Best safe investment strategy
Have you or someone you know experienced financial losses in the stock market?
In 2023, there were significant losses in the stock market.
In 2024, there have been significant gains.
Wouldn’t it be ideal to engage in safer investments that consistently yield profits in various circumstances?
Don’t put all your eggs in the same basket.
Consider diversifying with alternative investments.
Table of Contents
What is a safe investment strategy?
A safe investment strategy is made by diversification across various investment types (asset classes). This diversification enhances the safety of your investments and ultimately leads to better profits over the long term. The key is to invest in diverse asset classes, that respond differently to various situations, such as high or low inflation, recession, or economic boom. Beyond traditional shares and bonds, consider expanding your diversification with alternative investments like Real Estate, High-yield Saving Accounts, and Crowdlending
It is important to note that there is no such thing as a completely risk-free investment. However, by following the principles of diversification and investing in a variety of investments, you can help to minimize your risk and protect your financial well-being.
Here are some additional tips for making safer investments:
- Do your research: Before you invest in anything, it is important to do your research and understand the risks involved. Check Trustpilot or Scamadviser before entering an investment platform.
- Start small: Don’t invest all of your money in one investment. Start small and gradually increase your investments over time.
- Seek professional advice: If you are not comfortable making investment decisions on your own, you may want to consider working with a financial advisor.
How to diversify your investment
Shares
Shares can be particularly influenced by global economic prospects, resulting in increased volatility.
For those who, like me, prefer not to delve deep into the analysis of individual shares, here are some recommendations from experts:
Invest in ETF
Investing in Exchange-Traded Funds (ETFs) is a prudent choice, especially if you lack extensive knowledge of individual shares. ETFs are diversified packages of various shares, curated by experts in the field. This diversification helps reduce risks; when some shares decline, others may rise. Choose ETFs with UCITS in the name, which ensures the EU criteria for safety.
Dollar-Cost Averaging Strategy
Implementing the Dollar-Cost Averaging strategy involves consistently investing the same amount each month. This approach accounts for fluctuations in share prices, ensuring that, on average, shares are purchased at a median price. This helps reduce the risk of losses while maintaining a reasonable chance of profit. This is offered by Revolut Bank with an automatic recurring monthly deposit, which is automatically invested in ETFs without any trading fees.
Avoid fees
Be cautious of fees associated with investment platforms. Many platforms charge a fee for each investment, often with a minimum amount, making it costly to invest smaller sums regularly. Additionally, keep an eye on annual fees, as these can vary significantly among different ETFs and platforms. Passive managed ETFs has significant lower fees than active managed ETFs. And they are performing quite as well.
Read about my considerations when choosing an ETF to invest in
What are Fractional shares?
Fractional shares are smaller portions of shares (or ETFs). You can purchase a fraction for as little as €10 or €50, and the ability to trade without fees makes it affordable for small investors to diversify their portfolios.
Automated and recurring investment in ETFs at Revolut Bank
In Revolut Bank, you can automatically invest in ETFs every month with as little as €10, without any trading fees.
This is a very easy way to build up your savings.
This is exactly what I have been waiting for:
- Invest automatic a certain amount every month in ETF’s without a trading fee
- In this way you get mitigate your risk in two ways
- In ETFs you invest in many different shares: when some perform bad others will perform better
- Investing each month: You buy at the average price of the whole year and dont risk to invest all your funds at a too high price (the Average Dollar Cost strategy)
- Easy to set up
- Create a Revolut account – It’s free
- Choose Invest and then Robo-Advisor in the App
- Follow the guide and choose your personal risk rate
- Initially you need to deposit at least €100
- Set up a recurring deposit of at least €10 (optional)
- Lean back and watch your investment grow (as always: the value of shares may go up or down. But historically they have grown about 7% in average. Sometimes you have to be patient for some years)
- There is an annual fee of 0.75% (minimum 1€) + the usual fee on ETFs (typical 0.3%-0.6%)
- From February to December 2024 I’ve got a 16% annual value increase
Read my review of Revolut Bank
Invest from 50€ in Fractional ETF at Mintos without fees
Mintos is the largest crowdlending marketplace regulated under MiFID II — one of the most stringent regulatory frameworks in the EU. It provides a wide variety of asset classes such as Fractional bonds and ETFs as well as P2P loans and Real Estate rental income.
