How to Keep Your Crypto Safe: 10 Rules for UK Beginners
Crypto payments can't be reversed, so the best protection is not losing it in the first place. These ten rules cover the mistakes that catch out most beginners.
The 10 rules
- Check the firm on the FCA Register. Crypto firms serving UK customers must be registered with the FCA. Search the FCA Register, and check the FCA Warning List for clone firms using a real company's name.
- Use an authenticator app, not SMS. Turn on two-factor authentication with an app or a security key. Text-message codes can be stolen if a criminal takes over your phone number (SIM-swap fraud).
- Never share your seed phrase. The 12 or 24 words that back up a wallet are the keys to everything in it. No real company, support agent or app will ever ask for them. Write them on paper, keep them offline, and never photograph them.
- Nobody legitimate messages you first. If someone you don't know DMs you about crypto, an investment, a "mentor" or a trading group, treat it as a scam. Fake "support" accounts that reply to your public complaints are common too.
- Bookmark your exchange. Log in from a saved bookmark, not from search ads or links in emails and texts. Phishing sites copy real exchanges almost perfectly.
- Check addresses carefully. Copy and paste wallet addresses, then check the first and last several characters. Scammers send tiny amounts from look-alike addresses hoping you'll copy the wrong one from your history. For a new address, send a small test amount first.
- Turn on withdrawal whitelisting. Many exchanges let you restrict withdrawals to addresses you've approved. It means a thief who gets into your account can't easily send your crypto elsewhere.
- Think about a hardware wallet for larger amounts. If you hold crypto long term, a hardware wallet keeps your keys offline. Buy one directly from the manufacturer, never second-hand.
- "Guaranteed" means scam. No legitimate investment guarantees returns. Promises of daily profits, doubling your money or "risk-free" trading are red flags. So is pressure to act fast.
- Beware recovery scams. If you've lost money, criminals may pose as lawyers, investigators or even the police offering to get it back for a fee. They can't.
Exchange or your own wallet?
| On an exchange | In your own wallet | |
|---|---|---|
| Who holds the keys | The exchange | You |
| Main risk | The exchange fails or your account is hacked | You lose your seed phrase, or get tricked into sharing it |
| Good for | Small amounts you're actively trading | Larger amounts you plan to hold |
Most crypto isn't covered by the Financial Services Compensation Scheme, so if an exchange collapses you may not get your money back. That's why spreading risk and keeping only what you need on an exchange is common advice.
If something goes wrong
- Act fast. Change your passwords, revoke any app connections and move what's left to safety.
- Tell your bank straight away if you paid by card or bank transfer. They may be able to help.
- Report it. In England, Wales and Northern Ireland, report fraud to Report Fraud (it replaced Action Fraud in December 2025) or call 0300 123 2040. In Scotland, call Police Scotland on 101.
Learn the warning signs in our scam red flags section, and read what the UK rules cover.
Questions people ask
What is the safest way to store crypto in the UK?
For small amounts you're actively trading, a well-known FCA-registered exchange with an authenticator app turned on is common. For larger amounts you plan to hold, many people use a hardware wallet and keep the seed phrase written down offline.
Should I use SMS for two-factor authentication on a crypto exchange?
An authenticator app or a security key is safer. SMS codes can be stolen through SIM-swap fraud, where a criminal takes over your phone number.
Someone offered to recover my lost crypto for a fee. Is it real?
Almost certainly not. Recovery scams target people who've already been scammed. Report the original fraud to Report Fraud and your bank instead.
Where do I report a crypto scam in the UK?
In England, Wales and Northern Ireland, report it to Report Fraud at reportfraud.police.uk or on 0300 123 2040. In Scotland, call Police Scotland on 101. Tell your bank straight away if you paid by card or bank transfer.
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Educational content only. Not financial advice. Trading crypto, forex and gold is high risk and you can lose all the money you put in.