A Pilot Study on the Role of Behavioural Biases in Cryptocurrency Investment Decision-Making: The Mediating Effects of Risk Tolerance

Abstract

Purpose – This study aims to investigate how behavioural biases affect cryptocurrency investment choices. The study also evaluates how risk tolerance mediates the relationship between behavioural biases and investment decision-making.

Need for the Study – The study is required to refine research methods and to ensure the reliability and validity of findings on behavioural biases in cryptocurrency investment decision-making.

Methodology – This pilot study involved responses from individuals in India’s western and northern regions who either invested in cryptocurrencies or had adequate knowledge of such investments. To assess the normality, validity, and reliability of the questionnaire data, a sample of 51 individuals was analysed using SPSS software.

Findings – The results of this study validate the reliability of the questionnaire in conducting pilot research by attaining high reliability with high coefficients of measures and reasonable normality.

Originality/value – The study confirmed the tool’s efficiency to analyse various specific antecedents influencing investing choices.

Citation

Gautam, S. and Kumar, P. (2025), "A Pilot Study on the Role of Behavioural Biases in Cryptocurrency Investment Decision-Making: The Mediating Effects of Risk Tolerance", Kour, M., Taneja, S., Özen, E., Sood, K. and Grima, S. (Ed.) Financial Landscape Transformation: Technological Disruptions (Emerald Studies in Finance, Insurance, and Risk Management), Emerald Publishing Limited, Leeds, pp. 201-215. https://doi.org/10.1108/978-1-83753-750-120251011