Investments · Digital Assets
Cryptocurrency & Digital Asset Investment
Cryptocurrency represents a fundamentally new asset class — decentralised, globally accessible, operating 24 hours a day, and uncorrelated with traditional financial markets. For international investors, it also presents unique opportunities around currency freedom, borderless access, and portfolio diversification. This guide covers what crypto investing involves, how to access it, and what the risks are.
Important Risk Warning — Read Before Proceeding
Cryptocurrency is a highly volatile, speculative asset class. Prices can fall by 50% or more in weeks. Cryptocurrencies are not regulated investments in most jurisdictions. They are not covered by any depositor protection scheme. You may lose all capital invested. Cryptocurrency is not suitable for all investors, particularly those who cannot afford to lose their entire investment or who require capital security. This page is for information purposes only and does not constitute a personal recommendation or financial advice. Always seek independent financial advice before investing.
Live market data
Crypto Market Overview
Indicative data only, may be delayed. Cryptocurrency is highly volatile and speculative. Not investment advice.
Asset class overview
What is Cryptocurrency Investing?
The Major Digital Assets
Bitcoin (BTC) is the original cryptocurrency — a decentralised digital currency with a fixed maximum supply of 21 million coins. Bitcoin is increasingly regarded as a store of value and "digital gold" by institutional investors. It remains the largest cryptocurrency by market capitalisation.
Ethereum (ETH) is a programmable blockchain platform that supports smart contracts and decentralised applications. It powers the majority of DeFi protocols, NFTs, and token infrastructure. Ethereum transitioned to proof-of-stake in 2022, introducing staking as an income mechanism.
Altcoins is the collective term for all other cryptocurrencies. These range from large-cap assets with genuine utility (Solana, Polygon, Chainlink) to highly speculative small-cap tokens with limited track record. Altcoins carry substantially higher volatility and risk than Bitcoin and Ethereum.
How to Access Crypto
Regulated exchanges such as Coinbase, Kraken, and Bitstamp allow direct purchase and custody of cryptocurrencies. They require KYC (Know Your Customer) verification, are licensed in multiple jurisdictions, and offer mobile and web trading. They are the simplest route for direct ownership.
Exchange-Traded Products (ETPs/ETFs) trade on traditional stock exchanges and are held in standard brokerage accounts. They provide regulated price exposure without wallet management. US Bitcoin spot ETFs (from BlackRock, Fidelity, and others) launched in 2024 and saw significant institutional inflows.
Managed funds offer discretionary allocation across digital assets, managed by specialist fund managers. These are typically available only to professional or sophisticated investors with higher minimum commitments.
Exchange setup
Setting Up a Crypto Exchange Account
KYC & Verification Process
All regulated exchanges require identity verification (KYC — Know Your Customer) before funds can be deposited or withdrawn. The standard process involves:
- Register with a valid email address
- Submit government-issued photo ID (passport or national identity card)
- Provide proof of address (utility bill or bank statement, typically less than 3 months old)
- Complete a liveness check (selfie or video, depending on the platform)
- For higher limits: enhanced due diligence including source of funds documentation
For internationally mobile individuals, some exchanges may request additional documentation around country of residence, particularly in jurisdictions with specific crypto regulations. Verification can take 24 hours to several business days depending on the platform and the volume of applications.
Wallet Custody
When you hold crypto on an exchange, the exchange holds the private keys on your behalf (custodial storage). This is convenient but introduces counterparty risk — if the exchange is hacked or becomes insolvent, your assets may be at risk. Several major exchanges (FTX, Celsius, Mt. Gox) have failed with significant customer losses.
Hardware wallets (Ledger, Trezor) allow you to hold private keys yourself — self-custody. This eliminates exchange counterparty risk but requires careful management: loss of the seed phrase means permanent, irrecoverable loss of assets.
For larger allocations, institutional-grade custodians (Coinbase Custody, BitGo, Anchorage) provide regulated custody with insurance and legal segregation of client assets.
Advanced strategies
Crypto Arbitrage: Understanding the Concept
Cryptocurrency markets trade on hundreds of exchanges globally, across multiple time zones, with no central clearing. This fragmentation creates temporary price discrepancies for the same asset across different venues — the basis for crypto arbitrage strategies.
Cross-Exchange Arbitrage
Buy an asset at a lower price on one exchange and simultaneously sell it at a higher price on another. The spread is the gross profit before fees and slippage. In practice, execution speed, transfer delays, and fees compress margins significantly.
Statistical Arbitrage
Quantitative models identify persistent price relationships between correlated crypto pairs (e.g. BTC/ETH spread). When the spread deviates from its historical mean, positions are taken on mean reversion. Requires robust data infrastructure and risk management.
Automated Strategies
Most viable crypto arbitrage is executed algorithmically — automated systems monitor prices across multiple exchanges in real time and execute trades in milliseconds. Manual arbitrage is generally not viable due to execution speed requirements.
Note: The above descriptions are conceptual explanations for information purposes only. We do not advocate, recommend, or provide any specific crypto trading or arbitrage strategy. All crypto strategies carry substantial risk of loss.
Exposure options
Six Ways to Access Cryptocurrency
Direct Ownership
Buy and hold Bitcoin, Ethereum, or other cryptocurrencies directly via a regulated exchange. You control the assets via a wallet. Full price exposure, custody responsibility.
