How do personality traits affect investors' decision on crypto market including cryptocurrencies and NFTs?

Abstract

Purpose

The purpose of the research paper is to investigate the relationship between personality traits and investment decisions in the crypto market, including cryptocurrencies and NFTs. The study aims to explore the effect of dark personalities and the big five personalities on investment decisions in the crypto market.

Design/methodology/approach

The research was conducted through two online questionnaire studies. In Study 1, data were collected from the general public, while in Study 2, data were collected from crypto investors. The researchers analyzed the effect of dark personalities and the big five personalities on investment decisions in the crypto market.

Findings

The present research found that Machiavellianism, narcissism, psychopath, sadism and extraversion have positive effects on having crypto investments. In addition, focusing on actual crypto investors, the present paper showed that personalities including Machiavellianism, narcissism, psychopath, consciousness and extraversion have statistically significant effect on investment decisions such as making investments in Bitcoin.

Originality/value

The study is original in exploring the relationship between personality traits and investment decisions in the newly emerging crypto market, including cryptocurrencies and NFTs. The research provides insights into how different personality traits affect investment decisions in the crypto market, which can be valuable for investors in making informed decisions.

Citation

Luo, J., Cao, Q. and Zhang, S. (2024), "How do personality traits affect investors' decision on crypto market including cryptocurrencies and NFTs?", Review of Behavioral Finance, Vol. 16 No. 4, pp. 600-619. https://doi.org/10.1108/RBF-03-2023-0075