The Influence of Behavioral Factors on Investment Decisions Among Cryptocurrency Investors in Jepara Regency

Abstract

This research aims to examine and analyze the influence of loss aversion, risk perception, overconfidence, and herding behavior on investment decisions among cryptocurrency investors in Jepara. A quantitative research design was adopted in this study, utilizing non-probability sampling through a purposive sampling approach. The research subjects comprised cryptocurrency investors residing in Jepara who participate in local or international crypto communities and are actively involved in investment activities. Structural Equation Modeling (SEM) assisted by Smart-PLS software was employed as the primary data analysis technique, encompassing validity testing, reliability testing, collinearity testing, path coefficient analysis, and R-square testing. Findings from this research demonstrate that loss aversion, risk perception, and herding behavior each produce a positive and significant impact on investment decisions as the outcome variable, while overconfidence does not have a significant effect on investment decisions. these findings carry several implications. Practically, investors are encouraged to strengthen independent fundamental, narrative, and technical analysis rather than relying primarily on market crowds or social media sentiment. From a policy perspective, educational institutions and investor communities are expected to provide continuous investment education to help investors make more independent and rational decisions. This study is limited by the use of purposive community-based sampling, a predominantly male and young respondent profile, and a cross-sectional self-reported survey design, which may restrict the generalizability and causal interpretation of the findings. Future studies should employ more diverse, probability-based samples across multiple regions, including investors outside cryptocurrency communities, using longitudinal or mixed-method designs for a more comprehensive understanding.