Professional sportspeople are often targeted by investment opportunities that promise excitement and potentially significant returns.
Cryptocurrency is one of the most prominent examples, with digital assets such as bitcoin and ethereum receiving widespread attention from investors, celebrities, and sportspeople alike.
For some investors, cryptocurrencies have generated significant returns and are often presented as a modern and innovative alternative to more traditional investments.
But popularity and innovation do not necessarily make an investment suitable for your financial plan.
As a professional rugby player, your career and earning potential are likely to be concentrated into a relatively short period. That makes protecting and building the wealth you accumulate during your playing years particularly important.
As a result, before investing in cryptocurrency, you should understand how it works, the risks involved, and whether it fits within your wider financial plan.
What exactly is cryptocurrency?
Cryptocurrency is a digital asset that uses cryptography and blockchain technology to record and verify transactions. You buy and sell cryptocurrency tokens through specialist exchanges and hold them in digital wallets.
Unlike traditional currencies, most cryptocurrencies are not issued or controlled by a central bank or government.
The market also operates with a different regulatory framework from conventional investments. While regulation has increased in recent years, the protection you enjoy can vary significantly by cryptocurrency, platform, and financial jurisdiction.
The fact that they can be traded relatively easily does not mean they are comparable to conventional investments such as shares or bonds.
Cryptocurrencies can be highly volatile, and their value is not necessarily linked to the underlying assets or profits of a business the way traditional investments often are.
5 key risks associated with crypto investment
Before investing in cryptocurrency, you need to understand the risks involved.
1. Extreme volatility
Cryptocurrency prices can rise or fall dramatically, sometimes within a very short period and with little warning.
The scale of these movements is worth considering. For example, according to Revolut, the value of a single bitcoin reached almost £93,000 at the beginning of October 2025 before falling below £45,000 by the end of June 2026. This was a decline of more than 50% in just nine months.
This level of volatility can make cryptocurrencies particularly difficult to incorporate into your financial plan, where protecting your accumulated wealth is an important objective.
For someone whose peak earning years are concentrated into a relatively short professional sporting career, the potential impact of such losses should not be underestimated.
2. Evolving regulation and limited protection
The regulatory framework surrounding cryptocurrencies continues to evolve, and the rules and protections can differ significantly between countries.
This can create additional complications for professional sportspeople who may play overseas and retain financial connections in more than one jurisdiction during and after their careers.
In the UK, the Financial Conduct Authority (FCA) considers most cryptoassets to be high-risk and speculative. It also warns that consumers should be prepared to lose all the money they invest, with limited regulatory protection available in many circumstances.
3. There are no underlying assets
Unlike shares in a company or government bonds, most cryptocurrencies are not backed by an underlying asset or guaranteed by a government.
Their value depends largely on factors such as demand, scarcity, and confidence in the network. They may therefore have no underlying business or income stream to provide a fundamental basis for the price.
As a result, if investor confidence deteriorates significantly, there may be little to prevent the value of a cryptocurrency from falling sharply.
4. The hype can drown out the risk
Cryptocurrency has been heavily promoted through sport, with professional clubs and athletes becoming involved in promotions.
This can make digital assets appear more mainstream and potentially less risky than they actually are.
The involvement of a well-known athlete or sporting organisation should not be confused with an endorsement and does not guarantee that an investment is suitable for you.
In 2022, a UK Parliament debate highlighted crypto-related deals involving Harlequins, Leicester Tigers, and Saracens, with concerns that the potential downsides of these products were not always given sufficient prominence.
5. Security risks
Cryptocurrency is held digitally, which creates risks that are less familiar to investors in traditional assets.
Losing access to a digital wallet can potentially mean losing access to the assets permanently. Cyberattacks, hacking, and platform failures also pose risks.
One high-profile example involved Gerald Cotten, the founder of Canadian cryptocurrency exchange QuadrigaCX, who died unexpectedly in 2018. The company later said it could not access significant amounts of cryptocurrency because Cotten held the private keys. Customers were reportedly owed approximately C$250 million.
Owning cryptocurrency means you are taking responsibility for the security of your assets, as well as the investment risk itself.
Cryptocurrency may not be a suitable investment for you
You may hear stories about people who have enjoyed substantial returns from crypto investments. But an investment that can produce exceptional returns does not mean it suits your circumstances.
As a professional sportsperson, your earnings window is limited. Injuries, selection decisions, and contract changes can all affect how long your career will last.
Because of that, your financial plans should focus on key issues such as maintaining appropriate cash reserves, making the most of tax-efficient pensions and investments, and ensuring your investments reflect your long-term objectives and attitude to risk.
Highly speculative investments such as cryptocurrency should be treated very differently from the core investments supporting your long-term financial security.
Get in touch
If you would like to talk to us about creating an investment strategy that can help you grow your wealth and secure your long-term financial security, please get in touch.
Email enquiries@dbl-am.com or call 01625 529499 to speak to us today.
Please note
This article is for general information only and does not constitute advice. The information is aimed at individuals only.
All information is correct at the time of writing and is subject to change in the future.
Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.
The value of your investments (and any income from them) can go down as well as up, and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.
Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.
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.
Cryptoassets may not be regulated financial products, so please be aware that trading them carries a considerable amount of risk for your capital. Cryptocurrencies are also not covered by existing consumer protection laws and are not suitable for the majority of investors.