{"id":7860,"date":"2025-07-21T01:44:42","date_gmt":"2025-07-21T00:44:42","guid":{"rendered":"https:\/\/www.simplex.com\/kb\/risk-warning-for-purchasing-cryptocurrency-in-the-uk"},"modified":"2025-09-03T15:14:18","modified_gmt":"2025-09-03T14:14:18","slug":"risk-warning-for-purchasing-cryptocurrency-in-the-uk","status":"publish","type":"kb","link":"https:\/\/www.simplex.com\/kb\/risk-warning-for-purchasing-cryptocurrency-in-the-uk","title":{"rendered":"Risk warning for purchasing cryptocurrency in the UK"},"content":{"rendered":"

Due to the potential for losses, the Financial Conduct Authority (FCA) considers this investment to be high risk.<\/p>\n

\u00a0<\/p>\n

What are the key risks?<\/strong><\/p>\n

\u00a0<\/p>\n

1. You could lose all the money you invest<\/strong><\/p>\n

\u2022 The performance of most cryptoassets can be highly volatile, with their value dropping as quickly as it can rise. You should be prepared to lose all the money you invest in cryptoassets.<\/p>\n

\u2022 The cryptoasset market is largely unregulated. There is a risk of losing money or any cryptoassets you purchase due to risks such as cyber-attacks, financial crime and firm failure.<\/p>\n

\u00a0<\/p>\n

2. You should not expect to be protected if something goes wrong<\/strong><\/p>\n

\u2022 The Financial Services Compensation Scheme (FSCS) doesn\u2019t protect this type of investment because it\u2019s not a \u2018specified investment\u2019 under the UK regulatory regime \u2013 in other words, this type of investment isn\u2019t recognised as the sort of investment that the FSCS can protect. Learn more by using the FSCS investment protection checker here<\/strong><\/em><\/a>.<\/p>\n

\u2022 The Financial Ombudsman Service (FOS) will not be able to consider complaints related to this firm. Learn more about FOS protection here<\/strong><\/em><\/a>.<\/p>\n

\u00a0<\/p>\n

3. You may not be able to sell your investment when you want to<\/strong><\/p>\n

\u2022 There is no guarantee that investments in cryptoassets can be easily sold at any given time. The ability to sell a cryptoasset depends on various factors, including the supply and demand in the market at that time.<\/p>\n

\u2022 Operational failings such as technology outages, cyber-attacks and comingling of funds could cause unwanted delay and you may be unable to sell your cryptoassets at the time you want.<\/p>\n

\u00a0<\/p>\n

4. Cryptoasset investments can be complex<\/strong><\/p>\n

\u2022 Investments in cryptoassets can be complex, making it difficult to understand the risks associated with the investment.<\/p>\n

\u2022 You should do your own research before investing. If something sounds too good to be true, it probably is.<\/p>\n

\u00a0<\/p>\n

5. Don\u2019t put all your eggs in one basket<\/strong><\/p>\n

\u2022 Putting all your money into a single type of investment is risky. Spreading your money across different investments makes you less dependent on any one to do well.<\/p>\n

\u2022 A good rule of thumb is not to invest more than 10% of your money in high-risk investments. You can read more about it here<\/strong><\/em><\/a>.<\/p>\n

\u00a0<\/p>\n

If you are interested in learning more about how to protect yourself, visit the FCA\u2019s website <\/strong>here<\/strong><\/em><\/a>.<\/strong><\/p>\n

For further information about cryptoassets, visit the FCA\u2019s website here<\/em><\/a>.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Due to the potential for losses, the Financial Conduct Authority (FCA) considers this investment to be high risk. \u00a0 What are the key risks? \u00a0 1. You could lose all the money you invest \u2022 The performance of most cryptoassets can be highly volatile, with their value dropping as quickly as it can rise. You<\/p>\n","protected":false},"featured_media":0,"menu_order":0,"template":"","kb_category":[36,44],"class_list":["post-7860","kb","type-kb","status-publish","hentry","kb_category-buying-with-a-credit-debit-card","kb_category-security-fraud"],"acf":[],"yoast_head":"\nRisk warning for purchasing cryptocurrency in the UK - Simplex<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.simplex.com\/kb\/risk-warning-for-purchasing-cryptocurrency-in-the-uk\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Risk warning for purchasing cryptocurrency in the UK - Simplex\" \/>\n<meta property=\"og:description\" content=\"Due to the potential for losses, the Financial Conduct Authority (FCA) considers this investment to be high risk. \u00a0 What are the key risks? \u00a0 1. 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