Impact of Behavioural Finance on Crypto currency

Abstract

Since 2013, the cryptocurrency market has been getting much attention from the media and academics because of its substantial price changes. Study: This study looks at Pakistani investors who invest in the cryptocurrency market and how Behavioural finance factors affect investment decisions in the cryptocurrency market. There were questionnaires filled out as part of a quantitative approach. The method was called "snowball sampling." Using three theories (Heuristic, Herding And Prospect), investors in the cryptocurrency market make better decisions about how much to invest. This shows that the proposed behavioural factors play a significant role in investors' investment decisions. This study adds to the existing research by putting together the results of different studies into one study. It also helps investors learn more about the cryptocurrency market dynamics, which allows them to make intelligent decisions based on their knowledge. They will help people who want to get out of the cryptocurrency market quickly and learn more about making wise investment decisions, which will help them stay in the market and stay the market for a long time. Financial experts should also consider the findings of this study, which show that knowledge of traditional finance theory is not enough to be successful in the cryptocurrency market.