Crypto investors need more detailed warnings about risks involved
Financial regulators can noticeably increase the impact of their warnings about the risk of investing in crypto assets by incorporating “behaviourally informed” messages about the dangers of losing money, a new study has indicated.
Research conducted by the Central Bank of Ireland found that more specific warnings about the risks associated with the asset class, coupled with price volatility information, can improve risk comprehension and perception among at-risk investors.
In a research paper published on Tuesday, Central Bank economist Danish Us-Salam said that younger people “with less investment experience” tend to be the most at-risk of falling prey to bad information about crypto products.
“Inexperienced investors are…
