The Influence of Behavioural Biases on Crypto Investments

Background

The cryptocurrency market is characterized by extreme volatility and speculative behaviour, often driven by psychological biases. Biases such as fear of missing out (FOMO), overconfidence, and herd behaviour can significantly influence investment decisions, leading to irrational choices. This project investigates how these biases affect crypto investment decisions and whether targeted education on behavioural biases can improve decision-making in crypto trading. 

Learning Outcome (LO)

  • LO #1: Understand the impact of psychological biases (e.g. FOMO, overconfidence) on crypto trading behaviour. 
  • LO #2: Explore the role of herd behaviour in shaping market trends and individual investment choices. 
  • LO #3: Evaluate the effectiveness of educational interventions in reducing the influence of biases and improving trading outcomes. 
  • LO #4: Use surveys, experiments, and case studies to gather data, analysing with statistical tools (e.g., regression analysis, factor analysis) and thematic analysis for qualitative insights.

What is on offer?

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