The Financial Conduct Authority has once again come up with exciting research, which indicates that a significant chunk of the population includes investors who invest their money in cryptocurrency.
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With the easily available guaranteed loans for unemployed, the crowd is driving towards the world of Cryptocurrency despite not knowing what it necessarily is. After publishing a report, which inspected the perspective of Cryptocurrency investors. The FCA concluded that the majority of investors thought of buying Cryptocurrency as gambling which would allow them to fetch quick profits in no time.
According to the research, the investors were individuals who were merely influenced by influencers on the internet and friends who told them that buying Cryptocurrency could help them get wealthy faster. The sole motivation behind investing in Cryptocurrency was the fact that taking high risks would fetch them more profits. Not knowing how crazily quickly these currencies fluctuate and the constantly hovering risk attached to them, many citizens started putting in their hard-earned money while having no security against the loss. The research by FCA portrays that a large percentage of UK Investors do not even realize what they are doing and are genuinely landing themselves in a mess.
Uncertainty? Not An Issue For Investors!
Authorities will also warn against the uncertainty of investing in cryptocurrencies. Given the fact that there are numerous risks involved. Moreover, since people are taking loans to invest in cryptocurrencies, this puts them at higher risk of falling into debt if they can’t repay the loan amount.
Bitcoin is known as the most popular cryptocurrency in the market in the UK. In spite of the risk, people are drifting towards this unstructured and risk-laden investment with hopes that they will get rich instantly. The research indicates that majorities of those who are drifting towards these loans unemployed. And want to have a steady flow of income. Another interesting fact that discovered during the survey was that those who bought cryptocurrency spent less than two hundred pounds to stay in the safe zone.
Out of all these people, only a handful said that they wouldn’t invest in cryptocurrency in the future since they had incurred huge losses. Surprisingly, a majority of those who hadn’t bought cryptocurrencies stated that they’d be interested in investing in the future.
Additionally, over 70% of those who participated in the survey didn’t even understand what cryptocurrency fundamentally is. Since these investments are incredibly volatile, authorities will warn against the risks, which involved. Financial experts and analysts do not even fully understand these currencies because of their complexity. Also though the risks involved are somewhat threatening. The FCA states that only if there aren’t vast amounts of money requires. The harm due to losses wouldn’t be as much.
Experts Have Shown Their Concern
A considerable number of experts have shown their concern. Since the lack of structure in the crypto market ensures that when people do lose a substantial sum of money. They wouldn’t have a cushion of protection to fall back on. Just because of the lack of discipline and structure. Investors could lose the entire sum of money that they have invested in cryptocurrency.
And another major factor to consider is that there are several risks involves. Predators are always on the lookout for vulnerable victims. Hacking of accounts is a major concern related to cryptocurrencies. Furthermore, since this not regulate, the investors could invest their illegally obtained money to make more profits without the authorities finding out. The reality is that there aren’t over a handful of individuals who are making millions with cryptocurrencies. The numbers of individuals who have found riches are moderately low as contrasted with the total number of investors. Whoever is purchasing their cryptocurrency, are only buying it with expectations of selling at a benefit later on.
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While taking the readily available and low-interest guaranteed loans for unemployed people. Tend to forget that these loans need to pay back as well and that too in due time. The lack of understanding of cryptocurrencies is something that could push investors in a deeper hole. Before investing anywhere, you must ensure that your financial condition can handle and absorb a shock if the need arises.