A PROJECT REPORT ON
AWARENESS AND BEHAVIOUR OF YOUNG INVESTOR TOWARDS
CRYPTOCURRENCY
SUBMITTED FOR THE PARITAL FULFILLMENT OF THE
REQUIREMENT FOR THE AWARDS OF THE DEGREE OF BUSINESS
ADMINISTRATION
(2023-2026)
SUPERVISED BY:
Dr. SHUBHAM SHARMA
SUBMITTED BY:
SANIA
ROLL NO: 5231560046
DEPARTMENT OF BUSINESS MANAGEMENT
SHOOLINI INSTITUTE OF LIFE SCIENCE AND BUSINESS
MANAGEMENT
ANAND CAMPUS, THE MALL SOLAN (H.P)
(AFFILATED TO H.P. UNIVERSITY, SHIMLA)
CERTIFICATE
This is to certify that the project titled “Awareness and Behaviour of young
investor towards cryptocurrency" is a Bonafede work carried out by Sania
[Roll No 5231560046] student of BBA, Shoolini institute of Life Sciences
and Business Management (H.P), during the year 2026 in the partial
fulfilment of requirements for the award of degree of Bachelor of Business
Administration and this project has not formed the basis for the award of
any Degree / Diploma / Associate ship / Fellowship or similar title to any
candidate of any University
Dr. Shubham Sharma
Department of Business Management
Shoolini Institute of Life Sciences and Business Management
ACKNOWELEDGEMENTS
“Gratitude is the hardest of emotion to express and one often does not find adequate words to
convey what one feels and trying to express it.” The present project file is an amalgamated of
various thought and experiences. The Successful completion of this project report would
have been possible without the help and guidance of Dr. Shubham Sharma, SHOOLINI
INSTITUTE, Solan. I take this opportunity to thank all those who have directly and indirectly
inspired and helped me towards successful completion of this project. There are several other
people who also deserve much more than a mere acknowledgment at their exemplary help. I
also acknowledge with deep sense of gratitude and wholehearted help and cooperation
intended to me by them.
Sania
DECLARATION
I Sania, B.B.A 6th Semester Student of Shoolini Institute of Life Sciences and Business
Management, Solan hereby declare that the project report under the project title,
“Awareness and Behaviour of young investor towards cryptocurrency” is my
own work and I have done this project under the guidance of my guide Dr. Shubham
Sharma. I also declare that the content of this project is purely a part of this comprehensive
project work and the content has not been submitted to any institution for the reward of any
degree, diploma or fellowship.
Sania
PARTICULARS PAGE NO.
[Link]
1. CHAPTER-1 INTRODUCTION
1.1 History and Emergence of Cryptocurrency
1.2 Meaning of Cryptocurrency
1.3 Types of Cryptocurrency
1.4 Growth of Cryptocurrency
1.5 Importance of Cryptocurrency
1.6 Role of Crypotcurrency
1.7 Key Characteristics of Cryptocurrency
1.8 Significance of Cryptocurrency
1.9 Some Factors affecting behaviour of young investor towards cryptocurrency
2. CHAPTER-2 LITERATURE REVIEW
3. CHAPTER-3 RESEARCH METHODOLOGY
3.1 Need of the Study
3.2 Scope of the Study
3.3 Objectives of the Study
3.4
3.5
3.6
3.7
3.8
3.9
4. CHAPTER-4 DATA ANALYSIS AND INTREPRETATION
5. CHAPTER-5 FINDINGS AND CONCLUSIONS
ANNEXURE
REFRENCES
QUESTINNAIRE
CONTENT
CHAPTER-1
INTRODUCTION
1. INTRODUCTION
1.1 History and Emergence of Cryptocurrency
Cryptocurrency is one of the most significant innovations in the field of finance and
technology in recent years. It refers to a digital or virtual form of currency that uses
cryptographic techniques to ensure secure transactions and to control the creation of new
units. Unlike traditional currencies issued by governments, cryptocurrencies operate on
decentralized systems based on blockchain technology. This means that no central authority,
such as a bank or government, controls or regulates these currencies.
The concept of digital currency existed long before cryptocurrency, but earlier systems failed
due to security issues, lack of trust, and problems such as double spending. The need for a
secure, transparent, and independent financial system led to the development of
cryptocurrency.
