‘Be prepared to lose all your money,’ says a crypto expert when it comes to price predictions.
In the United Kingdom, more than two million people own cryptocurrencies, but the City regulator is advising them that they should be “prepared to lose all their money.” So, what are the potential dangers of investing in cryptocurrencies?
According to the Financial Conduct Authority (FCA), 2.3 million adults in the United Kingdom own cryptoassets, up from 1.9 million last year. However, the regulator is warning that, based on data, people’s comprehension of bitcoin appears to have deteriorated.
The FCA issued consumer data on June 17 that revealed that interest in cryptocurrencies has grown in the UK over the last year.
More than half of cryptocurrency users stated they have had a favorable experience so far with the currency and are inclined to buy more, up from 41% to 53%.
According to the statistics, 78 percent of people had heard of Bitcoin, up somewhat from the 73 percent who had heard of it last year.
Cryptocurrency is regarded as a gamble by 38 percent of users, down from 47 percent last year.
However, only one in ten people who have heard of cryptocurrencies are aware of consumer warnings on the FCA website, according to the FCA.
43 percent of those polled stated they were deterred from purchasing cryptoassets.
The FCA also stated that most consumers understand that bitcoin investments are not safe, despite the fact that 12% of users believe differently.
People should be informed that investing in cryptocurrencies can result in them losing all of their money, according to Sheldon Mills, the FCA’s executive director for consumers and competition.
“The data demonstrates rising interest in cryptoassets among UK customers,” Mr Mills said in response to the findings.
“As prices have climbed, the market has continued to grow, and some investors have benefited.
“However, users should be aware that, because these products are mostly unregulated, they are unlikely to have access to the FSCS (Financial Services Compensation Scheme) or the Financial Ombudsman Service if something goes wrong.
“Consumers should expect to lose all of their money if they invest in these types of products.”
Anyone thinking about investing in cryptocurrencies should be aware of how volatile the market is.
Because cryptocurrencies are mostly unregulated, investing in them carries a significant level of risk.
Anthony Morrow, co-founder of low-cost online financial advising firm OpenMoney, said of the FCA’s findings, “It’s really alarming that an increasing proportion of people.”Brinkwire Summary News.”