Behavioral finance anomalies and an analysis on cryptocurrency

In this study, cryptocurrencies were examined theoretically and it was tried to determine whether there is a day of the week anomaly in Cardano and Ethereum currencies, which are crypto money types.By investigating the existence of the day of the week anomaly, it is aimed to reveal whether Cardano and Ethereum currencies provide lower or higher returns on any day compared to other days. In the first part of the study, information about the emergence of behavioral finance and its branches of science were given, and investor tendencies were introduced, so that information about the types of anomalies was given. In the second part, information was given about money and its types, crypto money and its types. In the last part, the aim of the research, related literature, research hypotheses, data set, method and application part are given.In order to examine the existence of the day of the week anomaly in Cardano and Ethereum cryptocurrencies, the closing data of 1310 days between 31.12.2017- 02.08.2021 were used and their logarithmic returns were calculated. Using ARCH models for analysis, ARCH (3.0) for Cardano and GARCH (2.1) for Ethereum were found to be suitable models. The existence of the day of the week anomaly was examined with the help of dummy variables on the appropriate model. In line with the findings, it was determined that there is a day of the week anomaly for Cardano and Ethereum crypto currency and it was determined that Thursday was the day with the lowest return at 1% significance level, and Saturday was the day with the highest return at 10% significance level. It has been determined that for the Ethereum cryptocurrency, Thursday is the day with the lowest return with 5% significance, and Saturday is the day with the highest return at 10% significance level.