Cryptocurrencies and behavioral finance: Analysis of behavioral trends of investors in Turkey

The aim of this study is to examine the cognitive and psychological factors affecting the decision-making processes of cryptocurrency investors. Understanding how investors interact with factors such as focus, verification, professional deformation, selectivity in perception, familiarity, trap option and extreme option will help us better understand the psychological dynamics underlying investment strategies and decisions. The main mass of the study is composed of investors who trade in the cryptocurrency market in Türkiye. Since millions of people in Türkiye are continuing their cryptocurrency investments, it is not possible to reach all people in a limited time. In the study, it is thought that the researcher's fairly wide investor circle, especially Istanbul-Ankara-Izmir, who have been investing in the market for a long time, provided that their identities remain hidden, will best represent the main mass of cryptocurrency investors. For this reason, 400 people were selected as the sample of the study from bilateral relations, especially in three major provinces. Investors whose weight resides in large cities have not clearly shared their portfolio sizes. When asked to be placed on a certain scale, close to half of those surveyed did not want to share their crypto wallet information. However, it has been clarified that the minimum portfolio size is 200.000 TL and above. In the study, face-to-face, online, interviews were provided using all facilities and the average of interviews was at 40 min levels. The negotiations started on 31.05.2023 and lasted for about 4 months. The number of samples was studied by a team from the field in order to perform the survey with more than one person at the same time due to the fact that the survey is one of the open-ended questions. 55 Questions were asked in the study. Immediately after the questions such as age, gender, duration of presence in the market, general questions about investment were started. After the general questions asked about cryptocurrency, 7 open-ended questions were asked about loss avoidance. Then, 5 multiple choice questions were asked to measure the Dunning Kruger effect. In Group D, 7 open-ended questions are aimed at Expectation Theory. In group E, there are open-ended questions for cryptocurrency investors that measure concepts such as belief, verification, fixed-mindedness, superstition, herd effect, superstition, loyalty, and the need for social proof. 6 open-ended questions were asked in group F and questions measuring "Afterness Effect, Telescope Effect, Cryptonnesis, Self-interest from Success, Backward Looking Error, Selective Memory" were posed. The survey was completed with 7 open-ended questions measuring concepts such as focus, verification, professional deformation, selectivity in perception, familiarity, trap option and extreme option for cryptocurrency investors in group G, the last group.