Cryptocurrency Investment Decisions: A Behavioural Finance and Technology Adoption Perspective
Keywords:
Cryptocurrency Investment, Behavioural Finance, Technology Acceptance, Financial Literacy, Investor Confidence, Behavioural BiasesAbstract
The expansion of cryptocurrency markets has increased the need to understand the behavioural and technological factors that influence investment decisions. This study examines cryptocurrency investment behaviour from the perspectives of behavioural finance and technology acceptance. Primary data were collected through a questionnaire from 150 cryptocurrency investors in India. The study evaluates the effects of perceived usefulness, financial literacy, risk perception, investor confidence, behavioural biases, trust and security, information sources, and return expectations on investment decisions, adoption levels, trading behaviour, and portfolio allocation. Descriptive statistics, correlation analysis, and ordinary least-squares regression were used to examine the proposed relationships. The results indicate that financial literacy and investor confidence positively influence cryptocurrency investment decisions and adoption levels. Behavioural biases, including herd behaviour, overconfidence, loss aversion, and fear of missing out, significantly influence trading activity and portfolio allocation. Trust and security also demonstrate a positive relationship with cryptocurrency adoption. However, risk perception does not significantly moderate the relationship between trust and security and adoption outcomes. The study contributes to the literature by integrating behavioural finance constructs with technology-adoption factors and AI-based predictive analysis. The findings provide implications for investors, policymakers, financial educators, and fintech platforms promoting informed, secure, and responsible cryptocurrency investment.
Downloads
References
[1] Nakamoto, S. (2020). A peer-to-peer electronic cash system. Bitcoin, 4(2), 15. https://www.klausnordby.com/bitcoin/Bitcoin_Whitepaper_Document_HD.pdf
[2] Vellala, P. S., Vijayan, T. M., & Mahajan, S. K. (2025). Impact of digital transformation on financial inclusion and sustainable development goals : Evidence from major Indian states Journal of Statistics and Management Systems, 28(8), 1519–1531. https://doi.org/10.47974/JSMS-1515
[3] Saluja, I., Desai, L. R., Bhardwaj, A., Deshpande, V., Singh, N., & Gawade, P. (2026). Utilizing post-quantum cryptography to secure Internet of Things (IoT) devices against quantum attacks. Journal of Discrete Mathematical Sciences and Cryptography, 29(2-A), 589–597. https://doi.org/10.47974/JDMSC-2501
[4] Schwartz, R. A. (1970). Efficient Capital Markets: A Review of Theory and Empirical Work: Discussion. The Journal of Finance, 25(2), 421. https://doi.org/10.2307/2325488
[5] Corbet, S., Meegan, A., Larkin, C., Lucey, B., & Yarovaya, L. (2018). Exploring the dynamic relationships between cryptocurrencies and other financial assets. Economics Letters, 165, 28–34. https://doi.org/10.1016/j.econlet.2018.01.004
[6] Joshi, C., Kumawat, G., Verma, N. K., & Kumar, S. (2025). Special Issue onCryptography and Secure Intelligent Systems : Biometrics, Blockchain, Homomorphic Encryption, and FinTech Security. Journal of Discrete Mathematical Sciences and Cryptography, 28(8), i–vii. https://doi.org/10.47974/JDMSC-28-8-Foreword
[7] Sirignano, J., & Cont, R. (2019). Universal features of price formation in financial markets: perspectives from deep learning. In Quantitative Finance (Vol. 19, Issue 9, pp. 1449–1459). Routledge. https://doi.org/10.1080/14697688.2019.1622295
[8] Joshi, Y., Lim, W. M., Jagani, K., & Kumar, S. (2025). Social media influencer marketing: foundations, trends, and ways forward: Y. Joshi et al. Electronic Commerce Research, 25(2), 1199–1253.
[9] Yadav, A., Garg, R. K., & Sachdeva, A. (2024). Artificial intelligence applications for information management in JMSAH - Journal of Multidisciplinary Sciences, Arts and Humanities Vol. 1(2) · 2026 · 65-77 © 2026 International Journal Press · Licensed under CC BY 4.0 Page 76 sustainable supply chain management: A systematic review and future research agenda. International Journal of Information Management Data Insights, 4(2), 100292.
[10] Barber, B. M., & Odean, T. (2001). The internet and the investor. Journal of Economic Perspectives, 15(1), 41– 54.
[11] Almeida, J., & Gonçalves, T. C. (2023). A systematic literature review of investor behavior in the cryptocurrency markets. Journal of Behavioral and Experimental Finance, 37, 100785.
[12] Rahardja, U., Hapsari, I. D., Putra, P. O. H., & Hidayanto, A. N. (2023). Technological readiness and its impact on mobile payment usage: A case study of go-pay. Cogent Engineering, 10(1), 2171566.
[13] Albrecht, C., Hawkins, S., & Duffin, K. M. (2020). Legitimizing Bitcoin as a currency and store of value: Using discrete monetary units to consolidate value and drive market growth. Ledger, 5.
[14] Kumar, N., Janani, M., Pavithra, R., & Kumar, T. M. (2025). Beyond the hype: A tech-driven analysis of Gen Z’s cryptocurrency investment behavior amid regulatory uncertainty and risk-return perceptions in India. NMIMS Management Review, 33(3), 186–198.
[15] Lusardi, A., & Mitchell, O. S. (2014). The economic importance of financial literacy: Theory and evidence. American Economic Journal: Journal of Economic Literature, 52(1), 5–44.
[16] Kou, G., & Lu, Y. (2025). FinTech: a literature review of emerging financial technologies and applications. Financial Innovation, 11(1), 1.