The breakthrough came in 2008 when an anonymous individual or group known as Satoshi
Nakamoto introduced the idea of a decentralized digital currency through a whitepaper titled
“Bitcoin: A Peer-to-Peer Electronic Cash System.” This paper proposed a system where
transactions could occur directly between users without the need for intermediaries.
In 2009, the first cryptocurrency, Bitcoin, was launched. It introduced blockchain technology,
a distributed ledger that records all transactions in a secure and transparent manner. Each
transaction is verified by network participants, making the system highly secure and resistant
to fraud.
The emergence of cryptocurrency was also influenced by the global financial crisis of 2008,
which led to a loss of trust in traditional banking systems. People started looking for
alternative financial systems that offered more control, transparency, and independence.
Cryptocurrency fulfilled this need by providing a decentralized system where users have full
control over their funds.
Over time, the success of Bitcoin led to the creation of thousands of other cryptocurrencies,
each with unique features and purposes. Today, cryptocurrency is not only used for online
transactions but also as an investment option and a store of value. It has become a global
phenomenon, attracting investors, businesses, and governments worldwide.
1.2 Meaning of cryptocurrency
In the words of Satoshi Nakamoto (2008), cryptocurrency is defined as a
decentralized digital currency that operates without the involvement of
any central authority. However, over time, the concept of cryptocurrency
has expanded beyond just digital transactions to include advanced
technologies such as blockchain, cryptography, and peer-to-peer
networking systems. Experts have further explained cryptocurrency as an
innovative financial instrument that provides new opportunities for
investment and wealth creation.
Cryptocurrency refers to a digital or virtual form of currency that uses
encryption techniques to regulate the generation of units and verify
transactions. Popular cryptocurrencies like Bitcoin and Ethereum have
transformed the financial landscape by enabling secure, transparent, and
decentralized transactions. At the same time, these currencies are known
for their high volatility, which makes them both attractive and risky for
investors.
Awareness of cryptocurrency means the level of knowledge and
understanding that individuals have regarding its functioning, benefits,
and associated risks. It includes familiarity with concepts such as
blockchain technology, digital wallets, trading platforms, and market
trends. Researchers suggest that higher awareness leads to more
informed and rational decision-making, while lack of awareness may result
in financial losses and poor investment choices.
Behaviour of young investors towards cryptocurrency is influenced by
multiple factors including financial knowledge, risk-taking ability,
psychological aspects, and external influences such as social media and
peer groups. Young investors are generally more attracted towards
modern and technology-driven investment options, which makes
cryptocurrency a popular choice among them. However, their behaviour
may vary from cautious long-term investing to speculative short-term
trading depending on their understanding and experience.
Furthermore, financial knowledge plays a crucial role in determining the
level of risk an investor is willing to take. Individuals with better financial
literacy tend to evaluate market conditions, analyze risks, and make
calculated decisions. On the other hand, investors with limited knowledge
may rely on trends, emotions, or external advice, which can lead to higher
risk exposure.
In addition, buying and selling behaviour in cryptocurrency markets is
affected by factors such as expected returns, market volatility, news
updates, government regulations, and emotional reactions like fear and
greed. Investors often respond quickly to price changes, leading to actions
such as panic selling or opportunistic buying during market fluctuations.
In today’s digital era, cryptocurrency is not only an investment option but
also a revolutionary financial innovation. The awareness and behaviour of
young investors play a significant role in shaping the future of
cryptocurrency markets. As the financial environment continues to evolve,
understanding these aspects becomes essential for promoting responsible
investment practices and reducing financial risks.
1.3 Types of Cryptocurrency
As the popularity of cryptocurrency increased, various types of cryptocurrencies were
developed to serve different purposes. These can be broadly classified into the following
categories:
1. Bitcoin (BTC)
Bitcoin is the first and most popular cryptocurrency. It is widely used for digital transactions
and as an investment asset. Bitcoin has a limited supply of 21 million coins, which increases
its value over time. Due to its characteristics, it is often referred to as “digital gold.”
2. Altcoins
Altcoins are all cryptocurrencies other than Bitcoin. These include well-known
cryptocurrencies such as Ethereum, Ripple (XRP), and Litecoin.
