Determinants of Cryptocurrency Investment Decision: Integration of Herding Behaviour Theory, Expectancy Theory, and Unified Theory of Acceptance and Use of Technology

Cryptocurrency has grown in popularity among investors in recent years, but its high market volatility and technological complexity require deeper comprehension from investors. Most previous research has discussed investment decisions from a behavioural finance perspective underpinning the expectancy theory. As some investors may be guided by others’ investing decisions and investing in cryptocurrency requires their understanding of digital technology, this study attempts to integrate herding behaviour theory and expectancy theory and apply the Unified Theory of Acceptance and Use of Technology (UTAUT) to comprehend digital literacy in cryptocurrency. This study's goal is to analyse into the variables that affect cryptocurrency investment decisions. focusing on herding behaviour, financial literacy and digital literacy. Samples of Indonesian cryptocurrency retail investors were purposively selected to obtain 138 valid responses. Data were analysed using PLS-SEM. The findings demonstrated that digital and financial literacy had an impact on crypto investment decisions, but herding behavior had no effect. This study found that herding behavior significantly affects digital and financial literacy. As such, digital and financial literacy play pivotal roles as mediators between herding behaviour and cryptocurrency investment decisions. The research offers a comprehensive framework to investors, investment influencers, and crypto asset providers for developing educational content that increases financial and digital literacy using social media and crypto investment platforms.