A Study on Changing Role of Investor Behaviour towards Digital Investments – Pre and During COVID-19 Scenarios

Abstract

World markets are facing anxiety and vulnerability due to global pandemic of COVID-19.Investors are becoming cautious while selecting their investment avenues and hence theirfocus is shifting to more secure forms of investments. Cryptocurrencies are one of therenowned form of digital investments and has drawn attention of many investors since itsorigination. Since 2013 it has been attracting and shifting eye balls of many financial and ITresearchers with its excellent returns and use of advanced technology. The present study hasexplored the impact of COVID-19 on the investor behaviour towards digital currencies. Forthe very same purpose researchers have considered pre and during COVID phases andcompared the shift in volatility of five selected cryptocurrencies. The study has also explored few of the most prominent investor biases which influences investor behaviour and how these biases have shifted during global pandemic of COVID-19. Some of the prominent biases such as, availability bias, regret, mental accounting and herding have been recognized in the study to understand investor behaviour.