Buy Crypto
Buy Crypto via Bank Card
GBP
Use Bank Card to Buy Crypto
Buy Crypto via P2P
Use Peer-to-Peer to Buy Crypto
Buy Fan Tokens
Buy Fan Tokens
Buy NFTs
Buy Non-Fungible Tokens
Trade
Convert
Use Convert to Trade Crypto
Spot Exchange
Use Spot Exchange to Trade Crypto
Margin Exchange
Use Margin Exchange to Trade Crypto
Trading Bots
Use Trading Bots to Trade Crypto
Earn
Launch Platform
Cryptoasset Token Launch Platform
Auto-Invest
Cryptoasset Auto-Invest Platform
Support
Submit Live Chat
Chat with Customer Support
Support Centre
Access Support FAQ articles
Trading Fees
View the trading fees
Trading Rule
View the trading rules and limits

Learn more about the specific risks in connection with the different types of cryptoassets:

Before buying cryptoassets, please take time to understand the different risks associated with the different types of cryptoassets and the steps you can take to mitigate certain risks.

  • 1. Meme coins  (e.g. DOGE) are crypto-assets whose value is driven primarily by demand led by community interest and online trends.

  • 2. Defi tokens

  • 3. Wrapped crypto-assets

  • 4. Stablecoins

  • 5. Staked crypto-assets

1. Meme Coins

  • Volatility Vulnerability: Meme coins are susceptible to rapid fluctuations in value, driven by passing trends on social media, celebrity endorsements, and other factors unrelated to traditional investment fundamentals.

  • Utility Deficiency: Meme coins often lack intrinsic value or practical use, relying mainly on community interest, online trends, and speculative trading.

  •  Manipulation Susceptibility: Meme coins are at a heightened risk of market manipulation, including schemes like 'pump-and-dump,' where promoters drive demand before selling off.

  • Transparency Shortcomings: Typically, there is limited information available about their development teams, goals, and financials, making it challenging to accurately assess the credibility and potential of a meme coin.

  • Waning Interest: Meme coins tend to lose popularity as new ones emerge, potentially leading to decreased investor interest.

  • Emotional Investing: Investing in meme coins often involves impulsive decisions driven by emotions, which can lead to hasty choices.

2. Decentralised Finance (DeFi) Tokens

  • Smart Contract Vulnerability: DeFi relies on smart contracts, and coding errors or oversights can result in contract exploitation and significant losses.

  • Regulatory Uncertainty: DeFi operates without intermediaries or traditional financial controls, making it susceptible to regulatory changes that can impact its use, value, or legality across multiple jurisdictions.

  • Rug-Pulls and Exit Scams: Some DeFi projects, often launched by anonymous teams, pose a risk of "rug pulls" where developers withdraw funds and abandon the project, causing panic-selling and price crashes.

  • Data and Oracle Risks: DeFi protocols depend on external data sources or 'oracles,' and manipulation or inaccuracies in these sources can lead to unintended financial consequences.

  • Protocol Complexity: The complexity of certain DeFi protocols can make it difficult for average users to comprehend the mechanisms and associated risks.

  • Whale-Induced Volatility: Large account holders can flood the market, causing sudden price drops, adding another layer of volatility risk.

3. Wrapped Crypto-Assets (e.g. WETH)

  • Smart Contract Vulnerability: Wrapped tokens rely on smart contracts to link their value to an underlying asset, which may contain vulnerabilities that can be exploited, potentially resulting in fund losses.

  • Collateral Concerns: Wrapped tokens are typically backed by an equivalent amount of the underlying asset, and if the mechanisms for collateralization fail, the wrapped token's value may decline.

  • Counterparty Risk: The custody of underlying assets for wrapped tokens may be entrusted to a third party, creating risks if the third party becomes insolvent, mismanages assets, or experiences fraud or hacking.

  • Bridging Challenges: Wrapped tokens serve as bridges between different blockchain ecosystems, and technical issues with these bridges can impede the intended transfer or use of tokens.

  • Pricing Disparity: Market inefficiencies or liquidity problems can cause price discrepancies between wrapped assets and their underlying assets.

4. Stablecoins (e.g. USDT)

  • Counterparty Reliance: Stablecoins backed by collateral (e.g., cash) rely on third parties to maintain that collateral, introducing risk if the party becomes insolvent or fails.

  • Redemption Uncertainty: During periods of market volatility, redeemable stablecoins may encounter issues with the redemption process.

  • Collateral Fluctuation: The value of collateral may vary, affecting the stability of the stablecoin, especially if it is another cryptocurrency.

  • FX Exposure: Stablecoins denominated in US Dollars expose investors to fluctuations in the USD:GBP exchange rate.

  • Algorithmic Instability: If algorithms are used to maintain stability by adjusting supply based on demand, they may fail or fluctuate, potentially causing instability or complete loss.

5. Staked Cryptoassets

  • Slashing Risk: Staking assets comes with the risk of potential loss if the network penalizes your validator.

  • Liquidity Constraint: Some protocols require staked assets to be locked for a specific period, preventing quick access or sale of assets.

  • Performance Variation: Yields or rewards from staking are determined by the relevant protocol and are not guaranteed, varying over time.

  • Protocol Risks: Changes or updates to the consensus mechanism may introduce bugs, vulnerabilities, or unforeseen consequences in the staking protocol.