Decoding the crypto investor profile: how financial literacy, investment experience and age shape cryptocurrency investment decisions

Pengcheng Wang () and Zefeng Bai ()
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Pengcheng Wang: Kennesaw State University
Zefeng Bai: Washington and Lee University

Humanities and Social Sciences Communications, 2025, vol. 12, issue 1, 1-9

Abstract: Abstract Over the past decade, the surge in popularity of cryptocurrency investment has garnered a lot of attention in the financial marketplace. This study aims to open the “black box” of cryptocurrency investors by understanding the past cryptocurrency investors’ characteristics. Specifically, we investigated the relationship between cryptocurrency investment investors and their characteristics, such as levels of financial literacy, as proxied by both subjective and objective financial knowledge measures, investment experience, and investment knowledge. We apply the logistic regression model to the data from the most recent cohort of the National Financial Capability Study 2021 (NFCS21). We find that investment experience and investment knowledge are the important factors related to investing in cryptocurrency among the characteristics examined. Surprisingly, we also find that individuals with higher education are less likely to become cryptocurrency investors. Finally, the present study reveals an interaction effect between age and investment knowledge, showing that the linkage between cryptocurrency investment and investment knowledge is stronger for younger investors with an age between 18 and 34 than for those above 44. This paper contributes to the existing literature on cryptocurrency investment by revealing the personal characteristics that categorize a cryptocurrency investor. This paper also extends the existing conceptual framework about cryptocurrency by showing that sociodemographic factors, such as age could moderate the linkage between investment knowledge and cryptocurrency investment.

Date: 2025
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DOI: 10.1057/s41599-025-06068-0

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