- In Mintos you can invest in a fractional EFT for a minimum of 50€. You may sell and buy the whole or a part of your share without fees.
- Mintos core ETF is a single ETF that contains a package of about 7 ETFs. Each of these ETF is a package of many shares or bonds. So investing in this single ETF is highly Diversified.
- As the price can go up and down, it is recommended to invest gradually. This mitigates the risk of investing when the price is too high.The best would be to invest €50 every month. If you prefer to invest only once a year, the prices are often lower around September than around December and January.
- From December 2023 to December 2024 I’ve had a 18% value increase
Bonus offered by Mintos
- We both get €50 instant bonus when you invest €1 000 or more (until January 31, 2024)
- And 1% bonus of the average investment in the first 90 days
- Get your Mintos bonus here
- Or use this referral code: 7PHKN8
Read Mintos introduction to fractional ETF’s
Updated July 2025
Invest in fractional shares from 10$ at eToro
In eToro you can experiment with buying smaller parts of single stocks from as low as 10 $/€. In this way you can learn about investing in single stocks without risking very much.
- eToro is a great place for inexperienced investors to start. You can create a demo account and play with $100,000.
- eToro allows investments starting from $/€10. But with a flat rate fee of $1 for each stock trade it is better to invest a greater amount. Investing in ETF’s is without a fee
- eToro provides fractional shares, enabling the purchase of smaller portions with the same rights as full shares.
- When investing in USD, It is advised to deposit USD, as eToro charges a high conversion fee. You can get Free currency exchange in Revolut Bank.
- You may also invest with EUR in EUR based shares to avoid the conversion fee
Ultimo 2023 I deposited the minimum amount of $50 and invested $10 each in Tesla, Google, Microsoft, Apple and Amazon. Since I have invested in additional 10 shares/ETF’s (before they introduced the trading fee). While this may not be a highly diversified portfolio and too low to be an real investment, I am looking forward to monitor their performance. In less than a year I have got an interest of 10% in 2024. I haven’t tested the withdrawal process yet, as eToro charges a $5 withdrawal fee for USD accounts. (zero fee for EUR Accounts) Some reviews in Trustpilot complain about withdrawal difficulties.
Security
Licence: Yes. In many regions. eToro (Europe) Ltd, is authorised and regulated by the Cyprus Securities Exchange Commission (CySEC) under licence number 109/10
Trustpilot score: 4.2 (July 2025 ): .
Visit eToro (referral link)
Read about sustainable shares here
Crowdcube
In CrowdCube, you can invest in startups and early-stage businesses. This entails high risk, but also the potential for significant returns. However, it’s important to note that many startups fail, and there is a risk of losing your investment. Nonetheless, certain startups such as Revolut Bank, Cornish Lithium, and Wildanet have flourished, providing investors with a multiple return on their initial investment.
CrowdCube claims that: “around 5% of Crowdcube’s funded businesses have exited and around 70% continue to trade at the close of Q1 in 2024”
Keypoints for investing in start-ups through CrowdCube
- Invest only in companies you believe have a future, whether it’s a company you know and trust or a product you believe will succeed. For instance, I have invested in Mintos Crowdlending since 2022 because I trust its continued expansion.
- Only invest an amount you are willing to lose, and consider any return as a bonus.
- Be prepared to wait 5, 10, or even more years to realize your investment and potential profit. You cannot sell your shares until the company is bought or goes public on the stock exchange. Crowdcube charges a 5% fee of your profit.
- The minimum price for buying shares is €10. However, since the minimum fee for buying a share is 2.49% or €2.49, you must purchase at least €100 worth of shares to avoid paying more than a 2.49% fee.
- Shares purchased on CrowdCube are genuine shares, but like fractional shares, they have a low minimum price.
Bonds
Bonds are loans issued to countries or business.
