Maryana Kohut, PhD in Economics, Lviv National University of Nature Management, Ukraine

ORCID ID: 0000-0001-8275-134X
e-mail: maryana.kohut1990@gmail.com

Nataliia Mostovenko, PhD in Economics, Lutsk National Technical University, Ukraine

ORCID ID: 0000-0002-2050-1529
e-mail: mostovenko.n@gmail.com

Ruslana Sodoma, PhD in Economics, Associate Professor, Lviv State University of Life Safety, Ukraine

ORCID ID: 0000-0002-5020-6440
e-mail: sodomaruslana@gmail.com

The Essence and Place of Cryptocurrency in the Financial System

Abstract. Introduction. The history of the emergence of Bitcoin and other cryptocurrencies is analyzed. Basic concepts related to blockchain technology are explained. The main focus is on issues important from an investor’s point of view, as well as on technical aspects, including the essence and importance of blockchain technology.

Purpose. The purpose of the article is to generalize and systematize the available information about the emergence of cryptocurrencies and analyze their patterns.

Results. The specifics of digital assets and the bitcoin exchange rate in 2012-2021 were studied in more detail. It was found that on the cryptocurrency market you can earn (as well as lose) both as a trader and as a so-called cryptocurrency hodlers. A rating of cryptocurrency exchanges was developed according to the following indicators: security, number of crypto currencies, fiat currencies, advantages of the exchange, disadvantages of the exchange. Cryptocurrency exchanges are a central part of the entire digital collection ecosystem today. Currently, there are already several hundred crypto exchanges on the market, which differ in terms of transactions, security levels or listed values. In this article, we have described cryptocurrency as objectively as possible so that you can assess for yourself whether it will be the right form of investment for you.

Conclusions. The wide choice of service providers and the fact that digital currencies are a relatively new form of investment means that finding the best place to trade is not easy. The cooperation of international financial conglomerates in the development of blockchain technology will save these enterprises billions of dollars per year and will be able to improve their operations and eliminate errors related to the human factor. Participants in the financial system are forced to propose standards that would apply to each participant in the network without disturbing the established status quo in international markets.

Keywords: cryptocurrency; bitcoin; blockchain technology; cryptocurrency exchanges; financial market.

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