Index

Chapter Sub Content Pg. No.

No. Ch. No.

1 RESEARCH METHODOLOGY

1.1 Research Objective

1.2 Literature review

1.3 Research Design

1.4 Data Collection Sources

1.5 Beneficiaries Of Study

1.6 Limitation Of Study

2 BASIC CONCEPTS OF CRYPTOCURRENCY

2.1 What is cryptocurrency

2.2 History of cryptocurrency

2.3 Regulations of cryptocurrency

2.4 How cryptocurrency work

2.5 Cryptocurrency examples

2.6 Factors affecting cryptocurrency price

3 DERIVATIVE TRADING IN CRYPTOCURRENCY

4 INITIAL COIN OFFERING

5 SWOT Analysis
 CHAPTER-1: RESEARCH PROPOSAL

Problem Statement:

➢ How crypto currencies work and what is trend in trading of these currencies?

Research Objective:

➢ To know the concepts of different types of crypto currencies and how they work.
➢ To understand the trend in trading of these currencies.
➢ To identify the growth and future of these crypto currencies.

Literature Review:

(Francis, 2020) Cryptocurrency provide alternative method of payment, apart from real money,
that enable users to make financial activities such as buying, selling, transferring and exchanging
easily in global market. Cryptocurrency can bring more positive changes to e-Business and e-
Payment sector. However, cryptocurrency doesn’t get that much of trust yet. Until
cryptocurrency is being well regulated and controlled, users need to take extra precautions of
using such virtual money. So, the lack of legislations is considered as the main concern in
cryptocurrency systems. Bitcoins have already gained wide acceptance around the world- hence
banning them would not be an option in India. Instead, this industry would need to be regulated.
The sooner this is done, the better.

(Srivastava, 2021) The future of cryptocurrency looks bright and there is ray of hope.
Cryptocurrency brings huge changes in the financial sector, as well as in the individual lives of
ordinary citizens. The number of investors in cryptocurrencies has grown quite rapidly in recent
years.

(Jaideep & Prashanth, 2019) Cryptocurrency has potential to replace the traditional monetary
system. In order to adopt this phase of Cryptocurrency it must first evolve and accept a secure
network of currency exchange. if crypto currencies are in the form of Lakshmi Coin, then the
society can be motivated to make investors adapt gradually which will in turn pave a way
towards rapid progress in usage of Cryptocurrency. This will help India to reach to the next
platform of E-commerce. Indians are to be benefited by Bitcoin, but it may not be the same for
the nation as the whole.

(Dourado, 2014) Cryptocurrency is an impressive technical achievement, but it remains a

monetary experiment. Even if cryptocurrencies survive, they may not fully displace fiat
currencies. In this article, they provide an interesting new perspective from which to view
economic questions surrounding currency governance, the characteristics of money, the political
economy of financial intermediaries, and the nature of currency competition.

(Binda, 2020) The changes in the legislative system referring to the cryptocurrencies (e.g.,
banking law or tax law) are underway. However, it should be emphasized that the results
presented in the paper seem to confirm the thesis of the speculative nature of cryptocurrencies.
The high volatility of the cryptocurrency’s values, their sensitivity to political decisions, the lack
of centralized supervision, no or limited legal regulations make them high-risk instruments. The
dynamic development of cryptocurrencies and their increasing popularity as a means of payment
cannot remain unnoticed.

(Schär, 2018) Price volatility and scaling issues frequently raise concerns about the suitability of
Bitcoin as a payment instrument. The innovation makes it possible to represent digital property
without the need for a central authority. This can lead to the creation of a new asset class that can
mature into a valuable portfolio diversification instrument. This novel technology allows us to
store and transfer a monetary unit without the need for a central authority, similar to cash.

(Wolfgang, Campbell, & Raphael, 2018) Cryptocurrencies are an intriguing financial

innovation and offer many possible research avenues. As with many new technologies,
considerable confusion exists about both the underlying concept of cryptocurrencies and the
approaches for valuing them.

(Flamur, Olivera , & Emilija , 2017) The paper aimed to provide analysis of cryptocurrency
use in general and of the bitcoin in particular. The future of cryptocurrencies could be bright if
some institutional – formal conditions are fulfilled. The advantages of cryptocurrency use in
facilitating trade, cost reduction, and alike, are recognized by majority of academics. Bitcoin and
other cryptocurrencies have the potential to replace traditional and new payment methods. But to
achieve that and become a dominant power in global system of payments, they must provide
distinctive incremental value, to address and overcome a number of critical challenges, such as
formal regulatory issues. That is unlikely to happen in the short time period. But banks should
look closely at the technology underlying these cryptocurrencies as a potential generic new way
to transfer ownership of value in the longer term.

(Casale, 2015) Overall, the issue of regulation divides users because regulation inherently goes
against the original aim of the currency. Bitcoin was created as a peer-to-peer network, managed
by those individuals that take part in the mining and block chain creation process. While
complete regulation would be beneficial for some of Bitcoin’s core users, it is unlikely to
happen. While it is possible to regulate certain aspects, it is unlikely that full regulation would be
possible as Bitcoin is not controlled by any central government or regulatory agency. Bitcoin
seems likely to continue to grow in popularity, but is unlikely to become a predominant global
currency due to its lack of regulation and association with illicit activities on the Internet.

(Scott, 2021) The neologism cryptocurrency is unstable in its meaning, and is applied to systems
with diverse technical architectures and governance systems. Nevertheless, one way to unify the
diverse uses of the term is to define it by some common intent among those who claim it, rather
than by the diverse means via which that intent is enacted, and regardless of whether the intent is
achieved in practice. We find that cryptocurrency systems are unified by being intended to host a
general or limited-purpose medium-of-exchange, a cryptocurrency, using infrastructure that
replaces trust in institutions by cryptography to varying degrees.
Research Design:

➢ The research design is analytical in nature.

Data Collection Method:

➢ The collected data is secondary data from various publications by financial websites,
journals, newspapers, books and magazines etc...

Sampling Method:

➢ Convenience sampling method is used for the present study.

Sampling Size:

➢ Right now, in market there are many cryptocurrencies available, from that we have
choose 5 cryptocurrencies only to check their performance on the basis of convenience
sampling method. These currencies are Bitcoin, Ethereum, Litecoin, Ripple, and
Dogecoin.

Scope of the study:

➢ The study is going to helpful to know how the cryptocurrencies work and what are the
trends to follow for trading of the cryptocurrencies.

Beneficiary:

➢ It is beneficial to us to gain knowledge about how cryptocurrencies work.

➢ It is also beneficial to investors to invest on the basis of trend in trading of these
currencies.

Limitations:

➢ Only few cryptocurrencies considered while evaluating the performance.