What am I getting into?

Embarking on your crypto journey is exciting and it is important to make sure that you know what is involved and that you are happy with the decisions that you are going to make, including the risks. 

As with any financial decision, there are pros and cons, risks and benefits. As we don’t know your personal situation, we would like to give you an overview of some, but not all of the risks, that may be involved, so you can make the best choice for yourself. If you need personal advice, then it is best that you contact a professional advisor.

Most importantly, past performance is never a guarantee of future results so don’t rely on how crypto has performed to inform your view about what’s going to happen. 

Considerations of Trading and Holding Crypto

Trading and holding crypto is unlike traditional currencies or other commodities. It involves significant and exceptional risks, they can be very volatile and the financial losses can be substantial. You should carefully consider and assess whether trading and holding crypto is suitable for you depending on your financial circumstances and tolerance to risk, and seek specialised advice if you need it or are unsure. 

  • Transactions can’t be reversed: Once a transaction has been completed with us, it is impossible to reverse it.
  • Volatility: Crypto is extremely volatile and it may swing depending on the market, confidence of investors, competing cryptocurrencies, regulatory announcements or changes, technical problems or any other factors. Because of this volatility, the value of all crypto can go up and down (quite dramatically). 
  • Private Keys: If your wallet has a private key, you should always exercise extreme caution whenever you select, store or transmit it. If another person learns your private key, then they can take your crypto! If you forget or lose your private key or password, you won’t be able to access, and may lose, your crypto. NOTE - This is not a risk if you use our custody service.
  • Regulatory Risk: For the most part, the crypto world remains unregulated and it is currently not recognised as legal tender. Because of that, there is limited protection if your crypto is lost (even if not it’s your fault). Also, crypto may be prohibited in certain jurisdictions (or the rules may change so it becomes prohibited).
  • Liquidity Risk: Depending on the actual crypto coin/token, liquidity may be limited or disrupted - there is never a guarantee that you will be able to sell or exchange your crypto at any price. Also, Easy Crypto may make the decision to remove a coin from its platform (including due to liquidity issues) - in that case, you may need to sell or trade it via another platform. 
  • No insurance: Crypto available through our platforms are uninsured unless you specifically obtain separate insurance to cover this. If you want to make sure these are covered, we suggest obtaining your own insurance. 
  • Tax risk: There are specific tax rules around crypto - it’s important you understand these implications and always comply with your reporting and payment obligations - we don’t offer any tax advice so if you need this, please reach out to a tax expert to help you. 
  • Technological/security risk: We do our best to put in safeguards to ensure your crypto is protected. However, even with the best protections out there, we cannot eliminate all technological and security risks. We or our third party providers may experience malicious cyber attacks, extreme market conditions, or other technical difficulties which could result in the immediate halt of transactions (temporarily or permanently). If we or our partners experience malicious attacks, you may lose your funds or there could be delays in finalising transactions. For our custody service, assets are secured using Multi-Party Computation (MPC) technology and a transaction authorisation policy which implements approval processes for transactions based on their size, volume and destination.
  • No receive features for custody service: Our mobile app, until further notice, will not have any external wallet receive features. This means that if you already hold crypto, you won’t be able to transfer it to our custody service.
  • Counterparty risk: We use third party payment providers and banking partners to provide our services. A failure of any of these providers could lead to a loss of your funds.