CryptoVantage published a report with the security measures and the most common errors that users should be aware of if they maintain investment in cryptocurrencies.
information services company CryptoVantagewhich wants to be a guide in the world of cryptocurrencies and digital assets, published a report recently pointing out the results of a survey applied to US citizens, who participate in the crypto industry.
First of all, the CryptoVantage report focuses on pointing out the most common concerns and mistakes made by those who invest in cryptocurrencies. Then, it focuses on the key aspects that users of crypto assets must take into account to keep their assets protected and safe. Let’s see.
It may interest you: Cryptocurrencies now have more than 220 million users in the world
Passwords: creation and storage
The study, applied to more than 1,000 US crypto investors, reveals that the biggest concerns of investing in cryptocurrencies are related to the security of the invested funds, mainly due to the creation and storage of passwords.
CryptoVantage notes that 39.7% of study participants reported that they had forgotten their digital wallet access passwords and only 95.6% of these were able to retrieve them. Likewise, 11.9% of the respondents believed that the passwords created for their digital wallets were not secure, while 1 of 4 participants revealed that they preferred password managers so as not to forget them.
As the company points out, creating a password for a wallet or digital wallet is absolutely essential to keep the funds in crypto assets safe, as well as correctly storing said passwords.
According to the study, 51.8% of respondents avoid using combinations of common phrases and numbers when creating their passwords. 51.1% stated that they use alphanumeric characters to make their passwords more secure, while only 47.6% decided to use long phrases to create passwords with a high level of security.
34.8% of survey participants use two-factor authentication (2FA) and 31.6% avoid using passwords and access codes from other platforms, the company said.
CryptoVantage points out that the mechanisms to remember the access codes to a digital wallet are the password managersin 26.6% and the paper notes, by 18.6%. The latter is the method most recommended by many industry experts, as it provides greater security. Likewise, it is not recommended to send the access passwords or the recovery phrases of a wallet in email messages or screenshots, as there is a high risk of hacking.
Trust in digital wallets
To clarify, CryptoVantage points out that less experienced investors in the world of cryptocurrencies should keep in mind that what a wallet actually stores is data and not real money. Therefore, password security and trust in the wallet provider are crucial to keeping cryptocurrency investments safe.
However, despite this, user responses suggest that trust in wallets is not everything when it comes to investing in cryptocurrencies.
Of the survey participants, the majority considered “SoFi” to be the most secure digital cryptocurrency wallet out there. However, CryptoVantage clarifies that this is not a traditional crypto wallet, suggesting that users were not well informed about crypto wallets. Likewise, users responded that Exodus is the digital wallet with the lowest level of security, but the highest average of investments are deposited between Coinbase, Robinhood and Binance, which were rated with a medium level of security and do not provide users with access to private keys of its crypto assets.
The 38.2% of cryptocurrency users said they lost money by hastily selling their assets during a bear market. As CryptoVantage explains, panic selling coins was the most common mistake made by cryptocurrency investors.
The volatility of cryptocurrencies, especially of bitcoin, is one of the elements that can play against less experienced investors, who for fear of greater losses prefer to sell their holdings in crypto assets. As the company explains, this is one of the biggest mistakes made by investors, who can suffer huge losses on their investment.
“Even after forgetting passwords or maybe investing too much, his biggest regret was selling.”
Another of the most common mistakes made by investors was to deposit all their money in a single cryptocurrency, or to buy excessively when the price was rising. CryptoVantage reminds you that in the crypto market you always have to take into account the volatility of assets.
Scams and phishing have also caused losses for cryptocurrency investors. 32.6% of the participants stated that they had lost money due to scams related to crypto assets. The average loss is $538.
Continue reading: 13% of the US adult population owns Bitcoin