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.
The Finder Crypto Trading Awards 2022 programme recognises the best platforms for Brits to invest in crypto.
Finder’s data scientists and cryptocurrency experts ran the numbers and scored participating crypto trading platforms on a comprehensive list of 55 criteria.
The platform with the highest score in selected categories was named the winner.
Best Cryptocurrency Exchange:
Kraken
Kraken scored consistently well across the board for its beginner-friendly features and value for money, securing its place as our overall winner. The feature-filled exchange is a solid choice for users looking for a platform that suits both new and experienced crypto traders alike.
CoinJar performed well across all of our categories but was a standout option for value. With no fees for GBP deposits and withdrawals and competitive trading fees on its instant buy/sell and exchange features, it’s a strong offering for value-savvy Brits. And there are perks on offer through its crypto debit card rewards program for those looking to spend their digital assets.
Kraken was not only the top pick overall but also excelled in our altcoin category. With close to 40 GBP trading pairs and nearly 200 coins on offer, it’s an attractive option for any crypto enthusiast on the hunt for something a little more obscure. Zero-fee GBP wallet deposits provide an added bonus for anyone looking to explore the market beyond Bitcoin.
eToro scored well across all aspects of the broker category, but it really excelled for its beginner-friendly features. The social trading platform is best known for its CopyTrader feature, where users can connect with and copy other crypto traders – giving first-timers a glimpse of what moves experienced investors are making.
Here’s how our expert analysts assessed the UK’s crypto trading platforms to pick the 2022 winner.
Selection criteria
We conducted an extensive market review of the UK cryptocurrency market and contacted 34 cryptocurrency exchanges and brokers in June/July 2022 to participate in the awards program. Any platforms that didn’t complete the information form were not included in the final analysis.
All platforms included were required to be included on the Financial Conduct Authority’s (FCA) Financial Services register or temporary register to be considered for an award.
The awards for “Best Cryptocurrency Exchange” and “Best Cryptocurrency Trading Platform” were given to the business that had the highest average score across the 4 following categories, each contributing 25% of the score for the overall winner:
*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.
A comprehensive review of Uphold, the cloud-based financial services platform where you can hold, move, convert and transact in fiat currency, cryptocurrency and even commodities.
Check out our complete review of Coinbase to see if it’s safe, weigh up pros and cons, compare fees and learn what you can do on it beyond simply buying cryptocurrency.
If you’re thinking of buying and selling cryptocurrencies on eToro, make sure you check out our comprehensive eToro review first to understand the pros and cons.
Find out how you can benefit from the range of features offered by the CoinJar cryptocurrency exchange.
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