Written by: Deep Tide TechFlow
In recent years, the crypto world has gradually become one of the most dynamic investment fields, but in this rapidly developing digital territory, risks and opportunities coexist, requiring constant vigilance regarding security issues.
Based on this, Binance conducted a survey on 'Cryptocurrency User Security and Anti-Fraud Awareness', collecting a total of 7,967 Chinese-language questionnaire results.
Deep Tide TechFlow analyzed the data results of this survey and created this report, aiming to help users find direction and move forward safely in the crypto jungle.
This survey delves into users' security awareness in cryptocurrency trading and their ability to respond to risks, aiming to help users enhance their anti-fraud capabilities and strengthen risk management awareness, thereby better protecting their asset security. Binance's industry research not only provides practical educational resources for users but also reflects its continuous investment and commitment to user security education, highlighting Binance's responsibility and commitment as a leading platform in promoting the security construction of the crypto ecosystem.
Highlights summary:
The cryptocurrency user community exhibits strong security awareness, such as actively taking corresponding protective measures, improving risk identification capabilities, and adeptly utilizing the risk control mechanisms of centralized trading platforms.
80.8% of Binance users have enabled 2FA authentication.
Nearly four-fifths of users carefully verify the recipient address or smart contract address before each transfer.
The proportion of users who use paper media to save private keys/mnemonic phrases (47.8%) far exceeds the proportion of users who store them on electronic devices (30.7%).
58.9% of users will first contact the exchange to freeze assets after encountering fraud, showing significant trust in the exchange.
85.5% of respondents stated that they trust the exchange's protection mechanisms (such as SAFU 'Binance Emergency Fund').
As high as 97.2% of users are willing to participate in anti-fraud simulation tests organized by the trading platform.
In the face of new types of scams, continuous strengthening of user security education is necessary to enhance users' awareness of potential threats:
X (formerly Twitter, 63.9%), Telegram (38.7%) are widely recognized as the most common channels for spreading scam information.
77.4% of users have seen phishing links, and 60.8% of users have encountered 'authoritative' insider information and the temptation of pump-and-dump schemes.
Less than half of users (48.9%) clearly indicated that they have not encountered scam information.
Chinese-language Cryptocurrency User Security Survey Report
This report is divided into the following five parts:
Part 1: Overview of the Survey Population
Part 2: Security Awareness and Behavior Habits
Part 3: Experience with Fraud and Responses
Part 4: Demand for Exchange Security Services
Part 5: Security Features and Education Preferences
Part One: Overview of the Survey Population
This chapter aims to collect and analyze basic information such as cryptocurrency traders' trading experience, frequency of trading, and asset scale, to create a comprehensive profile of respondents. This will provide strong support for subsequent research and analysis.
Cryptocurrency trading experience
In this survey, we statistically analyzed the cryptocurrency trading experience of respondents. The data shows that Chinese-language users have a relatively balanced distribution of experience in cryptocurrency trading, providing a solid and diverse user base for the Chinese-language crypto market, which is beneficial for the long-term development of the market.
Specifically: respondents with over 3 years of trading experience account for the highest proportion at 27.4%; followed by those with less than 6 months of experience at 26.8%; while those with 0.5-1 year and 1-3 years of experience account for 19.8% and 26% respectively. This phenomenon of new users entering and old users staying reflects the dynamism and vitality of the market.
Frequency of using cryptocurrency exchanges
In this survey, we statistically analyzed the frequency of cryptocurrency traders using exchanges. The data shows that users who use exchanges multiple times daily account for the largest proportion, indicating that most traders are highly reliant on exchanges.
Specifically, respondents who use cryptocurrency exchanges multiple times daily account for 47.6%, those who use it several times a week account for 29.6%, those who use it several times a month account for 15.1%, and those who use it very rarely account for only 7.7%.
Current holdings of cryptocurrency assets
Among cryptocurrency holders, most people's asset scale is concentrated below $10,000, accounting for 66.0%. This indicates that most investors are still in a relatively cautious investment stage, possibly due to significant market volatility or limited investment experience.
Investors holding $10,000 to $100,000 account for 25.6%, which may indicate a deeper understanding and confidence in the market, thus willing to invest more funds. Investors holding $100,000 to $500,000 only account for 5.2%, while high-net-worth investors holding over $500,000 account for only 3.2%.
Part Two: Security Awareness and Behavior Habits
In the cryptocurrency field, security and trust are among the top concerns for users. This chapter collects and analyzes respondents' security measures enabled in their Binance accounts to gain insights into users' security awareness and strategies, including enabled security measures, storage methods for private keys, types of fraud encountered, etc., revealing the security challenges users face in cryptocurrency trading.
