A new survey has found that 19 percent of bitcoin traders have been the victim of a hack on cryptocurrency exchanges, while 15 percent of consumers have been hit with crypto fraud.
The report, “Uncharted Territory: Why Consumers are Still Wary about Adopting Cryptocurrency,” also found that only one in ten people truly understand how cryptocurrencies work, and 29 percent have “some knowledge” of digital currencies, with that lack of knowledge stifling mainstream adoption.
In fact, 81 percent of respondents reported that they have never purchased cryptos, while 18 percent believe they are too complicated. In addition, 31 percent say that cryptocurrencies are too volatile, and 35 percent think they are nothing more than a fad.
And of course, the rise in crypto-related crime has also hindered the use of digital currencies.
“It is clear that mainstream adoption and growth of cryptocurrency is being held back due to the vulnerable nature of the technology. While there is a high appetite to use it, giving your hard-earned cash to something you don’t fully understand, or trust, is a hurdle. With the safety of investments being of paramount importance to consumers, it is vital that they take their own steps to safeguard it. Like with any cyber threat, there is no substitute for vigilance — if something looks too good to be true, then it probably is. If you want to trade crypto assets on any exchange, pay attention to the safety of your account’s credentials. If your goal is long-term investment or to use cryptocurrencies for payments, then store it in safe environments and use multiple wallets, or distribute between both software and hardware. We also encourage crypto businesses to organize themselves effectively to show they are able to protect their customers’ investments,” said Vitaly Mzokov, Head of Commercialization at Kaspersky, in a press release.
To boost stability and foster trust in cryptocurrencies, Kaspersky announced it has partnered with Merkeleon, who has created legitimate marketplace platforms, online auction platforms, cryptocurrency exchanges and crypto payment systems.
“Cryptocurrency certainly has its benefits but, as we can see, many consumers are still unaware of what they are due to concerns over security and how the technology works. It is an exciting industry to be involved in, but it is one that is built upon trust. It is, therefore, imperative that cryptocurrency businesses do all they can to protect their networks and ensure their customers’ finances are safe and secure,” said Alexey Sidorowich, head of sales and business development at Merkeleon.