Analysis of digital currency development trends and recommendations for minimizing risks

Abstract

The article studies the topic of cryptocurrency development, considers the types of cryptocurrencies in the digital money market, notes the trends in cryptocurrency development and existing risks. The analysis revealed the key role of cryptocurrency in the global financial system in a digitalized economy as a way to change the conduct of financial transactions, increasing the efficiency of those operations. Cryptocurrencies such as Bitcoin, Ethereum and others have become significant players in the digital money market and have demonstrated their relevance as an alternative way of conducting financial transactions. The identified trends emphasize the importance of cryptocurrencies as a tool for increasing the efficiency of financial transactions. The article also notes the risks associated with their use, including volatility, lack of a clear definition of the legislative framework for regulation and possible fraudulent schemes. It reveals the role of digital currency for the Russian economy in the context of sanctions pressure from Western countries in terms of leveling the economic situation in the country, and studies the existing economic challenges in Russia, such as issues of conducting international transactions, using free capacities, and proposes possible ways to solve them through the implementation and development of cryptocurrency technologies.