Financial Risk Associated with Crypto-Currency: A Quantitative Study

This study examines the financial risk associated with crypto-currency using a quantitative research methodology. It explores the use of deductive approach, positivism philosophy, and mixed methods of data collection. The analysis includes regression and correlation techniques to assess the relationship between variables. The study also discusses sampling techniques and ethical considerations.

Financial risk associated with crypto-
currency

Table of content
Methodology....................................................................................................................................3
REFERENCES................................................................................................................................7

Methodology
Type- Research is been defined as creation of the new knowledge or an existing usage of
the study in creative and new manner for generating new type of methods, understandings and
concepts. It involves analysis & synthesis of the past research to an extent which results to
creative or new outcomes. It is mainly divided into two types that include qualitative &
quantitative research.
Qualitative type of research method includes obtaining & assessing the data that is non-
numerical for the purpose of understanding experiences, concepts and opinions (Daniel, 2018). It
could be used for gathering in detail insights into the problem or generating the new ideas for the
research. It is mainly used in humanities & the social sciences within different subjects and
meanings. It is been used for understanding the way in which people experience the globe.
Quantitative research is the practice of gathering and assessing the data that is expressed
in terms of numbers. It could be used for finding averages or patterns, making predictions,
generalizing results, testing casual kind of relationship etc towards wide population. In other
words, it means as systematic analysis of the phenomena through obtaining numeric data &
performing mathematical, statistical and computational tools. It gathers information from the
potential & existing customers by using same type of sampling techniques & sending out digital
survey, questionnaires and online polls.
Under this study, quantitative technique has been used for analyzing the finance related
risk attached with that of crypto-currency. This method helps in generating accurate and
adequate results as only few number of variables are included as the data relates with close-
ended information. It is the method that helped the scholar in reaching to higher size of sample
and also helps in collecting the information on quick basis. It also enabled the researcher in
emphasizing on the facts and pattern or series of information.
Approach- It means as the process and plan that comprises of broad assumption steps
towards detailed techniques of collecting data, interpretation & analysis (Daniel and Harland,
2017). Therefore, it is mainly developed on the basis of research problem or issues that need to
be assessed. It is categorized into 2 main types that include inductive & deductive approach.
Deductive approach is mainly concerned with creating hypotheses on the basis already
available theory and thereafter designing the research strategy in testing hypotheses. It seems as
the means of the hypotheses that could be derived from propositions of theory. It relates with
deducting the conclusions from that of premises or the propositions.
Inductive approach referred as the reasoning that begins with observations or the theories
that are proposed towards an end of research process as the result of an observation. It includes
search for the series from an observation and developing explanations for such series with the

help of hypotheses. This approach do not implies in disregarding the theories at the time of
framing research objectives and the questions. It aims at generating the meaning from data
gathered for determining patterns in developing theory (Daniel, Kumar and Omar, 2018). It starts
with in-depth observation of globe that moves towards an abstract ideas & generalizations. In
this an investigator intends to create an empirical generalizations & in identifying the pre-
determined relations with progress in research.
In accordance to this report, scholar has adopted deductive approach as it supports the
developing of quantitative study in a better and well manner. It helped the researcher in
understanding the hypotheses and relationship among the variables in relation to the financial
risk present with that of the crypto-currency. It helps in explaining the casual relationship present
between the variables & concepts and the chance for measuring the concepts in quantitative
terms. This approach offers generalization of the research findings up-to a certain extent or limit.
Philosophy- It deals with source, development and nature of the knowledge and is said as
the belief regarding the manner within which the data relating to phenomena must be analyzed,
used and gathered. It is been classified into 2 types that includes interpretivism and positivism
philosophy.
Positivism philosophy means as the philosophical system that is been deeply grounded in
the mathematics & science (Phillips and Ritala, 2019). It views only he factual knowledge that is
gained by way of observation with an inclusion of measurement that is trustworthy. In this, role
of an investigator limit to the data collection and an interpretation in objective manner. It mainly
depends on the quantifiable observation which results to the statistical assessment and under this
the findings are seen as usually quantifiable & observable.
However, interpreivism philosophy includes interpretation of the components and
integrating the human interest within the study. It assumes that an access to the reality occurs
only by way of social construction like consciousness, language, shared meanings & instruments.
This type of philosophy focuses on the qualitative assessment against quantitative analysis. It is
concerned with idealism position and is been used for grouping together different approaches
including the social constructivism, hermeneutics and the phenomenology. It is essential for
scholar as social factor in appreciating the differences present between persons. Further, it
mainly emphasizes on the meaning and might employ several methods for the purpose of
reflecting different aspects of research issue.
With respect to this study, an investigator has make use of positivism philosophy as it is
the most suitable approach in formulating the quantitative study with regards to the financial risk
exist in crypto-currency (Seehawer, 2018). This approach has been found as the vigorous
practice in setting the hypotheses, empirical experimentations in testing such hypotheses, deeper
assessment in measuring results and ability in codifying results within the set of the predictions
& laws.

