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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.
DigiAssets returns to London on 14 and 15 May 2024.
Europe’s leading digital assets conference for institutional participants is returning to London, with an event spanning 2 days of carefully curated sessions.
This year’s DigiAssets conference will take place in Islington at the Business Design Centre, London.
DigiAssets 2024 will be bringing together the biggest buy-side leaders from the top asset allocators, asset managers, private banks, investment banks and hedge funds – exploring key innovations across a quickly-evolving digital assets market.
DigiAssets 2024 agenda
The event will host over 600 traditional financial institutions looking to discuss the wide-scale adoption of digital assets. It will also dive into investment strategies and the potential lasting impact of blockchain technology on business models across all sectors.
You can expect the event to include over 25 sessions led by top thinkers in the digital asset space. This means you can hear first-hand from central banks, regulators, buy-side firms and leading providers.
These unique insights will put you in a position to discover how your business can capitalise on the new technology, trade, and investment opportunities that will develop as the digital asset ecosystem continues to mature.
Who’s attending DigiAssets 2024?
Confirmed speakers include:
- Eric Peters, CEO & CIO, Coinbase Asset Management
- David Reed, director, emerging technology innovation, Invesco
- Krzysztof Wierzchows, vice president, securities services, Franklin Templeton
- Matthew Long, director of payments & digital assets, FCA
- Joachim Schwerin, principal economist, European Commission
- Will Lovell, head of future technology, Bank of England
- Steve Kurz, global head of asset management, Galaxy
- Laurence Arnold, head of innovation management and strategic initiatives, AXA Investment Management
- Russell Barlow, global head of alternatives, abrdn
There are many more speakers already confirmed and you can see the full agenda along with the itinerary for the 2 day event here.
Finder is a media partner in the event and you can get 10% off the ticket price by using our discount code DAF24.
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.