Cryptocurrency volatility and security concerns: Kaspersky research identifies key barriers to crypto adoption in Saudi

Kaspersky explored user trends in cryptocurrency and found out that more than half of (60%) cryptocurrency users fear losing money due to volatility, and no longer use digital currencies, according to latest Kaspersky research. Additionally, 15% of respondents have already lost money and stopped investing as a result.

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 percent 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.

Other barriers to adoption include the lack of tangible assets backing crypto (23% of respondents) and the risk of revealing personal data during a cyberattack (11% of respondents). These findings suggest that stability and security are key issues for the wider adoption of cryptocurrency. In fact, 14% of  respondent no longer trusts crypto at all.

When it comes to user presumptions, 34% of the respondents from Saudi Arabia stated that their expectations from cryptocurrencies were not fully met, while only 40% are satisfied or their expectations are even exceeded.

“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 prioritizing security, cryptocurrency enthusiasts can minimize 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 maximize 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 unauthorized use of your computer’s processing power to mine cryptocurrency.