The effect of behavioral bias on cryptocurrency trading and its consequences in Thailand: Mindfulness meditation as a moderator

Abstract

Many individuals are motivated to invest in cryptocurrency owing to the anticipated high rate of return. A dual-system model is applied in this study to investigate how behavioral bias and mindfulness meditation impact the cognitive processes and trading performance of cryptocurrency traders. Despite more interest in the practice of mindfulness meditation among investors, to date, there is no empirical evidence to support its benefits, such as reducing behavioral bias to improve trading performance. Data were collected from 400 independent traders in Thailand using non-probabilistic sampling. The results reveal that behavioral bias increases the impulse purchase of cryptocurrency and lowers trading performance. Conversely, mindfulness meditation reduces behavioral bias, which lessens impulse purchase, thereby improving trading performance. By fostering mindfulness meditation to maintain emotional stability, investors could optimize their profits while achieving long-term financial benefits.