A broader perspective on cryptocurrency trading: consumer-driven value, online communities and heuristics are drivers for consumer behaviour

Abstract

Purpose This review aims to provide an overview of research from different academic disciplines to chart some of the key developments in retail cryptocurrency trading against the backdrop of the wider trading landscape, and how it has evolved in recent years. The purpose of this review is to provide researchers with a broad perspective to highlight the complex range of factors that drive cryptocurrency trading among retail investors. Design/methodology/approach Peer-reviewed literature from the social sciences, economics, marketing and branding disciplines is synthesised to explicate influential factors among retail cryptocurrency investors. Findings Online retail trading communities can create narratives that ascribe value to cryptocurrencies leading to consumer herding behaviours. The principles that underpin emotional branding and Fear of Missing Out can promote trading behaviour driven by heuristic processing and cognitive biases. Concurrently, the tenets of controversial marketing and the anti-establishment nature of Bitcoin and other cryptocurrencies serve to bolster in-group out-group categorisations fostering continued investment and market volatility. Consequently, Bitcoin and cryptocurrency trading more broadly offer a powerful combination of excitement from risk-taking akin to gambling buffered by the sanctity of social inclusion. Originality/value A broader, unique perspective on retail cryptocurrency trading which assists in better understanding the complexities that underpin its appeal to retail investors.