According to the whole warning notification by CFTC ( department under SEC),
” Every person who wants to enter in the bitcoin futures trading, should take care about all the profit and loss chances”.
In the beginning of the notification, they warned people to stop those types of activities where people are not aware accurately.
Cryptocurrency investment is subject to market risk, but there are other types of risks in Cryptocurrency like fraud activity or Ponzi schemes that people share on social media.
So according to the SEC, people who are new to this field can easily believe in such Ponzi schemes and that results in financial loss.
So people should be aware about the Cryptocurrency education. People should understand the basics of cryptocurrencies and genuine ways of work, instead of shortcuts ( which are likely a scam).
And also they mainly warned the people who are doing investment in bitcoin futures trading.
According to CFTC, investment in Bitcoin futures may not result in profit even bitcoin’s price increment.
The trading of bitcoin futures is totally based upon the crypto market speculation.
So every newbie who wants to engage in any type of Cryptocurrency investment, should learn & understand the terms and working protocol of how profit & loss is associated.
They strongly emphasised over the point of small investment exposure in high profit greed.
As all of us know very well that we can start trading in bitcoin futures with initial investment of $10 and the leverage makes it multiple times of the invested value.
So every person should not look at the positive points. Try to figure out the degree of risk in the investment.