The Central Bank has warned retail investors that trading in crypto assets is "high risk and speculative" and that people should be alert to "misleading" advertising and paid social media influencers.

The financial regulator issued the warning as part of a Europe-wide campaign by the European Supervisory Authorities to inform consumers of the risks involved with crypto investment, including the possibility of losing all money invested and the lack of recourse and protection available.

"In Ireland and across the EU we are seeing increasing levels of advertising and aggressive promotion of crypto asset investments," Derville Rowland, director general for financial conduct at the Central Bank, said.

"While people may be attracted to these investments by the high returns advertised, the reality is that they carry significant risk.

"Before you buy crypto assets, you need to think about whether you can afford to lose all the money you invest. Do the promised fast or high returns seem too good to be true?

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"People should also be aware that if things go wrong, you do not have the protections you would have if you invested in a regulated product."

In addition to potential loss of investment and the lack of protections, the European Supervisory Authorities -- EBA, ESMA and EIOPA -- said prices can rise and fall quickly over a short period and that investors could fall prey to scams, fraud, operational errors and cyber attack.

The Central Bank has also published an explainer on cryptocurrencies for consumers.

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