Enabled security measures in Binance accounts
In this questionnaire survey, we conducted detailed statistics on the security measures enabled by respondents in their Binance accounts. This question allows multiple selections, and each respondent can choose multiple options. Specifically:
The proportion of users who have enabled 2FA authentication is the highest, reaching 80.8%—such a high proportion indicates that most users recognize the importance of two-factor authentication and prioritize this measure to protect account security. Additionally, independent trading passwords are also valued, with over half (53%) of respondents setting independent trading passwords. The proportion of users enabling whitelisted addresses is 21%, which can effectively prevent funds from being transferred to unauthorized addresses. The usage rate of anti-phishing verification codes is 29.3%, indicating that some users have a certain level of awareness against phishing attacks. Moreover, 1.6% of users chose other security measures, showing users' diversity in security strategies.
However, 10.4% of users have not enabled any additional security measures, possibly due to a lack of security awareness or thinking that setting security measures is too complicated.
Overall, most users have already taken various security measures to protect their Binance accounts, but some users still need to enhance their security awareness and measures.
Do you check the recipient address/smart contract address before transferring?
According to the survey data, most users carefully verify the recipient address or smart contract address before transferring, with a proportion of 79.2%, indicating that users generally recognize the importance of verifying addresses to avoid transfer errors and potential financial losses.
13.9% of users are cautious most of the time but may not check addresses in certain situations.
Users who occasionally verify addresses account for 5.3%, suggesting that this group may recognize the importance of verification but have not developed a stable habit.
From the overall data, the vast majority of users verify the recipient/smart contract address before transferring, reflecting a high emphasis on fund security. It is noteworthy that there are still 1.6% of users who never verify transfer addresses, indicating the need for increased attention to transfer security.
How to save private keys/mnemonic phrases when using decentralized wallets?
Decentralized wallets allow users to fully control their private keys and assets, but they also face management difficulties and the risk of losing private keys. In the survey, 47.8% of users chose paper offline backups when using decentralized wallets, which is a traditional and secure method that can effectively prevent issues from digital device failures or cyber attacks. Meanwhile, 10% of users use hardware wallets to store private keys or mnemonic phrases, indicating that this group prefers using specialized devices to enhance security. Additionally, 8.8% of users choose to use encrypted digital file storage, which provides convenience while protecting privacy.
A significant proportion (30.7%) of users also choose to store their private keys or mnemonic phrases directly on their phones, computers, or cloud drives. Although this method is convenient, it carries security risks such as device theft or cyber attacks.
Additionally, 2.7% of users chose other storage methods, indicating the diversity of user security strategies.
Overall, most users tend to use relatively secure methods to save private keys or mnemonic phrases, but some users still need to improve their security awareness to avoid potential risks.
Types of fraud encountered
In this questionnaire survey, we statistically analyzed the types of cryptocurrency scams respondents have seen. The survey shows that although the types of scams are increasing, phishing link scams remain the most common type of fraud. This question allows multiple selections, and each respondent can choose multiple options. The proportions are:
77.4% of users have seen phishing links, which are a common form of online fraud that typically disguises as legitimate websites to steal user information.
60.8% of users have encountered 'authoritative' insider information or pump-and-dump schemes, which use users' trust in authority to mislead investment decisions.
51.7% of users have seen scams that leak private information, such as passwords, private keys, or mnemonic phrases, which directly threaten users' asset security.
56.6% of users have seen scams related to fake airdrops, giveaways, or token pre-sales, which use users' pursuit of free or discounted offers to commit fraud.
51.6% of users have seen fake exchange apps or wallets, which deceive users' assets by disguising as legitimate applications.
48.8% of users have encountered Ponzi schemes and multilevel marketing scams, which attract investors by promising high returns but actually rely on the funds of subsequent investors to pay early investors.
Victims of malware attacks account for 33.2%, where such attacks steal user information or control user devices through the implantation of malicious software.
False investment promises (such as high-yield mining pools) are also a common type of scam, seen by 44.9% of users, which often attract investment with unrealistic high returns.
2.3% of users have seen other types of scams, indicating that fraudulent methods are becoming increasingly diverse and difficult to defend against.
Part 3: Experiences with Fraud and Responses
This chapter focuses on the actual fraud events encountered by respondents, covering loss amounts, remedies taken after encountering fraud, and common channels for scam information. By comprehensively analyzing these real-life scenarios, we aim to help users enhance vigilance and more effectively prevent cryptocurrency fraud.
Have you encountered cryptocurrency-related fraud?
We investigated whether users have encountered cryptocurrency fraud. Surprisingly, nearly half (41.7%) of users have encountered cryptocurrency-related fraud; among the remaining users, 9.4% are uncertain if they have encountered fraud, and only 48.9% clearly stated they have not.
Overall, cryptocurrency fraud remains a significant security issue today, requiring heightened user vigilance and discernment.
Scale of funds lost in cryptocurrency-related fraud
We investigated the scale of funds lost by users in cryptocurrency-related fraud, and the data shows:
65.4% of users have not been deceived, indicating strong preventive awareness.
