Navigating crypto markets: financial literacy, behavior and information channels

Abstract

Purpose This study explores the socioeconomic and financial characteristics that distinguish individuals who own Bitcoin from those who do not in Spain. It aims to understand the profile of cryptocurrency adopters and identify the factors that influence the likelihood of Bitcoin ownership. Design/methodology/approach Using data from the 2021 Financial Competences Survey conducted by the Bank of Spain, the study applies logistic regression models to determine the probability of Bitcoin ownership based on variables such as age, gender, education, income, financial knowledge and digital behavior. Findings The study concludes that the most influential factors in cryptocurrency investment are being a young male and relying on friends and family for financial information. Additionally, we found that crypto investors tend to have high financial knowledge, which is often accompanied by overconfidence. In terms of information sources, investors influenced by specialized websites and magazines are more likely to invest, while those who seek professional financial advice tend to avoid cryptocurrencies. High risk tolerance and overconfidence also are predictors of investment, while greater financial satisfaction and lack of time to monitor finances reduce the likelihood of investing. Originality/value This research is one of the first to examine the characteristics of cryptocurrency users in Spain using official microdata. It offers a comprehensive profile of Bitcoin holders and contributes to the understanding of investment behavior in an emerging financial landscape. The findings are valuable for policymakers, financial educators and institutions aiming to address gaps in digital and financial literacy.