Behavioural Finance Approach to Investor Biases in India’s Crypto Market

Sree Thanmayee K., Kusuma E., Fahad S., Viswanath V.
B.Com (CA), School of Commerce and Management
Mohan Babu University
Dr. D. Venkatesh, Asst. Professor, School of Commerce and Management, MB University, Tirupati.

Abstract:The impact of psychological biases on investment behavior in the Indian cryptocurrency market is examined in this study. Despite the fact that cryptocurrencies are often portrayed as cutting-edge financial assets, trading decisions in this sector are often more influenced by emotions and mental shortcuts than by careful consideration. The study examines availability bias and the impact of social media platforms like Twitter, WhatsApp, and other online forums using ideas from behavioral finances. Because these platforms tend to make certain information more visible, investors may overreact to rumors, news, and price changes. The study identified the key participants in the cryptocurrency trading scene in India using secondary demographic data on age, gender, and education. The results show that young, educated men make up the majority of investors, but they also have high levels of FOMO, herd mentality, and speculative risk taking. These findings imply that psychological biases may affect even highly educated investors, particularly in the volatile and mainly unregulated cryptocurrency market.Keywords: Behavioural Finance, Cryptocurrency, Investor Biases, Availability Bias, Social Media.