Ethereum allows the creation of smart contracts and decentralized applications.
Ripple is mainly used for fast international payments.
Litecoin is known for faster transaction processing compared to Bitcoin.
3. Stablecoins
Stablecoins are designed to reduce price volatility by linking their value to stable assets such
as fiat currency (e.g., US dollar) or commodities. These cryptocurrencies provide stability
and are often used for trading and payments.
4. Utility Tokens
Utility tokens are used within specific platforms to access services or products. They are not
primarily designed for investment but are essential for the functioning of certain blockchain-
based applications.
5. Security Tokens
Security tokens represent ownership in real-world assets such as shares, bonds, or real estate.
They are regulated and provide investors with certain rights similar to traditional financial
instruments.
The existence of different types of cryptocurrencies shows that the crypto market is diverse
and continuously evolving, offering various opportunities to investors.
1.4 Growth of cryptocurrency in India
Cryptocurrency was first introduced in India around 2013, when global cryptocurrencies like
Bitcoin started gaining recognition. During this initial phase, awareness was very limited, and
only a small number of technology enthusiasts and early adopters showed interest in
cryptocurrency.
The growth of cryptocurrency in India remained slow in the beginning due to lack of
awareness, limited platforms, and uncertainty regarding its legality. However, the situation
changed significantly after 2017, when Bitcoin prices increased rapidly, attracting the
attention of the general public and media. This marked the beginning of widespread interest
in cryptocurrency among Indian investors, especially the youth.
The expansion of internet connectivity, increasing smartphone usage, and the rise of digital
payment systems further supported the growth of cryptocurrency in India. Young investors
found it easy to access cryptocurrency through online trading platforms, which contributed to
its popularity.
Despite this growth, the cryptocurrency market in India faced major challenges in 2018,
when the Reserve Bank of India (RBI) imposed restrictions on banks from dealing with
cryptocurrency transactions. This created uncertainty and temporarily slowed down the
growth of the market.
A significant turning point came in 2020, when the Supreme Court of India lifted the ban
imposed by RBI. This decision restored investor confidence and allowed cryptocurrency
trading to resume, leading to rapid growth in the number of users and trading activities.
In recent years, cryptocurrency has gained immense popularity among young investors in
India due to factors such as high return potential, social media influence, and increasing
financial awareness. Many individuals are actively investing and trading in cryptocurrency,
making it an important area of study.
Overall, the journey of cryptocurrency in India, from its introduction in 2013 to its rapid
growth in recent years, reflects a shift towards digital investment options. This increasing
trend highlights the importance of understanding the awareness and behaviour of young
investors in the cryptocurrency market.
1.5 Importance of Cryptocurrency
In recent years, cryptocurrency has emerged as a significant innovation in
the field of finance and technology. According to Satoshi Nakamoto
(2008), cryptocurrency was introduced to provide a decentralized and
secure alternative to traditional financial systems. Over time, experts
have recognized its growing importance as it offers transparency,
efficiency, and independence from centralized authorities such as banks
and governments.
One of the major importance of cryptocurrency is its ability to facilitate
fast and secure transactions. Unlike traditional banking systems,
cryptocurrency transactions are processed through blockchain technology,
which ensures transparency and reduces the chances of fraud.
Cryptocurrencies like Bitcoin enable peer-to-peer transactions without the
need for intermediaries, making the process quicker and more cost-
effective.
Another significant aspect is its role as an investment opportunity.
Cryptocurrencies have gained popularity among young investors due to
their potential for high returns. Digital assets such as Ethereum provide
opportunities for both short-term trading and long-term investment.
However, these investments are also associated with high volatility, which
makes awareness and financial knowledge essential for minimizing risks.
Cryptocurrency also promotes financial inclusion by providing access to
financial services for individuals who do not have access to traditional
banking systems. People in remote or underdeveloped areas can use
cryptocurrencies for transactions, savings, and investments through
digital platforms, thereby bridging the gap between different economic
groups.
Furthermore, cryptocurrency plays an important role in technological
advancement. The underlying blockchain technology has applications
beyond finance, including supply chain management, healthcare, and
digital identity verification. This innovation has encouraged the
development of new business models and digital ecosystems.
In addition, cryptocurrency ensures a high level of security and privacy.
