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Kaspersky explored user trends in cryptocurrency and found out that nearly half  (48%) of cryptocurrency users surveyed fear losing money due to volatility, and no longer use digital currencies, according to latest Kaspersky research. Additionally, 10% of respondents have already lost money and stopped investing as a result.

RELATED: Coinbase adds 19m verified users in 2022 despite crashing crypto markets

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 challenges frighten holders of digital currencies, leading some to avoid investing or even leave the industry altogether. Trends like these are among the main factors Kaspersky’s latest survey* identified leading some cryptocurrency enthusiasts to stop using digital currencies.

Currency volatility is a major barrier to the wider adoption of cryptocurrency. In fact, 48% of respondents said they were afraid to use crypto because they do not want to risk losing their money. Unfortunately, 10%  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.

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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.

“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. As with any emerging technology, there will be growing pains and setbacks, but the long-term prospects might still be bright for crypto. By prioritising security, cryptocurrency enthusiasts can minimise the risk of losing money or personal information and protect against threats that depend on them,” comments Marc Rivero, Senior Security Researcher at Kaspersky’s Global Research and Analysis Team.

Read the full report on Kaspersky Blog.

To maximise 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 unauthorised use of your computer’s processing power to mine cryptocurrency.

To learn more about the current trends of cryptocurrency threat landscape, join Vitaly Kamluk, the head of APAC’s unit of Kaspersky’s Global Research & Analysis Team, at a free webinar held by Kaspersky and Coindesk. The webinar will take place on January 26 at 3pm GMT. Register here for free.

* 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.

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