High — full price volatility, custody risk
Crypto ETPs
Exchange-traded products tracking crypto prices. Held in a regulated brokerage account. No wallet management, exchange-listed, daily liquidity. Regulated wrapper.
High — price mirrors underlying crypto
Managed Crypto Funds
Professionally managed funds with exposure across a basket of digital assets. Active allocation, risk management, suitable for sophisticated investors. Higher fees.
High — discretionary allocation, fund-level risks
Staking Income
Lock assets in a proof-of-stake blockchain network to validate transactions and earn staking rewards (typically around 3–4% p.a. on Ethereum as of 2026, depending on network conditions). Returns vary.
High — price risk + smart contract risk + lock-up
DeFi Protocols (Advanced)
Decentralised finance applications enabling lending, liquidity provision, and yield farming on-chain. Potential for high yields but carries significant smart contract and protocol risk.
Speculative — complex, experimental, regulatory uncertainty
Exchange Account
Holding cash or crypto on a centralised exchange. Simplest access method but introduces exchange counterparty risk — exchange insolvency or hack can result in asset loss.
High — counterparty risk, not regulated deposit
International perspective
Why International Investors Consider Crypto
No Exchange Controls in Most Jurisdictions
Unlike fiat currencies, Bitcoin and Ethereum can be transferred globally without routing through SWIFT, without correspondent banking, and without the exchange controls that restrict currency movement in many emerging markets. For internationally mobile individuals, this provides an additional layer of financial flexibility.
24/7 Global Market
Crypto markets never close. This suits investors across time zones who cannot or do not want to restrict their investment activities to Western trading hours. For active investors, the continuous market enables reactions to global events in real time.
USD-Denominated
Bitcoin and most major cryptocurrencies are denominated and priced in USD. For investors holding non-USD income or assets, this provides natural USD exposure as part of a diversified international portfolio.
Portfolio Diversification
Historically, Bitcoin's correlation with equities and bonds has been low over long periods (though it can increase sharply in crisis environments). A small allocation (typically 1–5% of a diversified portfolio) may improve risk-adjusted returns over long investment horizons — though this is not guaranteed.
Frequently Asked Questions
Is cryptocurrency regulated?
Regulation of cryptocurrency varies significantly by jurisdiction. In the UK, cryptoasset businesses must register with the FCA for anti-money laundering purposes, but cryptocurrencies themselves are not regulated investments and are not covered by the Financial Services Compensation Scheme (FSCS). In the EU, the MiCA regulation (Markets in Crypto-Assets) provides a framework for crypto-asset service providers. In many jurisdictions — including the UAE and many Asian markets — crypto operates in lightly regulated or unregulated environments. Investors should not assume regulatory protection that does not exist in their jurisdiction.
What is a crypto ETP or ETF?
A crypto exchange-traded product (ETP) is a regulated investment vehicle that tracks the price of one or more cryptocurrencies. It trades on a regulated stock exchange like any other ETF and is held in a standard brokerage account — investors do not need to manage wallets, private keys, or exchange accounts. Bitcoin ETPs are available on European exchanges (e.g. ETC Group, 21Shares). US Bitcoin spot ETFs launched in January 2024. ETPs provide regulated, insured, liquid exposure to crypto prices without direct custody risk.
What is crypto arbitrage?
Crypto arbitrage refers to strategies that seek to profit from price differences for the same asset across different exchanges or markets. Because crypto trades on hundreds of exchanges globally and 24/7, price discrepancies can exist momentarily before market forces correct them. Statistical arbitrage applies quantitative models to identify persistent price relationships. Automated trading strategies execute these trades at speed. Arbitrage strategies are technically complex, require significant capital, and carry execution and counterparty risk. This page describes the concept for information purposes — we do not advocate any specific arbitrage strategy.
How do international investors access cryptocurrency?
International investors can access cryptocurrency through several routes: regulated exchanges (Coinbase, Kraken, Bitstamp — requiring KYC verification); crypto ETPs held in an existing brokerage or investment account; managed crypto funds (available to professional/sophisticated investors); and via some offshore investment bonds or platforms that now include crypto allocations. The best route depends on the investor's jurisdiction of residence, existing account infrastructure, tax position, and whether they want direct custody of assets or a regulated wrapper.
Enquire about cryptocurrency access
We can introduce you to regulated exchanges and provide guidance on how to incorporate digital assets within a broader investment strategy appropriate to your risk profile and jurisdiction. Enquire to find out more.
Enquire about cryptocurrencyEnquire about digital asset investment
We can introduce you to regulated exchanges and provide guidance on incorporating digital assets within a broader strategy appropriate to your risk profile and jurisdiction.
Risk Disclaimer — Cryptocurrency Investments
Cryptocurrency and digital assets are highly speculative investments. Their value can increase or decrease significantly in short periods and may fall to zero. Cryptocurrencies are not regulated in most jurisdictions and are not covered by any depositor protection or investor compensation scheme. Past performance is not a reliable indicator of future results. Tax treatment of cryptocurrency gains varies by jurisdiction and may change. The information on this page is general and educational in nature — it does not constitute a personal recommendation, investment advice, or a solicitation to invest. Before investing in any cryptocurrency or digital asset, you should seek independent professional advice and ensure you fully understand the risks involved. Global Investments does not hold client funds in cryptocurrency and is not responsible for the actions or financial health of any exchange or custodian.