Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you are unlikely to be protected if something goes wrong. Take 2 mins to learn more.
| For the purposes of this article, Exchange Tokens include, but are not limited to, Bitcoin (BTC), Ethereum (ETH), Tron (TRX), Litecoin (LTC), Binance Coin (BNB), Ripple (XRP), and Stellar (XLM). |
Investing in exchange tokens on platforms like Paybis.com can be an exciting venture, but it's crucial to approach it with knowledge and caution. Here's a short guide for our retail customers covering key aspects to consider if you ever decide to make an investment in one or more of the Exchange Tokens listed above:
1. Business Role and Services
Understanding the role of Paybis.com in your investments is crucial. As a platform, Paybis facilitates the buying and selling of exchange tokens and provides market insights but does not offer personalized investment advice or guarantees on returns.
2. Client’s Rights and Obligations
As an investor, you hold full legal and beneficial ownership of your exchange token investments made through Paybis. It's important to understand your rights and obligations, which include managing your investments and being aware of the associated risks.
3. Risk of Total Investment Loss
Investing in exchange tokens comes with high risks, including the potential for total loss. It's imperative to recognize and accept this risk, as the value of these tokens can be highly volatile and unpredictable.
4. Complexity of Investments
Exchange tokens are complex investment vehicles. They require a thorough understanding of blockchain technology and market dynamics. The rapidly evolving nature of these assets makes them more complex compared to traditional investments.
5. Market Volatility
Exchange tokens are known for their high volatility. Rapid fluctuations in value can occur, influenced by market trends, technological advancements, and regulatory changes. This volatility demands a cautious investment approach.
6. Operational Risks and Financial Crime
Investments in exchange tokens are exposed to operational risks such as cyber-attacks and financial crimes. While Paybis.com takes measures to mitigate these risks, it's important for investors to remain vigilant.
7. Business Insolvency Risks
In the unlikely event of Paybis.com becoming insolvent, it could impact the management and accessibility of your investments. Understanding the implications and having a contingency plan is a prudent approach.
8. Liquidity and Selling Challenges
The liquidity of exchange tokens can be affected by market conditions and operational issues on Paybis.com. It’s crucial to be aware of potential challenges in selling these assets, especially during periods of market illiquidity.
9. Regulated Status and Implications
Paybis.com is a VASP-registered business in Poland. While Paybis.com adheres to the requirements of the financial promotions regime set by the FCA, it is not authorized or registered by the FCA. However, our compliance with the financial promotions regime does not eliminate the inherent risks associated with exchange token investments.
10. Financial Ombudsman Service and FSCS Protection
Investments in Exchange Tokens through Paybis.com are not covered by the Financial Ombudsman Service (FOS) or the Financial Services Compensation Scheme (FSCS). While our customers have the right to lodge complaints about Paybis's conduct to the FOS, there is no protection against poor investment performance.
11. Investment Comparability
Exchange tokens differ significantly from mainstream investments like listed securities. They carry unique risks, offer different returns, and react differently to market conditions. Understanding these differences is key to making informed investment decisions.
12. Benefits of Diversification
Diversification is essential in managing investment risks, especially when it comes to exchange tokens. Limiting such investments to a maximum of 10% of your net assets can help in reducing risk and achieving a balanced investment strategy.
Disclaimer: This article is for informational purposes only and should not be taken as financial advice. Investors are advised to conduct their own research and consult with financial experts before making any investment decisions.