Cryptocurrency Investors Research Articles

Beyond the hashtags: social media usage and cryptocurrency investment

PurposeCryptocurrencies have gained popularity among investors despite their high risk and volatility. Social media wields substantial influence over investors' attitudes, judgments and decisions related to investment. This study aims to investigate the associations between social media usage and cryptocurrency investment behavior.Design/methodology/approachUtilizing the main dataset of the 2021 National Financial Capability Study and its supplementary Investor Survey, this study analyzed social media usage in general. Additionally, it separately examined 11 different social media platforms as potential sources of information for investments. Logistic regressions were performed to explore the relationship between social media, previous experiences and future considerations in investing in cryptocurrencies. Robustness checks were conducted with additional analyses.FindingsInvestors who used social media for investment information were more likely to invest in cryptocurrencies and consider investing in cryptocurrencies in the future. The likelihood increased with the number of social media platforms used. Different social media platforms exhibited distinct associations with cryptocurrency investment experiences and future considerations.Originality/valueThis study is one of the initial attempts to examine the role of social media platforms in cryptocurrency investment. The findings offer unique and important theoretical and practical insights for policymakers, researchers and practitioners, which can benefit consumer well-being.

APPLICATION OF BEHAVIORAL ACCOUNTING: HEURISTIC THINKING IN INVESTMENT DECISION-MAKING BY CRYPTOCURRENCY INVESTORS

This study aims to examine the impact of heuristic involvement on the behavior and decisions of cryptocurrency investors. The study employs an interpretivism paradigm with a qualitative approach to understand the perspectives of both beginner and experienced cryptocurrency investors, using interviews, observations, and document analysis. Four cryptocurrency investors participated in the study. Interviews were conducted three times a week, while observations followed a semi-structured format to gather in-depth insights from four investors. Document analysis complemented the findings by reviewing relevant literature on the impact on investment behavior. Data collection included non-participant observations of investor behavior and decision-making habits, interviews that explored the factors influencing these decisions, and an analysis of documents, including previous research on heurism biases. Heuristic representativeness is a useful tool to predict the development of cryptocurrencies in the long term to a certain extent.

The Influence of Neurotransmitters on Cryptocurrency Investment Decision-Making : The Mediating Role of Risk Tolerance and Moderating Role of Investment Experience

The Influence of Neurotransmitters on Cryptocurrency Investment Decision-Making : The Mediating Role of Risk Tolerance and Moderating Role of Investment Experience

What happens when the disruptive asset meets the conventional asset? An analysis of cryptocurrency and REIT

ABSTRACT This study investigates the symmetric and asymmetric connectedness of recently developed disruptive assets – cryptocurrency and important conventional assets – Real Estate Investment Trusts (REITs) across various time scales and frequencies. We measure the strength and magnitude of returns and volatility spillover between REITs and cryptocurrency using both time series and machine learning approaches. Our findings support the dominance of conventional assets in the correlation with disruptive assets, demonstrated by REITs price movements’ destabilization of the correlation network. Interestingly, this destabilization is concentrated in bear markets, suggesting that while investors trade both cryptocurrencies and REITs in bull markets, investors are likely to hedge their cryptocurrency investments with REITs or avoid cryptocurrencies in bear markets. Our empirical findings provide implications for both asset allocation and policy making.

Behavioral and Psychological Determinants of Cryptocurrency Investment: Expanding UTAUT with Perceived Enjoyment and Risk Factors

With their potential for high returns and expanding role in the financial landscape, cryptocurrency investments have garnered the attention of the financial press and investors. Applying an integrated research model based on the Unified Theory of Acceptance and Use of Technology (UTAUT), this study investigates the factors influencing individual investors’ attitudes toward cryptocurrency investments and their intention to continue investing. The model incorporates constructs such as performance expectancy, effort expectancy, social influence, perceived risk, perceived privacy, technology competency, perceived enjoyment, and prior experience. Data from 506 cryptocurrency investors located in the United States were collected through a 50-item questionnaire. The findings indicate that performance expectancy and perceived enjoyment positively impact attitudes toward cryptocurrency investments, which, in turn, influence the intention to continue investing. Perceived privacy positively affects performance expectancy, while technology competency enhances effort expectancy. These results offer valuable insights for policymakers and cryptocurrency exchanges to foster sustainable growth in the cryptocurrency market. Despite its contributions, the study acknowledges limitations, including a focus on current investors in the US and the exclusion of factors such as optimism and innovativeness. Future research should explore these aspects across different populations and regions to gain a more comprehensive understanding of cryptocurrency investment behavior.