Bonds are generally regarded as safer than shares, except for the anomaly observed in 2022 when bond prices also experienced a decline. Historically, they are considered a prudent complement to shares, enhancing the overall safety and stability of investments.
Read about sustainable bonds here
What are Fractional Bonds?
Fractional Bonds are smaller parts of bonds. Ordinary bonds cost a lot more and their value fluctuates when the national interest rate increase or decrease. In the below examples, the value, the interest and the term of the fractional bond are fixed. And no fees are charged. This makes your investment totally predictable.
Invest from 50€ in Fractional bonds at Mintos without fees
With the introduction of this new product, you can earn a 13% interest in a 1-5 year term. This provides an opportunity to invest in a portion of a bond for as little as €50, increasing your overall portfolio diversification. No Fees are charged.
Bonus offered by Mintos
- We both get €50 instant bonus when you invest €1 000 or more (until May 2024)
- And 1% bonus of the average investment in the first 90 days
- Get your Mintos bonus here
- Or use this referral code: 7PHKN8
Invest from 10€ in Fractional bonds at Debitum without fees
In April 2024 Debitum has introduced a new product: Notes (fractional bonds), which are bonds with 3 to 24 month maturity and 12.5% to 15% annual interest rate and has a minimum price as low as €10.
At Debitum partner Foresto and Bono House you can invest in sustainable fractional bonds (called “notes”) from €10 in forest and in Eco-Houses.
Bonus offered by Debitum:
- 25€ to both you and me when you have invested 1.000€ or more
- Get your bonus
Read my review about Debitum
Shares vs bonds
Both shares and bonds carry risks, as do all other investments. Historically, shares and bonds have complemented each other. When shares were performing well, bonds were performing poorly, and vice versa. Experts often recommend a portfolio allocation of 60% in shares and 40% in bonds. However, if you are willing to take on higher risk for the potential of greater profit, you may consider increasing the percentage allocated to shares. In such cases, it is advisable to have an investment horizon of at least 10 years.
Key points for bonds: security and predictability
- A higher priority than shares in terms of repayment in the event of issuer default.
- Offers a stable annual interest rate.
- Experiences minimal fluctuations in exchange rates compared to shares.
Key points for shares: risk and potential for profitability
- The exchange rate may fluctuate significantly, potentially leading to either high profits or losses.
- To mitigate these fluctuations, it is advisable to hold onto the shares for at least 5-10 years.
- Historically, shares have yielded much higher profits than bonds over the long term.
Conclusion
In conclusion, both shares and bonds present their own set of advantages and disadvantages, along with inherent risks.
To mitigate these risks and optimize profit potential, diversification is key. This involves not only investing in both shares and bonds but also spreading investments across multiple bonds and various shares. Purchasing bundles of shares in ETFs is an efficient method for achieving diversification, with some ETFs also incorporating bonds.
Consider incorporating alternative investments like crowdlending into your portfolio to further enhance diversification. Crowdlending offers a combination of benefits from both shares and bonds, providing an additional layer of diversity to your investment strategy.
- Similar to bonds, crowdlending loans provide a steady interest within a fixed term.
- Like shares, they entail higher risk but offer the potential for much higher profits.
Read more about crowdlending here
Read this example of how to combine investing in shares, bonds and crowdlending
High-Yield Savings Account
Iuvosave
On the crowdlending platform Iuvo Save, you can earn an interest rate of 5, 6 or 7% for terms of 3, 6, or 12 months.
IUVO’s description of the security: “IuvoSAVE has a lower level of risk than our P2P loans because the funds invested through iuvoSAVE are used by MFG companies only. MFG owns iuvo and a big part of our loan originators. It has over 30 companies in 7 countries in Europe and it currently works on its expansion outside of Europe”.
- This option appears to be safer than investing in crowdlending loans.
- You may withdraw your savings prematurely for a fee of 1%. This ensures a good liquidity
Read more about IuvoSave and other High-Yield Savings Accounts
Read about the crowdlending part of IUVO
Bondora
Founded in 2008, Bondora was one of the earliest crowdlending platforms. Since 2023, they have focused solely on their high-yield savings account.