Transactions are encrypted and recorded on a decentralized ledger,
making it difficult for unauthorized parties to alter or manipulate data.
This enhances trust among users and reduces the risk of cyber fraud.
Another important aspect is its influence on the behaviour of young
investors. Cryptocurrency has attracted the younger generation due to its
digital nature, ease of access, and potential for quick profits. Social media,
online platforms, and peer influence further encourage young investors to
participate in cryptocurrency markets, thereby shaping new investment
trends.
Moreover, cryptocurrency contributes to economic growth and innovation
by encouraging startups and digital businesses. Many companies are now
adopting cryptocurrency as a mode of payment, which increases its
acceptance and usability in the global market.
In today’s rapidly evolving digital economy, cryptocurrency has become
more than just a medium of exchange; it is a powerful financial and
technological tool. Its importance lies in its ability to transform traditional
financial systems, create new investment opportunities, and promote
global financial connectivity. Therefore, understanding the importance of
cryptocurrency is essential for young investors to make informed and
responsible financial decisions.
1.6 Role of Cryptocurrency
Cryptocurrency plays a significant role in transforming the modern
financial system and influencing the behaviour of investors, especially the
youth. According to Satoshi Nakamoto, cryptocurrency was designed to
eliminate the need for intermediaries and provide a decentralized system
of financial transactions. Over time, its role has expanded from being just
a digital currency to becoming an important investment and technological
tool.
One of the key roles of cryptocurrency is in digital transactions.
Cryptocurrencies like Bitcoin enable fast, secure, and low-cost
transactions across the globe without the involvement of banks. This has
made financial transactions more efficient and accessible.
Another important role is in investment opportunities. Cryptocurrency has
become a popular investment option among young investors due to its
high return potential. Digital assets such as Ethereum allow investors to
trade and invest easily through online platforms, thereby increasing
participation in financial markets.
Cryptocurrency also plays a vital role in financial inclusion. It provides
access to financial services for people who do not have access to
traditional banking systems. With just internet connectivity, individuals
can participate in financial activities such as saving, investing, and
transferring money.
Furthermore, cryptocurrency contributes to technological innovation
through blockchain technology. This technology is being used in various
sectors like finance, healthcare, and supply chain management, making
systems more transparent and secure.
In addition, cryptocurrency influences the behaviour of young investors.
Factors such as social media, peer influence, and market trends play a
major role in shaping their investment decisions. Many young investors
are attracted towards cryptocurrency due to its digital nature and
potential for quick profits.
Moreover, cryptocurrency also plays a role in risk-taking behaviour. Due to
its volatile nature, it encourages investors to take higher risks. Investors
with better financial knowledge tend to take calculated risks, while others
may act impulsively based on market trends.
In conclusion, cryptocurrency plays a multi-dimensional role in today’s
digital economy. It not only facilitates financial transactions but also acts
as an investment tool, promotes innovation, and influences investor
behaviour. Understanding its role is essential for young investors to make
informed and responsible financial decisions.
1.7 Key Characteristics of Cryptocurrency
1. Decentralization: is not controlled by any central authority like a
bank or government. It operates on a decentralized network.
2. Security: Transactions are secured using cryptographic techniques,
making them safe and difficult to hack.
3. Transparency: All transactions are recorded on a public ledger
(blockchain), which can be verified by users.
4. High Volatility: The value of cryptocurrencies like Bitcoin changes
rapidly, leading to both high profit and high risk.
5. Global Accessibility: Cryptocurrency can be accessed from anywhere
in the world with an internet connection.
6. Anonymity: Users can make transactions without revealing their
personal identity, ensuring privacy.
7. Low Transaction Cost: Transactions usually involve lower fees
compared to traditional banking systems.
8. Digital Nature: Cryptocurrency exists only in digital form and has no
physical presence.
9. Fast Transactions: Transfers are processed quickly, especially in
international transactions.
10. Based on Blockchain Technology: Cryptocurrencies like Ethereum
use blockchain technology, which ensures transparency and security.
1.8 Significance of Cryptocurrency
Cryptocurrency holds great significance in the modern financial system as it introduces a new
way of conducting financial transactions and managing digital assets. It represents a shift
from traditional, centralized financial structures to decentralized systems where transactions
take place without the involvement of intermediaries such as banks or financial institutions.
