Every investor has their own strategy – and with it, their own personal perception of risk. For some, investing in individual stocks is dangerous, while for others, relying solely on ETFs is risky. And then there are those who see crypto as “the big hit” and later want to put everything into ETFs “for security.”
Recently, I told a colleague about my broadly diversified portfolio: over 60 individual stocks from various industries, countries, and continents, complemented by a single ETF – the Vanguard High Dividend ETF. His reaction?
👉 “That’s way too risky for me, I would never do that!”
The twist? His own portfolio consisted of only two ETFs and a selection of speculative cryptocurrencies like XRP, Solana, and Bitcoin. But his plan was clear: If he made “big money” with crypto, he would move everything into ETFs to secure his retirement.
But wait… which one is actually riskier?
Risk is not absolute – it’s all about perspective
Many investors equate risk with volatility. “Individual stocks fluctuate more than ETFs, so they are riskier.” But is it really that simple?
🔹 Cryptocurrencies are extremely volatile. Those who rely on quick profits risk seeing their wealth shrink just as fast.
🔹 Two ETFs as the only retirement plan? That may feel “safe,” but what if those ETFs are underwater during a market downturn and you need money?
🔹 60 individual stocks diversified worldwide? That may sound like a lot of effort, but broad diversification can often lower risk compared to a few ETFs with high correlation.
👉 We often assess risk emotionally rather than rationally.
Who is really risk-aware here?
đź“Ś Scenario 1: My portfolio
I invest in solid dividend stocks and strong companies across various industries and countries. My portfolio generates steady payouts, is diversified, and is focused on the long term.
đź“Ś Scenario 2: My colleague
He bets everything on crypto – hoping to “cash out” at some point and then switch to ETFs. His entire plan is based on the principle of “if everything goes well” – but what if it doesn’t?
đź“Ś What is truly riskier?
My portfolio is based on real business values, profits, and dividends.
His portfolio is based on the hope that crypto will skyrocket in the long run.
If his strategy fails, he has nothing. If my strategy struggles, I still receive dividends and can buy more shares at lower prices.
The biggest mistake: An “exit plan” that isn’t a plan
Many crypto investors have a dream: “As soon as I make enough money, I’ll play it safe.” But is that really a plan?
🔹 What if crypto never experiences the expected boom?
🔹 What if the market crashes before he sells?
🔹 What if ETFs are overvalued at that time and performing poorly?
A solid financial plan isn’t based on an “all-or-nothing” mindset. It’s based on diversification, cash flow, and realistic expectations.
With Aktiokrat WatchTower and RiskGuard, you can secure your portfolio in the long run – not just for a lucky break, but for a stable future.
Conclusion: True risk isn’t in the asset class but in the lack of strategy
My colleague believes my portfolio is risky – and his is safe. But objectively, it looks different:
✅ My portfolio earns money every month – his speculates on a future that may never come.
✅ I am broadly diversified – he relies on a highly speculative asset class with uncertain regulation.
✅ My plan works whether the market goes up or down – his plan only works if crypto explodes.
👉 Investing shouldn’t be a bet on a golden future but a well-thought-out strategy for every market condition.
What do you think? Which of us is taking the bigger risk? Join the discussion in our forum! 🚀