Data collection- It is the practice of obtaining & measuring the information on variable
interest in systematic way that helps an individual for answering the research questions,
evaluating results and testing hypotheses. It means as the process through which scholar gathers
information from appropriate sources in finding answers to research issue. There are two major
sources through the use of which data can be gathered that are primary as well as secondary
sources.
Primary sources refer to the original data within which the information is gathered in
direct contact with respondent for the particular purpose. It could be collected in different
manner that is by several ways that includes interviews, survey, observation field and the
experiments. It is seen as expensive method & time consuming in comparison to the secondary
data and is deemed as suitable for some kind of the research. In this the researcher gathers
firsthand data in case the research problem seems as unique and no any research related work is
been performed by other individual (Kogan, Mayhew and Vasarhelyi, 2019). The outcome of
such study indicated as more accurate at times when data is obtained directly by participant;
however, it seems as costly and consumes lot of time.
On the other side, secondary data means as the data that had been already gathered and is
readily available from that of other sources. Such type of data is cheaper and is obtainable more
quickly in comparison to the primary data and also available at time when primary data could not
be gathered. This source is counted as economical as it saves efforts & time and also improves
understanding of problem.
In context of this report, an investigator has used mixed methods that include both
primary and secondary sources by applying SPSS tool for primary analysis and application of
statistical method that is regression and correlation for making secondary assessment through
developing hypotheses for computing significance value and showing relationship between
variables attached with the financial risk in association with crypto-currency.
Sampling- It refers to the practice that is used in the statistical assessment within which
the pre-determined no of an observation from the large population. The method that is been used
for selecting a sample from that of large population mainly depends on types of the information,
but it might be systematic, purposive or random sampling technique. There are majorly two
kinds of the sampling tool that includes probabilistic and no-probabilistic sampling.
Probability sampling means as the tool in which scholar select sample from large
population on the basis of probability. This theory uses the statistical theory in randomly
selecting the smaller group of the people from existing population and thereafter predicting all
their responses that would match an overall population.
Non-probability referred as the tool in which odds of any member is being chosen for the
sample which cannot be computed. This method depends on expertise of an investigator and is
been carried out through an observation & scholar uses it on wider basis for the qualitative study.

In this technique not all members of population has equal possible chance of participating in
study as compared to the probability sampling (Pruzan, 2016). Each and every member of
population got equal chance of getting chosen which is considered as most useful for the
exploratory studies such as pilot survey to the small sample compared to the pre-determined size
of the sample within the entire study.
Data analysis-
Ethical consideration-
Reliability and validity-
Research limitation-

REFERENCES
Books and journal
Daniel, B. K. and Harland, T., 2017. Higher education research methodology: A step-by-step
guide to the research process. Routledge.
Daniel, B. K., 2018. Reimaging research methodology as data science. Big Data and Cognitive
Computing. 2(1). p.4.
Daniel, B., Kumar, V. and Omar, N., 2018. Postgraduate conception of research methodology:
implications for learning and teaching. International Journal of Research & Method in
Education. 41(2). pp.220-236.
Kogan, A., Mayhew, B. W. and Vasarhelyi, M. A., 2019. Audit data analytics research—An
application of design science methodology. Accounting Horizons. 33(3). pp.69-73.
Phillips, M. A. and Ritala, P., 2019. A complex adaptive systems agenda for ecosystem research
methodology. Technological Forecasting and Social Change. 148. p.119739.
Pruzan, P., 2016. Research methodology: the aims, practices and ethics of science. Springer.
Seehawer, M. K., 2018. Decolonising research in a Sub-Saharan African context: exploring
Ubuntu as a foundation for research methodology, ethics and agenda. International
Journal of Social Research Methodology. 21(4). pp.453-466.