CRYPTO EXCHANGES AS THE WAY TO IMPLEMENT INVESTMENT ACTIVITY OF RUSSIAN INVESTORS UNDER SANCTIONS

Abstract

The article analyzes the development of investment activity in the context of digitalization, which implies investing in crypto assets using crypto exchanges. The relationship between the functioning of crypto exchanges and the formation of new investment objects is emphasized, and the role of crypto exchanges in activating the investment process and in the progressive development of the economy and strengthening the investment climate of countries and regions is outlined. It is concluded that, based on the advantages and disadvantages for investors of crypto exchanges compared to standard exchanges in a foreign jurisdiction, they have significant advantages that reduce the risks of investors in crypto assets. The article also presents criteria for choosing a safer platform for trading. Thus, according to the author, before starting to invest, it is necessary to take into account the differentiation of crypto exchanges, which, at the moment, with some degree of conventionality, can be divided into centralized and decentralized. Highly centralized exchanges - abbreviated as CEH - usually use a mechanism for storing investors' funds directly on the exchange, which allows the latter to block these funds at any time and prevent their owner from disposing of them in the future. In decentralized exchanges, this is impossible, which is why they are preferred investment platforms.