Özet:

A cryptocurrency is a tradable digital asset or digital form of money, built on blockchain technology that only exists online. The cryptocurrency market has gained immense consideration in media and academia, because of huge price fluctuation of the currencies in the market. The authors review empirical literatureon behavioral financeof the investors in the cryptocurrencymarket. The study investigates into the influence of behavioral financefactors on investment decisions of the Indian investors who invest in cryptocurrencies. A quantitative approach was adopted by employing a snowball sampling method through 200 questionnaires.The results of the investigation show that herding factor, heuristic factor and prospect factor have statistically significant effect on investors’ investment decisions in the cryptocurrencymarket. This emphasizes the significant role of the proposed behavioral factors as determinants of investment decisions. The study contributes to the existing stock of knowledge by consolidating the results of different researches in the area of behavioral financewith regard to investment in cryptocurrencies. It also contributes to the investors’ understanding of the dynamics of cryptocurrency market and enhances the ability to make informed decisions. Furthermore, the findings of the study will encourage financial specialists to realize that information on the traditional finance theory is not adequate to excel in the cryptocurrency market.

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