DOI: 10.1002/ijfe.2778
ABSTRACT: There has been a tremendous growth in cryptocurrencies, which has challenged policy makers around the globe. We obtain millisecond data of some of the most frequently traded cryptocurrencies – bitcoin, ethereum, ripple, litecoin and dash – and two cryptocurrency indices – CRIX and CCI30 – to examine their profitability. Our profitability findings suggest that cryptocurrency traders generate significant profits after considering reasonable transaction costs. We also observe that cryptocurrency market participants can expand and sustain the levels of profitability levels in the subsequent trading activity. Our robustness checks with more recent post-Covid data are consistent with the initial profitability findings, although we observe lower levels of profits for the two indices and weaker profit persistency for all digital assets.
– Cryptocurrency traders generate significant profits after considering transaction costs.
– Profitability levels can be sustained in subsequent trading activity.
– Cryptocurrency traders generate significant profits after considering transaction costs.
– Profitability levels can be sustained in subsequent trading activity.
– Cryptocurrency traders generate significant profits after considering transaction costs.
– Profitability levels can be sustained in subsequent trading activity.
– Lower levels of profits observed for the two indices.
– Weaker profit persistency observed for all digital assets.
Methods used: – Lower levels of profits observed for the two indices.
– Weaker profit persistency observed for all digital assets.
– Cryptocurrency traders can generate significant profits after considering transaction costs.
– Profitability levels in cryptocurrency trading can be sustained and expanded.
– Cryptocurrency traders generate significant profits after considering transaction costs.
– Profitability levels in subsequent trading activity can be expanded and sustained.
– Cryptocurrency traders generate significant profits after considering transaction costs.
– Profitability levels in subsequent trading activity can be expanded and sustained.
– The paper examines the profitability of trading in cryptocurrencies.
– Traders generate significant profits after considering transaction costs.
In this article , the authors obtain millisecond data of some of the most frequently traded cryptocurrencies (e.g., bitcoin, ethereum, ripple, litecoin and dash) and two cryptocurrency indices (CRIX and CCI30) to examine their profitability.