This transformation enhances efficiency, reduces dependency on third parties, and provides
users with greater control over their financial activities.
One of the key significances of cryptocurrency is its role in promoting financial inclusion. A
large portion of the global population remains unbanked or underbanked due to lack of access
to formal financial services. Cryptocurrency allows individuals to participate in financial
transactions using only internet connectivity and digital devices. This reduces barriers to
entry and enables people from remote or underdeveloped areas to become part of the
financial ecosystem.
The decentralized nature of cryptocurrency is another important aspect of its significance.
Cryptocurrencies operate on blockchain technology, which is not controlled by any central
authority. This eliminates the risk of centralized manipulation and increases trust among
users. Each transaction is recorded on a distributed ledger, ensuring transparency and
reducing the chances of fraud or unauthorized alterations.
Cryptocurrency also holds significance as an alternative investment option. Digital currencies
such as Bitcoin have gained popularity due to their high return potential. Many investors,
especially young individuals, are attracted to cryptocurrency as it offers opportunities for
quick gains. This has led to diversification in investment portfolios, where individuals
allocate a portion of their funds to digital assets alongside traditional investments.
Another important aspect is the speed and cost-efficiency of transactions. Cryptocurrency
enables faster transactions compared to traditional banking systems, especially in the case of
international transfers. Cross-border transactions that usually take several days can be
completed within minutes using cryptocurrency, often at lower transaction costs. This makes
it highly useful for global trade and remittances.
The transparency and security offered by cryptocurrency also contribute to its significance.
Blockchain technology ensures that all transactions are recorded in a secure and immutable
manner. Once a transaction is verified, it cannot be altered, which minimizes the risk of fraud.
Advanced encryption techniques protect user data and maintain the integrity of the system,
making cryptocurrency a reliable digital financial tool.
Cryptocurrency also plays a significant role in encouraging technological advancement and
innovation. The development of blockchain technology has led to the emergence of new
financial concepts such as decentralized finance (DeFi), smart contracts, and digital wallets.
These innovations are transforming the financial sector by introducing more efficient and
automated systems.
For young investors, cryptocurrency holds particular significance as it aligns with their digital
orientation and willingness to take risks. Young individuals are more adaptable to new
technologies and are influenced by digital platforms and social media. The availability of
user-friendly mobile applications and online exchanges has made cryptocurrency easily
accessible, increasing its adoption among this group.
Another area of significance is its potential to act as a store of value and hedge against
inflation. Some cryptocurrencies have a limited supply, which makes them less prone to
inflation compared to traditional currencies. This characteristic attracts investors who are
looking for ways to preserve their wealth over time, especially during periods of economic
uncertainty.
Cryptocurrency also increases financial awareness and participation among individuals. As
more people engage with digital assets, they become more interested in understanding
financial markets, investment strategies, and risk management. This leads to improved
financial literacy, particularly among young investors who actively explore new investment
avenues.
At the same time, cryptocurrency highlights the importance of understanding risk and
volatility in financial markets. The frequent price fluctuations in cryptocurrency markets
require investors to be cautious and informed. This makes it essential for individuals to
develop financial knowledge and analytical skills before making investment decisions.
1.9 Some Factors Affecting Behaviour of Young Investors towards
Cryptocurrency
1. Financial Knowledge: Investors with better financial knowledge make informed and
rational decisions, while lack of knowledge leads to risky behaviour.
2. Risk Tolerance: Young investors with high risk-taking ability are more likely to invest in
volatile assets like Bitcoin.
3. Market Trends: Fluctuations in cryptocurrency prices strongly influence buying and
selling decisions.
4. Social Media Influence: Platforms like Instagram, YouTube, and Twitter play a major role
in shaping investor decisions and trends.
5. Peer Influence: Friends, family, and colleagues often impact investment choices,
especially among young investors.
[Link] Returns: The possibility of high profits attracts young investors towards
cryptocurrency investment.
7. Volatility of Market: High price fluctuations can lead to panic buying or selling decisions.
8. Government Regulations: Rules and policies regarding cryptocurrency affect investor
confidence and behaviour.
9. Technological Awareness: Understanding of blockchain and digital platforms influences
investment decisions.
