THE INFLUENCE OF FINANCIAL AND PSYCHOLOGICAL REASONS ON INVESTING IN CRYPTOCURRENCY

Ilyin A. Kirillova E. Кhaliapin A. Sakenov D. Rybakov A. Mashentseva G.
January-March 2024 Centro Universitario Curitiba - UNICURITIBA

Relacoes Internacionais no Mundo Atual
2024 #1 Issue 43 650 - 663 pp.

Objective: This study explores the underlying financial and psychological reasons that drive individual and institutional investors to engage in cryptocurrency investments, aiming to identify the key motivators and deterrents affecting investment decisions. Methods: Employing a qualitative approach, the research synthesizes data from various secondary sources including peer-reviewed articles, industry reports, and market analyses. The study examines factors influencing investment decisions through the lenses of financial gain, risk assessment, market trends, and psychological impacts such as fear of missing out and herd behavior. Results: The findings reveal that investors are primarily motivated by the high potential returns associated with cryptocurrencies, driven by market volatility and the novelty of the asset class. Psychological factors such as social proof, excitement from trading, and the desire to be part of new technological adoption also play crucial roles. However, these investments are tempered by risks including market volatility, regulatory uncertainties, and the potential for significant financial loss. Conclusions: The study concludes that while financial incentives are significant, psychological factors profoundly impact investor behavior in the cryptocurrency market. This dual influence necessitates a balanced approach to understanding investment motivations, incorporating both rational financial analysis and psychological behavior assessments.

Assets , Crypto-fraud , Crypto-owners , Cryptocurrency , Investment , Legal regulation , Transactions , Volatility

Text of the article Перейти на текст статьи

Financial University under the Government of the Russian Federation, Russian Federation
Southwest State University, Russian Federation
Kuban State Agrarian University, Russian Federation
L. N. Gumilyov Eurasian National University, Kazakhstan
Moscow Aviation Institute, Russian Federation
Kamyshin Technological Institute (branch of) Volgograd State Technical University, Russian Federation

Financial University under the Government of the Russian Federation
Southwest State University
Kuban State Agrarian University
L. N. Gumilyov Eurasian National University
Moscow Aviation Institute
Kamyshin Technological Institute (branch of) Volgograd State Technical University

10 лет помогаем публиковать статьи Международный издатель

Книга Публикация научной статьи Волощук 2026 Book Publication of a scientific article 2026