The most important point
Crypto assets are highly volatile. Their value can fall sharply within a short time, even to zero. Only invest money you can afford to lose.
Unhyped does not provide investment, legal or tax advice. Our content is general information and does not replace personal advice.
Price swings and total loss
Crypto prices often move by double-digit percentages, sometimes within a single day. Many projects have failed completely in the past. Past performance says nothing about the future.
No deposit protection
Crypto assets are not covered by the statutory deposit protection that applies to bank balances. If a provider goes bust or is hacked, you can lose some or all of your holdings.
What MiCA does and doesn’t do
The EU’s MiCA regulation sets out how crypto providers must operate, for example how they hold client assets and inform their customers. MiCA does not protect you against price losses. A licence also doesn’t mean a provider can never run into trouble.
Provider risk
If you keep your crypto on an exchange, you are trusting it to hold your assets safely. Alternatives such as your own wallet exist, but they come with their own risks: if you lose your recovery phrase (seed phrase), your crypto is gone for good.
Scams
Crypto attracts a lot of fraud: fake trading platforms, so-called “AI bots” with guaranteed profits, phishing sites and fake support staff.
- Never share your seed phrase. No legitimate provider will ask for it.
- Guaranteed returns don’t exist.
- Unhyped will never send you a direct message offering an investment.
Leverage and derivatives
With leveraged products (such as futures) you can lose a lot of money very quickly, and with some products even more than you put in. They are not suitable for beginners. We explain them but don’t promote them.
Stablecoins and staking
Stablecoins aim to hold a fixed value, such as 1 euro or 1 US dollar. In the past this hasn’t always worked.
Staking pays rewards but may lock your crypto for a while. You also carry the risk of the provider and the network.
Taxes
Gains from crypto assets may be taxable. The rules differ by country and change over time. For your personal situation, talk to a tax adviser.