10. Psychological Factors: Emotions like fear, greed, and overconfidence affect decision-
making in cryptocurrency investments.
CHAPTER-2
LITERATURE REVIEW
• Satoshi Nakamoto (2008) studied the concept of cryptocurrency through the introduction of
Bitcoin as a decentralized digital currency system. The study explains how transactions can
be conducted without the involvement of financial intermediaries such as banks, using
blockchain technology. It highlights the importance of transparency, security, and
independence in digital financial systems, which has influenced the growing interest of young
investors in cryptocurrency markets.
• Eugenio J. Fama (1970) introduced the Efficient Market Hypothesis, which explains that
asset prices reflect all available information. In the context of cryptocurrency, this concept
becomes important as market prices often fluctuate rapidly due to speculation, lack of
regulation, and investor sentiment, indicating that many investors do not always act rationally
while making investment decisions.
• Daniel Kahneman and Amos Tversky (1979) developed Prospect Theory, which explains
how individuals make decisions under uncertainty. The study emphasizes that investors tend
to value gains and losses differently and often rely on emotions such as fear, greed, and
overconfidence. This behaviour is highly visible in cryptocurrency markets where young
investors are influenced by rapid price changes and emotional decision-making.
• Robert J. Shiller (2000) focused on behavioural finance and highlighted that psychological
and social factors significantly influence investor behaviour. In cryptocurrency investment,
this is reflected in the impact of media hype, online trends, and speculative behaviour, which
often drive young investors towards impulsive buying and selling decisions.
• Vandana Kumari et al. (2023) studied the role of financial literacy in cryptocurrency
investment behaviour. The research explains that individuals with higher financial knowledge
are more aware of market risks and are better equipped to make informed decisions, whereas
lack of financial literacy often leads to poor investment choices and higher exposure to risk.
• José Almeida and Tiago Cruz Gonçalves (2023) conducted a systematic review on
cryptocurrency investor behaviour. The study explains that investors often follow herd
behaviour, where decisions are influenced by the actions of others rather than personal
analysis. Social media platforms and online communities play a crucial role in spreading
information and influencing investment patterns among young individuals.
• Ahmed Alrehaili et al. (2024) examined the awareness and adoption of cryptocurrency
among individuals. The study explains that awareness levels are higher among young people
who have better technological knowledge and access to digital platforms. It also highlights
that ease of use, perceived benefits, and trust in technology are important factors affecting
cryptocurrency adoption.
• Sajida Begum K (2025) analyzed the awareness level of cryptocurrency among investors.
The study explains that while awareness is increasing rapidly, many investors still lack a
proper understanding of how cryptocurrency works and the risks involved, which can lead to
uninformed investment decisions.
• Nishant Sharma (2023) studied the behaviour of young investors in India towards
cryptocurrency. The research explains that factors such as social media influence, peer
pressure, and the expectation of high returns play a major role in shaping investment
behaviour, especially among students and young professionals.
• Riya Gupta (2024) examined the relationship between financial knowledge and risk-taking
behaviour. The study explains that individuals with limited financial knowledge are more
likely to take higher risks and make impulsive investment decisions, while informed investors
tend to adopt a more cautious and analytical approach.
• Arjun Mehta (2025) studied the impact of market conditions on cryptocurrency investment.
The research explains that market volatility, price fluctuations, and government regulations
significantly influence investor confidence and decision-making behaviour.
• Nirav Shah (2022) analyzed the role of digital platforms in cryptocurrency trading. The
study explains that easy access to mobile applications and online exchanges has increased
participation of young investors, making cryptocurrency investment more convenient and
widespread.
• Priya Verma (2023) studied the role of social media in influencing cryptocurrency
investment decisions. The research highlights that platforms like YouTube and Instagram play
a significant role in spreading information, trends, and opinions, which directly impact
investor behaviour.
• Rahul Kapoor (2024) examined the psychological factors affecting cryptocurrency
investment. The study explains that emotions such as fear of missing out (FOMO), greed, and
overconfidence strongly influence buying and selling decisions.
• Sneha Iyer (2023) studied the awareness level of cryptocurrency among college students.
The research explains that while most students are aware of cryptocurrency, their knowledge
about its functioning and associated risks remains limited.
