The Effect of Financial Literacy and Risk Tolerance on Cryptocurrency Investment Decisions with Fear of Missing Out as a Moderating Variable in Medan City

Gian Aswatama; Marisi Butarbutar; Liper Siregar; Efendi; Sisca

doi:10.59890/ijatss.v4i10.4

Authors

Gian Aswatama Sekolah Tinggi Ilmu Ekonomi Sultan Agung, Indonesia
Marisi Butarbutar Sekolah Tinggi Ilmu Ekonomi Sultan Agung, Indonesia
Liper Siregar Sekolah Tinggi Ilmu Ekonomi Sultan Agung, Indonesia
Efendi Sekolah Tinggi Ilmu Ekonomi Sultan Agung, Indonesia
Sisca Sekolah Tinggi Ilmu Ekonomi Sultan Agung, Indonesia

DOI:

https://doi.org/10.59890/ijatss.v4i10.4

Keywords:

Financial Literacy, Risk Tolerance, Fear of Missing Out, Cryptocurrency, Investment Decisions

Abstract

This study investigates whether financial literacy and risk tolerance shape cryptocurrency investment decisions and whether fear of missing out (FoMO) changes these relationships. A quantitative survey was conducted among 40 cryptocurrency investors in Medan City, Indonesia, selected through purposive sampling. Data were gathered using an online questionnaire and examined through multiple linear regression and moderation analysis. Financial literacy significantly and positively influenced cryptocurrency investment decisions (t = 2.335, p = .025), as did risk tolerance (t = 2.439, p = .020). FoMO did not significantly alter the relationship between financial literacy and investment decisions (t = −0.691, p = .494). However, the interaction between risk tolerance and FoMO was positive and significant (t = 2.309, p = .027), indicating that FoMO strengthens the influence of risk tolerance on cryptocurrency investment decisions. Overall, the findings show that financial capability and risk acceptance are important for cryptocurrency investment decisions, while FoMO becomes particularly relevant when investors are more willing to tolerate risk

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