Nigerian Journal of Banking and Financial Issues (NJBFI)

Crypto Currency Risk And Return: A Portfolio Approach

Abstract

This study explored the relationship between risk and return of selected crypto currencies. Four most traded crypto currencies which are bitcoin, ethereum, binance coin and ripple were selected and treated as portfolio in this study. Monthly data on crypto currencies were obtained from Coin Codex Exchange from January 2018 to March 2023 for this study. Result from trend analysis established the high volatility of crypto currencies. Also the result of the correlation analysis revealed the existence of a positive and significant relationship between portfolio risk and return in the crypto currency market. The study therefore recommended that investors frequently monitor price movement of crypto currencies, take advantage of newly introduced crypto and diversify the investments in their portfolio.