A simple and generic approach--alternating voltage induced electrochemical synthesis (AVIES)--has been reported for synthesizing highly dispersed colloidal metal (Au, Pt, Sn, and Pt-Pd) and metal oxide (ZnO and TiO2) nanocrystals. The respective nanocrystals are produced when a zero-offset alternating voltage at 60 Hz is applied to a pair of identical metal wires, which are inserted in an electrolyte solution containing capping ligands. In the case of Au, the obtained nanocrystals are highly crystalline nano-icosahedra of 14 ± 2 nm in diameter, the smallest Au icosahedra synthesized in aqueous solutions via green chemistry. Their catalytic activity has been demonstrated through facilitating the reduction of 4-nitrophenol to 4-aminophenol by sodium borohydride. This AVIES approach is an environmentally benign process and can be adopted by any research lab.