Disentangling the “crypto fever”: An exploratory study of the psychological characteristics of cryptocurrency owners

Abstract

Cryptocurrencies are innovative digital assets that became significantly popular in recent years. Despite their popularity, literature about cryptocurrencies is still lacking. Specifically, little is known about the psychological profile of cryptocurrency owners. The present paper aims to investigate the role of financial literacy, self-efficacy, risk tolerance, and impulsivity in cryptocurrency ownership in a representative sample of 1,153 Italian consumers. In particular, a Latent Profile Analysis was performed on cross-sectional data to identify different psychological profiles of consumers, and test which of these profiles is more likely to hold cryptocurrencies. Results indicate the presence of six different psychological profiles and that the psychological profile that best describes those who hold cryptocurrencies is characterized by high levels of financial literacy, risk tolerance, and self-efficacy in investment domains. Instead, a configuration of low financial literacy and high self-efficacy, risk appetite, and impulsivity scores is mostly associated with having owned cryptocurrencies in the past. These findings would suggest that psychological characteristics play a key role in cryptocurrency ownership.

Keywords

• Cryptocurrency ownership
• Financial literacy
• Self-efficacy
• Risk tolerance
• Impulsivity
• Latent profile analysis