Behavioral Biases in Cryptocurrency Investment Decisions Among Young Investors

Abstract

Cryptocurrency markets have experienced rapid growth, attracting a large number of young investors due to high return potential and technological innovation. However, investment decisions in cryptocurrency markets are often influenced by behavioural biases rather than rational analysis. This study examines the impact of behavioural biases such as overconfidence, herd behaviour, and fear of missing out (FOMO) on cryptocurrency investment decisions among young investors. A survey was conducted among 210 respondents aged between 18 and 30. Regression analysis and correlation techniques were applied to analyse the data. The findings indicate that behavioural biases significantly influence investment decisions in cryptocurrency markets, often leading to speculative behaviour and increased investment risk. The study highlights the importance of financial literacy and investor education in mitigating behavioural biases in emerging financial markets.