Crypto Herf: Utilizing the Herfindahl Index to Assess Cryptocurrency Investment Preference

This paper utilizes the Herfindahl Index to assess university business major student investment preferences regarding cryptocurrency. This paper seeks to determine which cryptocurrency investment options are most desirable and, more importantly, ascertain the reasons for said investments. This paper reviews the real estate-based currency of the French Revolution in order to provide historical lineage for the popularity of cryptocurrency investment today.

The Importance of Digital Financial Literacy in Cyrptocurrency Investment: A Qualitative Study

This research aims to examine the role of digitial financial literacy in cryptocurrency investment activities. This research is a qualitative study through interviews with two key informants who have qualified experience in the field of investing in cryptocurrency. The study shows that digital financial literacy plays an important role in investing, especially in the technology-driven cryptocurrency space. Therefore, it is important for investors to have a good understanding and experience before choosing cryptocurrencies as part of their investment portfolio. From a government perspective, it is important to spread the understanding that financial literacy is an important part of investing. These findings also support the continuation of the government's programme to make digital financial literacy part of the roadmap in Indonesia's National Financial Literacy Strategy.

Risk is in the eye of the investor: Cryptocurrency investors’ engagement with risk, regulatory advice, and regulatory institutions

Despite regulators’ warnings that investing in cryptoassets is highly risky, cryptocurrency investments are prevalent. To explore investors’ engagement with regulatory risk advice, we conducted two surveys. Cryptocurrency investors residing in the UK and the US were asked about their interpretation of the notion of risk, awareness of regulatory risk advice, and attitudes towards the advice and the regulators. Investors were also asked whether they followed the advice. Qualitative content analysis of their answers suggests that people often invest in cryptocurrencies although they understand the risks involved and are aware of the regulators’ advice. They do so due to their risk propensity, self-reliance, criticism of the informativeness of the advice, or attitudes towards regulators. Furthermore, negative attitudes towards regulators often stem from lack of trust and the perception that regulators are dated. This study suggests that regulators could benefit investors by providing them with more informative advice and addressing their attitudes.

An assessment of convicted cryptocurrency fraudsters

ABSTRACT We examine cryptocurrency fraud cases prosecuted by Nigeria's Economic and Financial Crimes Commission (EFCC). We considered the lens of the Space Transition Theory (STT) in exploring the dynamics of these digital crimes. Our data analysis reveals common types of fraud, including cryptocurrency investment schemes. The results show an exclusive male demographic (100%), with the majority under 30 years old and only a quarter possessing a degree, providing insights into the socio-demographic characteristics of cryptocurrency fraudsters. Additionally, while most fraudsters (55%) targeted victims in the United States, Bitcoin, leveraging blockchain technology, was the most commonly used method (46%) for cryptocurrency fraud. Our examination of the methods and mediums used for cryptocurrency fraud supports some aspects of STT, while others do not. We advocate for a multifaceted strategy that prioritises stringent regulation, implementation, and heightened scrutiny of digital currency ecosystems in Nigeria and beyond. This study contributes to the broader discourse on cybercrime prevention and enforcement by emphasising the novel methodological approach utilised.

Perception of social media users regarding cryptocurrency investment adoption: a case of social media platform – Reddit

Perception of social media users regarding cryptocurrency investment adoption: a case of social media platform – Reddit

Analysis of factors affecting investors’ decision towards cryptocurrency investments in Saudia Arabia: A moderating role of fear of missing out (FOMO) on decision-making

Analysis of factors affecting investors’ decision towards cryptocurrency investments in Saudia Arabia: A moderating role of fear of missing out (FOMO) on decision-making

