Investment literacy, overconfidence and cryptocurrency investment

Authors

  • Kyoung Tae Kim Department of Consumer Sciences, University of Alabama
  • Sherman D. Hanna Department of Human Sciences, The Ohio State University
  • Sunwoo T. Lee School of Administrative Studies, York University

DOI:

https://doi.org/10.61190/fsr.v31i2/3.3530

Keywords:

Cryptocurrency, Investment, Overconfidence, Financial knowledge, Investment literacy

Abstract

Cryptocurrency has been increasingly popular with investors. Using the 2018 National Financial Capability Study Investor survey, we examined the association between investment literacy and cryptocurrency investment—about 13% of investors invested in cryptocurrency directly or indirectly. Results from regression analyses show that objective investment literacy was negatively while sub- jective literacy was positively associated with holding cryptocurrency. Overconfident investors were more likely to invest in cryptocurrency, and results were robust across three overconfidence meas- ures. This study has implications for investment advice, financial education, and research.

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Published

2023-12-15

How to Cite

Kim, K. T., Hanna, S. D., & Lee, S. T. (2023). Investment literacy, overconfidence and cryptocurrency investment. Financial Services Review: The Journal of Individual Financial Management, 31(2/3), 121–132. https://doi.org/10.61190/fsr.v31i2/3.3530

Issue

Vol. 31 No. 2/3 (2023): Summer-Fall 2023

Section

New Original Submission

License

Copyright (c) 2023 Kyoung Tae Kim, Sherman D. Hanna, Sunwoo T. Lee

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