<abstract xmlns="http://www.w3.org/1999/xhtml">

<bold>Subject and purpose of work:</bold> Cryptocurrencies are a phenomenon that has been strengthening its place in the world of finance for over ten years and which is becoming a frequent investment tool. The aim of this study is to compare the level of risk measures of investments in the cryptocurrency market with investments in global capital markets in 2011-2020.
<bold>Materials and methods:</bold> The study used the quotations of the analysed instruments. The level of risk was estimated using standard deviation and semi-standard deviation of daily logarithmic rates of return.
<bold>Results:</bold> Investment in cryptocurrencies is more risky than in shares of the largest international companies. The level of risk decreases with the duration of the cryptocurrency presence on the market.
<bold>Conclusions:</bold> Achieving extraordinary rates of return generates an increased demand and volatility of cryptocurrencies’ quotations. The level of risk of investing in cryptocurrencies is much higher than in the indexes of global capital exchanges.
</abstract>

Subject and purpose of work: Cryptocurrencies are a phenomenon that has been strengthening its place in the world of finance for over ten years and which is becoming a frequent investment tool. The aim of this study is to compare the level of risk measures of investments in the cryptocurrency market with investments in global capital markets in 2011-2020.
Materials and methods: The study used the quotations of the analysed instruments. The level of risk was estimated using standard deviation and semi-standard deviation of daily logarithmic rates of return.
Results: Investment in cryptocurrencies is more risky than in shares of the largest international companies. The level of risk decreases with the duration of the cryptocurrency presence on the market.
Conclusions: Achieving extraordinary rates of return generates an increased demand and volatility of cryptocurrencies’ quotations. The level of risk of investing in cryptocurrencies is much higher than in the indexes of global capital exchanges.

Risk of Investment in Cryptocurrencies

Economic and Regional Studies / Studia Ekonomiczne i Regionalne

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

{"article-title":"Risk of Investment in Cryptocurrencies"}

Subject and purpose of work: Cryptocurrencies are a phenomenon that has been strengthening its place in the world of finance for over ten years and which is...

Risk of Investment in Cryptocurrencies

Published Online: Oct 11, 2021

Page range: 294 - 304

Received: Jun 01, 2021

Accepted: Sep 01, 2021

DOI: https://doi.org/10.2478/ers-2021-0021

Keywords
investment, financial markets, cryptocurrency, risk

© 2021 Sylwester Kozak et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Risk of Investment in Cryptocurrencies

Published Online: Oct 11, 2021

Page range: 294 - 304

Received: Jun 01, 2021

Accepted: Sep 01, 2021

DOI: https://doi.org/10.2478/ers-2021-0021

Keywordsinvestment, financial markets, cryptocurrency, risk

© 2021 Sylwester Kozak et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Keywords
investment, financial markets, cryptocurrency, risk