CryptoVantage has published a report with the most common security measures and mistakes that users should keep in mind if they invest in cryptocurrencies.
The information services company CryptoVantage, who wants to be a guide in the world of cryptocurrencies and digital assets, published a report recently highlighting the results of a survey applied to American citizens, who participate in the crypto industry.
First, CryptoVantage's report focuses on pointing out the most common concerns and mistakes made by cryptocurrency investors. Then, it focuses on the key aspects that cryptoasset users should keep in mind to keep their assets protected and safe. Let's take a look.
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Passwords: Creation and Storage
The study, conducted on more than 1.000 US crypto investors, reveals that the biggest concerns about 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 forgetting their digital wallet login passwords, and only 95,6% of them were able to recover them. Also, 11,9% of respondents believed that the passwords they created for their digital wallets were not secure, while 1 in 4 participants revealed that they preferred password managers to avoid forgetting their passwords.
As the company points out, creating a password for a wallet A digital wallet is absolutely essential to keeping your crypto funds safe, as is properly storing your passwords.
User preferences
According to the study, 51,8% of respondents avoid using combinations of common phrases and numbers when creating their passwords. 51,1% said 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.
Source: CryptoVantage
34,8% of survey participants use two-factor authentication (2FA) and 31,6% avoid using passwords and access keys from other platforms, the company said.
CryptoVantage points out that the mechanisms for remembering the access keys to a digital wallet are the following: password managers, by 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 advisable to send access passwords or passwords recovery phrases from a wallet in email messages or screenshots, as there is a high risk of hacking.
Trust in digital wallets
To clarify, CryptoVantage notes that less experienced crypto investors should keep in mind that what a wallet actually stores is data and not actual money. Therefore, password security and trust in the wallet provider are crucial to keeping crypto 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 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. Users also 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 the cryptocurrency wallets. private keys of their cryptoassets.
Panic selling
El 38,2% of cryptocurrency users said they lost money by selling their assets hastily during a bear marketAccording to CryptoVantage, panic selling coins was the most common mistake made by cryptocurrency investors.
The volatility of cryptocurrencies, especially bitcoin, is one of the elements that can work against less experienced investors, who, for fear of greater losses, prefer to sell their holdings in cryptoassets. As the company explains, this is one of the biggest mistakes made by investors, who can suffer large losses in their investment.
“Even after forgetting passwords or perhaps investing too much, his biggest regret was selling.”
Another common mistake investors make is putting all their money into one cryptocurrency, or buying excessively when the price is on the rise. CryptoVantage reminds us that in the crypto market, the volatility of assets must always be taken into account.
Scams and phishing also caused losses for cryptocurrency investors. 32,6% of participants said they had lost money due to crypto scams. The average loss is $538.
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