The FCA Released a Cryptocurrency CFD risk warning.
Bitcoin CFD
With the rise of cryptocurrencies popularity in the financial arena, a alert has been published to speculators. The FCA urged notice to traders by displaying the potential risks of investing in cryptocurrency CFDs. .
Preceding this year, the British watchdog has notified investors regarding the risks related to ICO. Pursuing this warning, the FCA at the present issues a warning related to cryptocurrency contracts for differences (CFDs), recommending investors to take extreme caution as such assets are significantly risky.

The UK Financial Conduct Authority (FCA) warned traders stating that CFDs with cryptocurrencies as the underlying investment are speculative assets.
The alert explains:
?Contracts for differences (CFDs), including financial spread bets, with cryptocurrencies as the underlying investment, are increasingly being marketed to consumers. These products are extremely high-risk, speculative products. This warning is to inform consumers about the risks of buying them.?
The FCA has also warned investors in the past few months regarding cryptocurrency CFDs as a number online derivative providers in UK are now allowing for Bitcoin and Ethereum trading on their platforms.

The FCA regulates The UK's Financial markets, including cryptocurrency CFDs and gives all types of safety to the investors. CFDs allow traders to speculate on the changing price of an asset. Traders often enjoy leverage during the investment in the CFDs. Nevertheless, the FCA reiterates that trading cryptocurrency CFDs are speculative and highly high-risk investments because of their volatile feature.
In multiple occasions, crypto tokens have proven movements of more than 30 percent and in some cases even 50 percent of their prices. :
?We are concerned about the growth in retail clients trading in CFDs, particularly those offered with a cryptocurrency as the underlying asset… The price volatility of the asset comes with significant risks to retail investors.?
Bitcoin prices have been tremendously unstable in recent months hitting highs of almost $19,000 before slipping to 7500 in a short time. 35 37 8