Cryptocurrency investment using the analytic hierarchy process

Abstract

Paired with digital currency, blockchain technology has gained immense popularity due to its transformative effects on traditional business processes. This research relies on secondary data from academic literature to identify influential factors in investors’ cryptocurrency decisions. Financial experts’ judgment employs descriptive analysis and a normative research approach. Addressing gaps, Analytic Hierarchy Process (AHP) model contributes to a comprehensive understanding of cryptocurrency indicators, combining fundamental and technical analyses. The outcome is an AHP model with a critical ranking of 15 criteria for multicriteria decision-making, encompassing five groups: crypto profile, economics, technical, social, and risk factors, all drawn from prior research. The paper finds that the technical analysis group is less important than other groups. Moreover, the indicator of market capital is the most significant to consider for cryptocurrency analysis before investment. This approach introduces a psychological dimension to investors’ choices, enhancing rational decisions in the digital currency realm and aiming to maximize investment profits.