Cryptocurrency and its Psychological Impact on Human Behaviour

Abstract

Purpose- Investment in extremely volatile digital assets based mostly on blockchain technology is what defines cryptocurrency trading, a phenomenon that is increasing quickly. In this paper, author review the cryptocurrency characteristics and its impact on psychological wellbeing of human beings’ behaviour.

Method- The research examines the psychological processes that we suggest are unique danger factors for excessive crypto trading, such as: illusion of control, preoccupation, social learning, social reinforcement, fear of miss out and a form of gambling. The study is primary and descriptive in nature. The sample size of the study was 150 investors residing in Delhi/NCR. The responses from the respondents obtained from structured questionnaire.

Findings- In order to keep people safe while letting them profit from advances in blockchain technology and crypto-currency, the study calls for greater in-depth study of the mental impacts of frequent trading, individual variations, and the nature of decision-making.

Originality- While day trading and online sports betting have certain parallels, there are also key distinctions that need attention. Trading is available around the clock, the market is really worldwide, and factors outside the financial statements have a significant impact on the direction of prices.

 Social implications-When this new activity grows and attracts a larger proportion of retail or community investors, the article explores various protective and instructional techniques that may be employed to shield novice investors from potential damage.