- Bondora was founded in 2008
- Saving account with 6.75% in Interest
- Withdraw at anytime
- Withdrawal fee: 1€
- Click here to get an instant bonus of 5€ when signing up
Read more about Bondora and other High-Yield Savings Accounts
Crowdlending
What is crowdlending?
In crowdlending, you can invest with as little as €10 in various types of loans. The significant diversification offered, along with interest rates ranging from 10% to 14%, helps offset the risk of defaults.
Key points for crowdlending
- Higher interest than shares (in average about 12%)
- Higher risk – especially in an economic recession
- There are vast opportunities to diversify your investments
- It’s possible to invest in short-term loans to maintain good liquidity
- Often you have the option to sell loans for a small fee or even a profit
In Mintos, you can automatically invest in Core Loans from €50.
You can withdraw at any time, effectively using it as a bank account with an interest rate of around 12%.
While it carries a higher risk than a traditional bank account, I have not encountered any defaults since I started investing in 2021
Read more
Real estate
Historically, real estate investment has demonstrated strong performance. However, until recently, a substantial amount of capital was necessary to participate in this market.
Now crowdlending makes it is possible to invest in real estate with as little as 5-100 €.
Nevertheless, during a recession, there is an increased risk of property owners being unable to meet property expenses, which could result in forced auctions and financial losses.
When engaging in real estate investment through crowdlending, it is advisable to opt for loans with first-rank mortgages. This choice reduces the risk of loss in the event of a default.
Crowdpear
Offering loans in real estate, business, and refinancing, Crowdpear serves as a valuable supplement to personal loans on other crowdlending platforms. Furthermore, the website is highly user-friendly. Since January 2023, I have received a 10% interest on my investment.
Key points
- Real estate crowdlending
- Minimum invest: 100€
- regulated under MiFID II — one of the most stringent regulatory frameworks in the EU
- All investments are secured with collateral
- I have invested since January 2023 and I have not experiensed late payments or defaults
- Read review about Crowdpear
- Visit crowdpear here (affiliate link)
Fintown
Founded in January 2023, Fintown is a relatively new real estate crowdlending platform. Investments are made in operational properties, generating monthly interest through rental income.
Additionally, you can invest in the construction of apartments, and after about a year, you are offered rental income with a bonus interest
Key points
- Real estate crowdlending
- Additional offers investing in operating properties, which generates an interest every month through the rental income. You may exit these investment
- All investments are secured with collateral
- I have invested since March 2023 and I have not experiensed late payments or defaults
- Minimum invest: 1€
Visit Fintown and see your oportunities (affiliate link)
Profitus
Profitus provides loans in real estate in the three Baltic countries, with the majority in Lithuania. I have been investing since June 2023, and everything has been running smoothly.
Key points
- Real estate crowdlending in the three Baltic countries
- All investments are secured with collateral
- I have invested since June 2023 and I have not experiensed late payments or defaults
- Minimum invest: 10€
Read my review about Profitus and get bonus
Green Investments
I am confident that investments in sustainable businesses will experience significant growth in the future.Much growth is happening beneath the surface. Like a Supertanker gradually gaining speed, challenging to halt once in motion.
Currently, the prices of green shares are low because the election of Donald Trump as the president of the USA signals less support to green investments. Maybe, it’s an opportune time to invest in green shares and await that they will be a cheaper alternative to oil and gas in the future.
Invest in green power
Ener2Crowd primarily offers investments in solar energy projects, but they also provide opportunities in other sustainable sectors such as windfarms, hydropower, energy efficiency of buildings, and more.
Invest in trees
At WorldPlanting.com, you can make a sustainable investment in Paulownia trees. By purchasing a tree, you can earn approximately 25% annually until it is harvested after 6 years.
Read about other green investments here
Music
Anote Music
In Anote Music, you have the opportunity to purchase a share in a music catalog, allowing you to receive royalties from the streamed music of various artists.
Similar to traditional shares, the value of the share may go up or down, providing the potential to earn money in addition to music royalties by selling the shares when their price increases
Key points
- You can purchase a share in a music catalog, enabling you to receive royalties from the streamed music of various artists.
