CRYPTOCURRENCY AS AN INVESTMENT TOOL OF THE MODERN FINANCIAL MARKET

Abstract

This article discusses the development of attractive strategies involving cryptocurrency assets, taking into account their value and potential risks. The object of the analysis in this paper is the cryptocurrency as an investment tool. The article discusses the development of recommendations for attractive investment strategies that include cryptocurrency assets, taking into account costs and possible risks. The subject of the analysis is cryptocurrencies as an investment tool. The place of cryptocurrencies in the context of the development of the modern financial market and financial technologies is considered, it is shown that it is necessary to create an investment portfolio of cryptocurrencies, taking into account the goals of the investor, and the logical relationship between risk and profitability should be observed. Therefore, cryptocurrencies should not be correlated; the investment portfolio should be sufficiently diversified to minimize risk; cryptocurrencies should be liquid, that is, freely exchangeable for fiat currency on the appropriate exchange (for example, dollars, euros). It is shown that the investment portfolio of cryptocurrencies must be formed taking into account the goals of the investor, so that it corresponds to the logical relationship between risk and profitability. Therefore, cryptocurrencies should not be correlated; the investment portfolio should be sufficiently diversified to minimize risk; cryptocurrencies should have liquidity, i.e. be freely exchanged, for example, for dollars and euros. Investors should also consider regularly rebalancing the portfolio, which can help improve its profitability.