Crypto Currency as an Investment Assets Risk Return Analysis Compared to Traditional Markets

Abstract

The aim of this study was to investigate how investor confidence in cryptocurrencies in Pakistan is impacted by regulatory clarity and risk perception. It also aimed at verifying whether change of the level of experience produces assurance of the investor among the traders or not. The quantitative research method was used in this research paper and the data was gathered through a structured questionnaire to 230 investors in cryptocurrencies. Correlation, regression and ANOVA assimilated the data. The results reported that the positive relationship between the regulatory clarity and investor confidence is high and this is stated in other words as follows: where investors are being certain that the regulations and laws on cryptocurrency are clear and fair, this is learned that investor confidence grows. It was also found out in the study that the risk perceived has a significant influence on investor confidence. Amazingly, the study also gave conclusive evidence that indeed their existed variation in the level of confidence reported by the investors with different experience. The older traders were assured compared to the new ones since they knew a lot about the market, which was not the case with new ones who were not sure or very sure without the required knowledge. These results are congruent with the prior research, which denoted that the financial decisions might be affected by the rules, personal perceptions on the risk, and experience. Policymakers, traders, and educators who are interested in crypto trade developments in Pakistan will find the study valuable as long as the goal is to improve crypto trade.