Exploring the Factors Affecting Crypto Currency Investment in the Indian Market

Prihana Vasishta, Anju Singla

Abstract

The rise of cryptocurrency investment has garnered signifcant attention in the global fnancial system. Presently, India is placing great emphasis on developing the country's digital infrastructure in terms of usability, interoperability and accessibility. However, the acceptance, application and coverage of cryptocurrency remain a notable gap in the research. This study endeavours to address this gap by exploring the level of awareness and investment in cryptocurrency trading among the general public in India. Additionally, the study seeks to develop a comprehensive understanding of the factors that motivate and demotivate investors from engaging in cryptocurrency investments. Various factors were identifed through a review of extant literature, and based on those factors, a structured questionnaire was then employed to gather data from 512 respondents. Descriptive-analytical techniques and statistical methods were used to analyze the results. The fndings reveal that most respondents (89.84%) are aware of cryptocurrency; however, only 20.43 percent of respondents who are aware of cryptocurrency invest in it. Moreover, the results indicate factors such as lack of understanding about investing in cryptocurrency, lack of confdence to use cryptocurrency, risk of cyber fraud, absence of proper guidance/instructions, and lack of regulation discourage an investor from investing in cryptocurrency. On the other hand, factors such as good returns, ease of management, easy set- up, and a user-friendly experience encourage investors. The study suggests that creating online courses on cryptocurrency investing can improve fnancial literacy among potential investors. Policymakers should establish transparent legal and regulatory measures to mitigate risks to the fnancial system. Additionally, government stimulus measures may increase cryptocurrency investment.