Fear of Missing Out (FOMO) and Crypto Asset Investment Behavior

Crypto asset investors tend to exhibit emotional consumer behavior characterized by fear and greed, which leads to Fear of Missing Out (FOMO). Therefore, this study attempts to examine the investment behavior of retail crypto investors through the lens of FOMO by investigating how self-confidence and greed contribute to this phenomenon. To achieve this, the study employs Structural Equation Modeling (SEM) based on survey data from retail investors living in Türkiye. The responses of 403 adults obtained through an online questionnaire administered to active retail crypto asset investors were analyzed to assess the relationships between Investment Behavior, FOMO, Self-Confidence, and Greed. As confirmed with the findings of our study, most of the crypto asset investors in Türkiye are young adults who use social media excessively and they are prone to FOMO. The results of our study reveal that Self-Confidence and Greed are positively associated with FOMO, which is positively associated with Investment Behavior. The results of our study may provide valuable insights for crypto asset investors, financial institutions and regulators to prevent putting investors’ financial prospects at risk due to FOMO and disinformation on social media.