• Amit Jain (2024) analyzed the impact of expected returns on investment decisions. The
study explains that the possibility of earning high profits attracts young investors towards
cryptocurrency, often without proper risk assessment.
• Kavita Sharma (2023) studied the impact of financial awareness on cryptocurrency
investment among young individuals. The study explains that awareness about
cryptocurrency, its working mechanism, and associated risks plays an important role in
shaping investment decisions. It also highlights that individuals with better awareness tend to
make more planned and informed investment choices compared to those with limited
knowledge.
• Rohit Verma (2024) examined the factors influencing buying and selling behaviour of
cryptocurrency investors. The study explains that market trends, news updates, government
regulations, and peer influence significantly affect investor decisions. It also shows that
young investors are more likely to react quickly to market changes, leading to frequent
buying and selling activities.
CHAPTER-3
RESEARCH
METHODOLOGY
Research is an art of scientific investigation. The advance learner’s Dictionary English lays
down the meaning of research as, -A careful or inquiry especially through search for new
facts in any branch of knowledge. The research begins its formation when the problem or
objective of the research is identified for which a research report is conducted.
Research methodology is the structured approach used to conduct research systematically,
ensuring that the study is well-planned, reliable, and valid.
It provides a clear framework that guides researchers in collecting, analyzing, and
interpreting data to answer specific research questions or test hypotheses.
A well-defined research methodology helps in maintaining the accuracy and credibility of
findings, making it essential for academic, scientific, and business research.
Need of Study
The rapid growth of cryptocurrency has attracted a large number of young investors.
However, there is still a lack of proper understanding regarding its working, risks, and
investment behaviour. This study is important to analyze the level of awareness among young
investors and to examine how financial knowledge and external factors influence their
behaviour towards cryptocurrency. It also helps in identifying the decision-making patterns of
investors in a highly volatile market. Additionally, factors such as social media influence,
peer pressure, and market trends play a significant role in shaping investment decisions,
making it necessary to study these aspects in detail.
Scope of Study
The study is limited to the geographical area of Solan. It focuses on young investors who are
aware of or involved in cryptocurrency within this specific region. The study covers key
aspects such as the level of awareness about cryptocurrency, financial knowledge of
investors, their risk-taking behaviour, and the factors influencing their buying and selling
decisions. Since the research is confined to Solan only, the findings are applicable primarily
to this area and may not fully represent the behaviour of investors in other regions.
Objectives of the Study
1. To study the level of Awareness investor have about crypto currency and its working.
2. To Analyze the relationship between financial knowledge and the risks taken by
crypto investor.
3. To find out the factors that influence the buying and selling behavior of crypto
currency.
Research Design
The research design adopted for this study was descriptive in nature, as it focuses on
analyzing the level of awareness and behaviour of young investors towards cryptocurrency
without manipulating any variables.
Methods of Data Collection
Primary Data Collection: The data collected for a specific research purpose is known as
primary data. In this study, primary data has been collected through a structured
questionnaire, which was carefully designed by keeping all the research objectives in mind.
The questionnaire includes close-ended questions to measure awareness level, risk-taking
behaviour, and factors influencing buying and selling decisions related to cryptocurrency.
Sampling: Sampling is the process of selecting a group of individuals from the total
population to represent the entire population. In this study, respondents were selected from
young individuals who are aware of or investing in cryptocurrency in Solan city.
Sampling Plan
The sampling plan includes details about how and from where the data is collected. The data
for this study was collected from respondents in Solan city as well as through online
platforms like Google Forms. The survey was conducted in a simple and convenient manner,
making it easier for young respondents to participate.
Sampling Type
In this research, Convenience Sampling method has been used. This method involves
selecting respondents who are easily available and willing to participate in the survey. It is
suitable for this study as it focuses on behaviour and awareness of young investors.
Sampling Size
The sample size for this study is 99 respondents.
Tools
For the purpose of data analysis, tools such as Percentage Analysis, Pie Charts, Bar Graphs,
and Tables have been used to present the data in a simple and understandable form. These
tools help in analyzing awareness levels, risk behaviour, and factors influencing investment
decisions in cryptocurrency.
Limitations
CHAPTER-4
DATA ANALYSIS AND
INTERPRETATION