Crypto platforms can and sometimes do fail, get hacked, or freeze withdrawals. It is worth understanding what that could mean for you before you rely on one.
Why it matters
If you hold crypto on a platform (custodial), you are trusting that company. If it fails, you may become a creditor and might not get your funds back. Most crypto is not protected by the FSCS or the Financial Ombudsman Service, unlike money in a UK bank.
Reducing the risk
Some people limit how much they keep on any one platform, or move longer-term holdings to a wallet they control — see custodial vs non-custodial wallets. Whatever you choose, understand that crypto carries real risk of total loss.
Crypto is high risk and largely unregulated in the UK. You could lose all the money you invest, and most crypto is not protected by the FSCS or the Financial Ombudsman Service. This is educational information only, not financial advice. Only invest what you can afford to lose.