The Financial Conduct Authority (FCA) has become the latest regulatory body to issue a warning about cryptocurrency-related products, cautioning investors about the risks associated with cryptocurrency contracts for difference(CFDs).
Cryptocurrency CFDs, according to the FCA, are "increasingly being marketed to consumers" and "are extremely high-risk, speculative products". They allow investors to speculate on a change in price of a cryptocurrency, such as Bitcoin, using leverage, which means they must put down a portion of the investment's total value. The FCA warned that some firms are offering investors leverage of up to 50:1. It said: "Leverage multiplies your losses and potential profits, and can have a significant impact on fees. "It also places you at risk of losing more than your initial investment, ...
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