The interdependence of financial literacy and crypto literacy

Abstract

As cryptocurrencies become more prevalent in investor portfolios, we examine whether a greater knowledge of digital assets is connected to an understanding of broader financial concepts. We find a positive relationship between cryptocurrency (crypto) literacy and financial literacy, suggesting that a higher understanding of cryptocurrencies may lead to better financial decision-making. Our research reveals that individuals with higher levels of subjective crypto literacy are more likely to seek professional guidance and view it as complementary to their own knowledge of digital assets. We conclude by discussing the possibility of including crypto literacy in financial services.