What are the major risks associated with cryptocurrencies?
Cryptocurrencies involve significant risk. You should carefully consider whether it's appropriate for you to purchase cryptocurrencies depending on your financial circumstances and risk appetite.
Regulatory Risk
The regulation (or lack of regulation) of cryptocurrency or crypto exchanges can change at any time. Any change could affect the value of any cryptocurrency we hold for you.
Volatility Risk
The value of cryptocurrency can fall (and is more likely to do so than normal money). This could happen if, for example, a new, better cryptocurrency is created, software developers make unexpected changes to how the cryptocurrency works, or there's a change in cryptocurrency regulation. The price or value of cryptocurrencies can rapidly increase or decrease at any time. It may even fall to zero. Unlike normal money, no bank or government can stabilise the value of a cryptocurrency if it changes suddenly.
Information Security Risk
Unlike normal money, when you buy, sell, or transfer crypto, you're dealing with something digital, not tangible. This means that, like any other digital system, cryptocurrencies are at risk of being hacked or affected by technical problems. This could result in you losing your cryptocurrency or delay your ability to sell or transfer the cryptocurrency. The partnered exchanges and appointed custodians are also at risk of being hacked, and if that happened you could lose some or all of your cryptocurrency.
Partnered Exchange and Appointed Custodian Risk
We provide crypto services through arrangements with Revolut Ltd, partnered exchanges, and other appointed custodians. If one of these entities fails to perform their obligations (including where they're insolvent), you may lose some or all of your cryptocurrency.