[17] Cheah, E. T., & Fry, J. (2015). Speculative bubbles in Bitcoin markets? An empirical investigation into the fundamental value of Bitcoin. Economics Letters, 130, 32–36. https://doi.org/10.1016/j.econlet.2015.02.029
[18] Baur, D. G., Hong, K. H., & Lee, A. D. (2018). Bitcoin: Medium of exchange or speculative assets? Journal of International Financial Markets, Institutions and Money, 54, 177–189. https://doi.org/10.1016/j.intfin.2017.12.004
[19] Corbet, S., Lucey, B. M., & Yarovaya, L. (2019). The Financial Market Effects of Cryptocurrency Energy Usage. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3412194
[20] Aydoğan, B., Vardar, G., Yumurtacı Hüseyinoğlu, I. Ö., & Halil Utma, G. (2026). Understanding cryptocurrency investment behavior: a social cognitive perspective. International Journal of Sociology and Social Policy, 1–24. https://doi.org/10.1108/IJSSP-11-2025-0795
[21] Bazerman, M. H. (1984). The Relevance of Kahneman and Tversky’s Concept of Framing to Organizational Behavior. Journal of Management, 10(3), 333–343. https://doi.org/10.1177/014920638401000307
[22] Barberis, N., Shleifer, A., & Vishny, R. W. (2005). A model of investor sentiment. Advances in Behavioral Finance, 2(3), 423–459. https://doi.org/10.1093/0198292279.003.0005
[23] Shahzad, A., Hassan, R., Aremu, A. Y., Hussain, A., & Lodhi, R. N. (2021). Effects of COVID-19 in E-learning on higher education institution students: the group comparison between male and female. Quality and Quantity, 55(3), 805–826. https://doi.org/10.1007/s11135-020-01028-z
[24] Alidaee, B., Wang, H., & Wang, W. (2025). Comparative study of portfolio optimization models for cryptocurrency and stock markets. IEEE Access, 13, 49861–49873.
[25] Allgood, S., & Walstad, W. B. (2016). The effects of perceived and actual financial literacy on financial behaviors. Economic Inquiry, 54(1), 675–697. https://doi.org/10.1111/ecin.12255
[26] Ledesma-Chaves, P., Arenas-Gaitán, J., & Garcia-Cruz, R. (2020). International expansion: mediation of dynamic capabilities. Marketing Intelligence and Planning, 38(5), 637–652. https://doi.org/10.1108/MIP-05- 2019-0269
[27] Irhebhude, M. E., Tahir, M. K., Kolawole, A. O., & Zubair, W. M. (2026). Social media influence on cryptocurrency adoption and volatility in Nigeria. Discover Analytics, 4(1), 1.
[28] Zhang, G., Eddy Patuwo, B., & Y. Hu, M. (1998). Forecasting with artificial neural networks: The state of the art. International Journal of Forecasting, 14(1), 35–62. https://doi.org/10.1016/S0169-2070(97)00044-7
[29] McNally, S., Roche, J., & Caton, S. (2018). Predicting the Price of Bitcoin Using Machine Learning. Proceedings - 26th Euromicro International Conference on Parallel, Distributed, and Network-Based Processing, PDP 2018, 339–343. https://doi.org/10.1109/PDP2018.2018.00060
[30] Mai, L., Bao, L. J., Shi, L., Wong, C. S., & Zeng, E. Y. (2018). A review of methods for measuring microplastics in aquatic environments. Environmental Science and Pollution Research, 25(12), 11319–11332. https://doi.org/10.1007/s11356-018-1692-0
[31] Islam, H., Rana, M., Saha, S., Khatun, T., Ritu, M. R., & Islam, M. R. (2023). Factors influencing the adoption of cryptocurrency in Bangladesh: an investigation using the technology acceptance model (TAM). Technological Sustainability, 2(4), 423–443.
[32] Ter Ji-Xi, J., Salamzadeh, Y., & Teoh, A. P. (2021). Behavioral intention to use cryptocurrency in Malaysia: an JMSAH - Journal of Multidisciplinary Sciences, Arts and Humanities Vol. 1(2) · 2026 · 65-77 © 2026 International Journal Press · Licensed under CC BY 4.0 Page 77 empirical study. The Bottom Line, 34(2), 170–197. https://doi.org/10.1108/BL-08-2020-0053
[33] Kalalo, R. R., Winotoatmojo, H. P., Kotngoran, W. A., Syofya, H., & Hendrajana, I. G. M. R. (2025). The Influence of Political Decisions on Bitcoin Prices with Good Corporate Governance as A Moderating Variable. Jurnal Teknologi Dan Manajemen Industri Terapan, 4(3), 2266–2270.
[34] Weber, E. U., Blais, A., & Betz, N. E. (2002). A domain‐specific risk‐attitude scale: Measuring risk perceptions and risk behaviors. Journal of Behavioral Decision Making, 15(4), 263–290.
[35] Pandey, J. K., & Kumar, R. (2025). Governing the algorithmic agent: Confronting overt and covert challenges to justice and the future of work. International Journal of Law Management & Humanities, 8(4), 1974–1984. https://doij.org/10.10000/IJLMH.1110648
[36] Lalitha Kumari, P., & Pandey, J. K. (2021). Impact of artificial intelligence on employees' performance in information technology sector. AIP Conference Proceedings, 2587(1). https://doi.org/10.1063/5.0150350
Downloads
Published
Issue
Section
License
Copyright (c) 2026 International Journal Press
This work is licensed under a Creative Commons Attribution 4.0 International License.
All articles are distributed under the terms of the Creative Commons Attribution 4.0 International License (CC BY 4.0): anyone may copy, redistribute, remix, transform, and build upon the material in any medium or format for any purpose, including commercially, provided appropriate credit is given to the original authors and a link to the licence is provided.
