Abstract
The subject of the study is the theoretical and practical aspects of problem solving and institutional provision of prospects for the use of cryptocurrencies on the financial market. The purpose of the article is to determine the existing scope, advantages and risks of using cryptocurrencies in the financial markets and, on these bases, to justify the strategic directions of their development and the prospects of using them as the latest financial instruments. The methodological basis of the article is a monographic, historical, system-structural analysis and synthesis – when determining the essence, stages of development and use of cryptocurrencies; statistical and economic, fundamental analysis (FA) and technical analysis (TA) – when determining the market, positions, dynamics of cryptocurrencies, their effectiveness as digital assets or investment instruments; mathematical programming, modeling, behavioral finance – when forecasting the dynamics of cryptocurrency rates and the effectiveness of directions and forms of their institutional support. Results of the article. The theoretical foundations of the creation, functioning and use of cryptocurrencies were clarified; identification of factors, functions and competitive advantages, principles of management; determination of the most effective methods of evaluating their courses, market volatility; substantiation of forecasting tools and directions and forms of development of institutional support with the aim of improving its use in the future. Field of application of results. The materials of the article can be recommended for implementation in the activities of financial and economic faculties or institutes of higher education institutions; financial institutions. Conclusions. Cryptocurrencies as digital monetary or financial assets, virtual money are becoming more and more widespread in terms of the amount of monetary mass and the number of types, use by the population all over the world as a full-fledged means of payment; official recognition by the governments of many countries. Their further use is based on identifying and taking into account in practical activity the essence and functions of financial instruments, competitive advantages and risks, and on the basis of this - the development of appropriate strategies and tactics of use. As a financial instrument, cryptocurrency is considered primarily as a means of capital accumulation; means of payment; to a lesser extent - as a means of lending and insurance, investment. However, the strategic directions of using cryptocurrency as a digital asset are related to their use as a financial instrument, not only with its functions and content, but also with investment strategies. They rely on, including and on the cryptocurrency trading strategy and depend on its competitive advantages and risks, types, volumes, market trends, cyclicality and the general state and dynamics of financial and other markets, the socio-economic situation in individual countries and in the world; behavioral economics and behavioral finance. Taking into account the specified factors allows to determine and forecast the strategic directions of its development in the future
Keywords
cryptocurrency; bitcoin; digital assets; financial instruments; blockchain; tokens; trends; strategies; trading; swaps; futures; management
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