Our Pick Of The Best Crypto Staking Platforms (2024)

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?

1. 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.
2. 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 checkerhere.
   • 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 protectionhere.
3. 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.
4. 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.
5. 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 websitehere

For further information about cryptoassets, visit the FCA’s websitehere

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.

Many investors love generating passive income, but plenty of market experts claim that cryptocurrency lacks the ability to provide a source of income. However, staking could potentially generate interest income from the crypto that they own.

Investors could earn rewards through staking by locking up their crypto to help run the blockchains that support certain cryptocurrencies. For those interested in staking or a crypto rewards programme, picking the right crypto exchange is essential. This will help ensure that they get access to the right resources and the highest potential yields.

Forbes Advisor has rounded up some its best crypto platforms for staking.

{{ showMobileIntroSection ? 'Read Less': 'Read More' }}