Financial Literacy, Behavioral Biases and Participation in Crypto Asset Markets

Abstract

We have conducted a survey to determine the relationship between financial literacy and crypto market participation. Furthermore, we have included overconfidence and risk lover tendency, which are considered behavioral biases, in our models along with financial literacy. Logistic regression results revealed striking findings on financial literacy and crypto market participation. Our analysis shows that financial literacy has a positive significant impact on crypto market participation. Specifically, advanced financial literates are more likely to engage in crypto markets than basic financial literates. Confidence in financial decisions and risk – lover tendency also positively affect crypto investments, however these effects are insignificant. Apart from this, we determined a relationship between participation behavior and other control variables such as age, gender and investing in traditional assets. Lastly, we focus on Turkish crypto investors and find significant differences in respect of demographic factors in financial literacy and behavioral biases.

Keywords

• Financial Literacy
• Market Participation
• Behavioral Finance
• Crypto Assets

Thanks

We would like to thank Ahmet Mergen, Aysel Gündoğdu, Barış Esen, Mahfi Eğilmez, Serkan Ünal and Tuncay Turşucu for their valuable support in disseminating of our survey via social media platforms. We also thank all respondents for their time and effort in participating.

Finansal Okuryazarlık, Davranışsal Önyargılar ve Kripto Varlık Piyasalarına Katılım

Abstract

Bu çalışmada finansal okuryazarlık ve kripto varlık piyasalarına katılım arasındaki ilişkinin belirlenebilmesi amacıyla anket uygulanmıştır. Finansal okuryazarlıkla beraber bireylerin kendine güven ve risk sevme eğilimleri gibi davranışsal önyargıları çalışma kapsamına alınmıştır. Lojistik regresyon sonuçları finansal okuryazarlık ve kripto piyasalarına katılım arasındaki çarpıcı ilişkileri göstermiştir. Analizler finansal okuryazarlığın kripto varlık piyasalarına katılım üzerinde pozitif ve anlamlı etkisi olduğunu ortaya koymuştur. Özellikle, ileri düzeyde okuryazar katılımcıların kripto varlık piyasalarına katılma olasılıklarının, temel düzeyde okuryazar katılımcılardan daha yüksek olduğu bulunmuştur. Finansal kararlarda kendine güven ve risk sevme eğiliminin de kripto varlık piyasalarına katılımı pozitif etkiledikleri ancak bu etkilerin anlamsız oldukları belirlenmiştir. Bunların haricinde, piyasaya katılım davranışı ve diğer kontrol değişkenleri (yaş, cinsiyet, geleneksel yatırımlar) arasında çeşitli ilişkiler saptanmıştır. Son olarak, Türk kripto yatırımcılarının finansal okuryazarlık ve davranışsal önyargılarının demografik özelliklere göre anlamlı farklılıklar gösterdiği bulunmuştur.

Keywords

• Finansal Okuryazarlık
• Piyasa Katılımı
• Davranışsal Finans
• Kripto Varlıklar

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