Cryptocurrency volatility and security concerns: Kaspersky research identifies key barriers to crypto adoption
Woburn, MA -- January 17, 2023 – Nearly half of (48%) global cryptocurrency users fear losing money due to volatility, and no longer use digital currencies, according to a new survey report from Kaspersky. Ten percent of respondents said they have already lost money and stopped investing as a result.
The recent market downturn in 2022, coupled with ongoing malicious activity, has led to a liquidity crisis, and left many crypto owners feeling uncertain about their investments. These trends are among the main factors Kaspersky's survey identified. The challenges frightening holders of digital currencies are leading some to avoid investing or even leave the industry altogether.
Currency volatility is a major barrier to the wider adoption of cryptocurrency. In fact, 48 percent of respondents said they were afraid to use crypto because they do not want to risk losing their money. Unfortunately, 10 percent of respondents had already experienced losses due to a drop in currency values. Concerns about losing money due to currency volatility also extend to those who don't own crypto. A whopping 61 percent of non-crypto owners said they refuse to use cryptocurrency because they are worried about the risking their money.
Other barriers to adoption include the lack of tangible assets backing
crypto (14% of respondents) and the risk of revealing personal data during a
cyberattack (6% of respondents).
These findings suggest that stability and security are key issues for the wider adoption of cryptocurrency. In fact, every eighth respondent no longer trusts crypto at all.
When it comes to user expectations, the picture is somewhat mixed. In the Asia-Pacific region, 41 percent of respondents said their expectations for crypto had been exceeded, while 35 percent said they had not been met. However, in Europe, where regrets about investing in crypto were most common, 41 percent of respondents said their expectations were only met to some extent or not at all. This compares to just 26 percent who said their hopes were fulfilled by cryptocurrencies.
“Despite the challenges currently facing the cryptocurrency industry, it is important to remember that it is still a relatively new and innovative space with tremendous potential,” said Marc Rivero, senior security researcher at Kaspersky’s Global Research and Analysis Team. “As with any emerging technology, there will be growing pains and setbacks, but the long-term prospects might still be bright for crypto. By prioritizing security, cryptocurrency enthusiasts can minimize the risk of losing money or personal information and protect against threats that depend on them.”
Read the full report on Kaspersky’s Blog.
To maximize the benefits of using cryptocurrency safely, Kaspersky experts also recommend:
· Use strong and unique passwords: creating strong and unique passwords for each of your crypto accounts can help prevent password cracking and brute force attacks.
· Avoid phishing attacks: phishing attacks are attempts to trick you into revealing your login credentials or personal information. Be wary of suspicious emails or links, and always double-check the URL before entering your login information.
· Don't share your private keys: your private keys unlock your cryptocurrency wallet. Keep them private and never share them with anyone.
· Educate yourself: stay informed about the latest cyber threats and best practices for keeping your cryptocurrency safe. The more you know about protecting yourself, the better equipped you'll be to prevent cyber-attacks. For business, make sure that curriculum includes information on cryptocurrency security when choosing awareness training for your employees.
· Use security solutions: a reliable security solution will protect your devices from various types of threats. Kaspersky's portfolio prevents all known and unknown cryptocurrency fraud, as well as unauthorized use of your computer's processing power to mine cryptocurrency.
* Kaspersky commissioned Arlington Research to undertake quantitative global online research with 12,000 people from 16 countries including Austria, Brazil, Colombia, France, Germany, India, Malaysia, Mexico, Saudi Arabia, South Africa, Spain, Switzerland, Turkey, UAE, the UK, and the USA.
Kaspersky is a global cybersecurity and digital privacy company founded in 1997. Kaspersky’s deep threat intelligence and security expertise is constantly transforming into innovative security solutions and services to protect businesses, critical infrastructure, governments, and consumers around the globe. The company’s comprehensive security portfolio includes leading endpoint protection and a number of specialized security solutions and services to fight sophisticated and evolving digital threats. Over 400 million users are protected by Kaspersky technologies, and we help 240,000 corporate clients protect what matters most to them. Learn more at usa.kaspersky.com.
Sawyer Van Horn