⚠️ Important: Cryptoassets are high-risk and you should only invest money you can afford to lose.
1. You could lose all the money you invest
Cryptoassets are extremely volatile — their value can go up or down quickly.
If the price drops, you may lose all of the money you invested. There is no guarantee of future performance or recovery of losses.
2. There’s no protection if something goes wrong
Crypto investments are not covered by the UK Financial Services Compensation Scheme (FSCS) or the Financial Ombudsman Service.
This means if a crypto firm fails or your assets are lost, you won’t be able to recover your funds through these protections.
3. Crypto is not the same as a bank account
Crypto accounts are not insured. Unlike holding money in a bank, your funds are not safeguarded by government guarantees.
4. Fraud and scams are common
The crypto space is a target for scams, hacks and phishing attacks. Criminals may impersonate legitimate firms or try to trick you into transferring your funds.
Always check you are using the official app or website.
Never share your private keys or recovery phrases.
Be wary of anyone promising guaranteed returns.
5. You should understand what you’re buying
Cryptoassets are complex products. Before investing, make sure you understand:
What the asset is and how it works.
How its value is determined.
The potential risks specific to that token or service.
If you don’t fully understand an investment, you should not invest.
6. Your investment may be locked or illiquid
Some cryptoassets can’t be quickly or easily sold. In a market downturn, it may be hard or impossible to exit without significant losses.
7. Taxes may apply
Gains from cryptoasset investments are subject to tax in the UK. You are responsible for reporting and paying any tax due.
8. Take your time — there’s no rush
Cryptoassets are high-risk investments. Take the time to understand the risks, do your research, and never invest under pressure or on impulse.
📌 Summary
❌ You could lose all your money.
🛡️ No FSCS or Ombudsman protection.
⚠️ High risk, high volatility.
👀 Be vigilant against scams.
🧠 Only invest if you understand the product.
👉 Read more on the FCA website (opens in new tab)