to lose. The value of Bitcoin, for example, has been known to fluctuate wildly from day to day. This makes cryptocurrency a risky investment if you’re looking for stability. Additionally, cryptocurrency is still a relatively new technology, and it’s not yet clear how it will be regulated by governments worldwide. This could make converting your cryptocurrency holdings into cash challenging if you need to sell in a hurry.

With that said, cryptocurrency investment can be lucrative if you’re willing to take on some risk. Understanding how cryptocurrency works is essential for anyone who wants to invest in it.

2. Fiat Currency

Fiat currency investment is when an investor buys a fiat currency with the expectation that its value will increase over time. Fiat currency is the currency a government has declared legal tender. Still, it is not backed by a physical commodity. In other words, fiat currency is money that has value because a government says it does. For example, the Malaysian Ringgit is a fiat currency.

This means that if the issuing government prints too much money, the value of fiat currency can go down. For this reason, fiat currency investment can be risky. However, if done carefully, it can also be very lucrative. It can also offer significant opportunities for growth. For example, fiat currencies tend to appreciate when economic conditions are strong. Moreover, fiat currencies provide investors with a high degree of liquidity, making them easy to buy and sell. As such, fiat currency investment can be a great way to diversify your portfolio and potentially generate significant returns.

3. Forex

In the most basic sense, forex, also known as foreign exchange or FX, is the act of buying and selling foreign currencies. For example, if you are travelling to France from Malaysia, you will need to exchange Ringgit for Euro. Forex markets are open 24 hours a day, 5 days a week, which means forex trading can be done anytime, anywhere. It is also a very liquid market, which means that buyers and sellers are always willing to trade. This high liquidity makes forex trading accessible to everyone, from large banks to small investors. Being an essential part of the global economy, it’s a great way to make money.

On the other hand, forex trading speculates on the movements of global currency pairs. To profit in forex trading, traders must correctly predict which currency will increase or decrease in value relative to another currency. For example, suppose a trader believes that the US Dollar will increase in value relative to the Japanese Yen. In that case, they will buy US Dollars and sell Japanese Yen. If their prediction is correct, they will make a profit. If their prediction is incorrect, they will make a loss.

Forex trading can be a lucrative way to make money, but it also comes with risks. Before beginning to trade, learning about the different types of forex trades and how they work is essential. Each type has its own advantages and disadvantages, so it’s important to choose the right one for your needs. Forex trading can be a complex and risky endeavour. Still, proper research and planning can be a profitable way to earn money.

4. Peer-to-Peer (P2P) Lending

If you’re looking for a new investment opportunity, you might want to consider peer-to-peer (P2P) lending. P2P lending is a form of lending where individuals or businesses borrow and lend money to each other without going through a traditional financial institution. Instead, the loan is arranged through an online platform. This can be a great way to earn higher interest rates on your money than you would through a savings account or other investment.

While it can be a great way to earn returns on your investment, it’s essential to understand the risks involved before you dive in. The most considerable risk is the default; you could lose your investment if a borrower didn’t repay their loan. There’s also the possibility of fraud: some P2P platforms have been known to allow borrowers to use false information to secure loans.

As with any investment, doing your homework before putting your money into P2P lending is essential. But if you’re willing to take on the risks, it could be a great way to earn some extra cash.

5. Stocks

When people talk about stocks, they’re usually referring to buying stocks as an investment. Stocks are a type of investment that allows you to purchase company shares and become a shareholder in the company. You are entitled to a share of the profits or losses, so if the company does well, then the value of your stocks will go up, and you can make money by selling them for more than you paid. However, if the company does poorly, then the value of your stocks will go down, and you could lose money.

The advantage of stock investment is they offer the potential for high returns. Additionally, they can be bought and sold quickly as they are often bought through stockbrokers. Trading stocks usually happens on stock exchanges. Nonetheless, stocks can be volatile, meaning their prices can go up or down quickly. This is why it’s crucial to research stocks carefully before buying or selling them. The key to making money with stocks is to buy shares of companies that are doing well and sell them when they’re not doing well.

But, if you’re willing to take on some risk, stocks can be a great way to grow your investment portfolio. Many people don’t understand how stocks work, so they avoid investing in them. However, stocks can be a great way to make money if you know what you’re doing. So, before you invest in stocks, it’s essential to do your research and understand the risks involved.


To conclude, if you’re willing to take on some additional risk, investing in this type of investment can significantly improve your financial position. Make sure you do your research and understand the risks involved, as they may not be suitable for everyone. You can also try speaking with a financial advisor to determine if a high-risk investment suits you.

Related: Investment 101: How Should I Start Investing? | Top 5 Low-Risk Investments in Malaysia You Should Check Out!

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