Investor Decision-Making in Cryptocurrency Investment: Trust, Literacy, and Technology Awareness

Abstract

Purpose: In the era of the rising internet, the next modern innovation taking place is “Digital currency.” This revolution has shaped a different virtual world that is conducive to introducing new considerations for the future financial market. This study seeks to answer how perceived trust, financial literacy, and technology awareness influence investors' investment in the cryptocurrency market.

Research Methods: This study employed a quantitative approach and used a questionnaire to collect data. Using purposive sampling, 252 respondents were included in the study. The data analysis was done using PLS-SEM and SPSS.

Findings: This study found that perceived trust affects investors’ investment decisions, while both financial literacy and technology awareness mediate the direct and indirect relationships.

Originality/value: Cryptocurrency is worth highlighting as an emerging phenomenon that enhances businessmen’s intentions to invest in it, and examines the respondents’ opinions and inclination to invest in the cryptocurrency market. Therefore, this study can serve as a foundation for future research in this area. From a practical standpoint, Government policymakers can formulate policies regarding decisions about cryptocurrencies. It is expected that this study will make a significant addition to the knowledge of consumer behavior research by inspecting the views of retail investors on investing in cryptocurrency.