The Influence of Financial Literacy, Financial Technology, Herding Bias, and Risk Perception on Cryptocurrency Investment Decision
Abstract
This study aims to examine the influence of financial literacy, financial technology, herding bias, and risk perception on cryptocurrency investment decisions among Millenials and Generation Z in Indonesia. The phenomenon of cryptocurrency investment in Indonesia is growing rapidly, yet this growth is not matched by adequate financial literacy. The study employs a quantitative approach with an associative-causal design. The study sample consisted of 315 respondents selected through purposive sampling and analyzed using multiple linear regression with SPSS 26. The result indicate that, collectively, financial literacy, financial technology, herding bias, and risk perception have a significant positive effect on cryptocurrency investment decisions. These findings indicate that cryptocurrency investment decisions among the younger generation are driven more by knowledge, access to technology and social influence. This study recommends improving financial literacy, raising awareness of psychological biases, and implementing more inclusice consumer protection policies by regulator.
Keywords:
Financial Literacy; Financial Technology; Herding Bias; Risk Perception; Cryptocurrency Investment Decisions
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