The Influence of Crypto Asset Knowledge, Risk Management, and Self-Efficacy on Crypto Investment Interest in Students in Lhokseumawe City

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FORMOSA NEWS - Medan - Personal Confidence and Crypto Knowledge Drive Student Investment Interest, While Risk Management Lags Behind. In 2026, researchers Maulidin, Maisyuri, Yosie Gabriela Panjaitan, and Nurmasyahyati from Universitas Senior Medan examined the primary factors driving cryptocurrency investment interest among university students in Lhokseumawe City. Published in the Formosa Journal of Applied Sciences, the study evaluates how crypto asset knowledge, personal self-efficacy, and risk management shape youth participation in digital financial markets. The findings highlight a critical disconnect in youth financial behavior: while personal self-confidence and crypto literacy strongly motivate students to trade digital assets, financial risk management plays virtually no role in driving their investment interest. Addressing these behavioral drivers is crucial for designing targeted educational programs that protect young investors from severe market volatility.

Background and Relevance

Rapid digital transformation and the expansion of blockchain technology have revolutionized global financial instruments, positioning cryptocurrency as a mainstream investment alternative for young adults. Accessible smartphone trading applications and low barriers to entry draw university students into digital asset markets, where promises of rapid returns compete with extreme price volatility. In regional educational hubs such as Lhokseumawe City, student exposure to digital financial tools continues to expand rapidly. However, high enthusiasm often outpaces actual financial literacy and protective risk strategies. As young individuals navigate speculative digital assets, identifying whether their market entry is fueled by factual knowledge, psychological self-belief, or structured risk mitigation provides vital guidance for university leaders and financial regulatory bodies.

Research Methodology
The research team employed a quantitative research methodology with a causal associative design to measure statistical relationships between student characteristics and investment behavior. Primary data was gathered through online structured questionnaires distributed via Google Forms to university students across Lhokseumawe City. The sample consisted of 83 active student respondents, including 38 male students (45.8%) and 45 female students (54.2%). All survey items were evaluated using a five-point Likert scale ranging from "Strongly Disagree" to "Strongly Agree". The survey measured four distinct constructs: crypto asset knowledge, risk management capability, self-efficacy, and crypto investment interest. The authors processed the primary data using multiple linear regression analysis executed through SPSS software, verifying standard statistical assumptions—including tests for normality, multicollinearity, and heteroskedasticity—before conducting hypothesis testing.

Key Findings
Statistical evaluation of the survey data yielded significant insights into student financial decision-making:

• Combined Factors Explain 67% of Investment Interest: The simultaneous regression model proved highly significant ($F = 53.518, p = 0.000$), demonstrating that crypto asset knowledge, risk management, and self-efficacy collectively explain 67.0% of the variance in student crypto investment interest ($R^2 = 0.670$).
  
• Self-Efficacy Performs as the Primary Motivator: Self-efficacy emerged as the single strongest individual factor driving investment interest ($t = 5.592, p = 0.000$). Students who possess strong personal confidence in their ability to analyze market information and make independent choices exhibit significantly higher willingness to invest.
  
• Crypto Knowledge Positively Predicts Trading Interest: Understanding core blockchain concepts, token mechanics, trading platforms, and financial risks significantly increases investment intent ($t = 2.713, p = 0.008$). Enhanced literacy allows students to evaluate market opportunities with greater clarity, reinforcing their decision to participate.
  
• Risk Management Exerts No Direct Impact: Risk management capabilities showed no statistically significant effect on crypto investment interest ($t = 0.003, p = 0.998$). Student enthusiasm for cryptocurrency trading operates independently of their ability or willingness to manage financial risk, indicating that initial trading intent is heavily influenced by curiosity, digital trends, and social media exposure rather than defensive financial planning.
  

Real-World Impact and Policy Implications
The empirical results offer vital practical applications for higher education administrative leaders, financial regulators, and digital asset educators. Because young traders enter digital markets fueled primarily by self-confidence and basic knowledge while neglecting risk control, they face heightened financial vulnerability during market crashes. To counter these vulnerabilities, academic institutions and financial authorities must shift from theoretical lectures toward practical, actionable risk training. Introducing interactive trading simulations, hands-on portfolio risk management workshops, and structured decision-making modules will help align student confidence with essential risk mitigation strategies.

Author Profiles
Maulidin, M.Si. – Lead Author and Researcher at Universitas Senior Medan, specializing in applied financial economics, quantitative modeling, and digital asset investment behavior.
Maisyuri, M.E. – Co-Author and Researcher at Universitas Senior Medan, specializing in financial economics, consumer behavior, and statistical data analysis.
Yosie Gabriela Panjaitan, M.M. – Co-Author and Lecturer at Universitas Senior Medan, focusing on applied business management, investment behavior, and financial literacy.
Nurmasyahyati, M.Si. – Co-Author and Researcher at Universitas Senior Medan, specializing in behavioral finance, educational psychology, and financial self-efficacy.

Source
Maulidin, Maisyuri, Yosie Gabriela Panjaitan, Nurmasyahyati. The Influence of Crypto Asset Knowledge, Risk Management, and Self-Efficacy on Crypto Investment Interest in Students in Lhokseumawe City. Formosa Journal of Applied Sciences (FJAS). Volume 5, Nomor 9, Tahun 2026, Halaman 2017–2030
DOI Resmi: https://doi.org/10.55927/fjas.v5i9.125
Tautan: https://journalfjas.my.id/index.php/fjas