What are the main factors to take into account when owning a cryptocurrency wallet? Assets and data security are the primary concern of wallet holders.

Highlights

  • Almost 50% of participants use, hold, or trade cryptocurrencies.
  • Around 45% of cryptocurrency holders use digital crypto-wallets.
  • About 50% of respondents consider wallet security as ‘extremely important’.

With the increase in the use of cryptocurrencies worldwide, especially since the fall of markets such as the stock market and utilities during the COVID-19 pandemic, it is essential to understand whether crypto users remain informed when choosing their hot or cold wallets.

Cryptocurrency wallets are devices, online or offline, where cryptocurrency users can hold their assets. Are users more concerned with the safety, features, or speed of these wallets? Real Research understood that despite the importance of offering useful features, wallets must be secure for their users.

Cryptocurrencies and Crypto Wallets Go Mainstream

In this global survey that sought to address the thematic of crypto wallets, individuals from several countries were surveyed, namely, South Korea, UAE, India, China, USA, UK, to which we realized that cryptocurrencies and crypto wallets begin to be used ordinarily, all over the world.

Do you own hold or ever used cryptocurrencies before?

Of the 4000 participants, 3495 participants — which is equivalent to 87.96% of the total, have already used cryptocurrencies for different reasons. Respectively, 49.96% confirmed they hold and trade cryptocurrencies, 19.1% used to hold but withdrew them into fiat, and 18.9% confessed holding some cryptocurrencies only for curiosity. The remaining 13.06% of the participants admit that they have never used digital currencies before.

This shows that cryptocurrencies have gained great importance in the financial market and that in a spectrum of 4000 participants from various countries, the adoption of crypto has become mainstream.

Hence, if cryptocurrencies go mainstream, users need wallets to hold their assets. Even with the possibility of using exchange platforms for this purpose, crypto wallets are equivalent to the wallets we use to store our cards on a day-to-day basis. The difference is that they keep digital money or secret keys.

Which are More Popular, Cold or Hot Wallets?

Do you own or ever used cryptocurrency wallet before?

To the question, “Do you own or ever-used a cryptocurrency wallet before?” 44.96% of the respondents admit using digital wallets frequently, and 22.9% say they have downloaded a digital wallet. On the other hand, 18.6% answered, “Yes, but I only use cold wallets (non-online).

At this point, you might be questioning what’s the difference between cold and hot wallets. Please follow the brief explanation below.

Cold Wallet means cold storage, referring to any cryptocurrency wallet that is not connected to the internet. It can be a paper wallet, a flash drive, or another hardware device without an internet connection.

Hot Wallet is any cryptocurrency wallet that is connected to the internet. They can be mobile wallets, desktop wallets, or website-based wallets.

Proceeding, digital wallets, or hot wallets are more common because they are more convenient and easier to use, especially in a world that works on-demand. On the other hand, the risk of hacking or malware does not exist when crypto holders use cold wallets.

The survey shows that, after all, users still prefer hot wallets rather than cold wallets.

Security and TPS Are Primary Factors When Choosing a New Wallet

Although in our in-depth research, we have found that respondents use more digital wallets, security continues to play a key role in choosing a crypto wallet.

To the question, “When considering a new wallet, how important is the security of your assets for you?”, 50.49% of the respondents have chosen the “extremely important” option.

When considering a new wallet, how important is the security of your assets for you?

Speed is also essential, with 47.25% of the respondents affirming that the transactions-per-second (TPS) speed is “extremely important” when considering a wallet. On the contrary, to the question, “When considering a new wallet, how important is the TPS (transaction-per-second) speed?”, only 2.67% of the respondents claim not to pay attention to this.

When considering a new wallet, how important is the TPS (transaction-per-second) speed?

Aladdin Wallets Among the Favorite Crypto Wallets

This survey is sponsored by Aladdin Wallet. It aims to understand the needs and preferences of crypto users. In particular, we decided to address custodial and non-custodial wallets. Although the majority of respondents, 41.4% of respondents claim to prefer non-custodial wallets — as opposed to 18.12% who prefer custodial wallets — a large percentage of respondents assumed they would prefer to have the choice between both.

Would you rather have a custodial or a non-custodial service for your wallet?

To the question, “Would you rather have a custodial or a non-custodial service for your wallet?” 31.69% of respondents answered, “I would rather have both and the options to choose.” Aladdin Wallet offers three wallets in this scenario, including the custodial and non-custodial options in its offers.

Which of the following wallets have you used the most?

Of the 4,000 respondents, 1450 prefer Aladdin wallets to store their assets. Aladdin Wallet (non-custodial) came next with 19.8%. In their place, the participants choose the custodial Aladdin Pro wallet with 16.45%. Meanwhile, the most popular portfolio is Exodus (web-based hot wallet) with 23.97%. However, if we quantify both Aladdin wallets, we reach a total of 36.25%.

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