A survey found that more than 50% of users did not know what exactly cryptocurrency wallets were. Thirty percent of those surveyed admitted they had forgotten the password for where they stored their cryptocurrency holdings.
Bitcoin has allowed each user to become their own bank, so each is responsible for their money holdings. A recent survey revealed how more than 1,000 US citizens keep the bitcoins and other cryptocurrencies they buy secure.
The CryptoVantage website used a platform specialized in segmented surveys on a specific population. In this case, the respondents were 1,021 US citizens who own cryptocurrencies.
Which Wallets Americans Use Most
Regarding the wallet that they used the most, those consulted included platforms for buying and selling Bitcoin and other cryptocurrencies in their answers.
The wallet with the highest number of users was the Coinbase exchange (34.7%), which preceded Robinhood (26.4%). Of course, neither of the two buying and selling platforms is an actual wallet. The list only included wallets such as Atomic Wallet (16.8%), Blockchain (13.7%), Exodus (7.8%), and Jaxx (7.6%).
The main difference between a wallet and an exchange is that the user has power over the private keys with the former. Contrarily, the latter manages and protects private keys, only allowing the user to move the funds.
According to the survey, 70% of the users claimed to safeguard their cryptocurrencies in their wallets. However, the response percentage indicates that this percentage drops to 53.4%, taking into account actual wallets.
The consultation revealed that the size of the investors’ capital amounted to USD 7,245, on average.
Which Wallets Americans Consider the Most Secure
Regarding the most secure platforms, the respondents included in their answers custodial platforms, which do not act as wallets.
According to the survey, cryptocurrency investment platform SoFi (73%) is one of the most secure wallets. It precedes Blockchain, which 72% of those consulted consider a wallet since it allows creating a recovery seed.
This answer included few wallets as such that respondents considered secure. Among them were Atomic Wallet (66%), Jaxx (64%), Electrum (64%), and Exodus (49%). However, no one considered hardware wallets one of the most secure.
The wallets that respondents use the most to manage their bitcoins and other cryptocurrencies are mobile and desktop apps. They consider that they maintain an advantage when using online services. Of course, this only indicates where they prefer to handle their cryptocurrencies without specifying the type of wallet.
How Americans Protect Their Passwords
Although there was a question about password security, there was none about recovery seeds. However, the reference can apply to wallets that use security systems with passwords, biometric security, or BIP 39 seeds.
The top methods the respondents mentioned include using a password manager (26.6%) and writing the password down on a piece of paper (18.6%). Many people consider the latter method to be one of the most secure for safeguarding the recovery seeds.
Others said they used a screenshot (10.3%) or shared the password with a friend or relative (6%). Many consider both methods to be very impractical and insecure.
The survey indicated that 39.7% of them have lost or forgotten their passwords. Of this percentage, 95.6% admitted that they could regain access to their funds, most of which relied on recovery services.
Those who use Bitcoin wallets and do not secure their recovery seeds may lose access to them. Besides, they will not be able to recover their funds, as there is no system on the network to recover lost or forgotten seeds.
By Alexander Salazar
