The Adoption Of Crypto-assets Is Progressing, But Security Is A Concern: Bitget Wallet

It is a fact! The adoption of crypto payments is progressing. While some regions are massively adopting these transactions, others remain cautious. The Bitget Wallet report highlights the trends as well as the solutions considered for broader adoption of crypto assets.

A crypto adoption hindered by security: the numbers speak for themselves!

According to the survey conducted by Bitget Wallet with 4,599 participants, security concerns remain a major obstacle for 37% of crypto users. Specifically, here are the main trends:

• 46% of users prefer crypto payments for their speed and efficiency.
• 52% of Africans and 51% of Southeast Asians favor these payments, mainly due to the high cost of bank transfers and limited access to traditional financial services.
• 41% of Latin Americans adopt crypto to avoid excessive fees for international transfers. These fees average 7.34% per transaction.
• In North America and Oceania (36%), cryptocurrency is seen as a solution for frictionless cross-border transactions.
• In Western Europe (35%) and the Middle East (38%), privacy concerns boost interest.

Conversely, reservations remain strong in certain age groups:

• 42% of Gen X express fears related to crypto payment security.
• 36% of Gen Z are more concerned about transaction fees than security threats.

Hacking and phishing: a very real financial threat

The crypto ecosystem remains a prime target of cyberattacks. Just in March 2024, over $1.2 million was stolen through address poisoning attacks. This is a technique where fraudsters trap their victims by prompting them to send funds to fraudulent addresses.

Other threats weigh on the use of cryptocurrency payments:

• Front-running: bots exploit pending crypto transactions to get ahead and rake in illegitimate profits.
• Sandwich attacks: hackers insert fraudulent transactions between those of legitimate users to maximize their profits.
• Phishing via smart contracts: malicious contracts trap users by making them sign fraudulent authorizations.

In the face of this reality, Bitget Wallet has implemented several protection mechanisms. Notably, the MEV Protection, which is enabled by default on:

• Ethereum;
• BNB Chain;
• Solana.

It prevents crypto attacks of the front-running and sandwich types.

Additionally, there is a protection fund of $300 million aimed at covering potential losses due to issues on the crypto platform.

Security remains a significant challenge for crypto companies, particularly for exchanges. User protection will be crucial in transforming cryptocurrencies into a reliable and accessible global payment method.