Analysing Risk and Returns: A Study on Selected Crypto Currencies

Abstract

The present study focuses on "Crypto currency" also called digital money existing on the block chain. It refers to the transactions related to computer-generated currencies which are secured by crypto currencies. The data considered in the project is from 2017 to 2023. The objective of this research is to compute and compare the risk and return performance of the selected crypto. In India, crypto currency investment carries a high degree of risk due to its uncertain legal status and lack of regulation. The Reserve Bank of India has issued warnings about the potential financial, operational, legal, customer protection, and security related risks associated with dealing in crypto currencies. However, the potential for high returns has also attracted many investors. To make informed decisions, Indian investors should conduct thorough research on the market, stay up-to-date on regulatory changes, and diversify their investment portfolios. It is also essential to have a clear understanding of one's risk tolerance and not invest more than one can afford to lose. In conclusion, by taking a balanced and well-informed approach to invest in crypto currencies, Indian investors can make effective decisions that weigh both the potential risks and returns.