Three Modules for Introducing Students to Cryptocurrency Risks and Returns

We present three modules that can be used in finance and investment courses to introduce undergraduate students to cryptocurrency risks and returns. Detailed instructions include learning objectives, assignment instructions, and links to free online resources. In Module 1, students are provided with free online resources to understand cryptocurrency terminology, recent innovations, and risks, including exchange rate volatility and potential financial loss, fraud, hacking, and losing your wallet fraud. In Module 2, students use free online data and statistical analysis to compare bitcoin’s risk-return profile with several stock index ETFs. The analyses include comparison of maximum drawdown risk, which is used increasingly by practitioners but often missing in undergraduate finance and investment textbooks. In Module 3, students close the loop, applying what they learn in Modules 1 and 2 to debate the pros and cons of taking salaries in cryptocurrencies