- People continue to listen to music even during periods of high inflation and recession.
- This is a relatively new opportunity, and while I don’t have extensive experience with it yet, I believe it has the potential to become a thriving business
- It is also possible to sell your share of the catalog, leading to potential gains or losses
- I have invested since December 2022 and I have gained a 8% profit
- Get bonus at Anote Music here by using this refferal code: 3a7c8e
You get 25€ when you invest 200€ or more
Read my full review of Anote Music
Cryptocurrencies
Characteristics
- It is not safe at all, but there is a chance for a very good return
- The prices goes dramatically up and down – irrespective of inflation, recession, or other economic situations.
- It’s more like gambling unless you choose a strategy and stick to it (see below)
Perhaps you might consider expanding your diversification by allocating a small portion of your investments to purchase some cryptocurrency.
In my opinion, the risk is lower when investing in major cryptocurrencies, such as BTC (Bitcoin) and ETH
If you e.g. allocate $1.000 to investing in crypto, be sure to only invest a smaller part each time. For instance $100. If the price drops significant, you have the option to invest another small part.
Avoid FOMO (Fear of Missing Out). Don’t fall for the temptation of making a big profit in a short time.
DO NOT THINK THAT YOU CAN PREDICT WHETHER THE PRICE IS GOING UP OR DOWN.
Even experts are often wrong.
Pick instead one of the strategies below and stick to it. And make your own experience.
Common strategies for beginners proposed by experts
- The HODL strategy
- The HODL strategy involves buying cryptocurrency when prices are low and holding onto it for several years, anticipating a significant price increase over time. This is a common approach adopted by some investors (search for “crypto HODL strategy“).
- During periods of high prices, uncertainty can arise over whether the value will continue to rise or begin to fall. In such cases, some investors choose to sell part of their holdings—whether half or a quarter—to secure profits, while continuing to speculate with the remaining portion.
- The Dollar Cost Averaging strategy
- Another strategy recommended by experts is Dollar Cost Averaging (DCA). With DCA, you invest a fixed amount of money at regular intervals, such as every month, regardless of the cryptocurrency’s price fluctuations. This approach helps you buy at an average price over the long term. (search for “Dollar Cost Averaging in Crypto“)
- Trading bots (more advanced)
- Trading bots automatically buy when the price is low and sell when it rises. By making numerous small trades each day, these bots generate incremental profits. However, if the price drops significantly, you must decide whether to sell your crypto at a loss or hold onto it and apply The HODL strategy. (search for “crypto spot trading bot strategy“). Or visit this page.
- If you think it is too complicated to set up, you have the option of choosing a preset like e.g. the AI setting on Binance. Invest just a little for a start and monitor how it performs.
Be aware of trading fees
At my favorit bank, Revolut, you need to buy at least €200 to avoid a minimum fee of €1.99. The same applies to Coinbase.
For example, Binance does not have a minimum fee, but they charge a 2% fee when depositing funds via credit or debit card, and a 0.1% fee for cryptocurrency trades.
However, by setting up an Auto-Invest Plan, you can reduce the fees. For instance, you could make an annual bank deposit of €120 and set up automatic purchases, such as BTC, to invest 10% of the deposit each month. You can find a step-by-step guide for setting up this guide here.
Your own risk
Ultimately, it’s up to you whether you want to take on the risk of such an unpredictable investment.
I have no personal experience with these strategies; I have only read about what various “experts” suggest for beginners.
Summary
What is a safe investment strategy?
A safe investment strategy is defined by:
- Diversifying investments across various assets creates a well-rounded portfolio, enhancing both safety and the potential for a solid average profit. This approach is particularly effective in a long-term investment strategy
- Consider exploring other new types of alternative investments to further enhance your investment portfolio.
- Maintain a cash buffer to cover unexpected expenses, reducing the need to sell investments when prices are low.
- Crowdlending can serve as a buffer: opt for short-term loans with durations of 1-2 months, ensuring there is always money available for withdrawal. This option is available on various crowdlending platforms. Here are some examples:
Read more: