Beyond the Hype: A Tech-driven Analysis of Gen Z’s Cryptocurrency Investment Behavior Amid Regulatory Uncertainty and Risk-return Perceptions in India

Purpose: This study aims to understand how knowledge, awareness, regulatory changes, and perceived risk and return influence Gen Z’s decisions to invest in cryptocurrency. It focuses on young working professionals in Bengaluru and how these factors affect their financial well-being. Data: The study surveyed 398 Gen Z respondents in Bengaluru using a structured questionnaire. The target group included early-employed young professionals, providing insights into how this demographic engages with cryptocurrency investments. Methodology: The study used a mixed-methods approach. To analyze the data, exploratory factor analysis (EFA) and confirmatory factor analysis (CFA) were conducted using SPSS and AMOS software. These methods helped examine the relationships between key factors. Findings: The results show that knowledge and awareness have the strongest positive impact on financial inclusion. Regulatory clarity comes next, followed by how Gen Z perceives the risks and returns of crypto investments. Gender and marital status do not significantly affect investment decisions. However, financial literacy, clear regulations, and managing risk perceptions are essential to encouraging smart and responsible investing. Originality: This study focuses specifically on Gen Z in India, a group often influenced by social trends and digital tools offering insights not widely explored in existing research. It also emphasizes the need to consider behavioral and psychological elements in crypto adoption. Implications: To support Gen Z investors, there is a need for better financial education, more transparent regulations, and improved communication about investment risks. These steps can help increase participation in cryptocurrency markets while promoting responsible investment behavior.