Risk Disclosure

Risks of investing in Crypto Assets for UK consumers

Updated over a week ago

YouHodler is regulated in the EU (Italy) and Switzerland, and does not have a regulated UK entity. YouHodler is NOT regulated by the FCA, and protections offered under UK law do not apply. YouHodler promotions are not targeted at UK investors, and bonuses or loyalty programs like the rewards programme or sign-up offers will not be available to residents of the UK. Do not invest with YouHodler unless you’re prepared to lose all your money invested. Crypto Currency is considered as a high‑risk investment and you are unlikely to be protected if something goes wrong.

The FCA has an explanatory page on Crypto assets available here which may be useful to UK consumers who intend to invest in crypto assets.

As a rule of thumb, the guidance from the FCA is that consumers shouldn’t invest in Crypto-assets or with YouHodler unless they are prepared to lose all of the assets money invested. Cryptocurrency is considered as a speculative and high‑risk investment and consumers are unlikely to be protected if something goes wrong. Learn more about various risks below:

Volatility Warning:

Cryptocurrencies are highly volatile and can experience rapid and significant price fluctuations. You may lose a substantial portion or the entirety of your investment.

Lack of Regulation:

The regulatory framework for cryptocurrencies may change, and your investments may not be protected by the same laws and regulations as traditional financial assets.

Security Risks:

Your cryptocurrency holdings and transactions are susceptible to security breaches, hacks, and theft. It is crucial to use secure wallets and practices.

Market Risk:

The cryptocurrency market is influenced by various factors, including market sentiment, technological developments, and regulatory changes, which can impact the value of your investments.

Liquidity Risk:

Some cryptocurrencies may have limited liquidity, making it challenging to buy or sell assets at your desired price.


Diversifying your investment portfolio is important to manage risk effectively. Avoid investing all your funds in a single cryptocurrency or asset.

Loss of Funds:

You should only invest what you can afford to lose. Avoid investing money that you cannot afford to risk.


Conduct thorough research and seek professional advice before making any investment decisions in the cryptocurrency market.

Tax Implications:

Cryptocurrency transactions may have tax implications. Ensure you understand and comply with your tax obligations.

Long-term Viability:

The long-term viability of specific cryptocurrencies is uncertain. Some projects may fail, leading to a complete loss of investment.

Fraud and Scams:

Be cautious of fraudulent schemes, scams, and phishing attempts related to cryptocurrencies. Exercise due diligence and be wary of unsolicited offers.

Legal Compliance:

Ensure that your cryptocurrency investments comply with the prevailing laws and regulations in your jurisdiction, including any recent updates.

Did this answer your question?