Examination of investor trends in the context of behavioral finance: A comparative research on cryptocurrency markets and share markets investors

While traditional finance theory often ignores human behaviour and psychological factors, behavioural finance argues that individuals are not rational in their decision-making processes and that financial markets are not always efficient. Kahneman and Tversky's expectancy theory explains deviations from rationality in individuals' decision-making processes and market anomalies. The thesis investigates the impact of temperament and character traits on individual investors' investment preferences and aims to analyse in depth how investor behaviour interacts with temperament and character traits. Using quantitative methodology, the study examines the behavioural tendencies and personality traits that influence individual investors' investment preferences in cryptocurrencies and equities. conservatismThe focus of the research is on the impact of investors' temperament and character traits on behavioural tendencies such as Overconfidence, Conservatism, agency, and self-attribution. rewardIn the context of investment instrument preference, the research has identified the regulatory interactions of Overconfidence with temperament dimensions such as Novelty Seeking, Loss Avoidance, Reward addiction, and the character dimension of self-exceeding. Similarly, the conservatism-representativeness tendency was found to interact with these temperament dimensions and the self-exceeding character dimension. The self-attribution tendency was particularly associated with the self-exceeding trait dimension. As a result, individual psychological dispositions and personality traits play determinant roles in investors' financial decision-making processes. These findings make important contributions to the understanding and modelling of financial markets and provide an in-depth overview of the behavioural finance literature. This study can be considered an important contribution to a more comprehensive understanding of investor psychology and financial decision-making processes.