The biggest mistakes a crypto trader can make

A recent survey shows that a portion of people have been victims of crypto scam via websites, emails, and fake mobile apps.

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The survey which was conducted on 1,021 US-based cryptocurrency investors shows that 1 out of 3 people have been subject to crypto scams via websites, emails, and fake mobile apps.

There are multiple ways to save and store your password and it is of great significance to crypto traders and users since it’s impossible to recover a password if you lose it without having your seed phrase (recovery phrase) saved and stored previously.

The survey was entitled “Coin Storage Security: A closer look at crypto storage and passwords” and was carried out by Cryptovantage to understand investor’s sentiment regarding their strategies for crypto investment protection.

This survey was conducted on 1,021 crypto owners in the US and their answers were interesting. Crypto exchanges were the most favorite alternative for users and traders to store their digital investments and Coinbase with 34.7% came in first among the exchanges. Robinhood with nearly 26% of the user base for storing crypto came in second and Binance stood in third place having roughly 25% of the stored assets.

This survey proved that almost 73% of the participants believe that SoFi, the American finance company, is the most secure crypto wallet while only 9% of these users use it as a go-to wallet. In an attempt to get the participants' idea on their crypto password storing, the respondents were asked if they think their passwords were safe and the result showed that “61% of respondents believed their crypto passwords were safe, while about 12% felt theirs were not.”

In regards to the methods taken by traders and crypto investors to remember their wallet passwords, 4 methods were the top ones. The top one is the Password managers with 26.6%, followed by handwritten notes with 18.6%, then password safes 15%, and taking screenshots was the last of the top methods with 10.3%. According to the report:

“39.7% of respondents had previously forgotten their crypto password. 95.6% of them were able to recover their investment.”

85.7% of the respondents sought help from recovery services to help them in case of forgetting their passwords. In the meantime, the ones who couldn’t retrieve access to their crypto wallets lost $2,134 on average. Regarding scams, one-third have fallen victims to crypto scams of which 47.7% was through emails, 45.2% through the website, and mobile apps’ share was 44.6%.

One interesting finding regarding this survey was about the respondents’ mistakes in trading. Panic selling is the biggest mistake with 38.2%, investing all the money in one asset is the next one with 32.5%, and password loss 12.5%.

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Cryptocurrency(5)

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Cryptocurrency

Survey

Tags

Cryptocurrency

Survey