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Competition and hype drive young crypto investors, says UK Watchdog-
A considerable majority of young investors who are looking for risky opportunities are motivated by competition and hype, as a new survey shows. According to a survey by the British financial supervisory authority, they often contact cryptocurrency and foreign exchange products. FCA starts campaign "Investmart" for risky investors The British financial supervisory authority (FCA) has carried out new studies on hiring young investors on risky products. The watchdog interviewed 1,000 respondents between the ages of 18 and 40, while starting a five-year campaign to reach inexperienced investors who could cost the British taxpayer £ 15 million). Through the survey, the regulatory authority found that ...
Competition and hype drive young crypto investors, says UK Watchdog-
A considerable majority of young investors who are looking for risky opportunities are motivated by competition and hype, as a new survey shows. According to a survey by the British financial supervisory authority, they often contact cryptocurrency and foreign exchange products.
FCA starts campaign “Investmart” for risky investors
The British financial supervisory authority ( fca ) has carried out new studies on the setting of young investors at risky products. The watchdog interviewed 1,000 respondents between the ages of 18 and 40, while starting a five-year campaign to reach inexperienced investors who could cost the British taxpayer £ 15 million.
The survey found that many of these investors are driven by the competition with friends and family members when investing in cryptocurrency and forex. Three quarters of the respondents, 76 %, stated that they felt a feeling of competitiveness, while two thirds or 68 % compared the experience with gambling.
At the same time, only one fifth of all respondents, 21%, consider to keep their last investment for more than a year, and only expect 8% to keep the assets at least five years. This despite a prevailing preference (60% of the respondents) for long -term systems that offer more stable, albeit lower returns.
The hype in the news and on social media was another driving force for new investors who are looking for risky products. Well over half of the study participants, 58 %, stated that they felt encouraged to invest funds in investments, of which they constantly heard in reporting, on social media channels and from other people.
The new study by the FCA also shows that most of the young investors who bought cryptocurrencies, fabulous 69 %, believe that they are regulated by the FCA and another 57 % believe that this also applies to the foreign exchange products they bought. The financial supervision has come to the conclusion that these people could not understand the lack of adequate protection for them and their money.
The tax authority also notes that the survey was carried out after between April and October 2020 at the height of the covid-19 pandemie. When announcing the research results, the FCA continued:
The supervisory authority fears that new investors are increasingly accessing more risky systems that may not be suitable for them or reflect their risk tolerance.
The regulatory authority now wants to help investors to make the right decisions through their investsmart campaign, which was started on Wednesday. The initiative is part of the agency's consumer research strategy. It was announced in September to strengthen the trust of investors and to limit the number of people, fall victim to fraudsters or to be tempted to invest in too risky products.
Investmart aims at inexperienced investors via social media and online, according to the FCA. The campaign asks investors to ignore the hype and forward them to the website of the regulatory authority, where they can receive appropriate support. "With our investment campaign, we are pursuing an innovative approach to achieve those that are tempted by high-risk products so that they can understand the risks better and get advice," said Sarah Pritchard, Executive Director of Markets at FCA.
Do you agree to the results of the FCA survey? Let us know in the comment area below.
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