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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
Estimated reading time: 2 min
Due to the potential for losses, the Financial Conduct Authority (FCA) considers this investment to be high risk.
What are the key risks?
- 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 generally 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.
- 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 here.
- 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.
- 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.
- 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.
- 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
Forbes Advisor has provided this content for educational reasons only and not to help you decide whether or not to invest in cryptocurrency. Should you decide to invest in cryptocurrency or in any other investment, you should always obtain appropriate financial advice and only invest what you can afford to lose.
ApeCoin is a cryptocurrency on the Ethereum blockchain, born as a spin-off of the Bored Ape Yacht Club NFT phenomenon of digital art collectibles.
But, while the value of any two NFTs can differ, one ApeCoin has the same value as another ApeCoin and can be traded on a crypto exchange in the same way as bitcoin or other altcoins (non bitcoin cryptocurrencies).
ApeCoin’s value has gone up and down since it was introduced earlier this year. This kind of volatility in the crypto market has concerned the UK’s financial watchdog, the Financial Conduct Authority (FCA). The FCA has warned investors that anyone who invests in crypto should be prepared to lose everything.
If an investor appreciates the risks involved but still wants to invest, here’s how to buy ApeCoin.
Choose an exchange
Investors can buy ApeCoin via a crypto exchange such as eToro and Coinbase. An exchange is an app or website that allows traders to buy and sell cryptocurrencies.
When choosing an exchange, investors should first check that it trades in ApeCoin. If it does, then there are some other things to bear in mind. They include:
Payment methods: Bank transfer tends to be the simplest and cheapest payment method, since most exchanges charge no fees on transfers. Many exchanges accept debit card payments, but some charge fees of up to 2.99%.
Crypto wallets: Some crypto exchanges offer a crypto wallet to keep ApeCoin in. If an investor doesn’t want to keep their assets offline in a cold wallet or pay for a third party hot wallet, they will need an exchange with an integrated wallet.
Withdrawals: Not all crypto exchanges allow transfers of coins out into an external wallet, and those that do may charge a fee.
Place an order
Once the investor has chosen an exchange and a way to pay, they can navigate to the ApeCoin page on their exchange’s app or website and tap in the amount they would like to purchase, then confirm the order.
Choose a storage method
If the exchange doesn’t offer an integrated wallet or an investor prefers to store their ApeCoin elsewhere, they’ll need to invest in storage.
Crypto can be stored in an online ‘hot’ wallet, or an offline ‘cold’ storage device like a flash drive.
Cold wallets are perceived as more secure than hot wallets because they’re less vulnerable to bad actors. However, if an investor lost their access codes to their hot wallet, the exchange could help them access their ApeCoin. Lose access codes to a cold wallet, however, and investors are on their own.
Apecoin price
Cryptocurrency is unregulated in the UK. The UK regulator, the Financial Conduct Authority, has repeatedly warned investors that they risk losing all their money if they buy cryptocurrency, with no possibility of compensation.
