Cryptocurrencies: Few (one in ten) understand how they work.

News Kaspersky research discovered that the lack of understanding and trust makes consumers wary of use of cryptocurrencies.

Η  her report Kaspersky"Uncharted territory: why consumers are still wary of 'adopting' cryptocurrencies" reveals that while 29% of people have some knowledge of cryptocurrencies and there is a demand for the use of technology, only one in ten (10%) understand fully the way they work.

The rate at which cryptocurrencies are being "adopted" by consumers worldwide is slowing down, despite the fact that publicities such as Johnny Depp and YouTube influencers such as PewDiePie are "embracing" technology. Still, many consumers lack a proper understanding of how cryptocurrencies work, and this continues to hinder their "adoption" by a larger population. So far, four out of five (81%) have never bought cryptocurrency, which underscores how far we have come from being accepted as a common form of payment or investment.

Kaspersky's research found that there is a desire among many consumers to use cryptocurrency, but a knowledge gap fills in the middle to take the next step. In addition, many who thought they knew what they were dealing with later decided to oppose the use of cryptocurrency. Almost one-fifth (18%) stopped because it became too technically complicated.

This lack of understanding could lead to distrust of cryptocurrencies' ability to keep consumer money safe. For example, almost a third (31%) of respondents said they believe cryptocurrencies are quite liquid and need to be stabilized before they can be used. There is also a common perception among consumers that cryptocurrencies will not be in our lives forever. One third (35%) believe that cryptocurrencies are a fad that is not worth dealing with.
While widespread interest in cryptocurrencies may have peaked, there is still demand for the use of technology. One fifth (20%) of those surveyed said that while they do not use cryptocurrency at the moment, they would like to do so in the future. However, there is still doubt among consumers - often motivated by the fear that there is a real risk to their finances. Scammers can use cryptocurrencies to their advantage, with about one in five (19%) of those surveyed commenting that they have been attacked by hackers during transactions. Criminals also create fake e-wallets to attract people to invest their money recklessly, and 15% of consumers have fallen victim to cryptocurrency fraud.

Facebook's recent move will raise awareness about these currencies, but what is not clear is the impact, good or bad, on the security and reliability of cryptocurrencies, which are certainly not controlled or secured by nation-states. Who will regulate how Facebook uses these currencies and the information it receives as a party to this use? The security of such currencies as well as the data of their users are issues that need to be addressed from the outset. Facebook has come under a lot of pressure lately, and rightly so, for using confidential data. So it is understandable and perhaps good for people to be suspicious of Libra until Facebook puts in place the necessary safeguards.

However, there are things that all cryptocurrency providers can do to increase trust - securing their online services and transactions. Likewise, consumers need to understand the steps they need to take to prevent digital criminals from being robbed of their digital assets.

Kaspersky's recommendations for the safe use of cryptocurrencies:

• Always confirm the address of an e-wallet and do not follow the links in an online bank or in an online wallet.
• Use hardware cryptocurrency wallets.
• Double-check recipients' addresses, the quantity you send and the amount of the associated charge before sending a transaction.
Make a note of a mnemonic rule that will allow you to recover a crypto-wallet in case you lose it or forget your password.

Finally, after several years of researching digital security in cryptocurrency start-ups, Kaspersky recommends that cryptocurrencies adopt smart contract best practices, use proven frameworks for smart contracts (such as https: // openzeppel .org /) and evaluate the smart contract from third party vendors to ensure that they do not miss potential vulnerabilities.

"It is clear that the mass adoption and development of cryptocurrencies is limited due to the vulnerable nature of technology. While there is a great appetite for using it, investing your hard-earned money in something you do not fully understand or trust is difficult. With investment security being a top priority for consumers, it is vital that they take action to safeguard it themselves. As with any digital threat, there is no substitute for vigilance - if something seems too good to be true, then it probably is. If you want to exchange crypto-assets in any transaction, pay attention to the security of your account login details. If your goal is to make a long-term investment or use cryptocurrencies for payments, store them in secure environments and use multiple wallets, or distribute them in both software and hardware. "We also encourage cryptocurrencies to be effectively organized to show that they are capable of protecting their consumers' investments," said Vitaly Mzokov, Head of Commercialization at Kaspersky.

To help improve stability and boost confidence in cryptocurrencies, Kaspersky partners such as Merkeleon have developed legitimate trading platforms, online auction platforms, cryptocurrency trading and cryptocurrency systems.

"Cryptocurrencies certainly have their advantages, but as we can see, many consumers still do not know what they are due to security concerns and ignorance of how technology works. It is an exciting industry to be a part of, with trust as its foundation. "It's therefore imperative for cryptocurrency companies to do what they can to protect their networks and ensure that their customers' finances are safe and sound," said Alexey Sidorowich, Merkeleon Sales and Business Development Manager.

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