Author(s): Debashish Sakunia and Biswajita Parida
This study investigates the factors that influence user acceptance of forex and extends it to cryptocurrency trading. Despite the differences in underlying technologies, both forex and cryptocurrency trading involve buying and selling assets with high volatility and the potential for both profits and losses. Traders in both markets use technical analysis, leverage, and trading platforms to inform their decisions. While cryptocurrencies have unique properties such as decentralization and security, they remain unregulated in many countries including India, where the government has expressed concerns about their potential impact on financial stability and the risk of money laundering. Similarly, forex trading faces risks related to cash flow uncertainty and money laundering. Understanding the factors that influence user acceptance of these trading platforms can inform policymakers and businesses in developing effective regulations and strategies to mitigate risks and promote responsible trading practices. The study identified four key themes that influence acceptance: social influence, convenience, compatibility, and learning and training. Social influence mainly comes from friends and family, while convenience is related to the industry people are in or their friends are in. Learning and training activities can increase compatibility. These findings suggest strategies for increasing the acceptance of upcoming cryptocurrency markets in India. These strategies include targeting influential individuals for social influence, making it more convenient to use, ensuring compatibility with existing financial systems, and providing education and training. By implementing these strategies, cryptocurrency markets can increase their acceptance in India.