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.
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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.
Unlike trading stocks and commodities, the cryptocurrency market isn’t traded on a regulated exchange. Rather, the market is open 24/7 across a growing number of exchanges.
Successful crypto traders understand that, although the market for digital currency is open nonstop, more trades are successful if transacted when global market activity is high. Outside the hours of these global markets, trading can be light, potentially resulting in weaker exchange rates and difficulty in selling your coins.
Our crypto markets trading hours converter displays open and close times for global markets in your local time zone, so that you can gauge when volume might be highest in any individual market.
Market time converter
Your local time is
| Global market | Local time | Current status |
|---|---|---|
| New York (US) | ||
| Sydney (Australia) | ||
| London (UK) | ||
| Frankfurt (Germany) | ||
| Seoul (South Korea) | ||
| Tokyo (Japan) | ||
| Hong Kong (China) |
A market’s peak trading hours is typically 8 a.m. to 4 p.m. in its local time. These are the trading hours that usually drive the highest trade volume in each region. Although a market can be “closed,” there might be huge movements in the global market depending on news and speculations.
Why is the converter useful if the crypto trading market is open 24/7?
Crypto trade volume dips and soars as people trade within huge global markets. These global markets come with firm trading hours, which can be helpful if you’re analyzing a specific digital currency against price predictions.
Add to this that global markets react differently to the news. For instance, business headlines that might prompt a quick reaction from Americans — affecting the price of a specific coin — might not make as many waves in, say, the South Korean market.
In today’s crypto market, South Korea is among the market leaders in volume traded. This means they can play a larger role than most countries in moving the prices of specific coins. We saw this with Ripple in December 2017, when the coin traded for some 30% more on the South Korean market than it did in the US.
If you decide you’re game for the notorious volatility of cryptocurrency, use our market time converter to translate open and close hours for markets around the world into your own time zone.
Start trading now
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*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.
