Analysis of Potential and Risks Investing in Financial Instruments and Digital Cryptocurrency Assets during the Covid-19 Pandemic

Authors

  • Debi Eka Putri Sekolah Tinggi Ilmu Ekonomi Sultan Agung http://orcid.org/0000-0002-3502-4817
  • Rico Nur Ilham Faculty of Aconomic and Business Universitas Malikussaleh Lhokseumawe
  • Mangasi Sinurat Sekolah Tinggi Ilmu Ekonomi Bina Karya Tebing Tinggi
  • Lilinesia Lilinesia Sekolah Tinggi Ilmu Ekonomi Bina Karya Tebing Tinggi
  • Maulana Majied Sumatrani Saragih Universitas Darma Agung MEdan

DOI:

https://doi.org/10.32493/skt.v5i1.10968

Keywords:

Risk and Return, Financial Investment, Digital Asset, Cryptocurrency

Abstract

Cryptocurrency or virtual currency is a form of investment that has developed since 2010. Today, there are more than 2,000 types of crypto currencies worldwide. Cryptocurrency research in Indonesia is still focused on the legal status and legal status of cryptocurrency investments. This quantitative descriptive study aims to describe the returns and risks of investing in crypto currencies. Descriptive analysis by calculating risk measures and using the heteroscedastic model GARCH (1,1) was carried out on the return data of 15 crypto currencies that had the greatest value. Information was obtained that investing in most crypto currencies resulted in higher returns than investing in foreign currencies or the stock market. On the other hand, Crypto currencies have a higher risk of loss and volatility clustering or heteroscedasticity. Further research is needed to uncover the characteristics of Crypto currency returns and their performance in the form of a portfolio.

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Published

2021-09-09

Issue

Vol. 5 No. 1 (2021): Jurnal SEKURITAS

Section

Articles

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Open Access

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