Should stock investors include cryptocurrencies in their portfolios?

Should Stock Investors Include Cryptocurrencies in Their Portfolios?
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 Abstract
Cryptocurrencies have recently emerged as the best digital asset though their inclusion in investor's portfolios is little. Investors' strong need in the stock market of cryptocurrency might create close links to previous purchases, resulting in low beneficial returns from the investments. This study investigates the returns of including cryptocurrencies in the investment portfolios using a time series analysis to identify different cryptocurrencies' status over time. Their respective market capitalization will be analyzed to guide investors on the inclusion of cryptocurrencies in portfolios. The results prove that adding cryptocurrency to one's portfolio improves returns. Hence, the investor can rely on either the substantial assets or the digital ones. These results significantly provide guidance insights and hindrances to stock investors.Keywords: Cryptocurrency, investment, portfolio, stocks, investors
 Should Stock Investors Include Cryptocurrencies in Their Portfolios?
Introduction
Cryptocurrency is becoming a popular form of investment across the world. They decentralized assets that are intended to provide a medium of exchange using blockchain technology. One of the main features of cryptocurrency is the lack of authority and physical representation. As the popularity of cryptocurrency continues to increase, many people wonder whether they should include it in their stock portfolios. Investors always look for assets that can earn higher returns (Demiralay & Bayracı, 2020). The values of cryptocurrency have continued to grow, and there are many alternative assets. It has emerged as an alternative form of investment with the potential of giving significant returns if done correctly. Many people worldwide are considering investing in these currencies because of potential returns and exponential value growth. However, there is a lack of empirical information on statistical evidence that cryptocurrencies value their clients.
There is still much controversy about whether people should invest in bitcoin and other cryptocurrencies. This is because there is a lack of understanding of what cryptocurrencies are and what benefits they have to investors. In the current times, there are various arguments in favor and against cryptocurrency investment. When bitcoin's value decreased in 2018, many people have shunned investing in these platforms because of the perceived risks and potential losses associated with cryptocurrency's unpredictable nature. However, most of these arguments are based on speculations without a strong basis of what it means or what it entails to invest in the asset (Platanakis & Urquhart, 2019).
Advantages of Cryptocurrency Over Stocks
There have been projections from financial analysts claiming there will be significant growth in the value of cryptocurrency. This is because many institutionalized money markets are investing in the portfolio. We may see different cryptocurrency portfolios being included in mainstream stock exchange markets (Barone, 2019). Many people are still consideri...