INVESTOR’S PREFERENCES AND PRICE VOLATILITY OF CRYPTOCURRENCIES - AN OVERVIEW

Abstract

Cryptocurrencies are digital money that can be used to buy things online. Unlike paper currency, these digital currencies are highly secured with the help of cryptography technology, so it’s almost impossible to counterfeit. It is also used to trade on crypto exchanges. When it comes to cryptocurrencies, people are perplexed. Simply put, cryptocurrencies are money in the form of a program that can be used for exchange or payment. The history of cryptocurrencies was not that long ago. It has a history of only 11 years, but cryptocurrency’s future is an unexplored frontier. This paper investigates the cryptocurrency market's price volatility, the number of new coins introduced over the last decade, and the age of investors who are invested in cryptocurrency in the state of Kerala, and finds out that the cryptocurrency investment has higher risk compared to other financial assets because of the high price volatility, most of the investors are younger than 35 years old, and almost one million cryptocurrencies are currently available in the market.