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.
A blockchain venture studio based in Auckland, New Zealand, Centrality is a blockchain ecosystem designed to support startups at each stage of their life cycle using dapps (decentralised applications).
CENNZ is Centrality’s native utility token and is used to connect Centrality marketplace applications and perform a wide range of other tasks. Following a hugely successful initial coin offering (ICO) in early 2018 that raised US$260 million, the project has attracted plenty of interest from New Zealand, Australia, the UK and further afield. Here, we cover how to buy CENNZ tokens.
A step-by-step guide to buying CENNZ
If you want to buy CENNZ tokens, you can do so in three simple steps:
Step 1. Register with an exchange that lists CENNZ
At the time of writing (August 2019), HitBTC is one of the only exchanges where you can buy CENNZ. To sign up for an account, you’ll need to provide your email address and create a username and password. Make sure you also enable two-factor authentication on your account to provide increased security for your coins and tokens.
Step 2. Deposit funds into your account
HitBTC accepts cryptocurrency deposits, so you can transfer Bitcoin (BTC) into your account to buy CENNZ.
If you’re keen to learn how to buy Bitcoin in the UK, check out our comprehensive guide. You can also check out our guide on which cryptocurrency exchanges support payments in GBP.
Step 3. Buy CENNZ
Once your deposit has cleared, click the “Exchange” button at the top left of the menu bar. If you want to instantly buy CENNZ at the current market price, search for the CENNZ/BTC currency pair on the left side of the page and click on an existing order you wish to buy from the current list of sell orders.
If you want to place a limit order, after you’ve searched for the CENNZ/BTC currency pair, look for the “Buy CENNZ” box and enter the amount of tokens you want to buy and the price you want to pay per token.
Make sure you review the full details of your transaction before clicking on “Buy CENNZ” and finalising your purchase.
How to sell CENNZ
If you’re selling your CENNZ tokens, the process is essentially the same as that outlined in step 3 above. Just make sure to look for the “Sell CENNZ” link and review all the details of your transaction. Also, remember that you may not be able to directly exchange CENNZ tokens for the currency you want.
Which wallets can I use to hold CENNZ?
If you’re looking for a long-term storage solution, keeping your tokens in an exchange wallet exposes you to a number of security risks and is generally not recommended. Instead, you can provide greater security for your funds (and peace of mind for yourself) by moving your tokens into a secure wallet that lets you control your private keys.
As CENNZ is an ERC20 token on the Ethereum network, you’ll need to store your CENNZ in a wallet that supports these types of tokens. For example, you could opt for an online interface like MyEtherWallet or a hardware wallet like the Ledger Nano S.
According to its website, Centrality is “a venture studio that partners with leading innovators in key industries to create a marketplace of applications. These applications allow consumers to manage everyday tasks and experiences using peer-to-peer transactions – all via one login and using blockchain-enabled infrastructure.”
In other words, it helps tech startups and other business put their products and ideas on the blockchain ecosystem. Centrality then becomes the central hub for all those dapps, which consumers can access using just the one login.
With staff in Auckland, London, Melbourne and Singapore, the Centrality platform offers the base for this marketplace of dapps. It also offers tools, services and applications that developers can use to create dapps. This design aims to give startups flexibility over their product, but at the same time ensure that there’s a standardised look and feel across all Centrality platform dapps.
The platform. The Centrality platform creates the technical foundation for dapps. In return for offering the ecosystem a dapp needs to run, Centrality receives an allocation of tokens issued by any dapp it powers.
Dapps. Dapps can be plugged into the Centrality platform and require CENNZ tokens for their creation.
Smart contracts. Separate dapps can interact with each other to acquire users, data, merchants and content, with smart contracts ensuring trustless engagement.
Centrality’s token launch took place in early 2018 and reportedly raised US$265 million, well in excess of its US$100 million hard cap. A quick look at its marketplace reveals more than a dozen dapps.
What to consider if buying CENNZ
Cryptocurrencies are complex and speculative assets, and there are many factors that can influence the price of any given coin or token. With this in mind, you should always thoroughly research any project before deciding whether to make a purchase.
If you’re thinking of buying any CENNZ, make sure you consider the following factors:
Supply. According to CoinMarketCap (May 2018), the circulating supply of tokens was 687,568,002 CENNZ out of a total supply of 1.2 billion.
Use. CENNZ is a utility token that can be used to connect dapps in the Centrality marketplace, connect users and access Centrality software. For example, a dapp creator can use the CENNZ token to purchase modules for their app or to reward their customers for participation.
Limited availability. As Centrality tokens are currently only available on one exchange, this lack of accessibility could have an impact on demand for the tokens on the open market.
White paper. If you want more information about how Centrality works, the problems it aims to solve and how the CENNZ token fits in, take a look at its detailed white paper.
Centrality Ventures. Centrality also runs Centrality Ventures, a blockchain incubator programme designed to help startups scale within a blockchain ecosystem. As part of the programme, approved businesses receive initial funding totalling NZD$100,000 worth of ETH in exchange for 20% equity.
Government grant. The Centrality white paper states that the project has received a non-refundable research grant from the New Zealand government of up to NZD$15 million over three years.
Partnerships. It’s also a good idea to consider the strategic partnerships and relationships a project has when determining its potential future growth. Centrality’s list of partnerships includes SingularDTV and Blockhaus AG.
By considering these and other factors, you’ll be able to make an informed decision about whether to buy CENNZ.
Disclosure: At the time of writing, the author holds IOTA and XLM.
*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.
Tim Falk is a freelance writer for Finder. Over the course of his 15-year writing career, he has reported on a wide range of personal finance topics. Whether you're investing in stocks and ETFs, comparing savings accounts or choosing a credit card, Tim wants to make it easier for you to understand. When he’s not staring at his computer, you can usually find him exploring the great outdoors.
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