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 minutes to learn more.
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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 here.
The Financial Ombudsman Service (FOS) will not be able to consider complaints related to this firm. 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. 5 questions to ask before you invest.
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.
Disclaimer: buying Bitcoin or any cryptocurrency involves risk and can result in losses of the invested capital. You should not invest more than you can afford to lose. Past performance is not indicative of future results. The average price might go down. Please ensure that you understand the risks involved. Investments in bitcoin or cryptoassets are not covered by the Financial Ombudsman Service or subject to protection under the Financial Services Compensation Scheme. Fees apply to transactions on BCP Matkets and tax (including Capital Gains Tax) may be payable on any profits. BCP Markets do not make any recommendations in any transaction.
These materials are provided for informational purposes only and should not be considered as investment advice or a recommendation or solicitation to buy, sell, stake, or hold any cryptoasset or to pursue any specific trading strategy. BCP Markets expressly states that it does not engage in activities to influence the price of any particular cryptoasset it offers. It is important to note that certain crypto products and markets operate without regulation, and there is no protection under government compensation or regulatory schemes. The volatile nature of the crypto-asset markets carries the risk of financial loss. Tax obligations may arise from returns or increases in the value of your cryptoassets, and it is advisable to seek independent advice regarding your tax position.
If you have been asked to send bitcoin or cryptos to receive more money in return please be aware this is a scam.