FACTORS INFLUENCING THE LEVEL OF INVESTMENT IN CRYPTOCURRENCY

Level of investment,  Investment, Cryptocurrency

Abstract

This study, entitled “Factors Influencing the Level of Investment in Cryptocurrency”, seeks to achieve three primary objectives: to examine the general profile and investment status, to investigate the investment information and behaviors, to analyze the factors affecting the amount of investment in cryptocurrency among investors in the Lao PDR.

The analysis is based on primary cross-sectional data with a total of 305 samples. The study adopts an econometric framework that examines the relationships between the dependent variable and a set of explanatory variables. The quantitative analysis is conducted using a Multiple Regression Model, estimated through the Ordinary Least Squares (OLS) method, ensuring unbiased and consistent coefficient estimates.

Regarding investment behavior, most cryptocurrency investors have approximately 12 months of investment experience. They typically invest money derived from a portion of their personal income, often using short-term trading strategies or buy-sell transactions. The most commonly invested cryptocurrency is Bitcoin (BTC), primarily through the Binance platform.  The main purpose of investment is to achieve returns, with investors allocating 10%–30% of their total investable funds to cryptocurrency. The average investment per transaction ranges from 1,000,001 to 3,000,000 LAK, and the frequency of investment is generally less than 10 times per month. Investors tend to gradually increase their investment amounts over time, and their investment decisions are strongly influenced by information from online platforms and social media influencers.

Regarding investment outcomes, it was found that most investors are able to generate profits from cryptocurrency, typically in the range of 10%–30% of their initial investment. The main factor affecting investment risk is price volatility. However, most investors show a high tendency to continue investing in the future, despite the fact that cryptocurrency investment remains high-risk.

This study examined the factors influencing the level of investment in cryptocurrency among investors. The analysis identified three variables that have a significant positive relationship with investment level: Age, (Log (Income)) and Investable Funds