The Effects of Cryptocurrency on Investment Portfolio in Tanzania: A Case of Cryptocurrency Brokers at Yellow Card Company
This study investigated the effects of cryptocurrency on investment portfolios through currency brokers at Yellow Card Company in Tanzania, focusing on price fluctuations, volatility metrics, and market swings. A cross-sectional research design was chosen to capture a snapshot of broker and investor...
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| Format: | Article |
| Language: | English |
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Mashhad: Behzad Hassannezhad Kashani
2024-11-01
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| Series: | International Journal of Management, Accounting and Economics |
| Subjects: | |
| Online Access: | https://www.ijmae.com/article_208647_31f7fa031358e0cde2fc1d9e8a678e20.pdf |
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| _version_ | 1841545239712497664 |
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| author | Diana Meela Pastory Dickson Faustin Ngenyuko |
| author_facet | Diana Meela Pastory Dickson Faustin Ngenyuko |
| author_sort | Diana Meela |
| collection | DOAJ |
| description | This study investigated the effects of cryptocurrency on investment portfolios through currency brokers at Yellow Card Company in Tanzania, focusing on price fluctuations, volatility metrics, and market swings. A cross-sectional research design was chosen to capture a snapshot of broker and investor experiences at a specific moment, allowing for a comprehensive analysis of current practices and attitudes. This design is particularly effective in understanding relationships between variables in a relatively short timeframe, making it ideal for exploring the dynamic cryptocurrency market. Utilizing a quantitative approach, data were collected from 43 brokers and investors through structured questionnaires, enabling statistical analysis and robust conclusions. Analysis conducted with IBM SPSS Version 26 revealed that while price fluctuations positively impacted broker returns, this effect was statistically insignificant. In contrast, high volatility metrics significantly negatively affected returns, while market swings exhibited a positive but insignificant effect. These findings underscore the substantial risks posed by cryptocurrency volatility, adversely impacting broker returns despite potential diversification benefits. The study concludes that effective risk management strategies are essential for mitigating these negative impacts. Recommendations for brokers and investors include the implementation of advanced risk management techniques and the establishment of regulatory frameworks to mitigate risks associated with cryptocurrency investments in emerging economies. This research enriches practical insights and emphasizes the significance of volatility in the management of investment portfolios in the context of cryptocurrency. |
| format | Article |
| id | doaj-art-e1616606f81644c298aa735446f45f08 |
| institution | Kabale University |
| issn | 2383-2126 |
| language | English |
| publishDate | 2024-11-01 |
| publisher | Mashhad: Behzad Hassannezhad Kashani |
| record_format | Article |
| series | International Journal of Management, Accounting and Economics |
| spelling | doaj-art-e1616606f81644c298aa735446f45f082025-01-12T08:07:04ZengMashhad: Behzad Hassannezhad KashaniInternational Journal of Management, Accounting and Economics2383-21262024-11-0111111489150810.5281/zenodo.14030201208647The Effects of Cryptocurrency on Investment Portfolio in Tanzania: A Case of Cryptocurrency Brokers at Yellow Card CompanyDiana Meela0Pastory Dickson1Faustin Ngenyuko2Department of Business Administration, College of Business Education, Dar es Salaam, TanzaniaDepartment of Business Administration, College of Business Education, Dar es Salaam, TanzaniaDepartment of Business Administration, College of Business Education, Dar es Salaam, TanzaniaThis study investigated the effects of cryptocurrency on investment portfolios through currency brokers at Yellow Card Company in Tanzania, focusing on price fluctuations, volatility metrics, and market swings. A cross-sectional research design was chosen to capture a snapshot of broker and investor experiences at a specific moment, allowing for a comprehensive analysis of current practices and attitudes. This design is particularly effective in understanding relationships between variables in a relatively short timeframe, making it ideal for exploring the dynamic cryptocurrency market. Utilizing a quantitative approach, data were collected from 43 brokers and investors through structured questionnaires, enabling statistical analysis and robust conclusions. Analysis conducted with IBM SPSS Version 26 revealed that while price fluctuations positively impacted broker returns, this effect was statistically insignificant. In contrast, high volatility metrics significantly negatively affected returns, while market swings exhibited a positive but insignificant effect. These findings underscore the substantial risks posed by cryptocurrency volatility, adversely impacting broker returns despite potential diversification benefits. The study concludes that effective risk management strategies are essential for mitigating these negative impacts. Recommendations for brokers and investors include the implementation of advanced risk management techniques and the establishment of regulatory frameworks to mitigate risks associated with cryptocurrency investments in emerging economies. This research enriches practical insights and emphasizes the significance of volatility in the management of investment portfolios in the context of cryptocurrency.https://www.ijmae.com/article_208647_31f7fa031358e0cde2fc1d9e8a678e20.pdfcryptocurrencyinvestmentportfolio |
| spellingShingle | Diana Meela Pastory Dickson Faustin Ngenyuko The Effects of Cryptocurrency on Investment Portfolio in Tanzania: A Case of Cryptocurrency Brokers at Yellow Card Company International Journal of Management, Accounting and Economics cryptocurrency investment portfolio |
| title | The Effects of Cryptocurrency on Investment Portfolio in Tanzania: A Case of Cryptocurrency Brokers at Yellow Card Company |
| title_full | The Effects of Cryptocurrency on Investment Portfolio in Tanzania: A Case of Cryptocurrency Brokers at Yellow Card Company |
| title_fullStr | The Effects of Cryptocurrency on Investment Portfolio in Tanzania: A Case of Cryptocurrency Brokers at Yellow Card Company |
| title_full_unstemmed | The Effects of Cryptocurrency on Investment Portfolio in Tanzania: A Case of Cryptocurrency Brokers at Yellow Card Company |
| title_short | The Effects of Cryptocurrency on Investment Portfolio in Tanzania: A Case of Cryptocurrency Brokers at Yellow Card Company |
| title_sort | effects of cryptocurrency on investment portfolio in tanzania a case of cryptocurrency brokers at yellow card company |
| topic | cryptocurrency investment portfolio |
| url | https://www.ijmae.com/article_208647_31f7fa031358e0cde2fc1d9e8a678e20.pdf |
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