The British regulator of financial market FCA warns end customers against Crypto investments, which promise high profits. The consumers should be aware of the speculative nature and especially cautious , if they are pushed to quick investments into such assets.
Last week the rate of Bitcoin passed the 40.000 Dollar limit and has so doubled its value within one month. So it is not a wonder, that several providers promise the clients fairy tale profits.
But this is not the only reason , why FCA is suggesting to be catious. The complexity of the products makes it difficult for the clients to evaluate risks. It might be not always possible to change Crypto assets again into cash and also the fees can be often higher as at classical investment products.
Additionally the FCA warns, that the investment offers are partly completely unregulated – namely there is no consumer protection available.