20 Nov 2017
Bitcoin is regularly in the news - normally due to huge falls or massive gains in the value of this high-profile cryptocurrency.
Investors have had a roller-coaster ride in the last few
years. Some who got in early and kept their holding have made a fortune, while
others have not been so lucky.
It's hard to believe that a single Bitcoin could be bought for only a few US cents in 2010, but by last Friday it had an eye-watering price tag of nearly $8,000.
Britain's Financial Conduct Authority has now issued a warning to consumers about the risks of investing in cryptocurrency contracts for differences (CFDs), which it described as an "extremely high risk, speculative investment".
The FCA said that CFDs are complex financial instruments, and through cryptocurrency CFDs investors can speculate on a change in price of a cryptocurrency such as Bitcoin or Ethereum.
The authority has highlighted its concerns about cryptocurrencies CFDs, which include:
The FCA regulates CFDs, which means that when you trade cryptocurrency CFDs you have the protections offered by the UK’s financial services regulatory framework.
But the authority warned: "These protections will not compensate you for any losses from trading."
Knowing how the land lies comes with experience.
If you are planning your financial future, Aberdein Considine can offer you the support of some of Scotland's most talented and respected independent financial advisers.
Whether you want to buy a property, secure an income for retirement, pay for your children's education, provide for dependents or pass your estate to your family, we can provide you with a high-quality service which is tailored to your lifestyle.