In the last year, cryptocurrencies have seen huge price gains – with Bitcoin reaching record highs in December. But investing in crypto is not without risks. The value of a crypto can go down as well as up, and there have been cases of fraud involving cryptocurrencies. If you think you’ve been a victim of such fraud, contact the FCA.

Crypto Investment UK is not regulated in the same way as traditional finance, so it’s important to carry out thorough research and build a diversified portfolio. Also, remember that cryptocurrencies are highly volatile and their value can fluctuate significantly from day to day.

Crypto Investment UK: How to Start Investing in Digital Assets

There are a number of ways to buy and sell cryptos, including through an exchange. Some exchanges may offer a fee-free demo account where you can practise trading before investing real money. eToro, for example, offers a US$100,000 virtual currency which you can use to practice before you invest real cash.

You can earn cryptos by playing a part in maintaining the system on which they are based, for example mining or staking. You can also lend or provide liquidity (also known as ‘staking’).

If you earn a profit from your crypto activities, you may need to report this to HMRC if the amount is over your tax-free allowance. If you’re non-domiciled, the rules about remitting foreign income and gains can be complex and you should seek professional advice.