A new survey by Ramp Network, a crypto on-ramp provider, has once again confirmed that security and transparency concerns are the chief obstacles to mainstream cryptocurrency adoption.
The survey, conducted directly on Ramp’s user base (particularly first-time buyers), saw 46.8% of respondents cite security as their biggest worry, while 80% admitted that robust fraud protection would make them feel more comfortable taking the first step.
Security concerns among crypto newcomers
As per the survey, crypto scams, phishing attacks, and the potential for monetary loss are among the primary problems new crypto traders face.
On the other hand, 69.7% of intermediate and advanced users on the platform claimed their primary concerns were, for example, user-friendly interfaces.
This suggests that security and transparency are issues that need to be solved before, not after onboarding.
In the words of one of the respondents:
“The thing about crypto that’s freaky is, I don’t know what’s safe. I don’t know what platforms are safe… I just want to know my wallet isn’t going to get breached or my card data leaked.”
Also noteworthy is the fact that some respondents claimed they would be willing to pay higher fees if security standards were higher. As one participat said:
“Security is more important than fees. I’m willing to pay slightly higher fees if I feel safer.”
How crypto traders protect themselves
Far from being passive, new crypto adopters are taking more and more steps to protect themselves.
For example, many participants said they read user reviews, look for app glitches, and study even more advanced aspects of the platform (for example, smart contract activity) before committing funds.
Indeed, Ramp reports that 33% of users who ended up making multiple transactions started out with less than $100.
Others opt for hardware wallets and refuse to use platforms without know-your-customer (KYC) requirements, which are present on Ramp Network.
As proof of its transparency policies, Ramp Network also boasts Financial Crimes Enforcement Network (FinCEN) registration in the US, The Financial Conduct Authority (FCA) approval in the UK, Virtual Asset Service Providers (VASP) status in Ireland, and System and Organization Controls 2 (SOC2) Type 2 compliance.
