Traders Union research: Crypto investors continue to trust exchanges

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Crypto investors continue to trust exchanges

Hacks prompt investors to strengthen security

Reports of major cyberattacks prompted 64% of crypto investors to take additional security measures. Specifically, 23% reviewed their account settings, 21% strengthened login authentication, 12% changed how they store digital assets, and 8% reviewed exchange security policies.

Meanwhile, 24% of survey participants said they already had sufficient security measures in place and saw no need to make changes.

Authenticator apps remain the most common account protection method, used by 39% of respondents. Another 22% rely on SMS authentication, while 13% use hardware security keys or passkeys. Overall, 74% of investors use two-factor or stronger authentication.

However, the study also revealed significant gaps in users' ability to recognize scams. When receiving a suspicious message claiming to be from a crypto exchange, 41% would independently verify the information through the official website or app, while 23% would contact customer support.

At the same time, 28% of respondents would interact with the suspicious message by clicking links, replying to the sender, or immediately following the instructions. Such behavior could expose them to phishing attacks.

How prepared are investors for an account breach?

Only 38% of survey participants selected the most comprehensive course of action when faced with an unfamiliar account login and an attempted unauthorized withdrawal. They would secure their account through official channels and contact the exchange's support team.

Another 25% would first change their password, while 14% would attempt to withdraw their remaining assets. Meanwhile, 9% would use a support link provided in the notification, increasing the risk of falling victim to scammers.

The study also identified gaps in investors' understanding of Proof of Reserves, a mechanism used by cryptocurrency exchanges to demonstrate their reserves. Only 39% of respondents correctly recognized that publishing reserve information does not, by itself, guarantee a platform's solvency or the safety of customer funds.

Another 22% mistakenly believe that Proof of Reserves guarantees the protection of customer assets, 13% think the mechanism prevents major hacks, and 9% see it as a guarantee of compensation for potential losses.

The researchers also examined what could restore investor confidence after a major cyberattack. For 43% of respondents, transparent reporting by the exchange about the incident would be the most important factor. Another 24% consider full compensation for customer losses the main requirement, while 15% prioritize an independent security audit.

Only 3% of respondents said that nothing an exchange could do would restore their trust.

As a reminder, traders tend to avoid exotic currencies.

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