SEC & CFTC Warnings For Bitcoin Future Traders
Recently the U.S. Securities And Exchange Commission & The Commodity Futures Trading Commission warned Cryptocurrency investors and bitcoin futures traders. Both SEC & CFTC warned people regarding the risk of investment in Bitcoin futures trading.
On Thursday, the SEC published a notification regarding the trading in bitcoin futures. It was an alert notification for those people who are engaged or want to be engaged in futures trading of Cryptocurrency, especially Bitcoin.
This alert came from the SEC’s office of Investor Education & Advocacy department and CFTC department .
They pointed out the greed of people that attracts futures trading. According to the SEC department alert, investors can invest small amounts in Futures trade and can gain high profit in a short time.
But that is a totally risky part of investment. Futures trading is highly speculative trading. And as no one can predict the market of Cryptocurrency accurately, it becomes very risky to trade & invest in Futures Trading.
Official Notification By CFTC:
“Investors should consider the volatility of bitcoin and the bitcoin futures market, as well as the lack of regulation and potential for fraud or manipulation in the underlying bitcoin market.”
They urge traders to remain in attention before going with the investment in futures trading. Investors should see risk & loss potential in Bitcoin Futures.
And also they explained that an increase in the price of bitcoin doesn’t mean your investment will result in profit.
Overall profit and loss depends upon the prediction that we did.
The new chairman of the SEC, Gary Gender, said ” they are taking much care about the schemes of increased oversight of crypto space.
SEC implemented their action in 75 crypto related enforcement actions on industry so far. Gensler also called Congress to pass a law to protect investors in the Cryptocurrency market.
