Survey: Nearly half of crypto holders see themselves as their greatest security threat
Over 1 in 5 U.S. crypto holders have been targeted by fraud or theft, and a further 36% worry they could be next.
Despite this, nearly half (48%) of holders fear making personal security mistakes more than being the target of a theft or fraud.
This concern appears legitimate as 67% of respondents have made at least one common error, like sending crypto to the wrong wallet or misplacing their private keys.
Security anxiety is limiting crypto adoption. Half of the respondents say security concerns have prevented them from investing more in crypto.
While 95% report using at least one safety measure, like 2FA or strong passwords, many still reuse passwords or store seed phrases insecurely.
Nearly one-third (31%) of respondents think more advanced security tech like biometrics and AI-driven tools will have the biggest impact on crypto security in the next five years.
Intro to the crypto safety survey 🔍
As crypto adoption grows, so does the need for smarter, stronger security. Crypto allows you to take control of your financial freedom, but with that control comes the responsibility of keeping your funds safe.
In a space as dynamic and innovative as crypto, it can be important to slow down and take steps to protect your funds — whether that be from anonymous attackers or your own personal mistakes.
According to our 2024 election and economy survey, U.S. crypto holders see anti-fraud measures and stronger crypto security policies as must-haves for strengthening their confidence in the market.
Kraken’s recent survey data backs their concern. Of the 789 U.S. crypto holders we surveyed for our new study, more than 1 in 5 report personally being a target of crypto fraud, hacking or theft. Another 26% said these issues have hit someone close to them.
Even among those who haven’t been affected, anxiety surrounding their crypto safety is mounting — 36% say they worry about falling victim to fraud or theft in the future. These concerns are holding them back from investing more deeply in the space and taking greater control of their financial freedom.
Crypto can offer exciting opportunities to invest in the next generation of finance. With a few thoughtful steps, crypto holders can keep their portfolio secure as they take full advantage of everything crypto has to offer.
Our latest survey not only reveals how investors are currently protecting their portfolios but also what crypto asset safety measures they still need to strengthen their confidence and involvement in the space.
Half of investors say crypto safety concerns hold them back from investing more 🚧
Our data indicates that the safer people feel, the more likely they are to invest in crypto. The majority of our respondents agree that security is a top concern, often citing it as the leading reason why they haven’t invested further.
When asked if concerns about crypto platform security have prevented them from investing more in crypto, 50% of respondents agreed to some degree. That includes 19% who "strongly agreed" and 32% who "somewhat agreed.”
This hesitation suggests that while many believe in crypto’s potential, they may lack full confidence in their ability to protect their assets. Because our data shows that crypto holders aren’t completely neglecting security measures, this finding indicates that they are questioning whether what they’re doing is enough.
For instance, an encouraging 95% of crypto holders said they take at least one preventive measure to protect their crypto. Only 5% of respondents report that they don’t actively protect their assets at all.
Here are the top three most common crypto safety practices followed by our survey respondents:
- Leveraging two-factor authentication (57%)
- Using strong, unique passwords for exchanges (45%)
- Avoiding public Wi-Fi for transactions (39%)
While seemingly basic precautions, these measures are crucial to help protect user assets. For instance, using unique passwords can minimize the risk of passwords being compromised, while avoiding public Wi-Fi reduces the risk of data being intercepted.
The most commonly used security measure, two-factor authentication, makes it harder for unauthorized users to access someone else’s accounts or crypto.
Still, even with precautions in place, some respondents hesitate to invest more — possibly because they believe in crypto’s potential, but aren’t confident in their personal security measures.
48% of crypto holders fear user error over fraud or theft 😱
Our survey shows that the crypto community takes security seriously, and they expect the same from their exchange platform.
Nearly all respondents (97%) said that strong security standards are at least somewhat important to them when choosing where to trade. Industry-wide efforts, such as the Blockchain Security Standards Council, of which Kraken is a founding member, seek to establish uniform high standards for crypto platforms.
Here’s the full breakdown of how strongly users weigh security when choosing a crypto exchange:
- 38% said it was extremely important.
- 29% said it was very important.
- 19% said it was moderately important.
- 10% said it was slightly important.
- 3% said it was not at all important.
However, despite a clear understanding of the importance of crypto platform security, 67% still reported making at least one common security mistake themselves.
For many crypto holders, it’s not hacks or scams that worry them most — it’s themselves. Nearly half of respondents (48%) said they’re more concerned about losing their crypto due to personal error than to fraud or theft.
This fear isn’t unfounded. Nearly a quarter (24%) of respondents said they’ve forgotten or misplaced private keys. A further 21% have sent crypto to the wrong wallet address and 30% admitted to reusing passwords across multiple accounts.
While some of these missteps are more severe than others, they all pose a real risk that can lead to irreversible losses. In traditional finance, you might call your bank to reverse a transaction or reset a password.
However, when it comes to staying safe in DeFi, self-custody means self-responsibility. There are not the same sorts of safety nets ready to help if you have an issue with your crypto.
Learning more about crypto safety and how to avoid common pitfalls can help build the confidence users need to invest in the crypto space more deeply.
Smarter tools: The future of crypto safety? ⚙️
When it comes to the future of crypto security, today’s investors believe technological innovation holds the key to enhancing crypto security.
According to our survey, nearly a third of respondents (31%) believe that advances in security technology will have the biggest impact on keeping digital assets safe. This includes biometrics, multi-factor authentication and AI-driven fraud detection.
Other options, like increased user education (18%) and the continued rise of decentralized exchanges (20%), trailed behind, even though these elements significantly influence the broader security landscape.
That gap is especially striking when you consider that nearly half of crypto holders fear making personal security mistakes more than falling for a scam. This could suggest that, instead of seeing education as the fix, users may be expecting smarter systems and stronger rules to serve as guardrails on their behalf.
In other words, many holders may be placing their hope in external solutions (like advances in security technology or government oversight) to keep their crypto safe for them, rather than taking on the burden of staying one step ahead of the next potential threat themselves.
Ultimately, personal responsibility and education are key to strengthening security and confidence in the crypto space.
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6 essential tips for more secure crypto assets 📝
With increasing crypto adoption comes a greater need for reliable safeguards and smarter tools to protect assets. While broader industry improvements are ongoing, individual users can immediately take control by enhancing their own crypto education and adopting best security practices.
Here are some simple yet effective steps experts recommend to strengthen your crypto safety habits:
- Consider a hardware wallet for long-term storage and to keep your keys offline.
- Back up recovery phrases securely, and never store them digitally.
- Enable two-factor authentication (2FA) on all crypto accounts.
- Create strong, unique passwords and never reuse them across platforms.
- Double-check wallet addresses before sending any transaction.
- Stay informed through trusted sources and stay alert to phishing attempts.
These simple, yet effective, actions form the foundation of many users’ crypto safety strategies.
Want to learn more about how to keep your assets safe? Dive into our Crypto Security Guide video series for explanations and insights.
Take control of your crypto security 🤝
Protecting your assets shouldn't require a tech degree or a crystal ball. At Kraken, we’re committed to safeguarding your assets with advanced cold storage, strict access controls and continuous monitoring.
By following best practices and staying informed, you can take steps toward better protecting your crypto.
Ready to get started? Start trading with Kraken today.
Methodology 🧑💻
We partnered with SurveyMonkey Audience to survey U.S. residents over 18 years old. The survey was completed on April 1, 2025. All survey questions focused specifically on U.S. cryptocurrency holders, resulting in a targeted sample of 789 respondents. Results with this sample have a 95% confidence level and a +/- 3% margin of error.