Monte Carlo method for assessing buy and hold strategy in the cryptocurrency market

Significant development in the field of data science and mathematical modeling of financial markets has led to a significant reduction in the number of inefficiencies existing in the financial markets and a significant increase in interest in passive investing. This article examines the issues of passive investing in the US stock market and cryptocurrency markets, in particular those related to the analysis of the buy and hold strategy. A methodology for studying this type of strategy is proposed both in the classical capital markets and in the cryptocurrency market. For the analysis, the Monte-Carlo method is used, with the help of which the time characteristics and various scenarios of the expected return on investment are estimated.