Selection of Suitable Cryptocurrency for Investment Using TOPSIS Method

This research aims to apply the Technique for Order Preference by Similarity to Ideal Solution (TOPSIS) in selecting suitable cryptocurrencies for investment among 4 crypto-currencies which are Bitcoin, Etheruem Cardano and Binance. The 10 criteria used were consisted of both quantitative and qualitative criteria. These were collected from literature reviews being relevant to the cryptocurrency investments decision making. Then, 4 experts in cryptocurrency were asked to select and rank the first 5 most important criteria used for making investment decision. Next, the importance of each criterion were weighted by using the Rank Order Centroid (ROC) method. After that, the Technique for Order Preference by Similarity to Ideal Solution (TOPSIS) was applied to obtain the most suitable cryptocurrency. It is found that the top 5 of most important criteria (considered by the experts) are the risk due to fluctuations of the prices, the credibility, the amount of news, the (yearly) rate of return and the variety of channels for making transactions, respectively. Finally, by applying the TOPSIS method, it can be concluded that Bitcoin is the most suitable cryptocurrencies for investment among these 4 cryptocurrencies.