Sumary of Consumer watchdog warns of greater risks attached to cryptocurrencies:
- The overwhelming majority of individual investors claim they understand the risks they are taking, but a significant minority of them do not closely monitor their investments, according to research conducted on behalf of the Competition and Consumer Protection Commission (CCPC).
- The research also suggests that younger retail investors are more likely to engage in investment activity for personal enjoyment, while younger investors are also embracing online trading in assets such as cryptocurrencies.
- Research firm Ipsos MRBI conducted the research last month with a group of about 1,000 adults, to gauge their attitudes to retail investing.
- Gráinne Griffin, the CCPC’s director of communications, said consumers must be aware “that while they may see the potential for better returns in crypto assets, the risks can also be much higher compared with traditional products, increasing the probability of losing some or, indeed, all of their money.
- OnlineCCPC says the research makes clear that many investors, and particularly younger traders, are going online for advice and to execute trades.
- About four in 10 do not believe that there is enough independent investment advice available to help consumers make informed decisions.