How can I invest in crypto with minimal risk?
09 June 2025
Question by Andrew
I’m interested in dipping a toe into crypto, but I don’t want to go wild and end up losing a load of money. I’ve got a decent emergency fund and I’m paying into my pension, so I feel okay financially – I just want to explore crypto in a sensible, low-risk way. Is that even possible, or is it all just high-risk gambling?
Answered by Holly Mackay
You sound as though you have lots of the bases covered and your eyes are wide open to the risks.
I think crypto is interesting but still the Wild West and so it’s a hugely unreliable activity. However, if you want to explore it in a low-risk way, and you accept that you might lose all the money and could financially tolerate this, then why not start with a small amount and cap your investment to something you could stomach losing? The way you write your question tells me you know it’s high-risk gambling but this is actually something you are up for.
I can’t mitigate the risk of crypto itself but I can mitigate provider risk for you. I would choose a regulated, well-known entity which will have decent governance in place. Revolut (which is a bank, but to be technically accurate is actually currently regulated as an e-money institution by the FCA, so it is not covered by the FSCS scheme) should have decent governance around this. IG has recently announced it is going to offer crypto trading. eToro does this and is now listed on the Nasdaq, and has a decent website in the UK.
If you want to explore this, I would be really strict before you dabble and write down a maximum amount you will invest in the next 12 months and stick to it. It’s really easy to get seduced by short-term performance and get greedy - and that’s when things can go horribly wrong!
Hope this was helpful.
