Risk Advisory

High-Risk Investment Warning from the FCA
The Financial Conduct Authority (FCA) classifies this investment as high risk, given the possibility of significant losses.

What are the main risks?

  1. You could lose your entire investment
    • Crypto assets are known for their extreme price volatility, meaning their value can plummet just as quickly as it rises. Be prepared for the possibility of losing all the money you invest in crypto assets.
    • The crypto asset market is mostly unregulated. You could face losses from risks like cyber-attacks, financial crime, or the failure of firms.
  2. You may not be protected if things go wrong
    • This investment is not covered by the Financial Services Compensation Scheme (FSCS) because it’s not classified as a ‘specified investment’ under UK regulations. You can check your investment’s FSCS coverage here: FSCS Investment Protection Checker.
    • Complaints related to this firm cannot be reviewed by the Financial Ombudsman Service (FOS). More details on FOS protection can be found here: FOS Consumer Protection.
  1. You may not be able to sell your investment when you want to
    • There is no assurance that crypto assets can be easily sold at any time. The ability to sell depends on factors such as current market supply and demand.
    • Issues like technology failures, cyber-attacks, or fund mismanagement may cause delays, preventing you from selling your crypto assets when you wish.
  2. crypto asset investments can be difficult to understand
    • Crypto assets can be complex, making it harder to grasp the risks involved.
    • It’s essential to research thoroughly before investing. Remember, if something seems too good to be true, it likely is.
  3. Diversify your investments
    • Concentrating all your money in a single investment is risky. Diversifying across different investments reduces your reliance on any one performing well.
    • A useful guideline is to limit your investment in high-risk assets to no more than 10% of your total money: FCA’s Investment Advice.
  4. If you’d like to learn more about protecting yourself while investing, visit the FCA’s website here: FCA InvestSmart.
    For more information on crypto assets, you can visit the FCA’s dedicated page here: Crypto Basics.
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