Risk Summary

Due to the potential for losses, the Central Bank of Ireland 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 and Pensions Ombudsman (FSPO) doesn’t protect this type of investment – in other words, this type of investment isn’t recognised as the sort of investment that can be protected. However, if the FSPO comes to the conclusion that the bank was negligent, then there may be a small avenue for a case. Learn more about FSPO activities 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.