Cryptocurrencies as a safe tool for portfolio before and during COVID-19 pandemic: cases of Bitcoin and Ethereum

Authors

  • Ghanem Shamseen Business School, International Black Sea University, Georgia
  • Salavat Sayfullin Business School, International Black Sea University, Georgia
  • Metin Mercan School of Business, International Black Sea University

DOI:

https://doi.org/10.31578/job.v12i1.233

Abstract

This research aims to analyze and explain the importance of diversification benefit of cryptocurrencies and its nature in accordance with its relation with other financial assets before and especially during the Covid-19 pandemic era. This paper will help investors to understand that how to manage a portfolio of cryptocurrencies in parallel with other financial assets and mainly cryptocurrencies since they were a safe investment option during the pandemic period due to the good defense these digital currencies activated against the covid-19 shock back in 2020. Paper used DCC-GARCH model to examine the safety of Bitcoin and Ethereum with financial market of S & P 500 and FTSE100.

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Published

28-06-2023

Issue

Vol. 12 No. 1 (2023)

Section

Articles