The exponential rise of cryptocurrency investment in Indonesia presents a unique context to explore behavioral finance, particularly herding behavior. This study investigates the influence of herding behavior on investment decision-making, investment performance, and perceived market efficiency among Indonesian individual cryptocurrency investors. By employing a Partial Least Squares Structural Equation Modeling (PLS-SEM) analysis of 53 valid responses, this study’s findings reveal a discernible positive relationship between herding behavior and investment decision-making, while its effects on investment performance and perceived market efficiency remain inconclusive. Herding behavior, driven by psychological biases and peer influence, often leads investors to uninformed mimic others, which underscores the need for informed decision-making. The study highlights the nuanced role of herding in shaping investor behavior in Indonesia’s rapidly growing cryptocurrency sector, with practical implications emphasizing the importance of investor education and regulatory safeguards to mitigate herd-driven behaviors. Despite limitations such as small sample size and reliability concerns, this research contributes to the growing discourse on herding behavior and its implications for investment outcomes, paving the way for future studies focusing on asset-specific and regional behavioral nuances.