Don't invest unless you're prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more.
Estimated reading time: 2 min
Due to the potential for losses, the Financial Conduct Authority (FCA) considers this investment to be high risk.
What are the key risks?
1. You could lose all the money you invest
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.
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.
2. You should not expect to be protected if something goes wrong
The Financial Services Compensation Scheme (FSCS) doesn't protect this type of investment because it's not a 'specified investment' under the UK regulatory regime – in other words, this type of investment isn't recognised as the sort of investment that the FSCS can protect. Learn more by using the FSCS investment protection checker.
The Financial Ombudsman Service (FOS) will not be able to consider complaints related to this firm or Protection from the Financial Ombudsman Service (FOS) does not cover poor investment performance. If you have a complaint against an FCA regulated firm, FOS may be able to consider it. Learn more about FOS protection here.
3. You may not be able to sell your investment when you want to
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.
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.
4. Cryptoasset investments can be complex
Investments in cryptoassets can be complex, making it difficult to understand the risks associated with the investment.
You should do your own research before investing. If something sounds too good to be true, it probably is.
5. Don't put all your eggs in one basket
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.
A good rule of thumb is not to invest more than 10% of your money in high-risk investments.
If you are interested in learning more about how to protect yourself, visit the FCA's website here.
For further information about cryptoassets, visit the FCA's website here.
Welcome to the Finder Crypto Innovation Awards 2023
Finder’s series of Innovation Awards recognise financial providers that are innovating in their chosen field, by bringing new and impactful features to the market and delivering beneficial services to their customers.
In their first year, this round of Innovation Awards focuses on the cryptocurrency market. A shortlist of providers was drawn together by Finder’s subject area specialists and the finalists were then assessed by an expert panel of judges.
To find out who won, watch our video of the awards announcement or click on the category underneath it to reveal the victors!
The shortlist of finalists in each category was selected by Finder’s subject area specialists, who identified the providers they felt were displaying key innovations in their field.
The shortlist was then passed to an expert judging panel (details below), who decided the winning and highly commended companies by assessing the finalists across 3 different criteria: uniqueness of innovation, impact in the market and value to customers.
The judges
Frank Corva, senior analyst for digital assets, Finder Erica Stanford, fintech & AI specialist Kate Levchuk, blockchain & AI expert Charles Kerrigan, partner specialising in digital assets, fintech, crypto & AI, CMS
Judging panel
Frank Corva is a writer and analyst for digital assets at Finder and host of the new renaissance capital podcast. Formerly a college lecturer and music journalist, Frank has transferred the skills he’s developed in his previous roles to educating the world about Bitcoin and other crypto assets through his writing and the interviews he conducts.
Erica Stanford is a fintech and AI specialist. She’s also author of Crypto Wars: Faked Deaths, Missing Billions and Industry Disruption which was awarded ‘Highly Commended’ in the Business Book Awards. She speaks and writes globally about digital assets, scams, and the integration of AI, as well as being an associate guest lecturer on digital assets at Warwick Business School and founder of the UK’s leading community the Crypto Curry Club.
Kate Levchuk is a London-based futuristic blogger writing and speaking on Transhumanism, AI and the Philosophy of Tech. She is a well-known expert on Blockchain, Web 3 and has been leading Sales Teams in Crypto Exchanges for the Last 2 years. In her free time Kate is advocating for Ukraine. You can read more about her on her blog – KateGoesTech, or Twitter with the same name
Charles Kerrigan is a Partner at law firm CMS and a specialist in emerging technologies including crypto, digital assets, Web3 and AI. The Blockchain Industry in the UK Landscape Overview names Charles as a “leading influencer in blockchain”. He sits on the advisory boards of AI and crypto firms and of trade bodies. He’s the editor and co-author of Artificial Intelligence Law and Regulation, as well as contributing editor of AI, Machine Learning & Big Data.
Previous Finder Awards winners
*Cryptocurrencies aren't regulated in the UK and there's no protection from the Financial Ombudsman or the Financial Services Compensation Scheme. Your capital is at risk. Capital gains tax on profits may apply.
Cryptocurrencies are speculative and investing in them involves significant risks - they're highly volatile, vulnerable to hacking and sensitive to secondary activity. The value of investments can fall as well as rise and you may get back less than you invested. Past performance is no guarantee of future results. This content shouldn't be interpreted as a recommendation to invest. Before you invest, you should get advice and decide whether the potential return outweighs the risks. Finder, or the author, may have holdings in the cryptocurrencies discussed.
Kate Steere is an editor at Finder, specialising in fintech, banking and cryptocurrency. She has previously written for The Motley Fool UK and Fitch Solutions, where she covered a wide range of personal finance topics and kept a close eye on market trends. Kate has a Bachelor of Arts in Modern History from the University of East Anglia. When not working, she can usually be found curled up with a good book or heading out for a run. See full bio
Kate's expertise
Kate has written 175 Finder guides across topics including:
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