British Financial Regulator: Prepare to lose all your money in cryptocurrencies

Financial regulators warn of high risk and lack of safeguards for investors.

The temporary drop in the price of Bitcoin and the entire cryptocurrency market by 30 percent in recent days has once again confirmed to critics that the volatile market for digital currencies is hard to believe. The British financial market regulator also intervened, not least due to large price increases in recent months and warns investors about total losses, reports Telegrafi.

Warning for cryptocurrency products

The agency reminded private investors how speculative and risky cryptocurrencies are. "Anyone investing in cryptocurrencies and similar products should be prepared to lose all their money," the FCA said.

Unlike other financial products, which are strictly regulated, no formal help can be expected in the event of volatile promises.

The FCA refers less to the direct purchase of currencies such as Bitcoin, Ethereum and other Altcoins, but rather to investments made through companies that specialize in the cryptocurrency market. Often these do not register with the tax authorities as service providers and advertise with exaggerated promises.

If you want to invest in Bitcoin, it would be better not to go after a one-day or one-week rally, but rather look closely at the price and attend after a major price correction.

Ethereum and Bitcoin back high

The next hours and days will show if the current correction is over.

Bitcoin has already made some of the losses and is currently around $ 35,000.

The second largest cryptocurrency, Ethereum, tried to stabilize above $ 1,000 on Tuesday.