This study examines the determinants of cryptocurrency participation through the lens of social cognitive theory (SCT hereafter), investigating how cognitive, behavioral, and environmental dimensions, including financial literacy, trust and environmental awareness, influence investment behavior.
Survey data from 441 adults were analyzed using hierarchical logistic regression models for both the full sample and a subsample of individuals with current, former or intended cryptocurrency investment.
Objective financial literacy (OFL) is a strong positive predictor of cryptocurrency investment, whereas subjective financial literacy (SFL) exhibits no significant effect. Demographic differences are evident, with males demonstrating a higher propensity to invest, while investment participation declines with increasing age. Previous investment experience adds limited explanatory power once financial knowledge and demographics are controlled. Within the focused subsample of current, former and intending investors, perceived risk emerges as a significant positive predictor of cryptocurrency participation, unlike trust and environmental awareness.
As digital-asset regulation evolves, policymakers and platforms should enhance objective financial education, communicate risks clearly, and customize strategies aimed at particular demographic groups.
By operationalizing SCT's triadic reciprocal determinism framework, this study highlights the distinct roles of OFL and risk perception in cryptocurrency adoption, distinguishing between actual and intended investors and clarifying the relative effects of objective and subjective literacy.
