Cryptocurrency’s Risk and Return Analysis in India

This study examines the risk and return of cryptocurrencies, a new and highly volatile asset class. Using quantitative methods, the research compares cryptocurrencies to traditional assets such as stocks and gold. The findings show that cryptocurrencies offer significantly higher returns but with a much greater level of risk. This distinct risk-return profile suggests they act as a unique, largely uncorrelated asset class. The study concludes that while they can aid in diversification, cryptocurrencies are best suited for investors with a high tolerance for risk, emphasizing that understanding their unique characteristics is key to informed investment decisions.