Crypto-assets are high-risk. Their value can fall sharply, and you can lose all the money you put in.
Main risks
- Volatility. The value of many crypto-assets can change dramatically in a short time, including falling to zero.
- Limited protection. Depending on your country, crypto-assets may not be covered by deposit guarantee schemes or investor compensation schemes. Even in the EU under MiCA, protections differ from those for bank deposits.
- Irreversibility. Transfers recorded on a blockchain are generally final. Mistakes and fraudulent transfers usually cannot be undone.
- Loss of keys. If private keys or recovery phrases are lost or stolen, access is usually lost permanently.
- Provider failure. Companies that hold crypto-assets for customers can fail, be hacked or act dishonestly.
- Fraud. Crypto-related scams are common. See our safety page.
- Technical risk. Software, including smart contracts, can contain bugs that lead to losses.
- Regulatory and tax risk. Rules differ between countries and change over time, and transactions may have tax consequences.
- Complexity. Many products built on blockchains are complex and difficult to understand fully.
Our position
Open Learning Path does not encourage anyone to acquire crypto-assets and gives no advice about doing so. If you are considering any financial decision, seek independent advice from a licensed professional and check the official registers and warning lists of your national financial regulator.
Further reading: ESMA guidance on frauds and scams.