Abstract:
This study examines how psychological biases shape financial decisions and investor
behavior. The literature review includes historical development, frameworks of
behavioral finance and studies of heuristic and biases of psychology. The FTX
cryptocurrency exchange case has been investigated in the context of behavioral
finance. The research also includes the impact of psychological factors on investors in
Kazakhstan, using a survey and interviews. The results of the FTX Case Study showed
that investors in this situation were exposed to biases such as representativeness,
availability, overconfidence, over-reaction and herd effect. The analysis of the survey of
psychological variables for investors in Kazakhstan showed that they are vulnerable to
the effects of prejudice, such as anchoring bias, availability, overconfidence, over-
reaction and herd effect. The results of the survey were confirmed by an analysis of
interviews. Common biases have also been identified between FTX Case and result of
Kazakhstan’s behavioral aspects. The analysis sheds light on the importance of
understanding the role of psychology in the world of finance, both in the context of the
FTX case and in relation to the Kazakh financial market. In general, the results make it
possible to understand what biases an investor needs to work with both in the Kazakh
market and in the global market
