Overconfidence Educated Young Males: A Study on Cryptocurrency Investors in Indonesia

Abstract

This paper examines Indonesian cryptocurrencies investors' characteristics and explores the effects of their confidence and financial literacy on the likelihood of investing. Our sample consists of 339 Indonesian investors investing in various financial assets, including digital cryptocurrencies. The paper then applies probit regression to analyze the relation of investors' confidence and literacy on cryptocurrency investment. The findings imply that the average cryptocurrency investors in Indonesia are likely to be over-confident investors who disregard the risk associated with crypto asset investing. In addition, our findings suggest that the average cryptocurrency investors tend to be young male investors with bachelor's degree educations.