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Cryptocurrency Investments: The Role of Advisory Sources, Investor Confidence, and Risk Perception in Shaping Behaviors and Intentions

Author

Listed:
  • Jia Qi

    (Department of Financial Planning, Housing, and Consumer Economics, University of Georgia, 205 Dawson Hall, 305 Sanford Dr., Athens, GA 30602, USA)

  • Yu Zhang

    (Department of Personal Financial Planning, Kansas State University, 1324 Lovers Lane., Manhattan, KS 66506, USA)

  • Congrong Ouyang

    (Department of Personal Financial Planning, Kansas State University, 1324 Lovers Lane., Manhattan, KS 66506, USA)

Abstract

The rapid growth and increasing adoption of cryptocurrencies have reshaped the investment landscape, presenting unique opportunities and challenges for investors. This study examines how advisory information sources influence cryptocurrency investment behaviors and intentions among U.S. investors. Using data from the 2021 National Financial Capability Study, it explores how reliance on financial professionals, media, and social networks shapes investment decisions. The motivation for this research lies in the need to understand the divergent roles of these sources in an era where traditional and emerging financial advice coexist. Findings reveal that reliance on financial advisors correlates with reduced cryptocurrency investment and future investment intentions, reflecting advisors’ cautious stance toward volatile assets. Conversely, reliance on media and social networks significantly increases both current investments and future intentions. The findings also highlight that investor confidence is positively associated with the likelihood and intentions to invest in cryptocurrency. Conversely, heightened risk perceptions associated with cryptocurrency reduce both the likelihood and intentions to invest. The study calls for financial professionals to enhance client education on cryptocurrency risks and for policymakers to strengthen regulations, ensuring accurate information dissemination through media and social networks. By providing a nuanced understanding of advisory influence and investors’ characteristics, this research offers valuable insights for financial professionals, policymakers, and investors navigating the complexities of cryptocurrency investments.

Suggested Citation

  • Jia Qi & Yu Zhang & Congrong Ouyang, 2025. "Cryptocurrency Investments: The Role of Advisory Sources, Investor Confidence, and Risk Perception in Shaping Behaviors and Intentions," JRFM, MDPI, vol. 18(2), pages 1-19, January.
    • Handle: RePEc:gam:jjrfmx:v:18:y:2025:i:2:p:57-:d:1577823
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    References listed on IDEAS

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    1. Hayashi, Fumiko & Routh, Aditi, 2025. "Financial literacy, risk tolerance, and cryptocurrency ownership in the United States," Journal of Behavioral and Experimental Finance, Elsevier, vol. 46(C).
    2. Injun Hwang & Ji Ho Kwon, 2024. "Cryptocurrency returns and consumption-based asset pricing," Applied Economics, Taylor & Francis Journals, vol. 56(55), pages 7393-7408, November.
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    Cited by:

    1. Mindy Joseph & Congrong Ouyang & Kenneth J. White, 2025. "From Likes to Wallets: Exploring the Relationship Between Social Media and FinTech Usage," FinTech, MDPI, vol. 4(3), pages 1-29, July.

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