CRYPTOCURRENCY “THE PERFECT ALTERNATIVE SOLUTION TO HIGH-RISK/HIGH-RETURN INVESTMENTS”

Abstract

In recent years, there has been a notable increase in the number of financial institutions incorporating cryptocurrencies into their investment portfolios. Cryptocurrencies represent a groundbreaking addition to asset managers' repertoire, being the first purely digital assets to be embraced in this manner. While they share some similarities with traditional assets, cryptocurrencies possess unique characteristics that set them apart, making their behavior as an asset class a subject of ongoing exploration. Given the evolving nature of cryptocurrency trading, it is crucial to consolidate existing research findings on the subject. This paper aims to provide a comprehensive overview of cryptocurrency trading research by synthesizing insights from 146 research papers. Topics covered include cryptocurrency trading systems, market bubbles, volatility and return predictions, portfolio construction, technical trading strategies, and more. Through an analysis of datasets, research trends, and distribution among research topics and technologies, this paper sheds light on the current landscape of cryptocurrency trading research. It also identifies promising opportunities for further exploration in this dynamic and rapidly evolving field.