Friday, December 8, 2023

48% of users globally no longer use cryptocurrencies, according to a study

Central America and the Dominican Republic.– A recent Kaspersky analysis of cryptocurrency user trends reveals that globally, almost half of them fear losing money due to the volatility of digital currencies and are no longer using them. Additionally, 10% of those surveyed have already lost money and stopped investing as a result of that experience.

The recent market downturn in 2022, coupled with malicious activity around cryptocurrencies, has caused a liquidity crisis and left many users feeling insecure about their investments. These challenges scare those who hold digital currencies, leading some to avoid investing or even abandon the industry altogether, according to the latest survey from the multinational, specializing in cybersecurity.

Volatility is a major barrier to the broader adoption of cryptocurrencies. In fact, 48% of those surveyed said they were afraid to use cryptocurrency because they didn’t want to risk losing their money. Unfortunately, 10% had already experienced losses due to a drop in the value of the digital currency. Concerns about losing money due to currency volatility also extend to those who do not own cryptocurrency. 61% of those who do not use cryptocurrency said they refuse to use it because they are worried about risking their money.

Other barriers to adoption include the lack of tangible assets backing cryptocurrencies (14%) and the risk of revealing personal data during a cyberattack (6%). These findings suggest that stability and security are key issues for broader adoption of cryptocurrencies. In fact, one in eight respondents no longer trust them at all.

When it comes to user assumptions, the result is a bit mixed: in the Asia-Pacific region, 41% said their expectations were exceeded, while 35% said they weren’t. However, in Europe, where there are more regrets about investing in crypto, 41% said their expectations were only met to some extent or not at all. This compares to just 26% who said their hopes were fulfilled with cryptocurrency. In the case of Latin America, 39% of users assured that the investments made met or exceeded their expectations.

“Despite the challenges the cryptocurrency industry is currently facing, it is important to remember that it is still a relatively new and innovative space with enormous potential. As with any emerging technology, there will be increasing problems and setbacks, but the long-term outlook could still turn out bright for cryptocurrencies. By prioritizing security, cryptocurrency enthusiasts can minimize the risk of losing money or personal information and protect themselves against the threats that depend on them,” says Marc Rivero, Senior Security Analyst, Kaspersky Global Research & Analysis Team.

To maximize the benefits of using cryptocurrency safely, the company recommends:

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. Beware of suspicious emails or links and always double check the URL before entering your login information.

• Do not share your private keys: your private keys unlock your cryptocurrency wallet. Keep them private and never share them with anyone.

• Get informed: Stay informed about the latest cyber threats and best practices to keep your cryptocurrency safe. The more you know about how to protect yourself, the better equipped you will be to prevent cyberattacks. For businesses, make sure the curriculum includes information about cryptocurrency security when choosing awareness training for your employees.

• Use security solutions: a reliable security solution will protect your devices against various types of threats. Kaspersky’s portfolio of consumer solutions prevents all known and unknown cryptocurrency fraud, as well as unauthorized use of your computer’s processing power to mine cryptocurrency.


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