Crypto Currency Investment Trends: Understanding Investor Behavior and Market Dynamics in the Digital Era.

Abstract

This research focuses on the active contribution of various factors that determine the use of crypto currency investment, which is based on behavioral finance principles, technology acceptance, and regulation. Because of crypto currencies people have identified a new approach to world economy based on decentralizations since the beginning of the Bitcoin in 2009, they are unstable, created through the organization of block-chain, and regulated insufficiently. Central to this research are the determinants shaping investment behavior: knowledge about the stock market, perceived risk, the market movement, perceived influence, legal requirements, and changes in technology. To this end, the research adopts a cross-sectional survey approach, with sufficient sample size, to establish the way in which these variables, mediated by crypto awareness and economic factors, affect decisions amidst dynamics of a developing digital assets market. This study identifies that financial literacy and the use of advanced technology are the chief factors that drive participation while personal perception of risk and lack of clear regulatory laws are chief inhibitors to participation. Market fluctuations despite being a mixed blessing offer speculative activities, and theories such as prospect theory support this view. These sociological factors as well as ease of access to technology platforms also underscore the effects of social influence, and ease of use in investment. They advance the knowledge of crypto currency markets and provide policy, pedagogic, and practical recommendations for policymakers, educators, and business constituencies to manage and capitalize on this emerging form of digital currency.