Financial Risk Associated with Cryptocurrency

Financial risk associated with crypto-
currency

Table of content
TOPIC: “To critically examine the financial risk associated with crypto-currency.” ....................3
INTRODUCTION...........................................................................................................................3
Background.................................................................................................................................3
Research aim and Objectives......................................................................................................3
LITERATURE REVIEW................................................................................................................6
Methodology..................................................................................................................................13
REFERENCES .............................................................................................................................18

TOPIC: “To critically examine the financial risk associated with crypto-
currency.”
INTRODUCTION
Background
Crypto- currency is considered to be as a digital asset which has been prominently
designed in order to work as a complete medium of exchange (Barsan, 2019). Here, the
individual coin ownership records has been effectively stored within the ledger which tends to
exist in the computerized form of database by using significant cryptography in order to secure
the transactions records and also to control the creation of the additional units of the specific
crypto- currency (Shanaev and et.al., 2020). Decentralized technology has been used which
helps in making secure set of payment which is useful in storing money. An exchange account
has to be created for the buying and selling of the crypto- currency. There are various different
type of concurrency in which the individual can deal in which mainly includes Bitcoin, Litecoin,
Ripple, Ethereum, stellar, Cardano, etc. Volatility is considered to be as one of the major risk
which is mainly linked with the crypto- currency. Transaction error is another major risk which
is liked while trading with crypto-currency. This risk arises at the time of recording the
transaction associated with the cryptocurrency (Kethineni and Cao, 2020). The market of the
crypto- currency are decentralized which tends to state that, such currencies are not backed or
has been issued by the central authority like government. Such currencies only exist with the
shared digital record related with the ownership and has been stored within a block chain. This
study mainly focuses on examining the financial risk associated with crypto-currency.
Research aim and Objectives
Research aim
“To critically examine the financial risk associated with crypto-currency.”
Research Objectives
 To develop key understanding upon the concept of crypto-currency.

 To critically evaluate the financial risk associated with crypto-currency.
 To evaluate the key challenges and issues related with the cryptocurrency trading.
 To evaluate the key measures which must be taken into consideration while trading in
crypto-currency.
Research Questions
 What do you understand by the term crypto-currency?
 What are the financial risk associated with crypto-currency?
 What are the key challenges and issues related with the cryptocurrency trading?
 What are the key measures which must be taken into consideration while trading in
crypto-currency?
Rationale
The researcher has selected this topic for the study because this is the major issue upon
which research is considered to be necessary. The biggest issue related with the crypto- currency
is that the exchange platform tends to rise and fall dramatically over the short span of time. It is
the current issue because there seems to be range of financial risk associated with crypto-
currency. This is the current issue because there seems to be high degree of financial as well as
the security risk for the people who has been trading in the crypto-currency. In order to resolve
the issue, the researcher has focused on investigating on the key facts and variables linked with
the research study. This present study has been considered useful in bridging up the gaps and
attaining higher professional standards related with the research topic.
Research significance
This research study is going to be highly beneficial for the scholars who are further going
to carry out the research on the relevant topic. This research is going to be highly beneficial for
the people who tends to trade within the crypto- currency. This research will be highly
significant for effectively analyzing the key financial risk and issues at the time of trading in
crypto- currency. This research is going to be highly beneficial for the crypto- currency industry
which helps in effectively investigating on the specific subject matter. This study is highly