The Tendencies of Cryptocurrency Policies in Indonesia

Cryptocurrency has set intriguing and innovative trends in investment amidst the fluctuating global economy following government policies. This research aims to investigate the trends of policies of cryptocurrency in Indonesia, seen from the perspective of taxation and investment laws. Low tax charged in Indonesia is seen as relaxation by investors and cryptocurrency users, while the trends in legal policies concerning investment are experiencing hyper regulations in legislative products set to assure investors, in comparison to those of other countries. These trends attract some attention from investors and cryptocurrency users from abroad. This research is a unique offering that will illustrate which countries are suitable and friendly for businesspeople to carry out crypto business activities. The methodology used in this study is normative research with a conceptual approach and comparative law. The research results are expected to shed light on foreign investors wishing to invest their money in cryptocurrency businesses by considering the low tax from the perspective of current taxation law in Indonesia compared to those in Canada, the United States, and Singapore. According to the details of taxation in Canada, the United States, and Singapore, it is obvious that Indonesia gives ease to foreign cryptocurrency investors in Indonesia from the aspect of taxation law. The countries compared seem to charge very high taxes for cryptocurrency users and businesses in investment cryptocurrency. This comparison gives easier access to foreign investors to invest their assets for the development of cryptocurrency businesses and companies in Indonesia by considering the amounts of taxes imposed on cryptocurrency businesses and users. Indonesia makes it easier for foreign cryptocurrency investors in Indonesia compared to Canada, the United States, and Singapore from a tax law perspective. In terms of investment regulations, Indonesia has broader laws and regulations compared to other countries, where the investment process involving cryptocurrency businesses in Indonesia receives sufficient attention from these laws and regulations.KEYWORDS: Cryptocurrency, Investment Law, Taxation Law.

Peran Influencer dalam Investasi Cryptocurrency: Literasi Keuangan Digital Mediator ataukah Moderator?

In the context of significant growth in cryptocurrency in Indonesia, investment influencers on social media often provide information that affects investment behavior. Digital financial literacy becomes crucial in ensuring wise investment decisions, especially in understanding the risks and potential benefits of cryptocurrency. This research explores the role of influencers in cryptocurrency investments in Indonesia, with a focus on digital financial literacy as a mediating factor. Data were collected using a survey method with a sample of 100 respondents. Data analysis employed SEM-PLS. The study results indicate that influencers and digital financial literacy affect cryptocurrency investment decisions. Digital financial literacy acts as a mediator, not a moderator. These findings highlight the importance of comprehensive financial education in addressing this increasingly popular investment trend.

Sentiment Analysis of User Reviews on Cryptocurrency Application: Evaluating the Impact of Dataset Split Scenarios Using Multinomial Naive Bayes

The surge in cryptocurrency investors in Indonesia, reaching 18.83 million by January 2024, signifies an expanding interest in this market. This research conducts a sentiment analysis of user reviews on Indodax and Tokocrypto, the premier cryptocurrency trading platforms in Indonesia. Utilizing the Multinomial Naive Bayes method, the study examines the influence of various dataset split scenarios and random states on the model's performance. The findings reveal substantial variability in the model's accuracy based on different random states and test sizes. Notably, the Positive sentiment label consistently shows high-performance metrics, while the Neutral label underperforms. These insights are invaluable for developers aiming to improve user experience and for investors seeking to make informed decisions. This research underscores the significance of sentiment analysis in understanding user interactions and enhancing the credibility of cryptocurrency investment platforms.

When uncertainties matter: The causal effect of cryptocurrency investment on retirement hardship withdrawals

Cryptocurrencies are invested in by approximately 15% of U.S. households. However, the high volatility of these assets poses substantial financial risks, particularly as 40% of U.S. households already face potential retirement shortages. Therefore, the present study aims at investigating the impact of cryptocurrency investment on retirement borrowing. Our causal analysis of 1,912 respondents revealed that cryptocurrency investors are 7.4% more likely to make a hardship withdrawal from their retirement accounts. This study provides insights for researchers and practitioners on managing retirement accounts by highlighting the potential financial risks associated with cryptocurrency investments.

