Analysis of Cryptocurrency and Its Combination with Quantitative Transactions

Abstract

In recent years, with the rapid development of science and technology today (especially blockchain techniques), a special currency cryptocurrency (also relatively known as digital currencies) was born in 2008 and has received a lot of attention. On account of its special nature and intrinsic, a large amount of investors often combine digital currencies and quantitative trading to make profits and earn extra returns based on the concepts. With this in mind, this study mainly describes the definition of digital currency and its development process and compares digital currency with ordinary currency to highlight its advantages and disadvantages. Subsequently, this research introduces the combined application of digital currency and quantitative transaction in general with some of the backtesting results. According to the analysis, this paper puts forward suggestions on the existing problems of digital currency and promotes its further development in the future. Overall, these results shed light on guiding further exploration of quantitative strategy designs for cryptocurrency.