Cryptocurrency Investments: The Role of Advisory Sources, Investor Confidence, and Risk Perception in Shaping Behaviors and Intentions

Jia Qi (), Yu Zhang and Congrong Ouyang
Additional contact information
Jia Qi: Department of Financial Planning, Housing, and Consumer Economics, University of Georgia, 205 Dawson Hall, 305 Sanford Dr., Athens, GA 30602, USA
Yu Zhang: Department of Personal Financial Planning, Kansas State University, 1324 Lovers Lane., Manhattan, KS 66506, USA
Congrong Ouyang: Department of Personal Financial Planning, Kansas State University, 1324 Lovers Lane., Manhattan, KS 66506, USA

JRFM, 2025, vol. 18, issue 2, 1-19

Abstract: The rapid growth and increasing adoption of cryptocurrencies have reshaped the investment landscape, presenting unique opportunities and challenges for investors. This study examines how advisory information sources influence cryptocurrency investment behaviors and intentions among U.S. investors. Using data from the 2021 National Financial Capability Study, it explores how reliance on financial professionals, media, and social networks shapes investment decisions. The motivation for this research lies in the need to understand the divergent roles of these sources in an era where traditional and emerging financial advice coexist. Findings reveal that reliance on financial advisors correlates with reduced cryptocurrency investment and future investment intentions, reflecting advisors’ cautious stance toward volatile assets. Conversely, reliance on media and social networks significantly increases both current investments and future intentions. The findings also highlight that investor confidence is positively associated with the likelihood and intentions to invest in cryptocurrency. Conversely, heightened risk perceptions associated with cryptocurrency reduce both the likelihood and intentions to invest. The study calls for financial professionals to enhance client education on cryptocurrency risks and for policymakers to strengthen regulations, ensuring accurate information dissemination through media and social networks. By providing a nuanced understanding of advisory influence and investors’ characteristics, this research offers valuable insights for financial professionals, policymakers, and investors navigating the complexities of cryptocurrency investments.

Keywords: cryptocurrency; advisory information sources; investor behavior; risk perception; risk tolerance (search for similar items in EconPapers)
JEL-codes: C E F2 F3 G (search for similar items in EconPapers)
Date: 2025
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.mdpi.com/1911-8074/18/2/57/pdf (application/pdf)
https://www.mdpi.com/1911-8074/18/2/57/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jjrfmx:v:18:y:2025:i:2:p:57-:d:1577823

Access Statistics for this article

JRFM is currently edited by Ms. Chelthy Cheng

More articles in JRFM from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().