What can go wrong

This is not financial advice

Are You Stable? is a financial education tool. Nothing on this site constitutes regulated investment advice. We don’t know your tax situation, your income, your liabilities, or your tolerance for loss.

Crypto is not FSCS protected

Cryptoassets — including stablecoins like USDC and USDT — are not covered by the UK Financial Services Compensation Scheme. Some firms may treat fiat or e-money balances differently, but the cryptoasset itself is not FSCS protected and losses may not be recoverable.

Stablecoins are not perfectly stable

Stablecoins are designed to track fiat, but market stress, redemption pressure, reserve concerns, or chain congestion can still create dislocations. USDC briefly traded below $1 in March 2023. Stability is a design goal, not a guarantee.

Custody and platform risk matter

Where you hold the asset matters as much as which asset you pick. Operational failures, freezes, insolvency, or poor key management can interrupt access or create losses. Use providers you understand and keep only the level of exposure you are comfortable carrying.

Crypto-backed loans can liquidate you

If you borrow against BTC or ETH and the price falls, your collateral can be force-sold to repay the loan. This can happen at the worst possible moment. Don’t borrow more than you can lose.

Capital is at risk

The value of cryptoassets can go to zero. Past performance is not indicative of future returns. If you don’t understand a product, don’t buy it.

UK bank friction

Some UK banks and apps may block, delay, or question transfers linked to crypto activity. Policies vary by bank and can change, so check your specific route before assuming a transfer will work.