Cryptocurrency investment: Evidence of financial literacy, experience, and risk tolerance

The growing popularity of cryptocurrency as an investment choice among millennials demonstrates their inclination toward digital advancements and openness to exploring diverse investment opportunities. The study examines how financial literacy factors impact experience regret, investment decisions, and risk tolerance, while financial literacy also affects investment decisions, with experience regret and risk tolerance acting as a mediator. The study comprises 295 participants from the millennial demographic in Indonesia who are engaged in cryptocurrency investment. The data collection techniques employed in this study involve non-probability sampling methods through the distribution of questionnaires. The analysis in this study employs Structural Equation Modeling (SEM) in conjunction with Partial Least Squares (PLS) analysis tools. The results of this study suggest that financial literacy positively impacts regret experience, investment decisions, and risk tolerance with the respective sample values of 0.146, 0.397 and 0.449. Additionally, regret experience negatively influences investment decisions with a sample value of –0.385, while risk tolerance positively influences investment decisions with a sample value of 0.198. Financial literacy has a negative impact on investment decisions when regret experience acts as a mediator with a sample value of –0.056, but a positive impact when risk tolerance serves as a mediator with a sample value of 0.089. This complex relationship highlights the importance of considering multiple factors, including financial literacy, regret experience, and risk tolerance, in understanding and predicting investment decisions among individuals, particularly in the context of the millennial generation investing in cryptocurrency in Indonesia.

Blockchain Technology Adoption, Cryptocurrency Investment and Firm Innovation

Blockchain Technology Adoption, Cryptocurrency Investment and Firm Innovation

Perception towards government advisory, perceived risk and willingness to invest in cryptocurrency

The aim of this study is to investigate the link between investor perception regarding government advisories on cryptocurrencies, their perceived risk of cryptocurrencies and their willingness to invest in cryptocurrencies. The link is examined via Partial Least Squares-Structural Equation Modelling (PLS-SEM) using 212 responses gathered from a survey questionnaire distributed to groups related to cryptocurrency investment in social media platforms over a period of around four months. It is found that the investor’s perception regarding government advisories on cryptocurrencies, which are cautionary in nature, have a significant negative impact on their perception of the risk of cryptocurrencies. Perception regarding government advisories reduces the willingness to invest in cryptocurrencies. However, it is also found that perceived risk does not have any significant influence on the willingness to invest in cryptocurrencies, indicating that although risk perception is heightened as a result of the cautionary government advise, this does not result in a significant reduction in the willingness to invest in cryptocurrencies. Hence, perceived risk does not play a significant mediating role in influencing the effect government advisories have on the willingness to invest in cryptocurrencies.

Perlindungan Hukum dan Kebijakan Tarif Pajak terhadap Trader Crypto di Indonesia

Cryptocurrency investment in Indonesia has become an increasingly popular topic as people's interest in digital assets increases. Although there is potential for huge profits, there are also risks that need to be considered. The Indonesian government takes a cautious stance in regulating cryptocurrencies. Clear regulations still do not exist, although in 2019, the Commodity Futures Trading Supervisory Agency (BAPPEBTI) issued regulations recognizing cryptocurrencies as commodity futures that can be traded on futures exchanges. Bank Indonesia has issued a statement reminding the public of the risks associated with the use of digital currencies, but there has been no outright ban on their use. There are also concerns regarding the misuse of cryptocurrencies for illegal purposes, such as money laundering and terrorism financing, which are continuously monitored by governments and financial regulatory agencies. Despite regulatory uncertainty, interest in cryptocurrencies continues to grow in Indonesia, and more and more companies and individuals are interested in understanding and using this technology.

Perlindungan Hukum dan Kebijakan Tarif Pajak Terhadap Trader Crypto di Indonesia

Cryptocurrency investment in Indonesia has become an increasingly popular topic as people's interest in digital assets increases. Although there is potential for huge profits, there are also risks that need to be considered. The Indonesian government takes a cautious stance in regulating cryptocurrencies. Clear regulations still do not exist, although in 2019, the Commodity Futures Trading Supervisory Agency (BAPPEBTI) issued regulations recognizing cryptocurrencies as commodity futures that can be traded on futures exchanges. Bank Indonesia has issued a statement reminding the public of the risks associated with the use of digital currencies, but there has been no outright ban on their use. There are also concerns regarding the misuse of cryptocurrencies for illegal purposes, such as money laundering and terrorism financing, which are continuously monitored by governments and financial regulatory agencies. Despite regulatory uncertainty, interest in cryptocurrencies continues to grow in Indonesia, and more and more companies and individuals are interested in understanding and using this technology.