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How low-risk, high-reward investment apps dominated 2022

Mobile apps offer an affordable, accessible, and intuitive way to start organizing your finances and building your portfolios.

crypto coins on a laptop
Image: Pexels

Over the last few years, investment apps have grown in considerable popularity, and there’s a good reason – almost anyone can access many financial products with just a few taps on a smartphone.

We’ve seen the rise of mobile stock trading, device-based crypto trading, and apps for things like micro-investing, micro-lending, and copy-trading.

We’ve seen challenger banks offer more competitive rates than their physical rivals.

At the same time, decentralized liquidity pools and yield farms came out of nowhere with extraordinary APYs (and often disappeared just as fast). 

With all of these different methods, strategies, and platforms for handheld investment, there is a great deal of risk.

crypto charts on smartphone
Image: Unsplash

Robinhood, the biggest stock trading app in the world in 2021 ($22.8bn revenue), has seen a significant decline and devaluation in 2022, as has the overall stock market, with most people reporting negative portfolio performance.

Cryptocurrency is in a tough period also, with the 2022 bear market proving a hostile (but not impossible) territory for those seeking safe investments.

The collapse of UST, BlockFi, and Celsius is symbolic of why investment carries risk (in most cases). 

Some things to consider:

  • 130m+ people trade stocks on their mobile
  • Americans lost $9 trillion on the stock market in 2022
  • 320m+ people now own cryptocurrency in some form
  • Global investors lost around $1 trillion on the crypto market in 2022
  • 7.26bn, or 91% of the world’s population, uses a smartphone
  • Between two and three billion people do mobile banking on their phones

In this article, we’ll look at how the growth of mobile financial services, coupled with a particularly volatile and bearish year, has created a golden opportunity for low-risk, high-reward solutions. 

Low-risk, high-reward: is it possible?

computer with stock trading chart opened
Image: Pexels

For beginners, mobile investment apps offer an affordable, accessible, and intuitive way to start organizing their finances and building their portfolios.

However, beyond the myriad options they offer, they must also (and with little experience) weigh up the underlying considerations behind the returns being offered.

Through clever phrasing, it’s easy to manipulate the perceived returns on investment products, especially when rates change frequently. 

Low-risk, high-reward platforms have benefited from the global economic instability, offering users a way to safely put their funds into something that will outperform the interest rates of their bank.

robinhood app on an iphone
Image: KnowTechie

For example, traditional bank HSBC offers a standard ISA with an APY of 1.20%, paid monthly, whereas neo-bank Revolut offers a savings vault at 1.95%, paid daily. 

Let’s look at another example. SoFi is an all-in-one investing app for beginners, offering stocks, ETFs, cryptocurrencies, and savings products.

They offer impressive APYs of 2.5% on checking and 3.0% on savings, far above the US national average. Those figures are 62x and 14x above the national averages, respectively. 

For many crypto investors who were seriously stung in 2022 by the unwelcome arrival of the bear market or ‘crypto winter’ as many call it, low-risk gains for damage limitation are an absolute must.

One impressive solution born during the crypto winter is Alluo.

alluo trading on phone
Image: Alluo

Where crypto investing platforms like Celsius and BlockFi went wrong – through poor risk management, transparency, and a centralized custodial service approach – Alluo has realigned the market’s needs with a highly rewarding (and low-risk) solution.

With Alluo’s non-custodial approach, the customer remains in control.

Low-risk investment – outperforming the market

With stock, FX, crypto, ETF, and other kinds of trading, the risks are obvious – if the market dips, so will your portfolio.

With Alluo, things are a bit different. On the front end, what you see are fiat currency value representations.

Under the hood, there’s a pure DeFi engine powering great returns and maintaining on-chain transparency, non-custodial services, and returns on fiat deposits currently at 7%.

This outperforms Gemini, Coinbase,, KuCoin, and more, all without having to hand over your coins.

Remember, not your keys, not your crypto – the importance of which cannot be understated, as evidenced in the recent collapse of crypto exchange FTX, which stopped customer withdrawals as it was crashing.

However, Alluo seems to have mastered low-risk, high-reward investing, with the most important addition of putting the control back into customers’ hands, nestling into an opportunistic position in a crowded market.

DeFi investing took off in April 2020, starting what was called ‘DeFi Summer,’ with countless protocols and investing platforms popping up overnight.

computer with charts of investing in crypto
Image: Pexels

Unfortunately, many disappeared just as fast, taking users’ money with them in hacks or a “rug pull.”

Many simply crashed because their tokenomics (token + economics) were poorly designed and unsustainable.

Opportunistic investors threw their crypto into projects offering thousands of percent APY, only to see the value of the coin drop to almost zero, making the astronomical APYs irrelevant. 

Moreover, short-term gains over long-term stability made some “new rich” during DeFi summer, but many others lost considerable sums.

Then, as DeFi matured, these pop-up platforms fell to the wayside, and legitimate, progressive projects sustained or appeared in their place.

Novelty precedes utility. Now, along with battle-tested protocols like Aave, Curve, and Convex, we have next-generation non-custodial apps that bring access to them like Alluo, Gelt, and more to follow, no doubt. 

Inflation-beating technology

As inflation and hyperinflation become global problems, investment apps and financial services will offer to help you ‘beat inflation’ or ‘hedge inflation.’

This simply means that their savings or investment product offers a higher rate of return than the inflation rate. In the past, people bought land, properties, bonds, gold, and more, to hedge inflation.

Thus, now they use mobile investment apps. The world is changing, and Web3 is yet another way to do that.

Let’s say you have £10,000. Therefore, if you do nothing with that money, like keeping it as cash, and the inflation rate is 10%, then after 1 year, that money is still £10,000, but it now has only £9,000 spending power.

If, instead, you put the £10,000 in a 12% investment product, after one year, you have £11,200, but it now has £10,080 spending power. 

In simplified terms, the aim of the game is to put your money into an investment that maintains or increases value despite ongoing inflation. 

Verdict: why low-risk, high-reward investment apps will continue to dominate

person holding a Bitcoin and a android phone
Image: Unsplash

In the UK, inflation is sitting at 11.1%. German inflation is 10.4%. In the US, it’s 7.7%. Australia is at 7.3%. Canada’s figure is 6.9%. Brazil reports 6.4%. You get the picture.

Inflation is high right now. With countries entering a recession, the UK in particular, more and more news will create more and more discussion about how to hedge against inflation and avoid suffering portfolio losses.

Furthermore, financial services like Alluo will continue to dominate, grow, and be catapulted into the limelight. Those who start now get a head start, those who wait will suffer the worst from inflation.

All this financial power is at your fingertips, starting with a simple app download. 

Have any thoughts on this? Carry the discussion over to our Twitter or Facebook.

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