CRYPTOCURRENCY AS AN ALTERNATIVE INVESTMENT: OPPORTUNITIES, RISKS, AND MARKET IMPLICATIONS

Cryptocurrencies have emerged as a new asset class, attracting increasing attention from global investors. This study evaluates cryptocurrencies as alternative investments by analyzing their risk-return characteristics, diversification potential, and associated challenges. Using secondary data from the Organisation for Economic Co-operation and Development and existing academic literature, the research applies a qualitative analytical approach within the IMRAD framework. The findings indicate that cryptocurrencies offer high return potential and portfolio diversification benefits but are constrained by extreme volatility, low financial literacy, and regulatory uncertainty. The study concludes that cryptocurrencies should be used cautiously within diversified portfolios and highlights the importance of regulatory frameworks and investor education.