Cryptocurrency Adoption and Investment Decisions among Young Investors: JEL Classification: G11, G41, D14, O33, G23

Eja Ziafara; Sulastri Sulastri

doi:10.37899/mjde.v3i3.415

Authors

Eja Ziafara Faculty of Economics and Business, Universitas Bosowa, Indonesia
Sulastri Faculty of Economics and Business, Universitas Bosowa, Indonesia

DOI:

https://doi.org/10.37899/mjde.v3i3.415

Keywords:

Behavioral Finance, Cryptocurrency Adoption, Digital Investment, Investment Decision, Social Influence

Abstract

The rapid expansion of cryptocurrency markets has transformed investment behavior, particularly among young investors who actively engage with digital financial technologies. This study aims to examine the influence of behavioral finance factors on cryptocurrency adoption and to investigate how cryptocurrency adoption affects investment decisions among young investors. A quantitative explanatory research design was employed using a survey of 100 young cryptocurrency investors. Data were collected through structured questionnaires and analyzed using Partial Least Squares Structural Equation Modeling. The findings reveal that trust, financial literacy, social influence, overconfidence, and herding behavior positively influence cryptocurrency adoption, whereas risk perception exerts a significant negative effect. Cryptocurrency adoption was also found to have a strong positive influence on investment decisions, highlighting its critical role as a mediating mechanism between behavioral finance factors and investment behavior. These findings contribute to the development of behavioral finance theory within digital financial ecosystems while providing practical implications for policymakers, financial educators, fintech companies, and investment institutions in promoting informed, responsible, and sustainable cryptocurrency investment among young investors.

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