The Financial Conduct Authority has taken to social media to warn people about the risks of investing in cryptocurrency.
In Brief:
It’s launched a campaign on TikTok and YouTube.
It seeks to bridge the “understanding gap” when it comes to investing in high risk areas like cryptocurrencies and foreign exchange trading.
The FCA is particularly concerned about 18-40 year olds.
What does this mean?
According to surveys, many investors believed it was realistic to get a 30% return on their investments in the likes of cryptocurrency, and the FCA is concerned people are not taking into account that their investments could go down as well as up.
The InvestSmart campaign hopes to help people know what they can realistically expect when they invest, and arm them with more knowledge about investing since the FCA found 76% of 18-40 year olds said their decisions had been “driven by a sense of competitiveness with friends and family”.
The FCA has also recently warned that investment advice given on the TikTok platform is dangerous as it’s not providing sufficient information – so using this platform to offer regulated information is an interesting solution.
