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Due to the potential for losses, we consider this investment to be high risk.
What are the key risks?
1. You could lose all the money you invest
- The performance of most crypto assets 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 crypto assets.
- The crypto asset market is largely unregulated. There is a risk of losing money or any crypto assets you purchase due to risks such as cyber-attacks, financial crime and firm failure.
2. You may not be able to sell your investment when you want to
- There is no guarantee that investments in crypto assets can be easily sold at any given time. The ability to sell a crypto asset depends on various factors, including the supply and demand in the market at that time.
- Operational failings such as technology outages, cyber-attacks and co-mingling of funds could cause unwanted delay and you may be unable to sell your crypto assets at the time you want.
3. Crypto asset investments can be complex
- Investments in crypto assets 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.
4. 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.
If you are interested in learning more about crypto asset risks, visit here