The Effect of Financial Literacy, Risk Perception, Overconfidence, and Investment Experience on Cryptocurrency Investment Decision

Dian Mahardi Lestari (), Isfenti Sadalia and Amlys Syahputra Silalahi
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Dian Mahardi Lestari: Universitas Sumatera Utara
Isfenti Sadalia: Universitas Sumatera Utara
Amlys Syahputra Silalahi: Universitas Sumatera Utara

A chapter in Proceedings of the 19th International Symposium on Management (INSYMA 2022), 2023, pp 158-164 from Springer

Abstract: Abstract An investment decision is a discretion adopted by investors in selecting or determining the placement of their investment funds. Investments are always fraught with uncertainty, as the investment occurs in the present while the benefits come in the future. Investment is essentially the deployment of capital now to gain profit in the future. This study aims to examine the effect of financial literacy, risk perception, and overconfidence on cryptocurrency investment decisions while taking investment experience as a moderating variable. The data used were primary data collected directly from 200 respondents. The sampling technique used was non-probability sampling with a purposive sampling technique. Respondents who completed questionnaires were examined quantitatively, and subsequently; SPSS was employed as an analytical tool. The results indicate that financial literacy and risk perception have a significant effect on cryptocurrency investment decisions. On the other hand, overconfidence has no significant effect on cryptocurrency investment decisions. In addition, investment experience has a positive and significant effect on investment decisions. Investment experience has a significant moderating effect between financial literacy and risk perception toward cryptocurrency investment decisions. However, investment experience has no significant effect as a moderating variable between overconfidence and cryptocurrency investment decisions.

Keywords: financial literacy; risk perception; overconfidence; investment experience; investment decision (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6463-008-4_21

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DOI: 10.2991/978-94-6463-008-4_21

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