8.3% of users were deceived but did not incur losses, possibly because they took timely remedial actions.
13.7% of users have losses below $1,000, indicating that small losses are relatively common.
8.3% of users have losses between $1,000 and $10,000, indicating that medium-scale losses also exist.
4.3% of users have losses exceeding $10,000, indicating that a few users have encountered severe financial losses.
Overall, although most users have not suffered losses, there is still a need to strengthen prevention to avoid potential economic losses.
Measures taken first after encountering fraud
Due to the decentralized nature of blockchain, stolen cryptocurrencies are often difficult to recover. Our survey shows that over half of users will first contact the exchange to freeze assets after encountering fraud. Notably, the second largest group of users chooses to accept losses and not pursue them. The specific data is:
58.9% of users will first contact the exchange to freeze assets, showing an emphasis on protecting fund security.
13.6% of users chose to report to local law enforcement, indicating their desire to resolve problems through legal means.
10.8% of users publicly warn in communities, intending to remind others to pay attention to similar risks.
15.5% of users accept losses without pursuing them, possibly due to small losses or believing that pursuing them is hopeless.
1.2% of users adopt other methods, showing diversity in responses.
Overall, most users tend to take proactive measures to protect their interests, with contacting the exchange being the choice of most users, indicating users' trust in exchanges led by Binance; however, some users still choose to accept losses, which also reflects the challenging nature of recovering from cryptocurrency fraud and warrants more attention.
Social media channels where scam information is 'most commonly seen' in the region
In this survey, we conducted detailed statistics on the most common channels for spreading scam information in the regions where respondents are located. This survey helps us understand the influence of different social media platforms in spreading scam information. This question allows multiple selections, and each respondent can choose multiple options.
Main dissemination channels:
X (formerly Twitter): 63.9% is the most common channel for spreading scam information, indicating its strong influence in information dissemination.
Telegram: 38.7% also occupies a significant proportion, indicating its widespread use in the cryptocurrency community.
Facebook: 30.9% and LINE: 27.7% are also frequently mentioned, reflecting the popularity of these platforms in certain regions.
Secondary dissemination channels:
TikTok: 19.3% and Instagram: 19.1% indicate that these visual content platforms have also become channels for spreading scam information.
WhatsApp: 8.4% and other channels: 6.3% reflect that users occasionally encounter scam information on other platforms.
Less frequently mentioned channels:
Reddit: 3%, Medium: 2.5%, Kakao Talk: 2.1%, Zalo: 1.7%, Naver Blog: 1.5% and other channels have lower proportions, reflecting the differences in platform usage preferences among users in different regions.
Overall, although some platforms like X and Telegram dominate in spreading scam information, other social media platforms should not be overlooked. Users need to remain vigilant across all platforms to prevent the harm of scam information.
Part Four: Demand for Exchange Security Services
This chapter focuses on the role Binance plays in helping users cope with cryptocurrency fraud. The issues range from Binance's official verification channels, distinguishing the authenticity of Binance information, seeking Binance's help, to the security measures users hope exchanges/decentralized wallets will strengthen, and Binance's security products and anti-fraud education, depicting Binance's attempts to prevent cryptocurrency fraud.
Binance Official Verification Channel
The Binance official verification channel is a method Binance provides for users to verify employee identities, allowing users to input a website, email address, phone number, Telegram, or social media account to check if the source is verified and comes from Binance's official. In this survey, we collected data on whether respondents were aware they could confirm if someone is a Binance official employee through the 'Binance Official Verification Channel' page.
The data shows: 50.5% of respondents indicated that they know they can confirm employee identities through 'Binance Official Verification Channels'. Meanwhile, 49.5% of respondents indicated that they do not know about this verification channel.
Although half of users are aware of the verification channels, there is still a need to strengthen publicity about official verification methods.
Distinguishing the authenticity of received Binance information
In this survey, we conducted detailed statistics on how respondents distinguish the authenticity of Binance information. This survey helps us understand the different measures users take when confirming the authenticity of information. This question allows multiple selections, and each respondent can choose multiple options. According to the survey results, we classified users' discernment methods into three categories:
Primary methods of discernment:
Log in to the Binance official website to check the announcement area: the most commonly used method, with most users (74.8%) tending to obtain authoritative information through the official website.
Comparing through the Binance app 'Announcement Center' or 'Message' list: chosen by 71.2% of users, authoritative official announcements are often the most trusted verification method for users.
Secondary methods of discernment:
Verifying sender information through the 'Binance Official Verification Channel': Although it is also an official channel, only a portion of users (35.8%) choose this, likely due to unfamiliarity with this channel.
Viewing official information released by Binance's official or executive social media verification accounts: 32.8% of users rely on social media for information.
Other methods:
Confirming with Binance staff or Binance Angels: 22.3% of users choose to communicate with staff in the community to verify information.
Others: A very small number (1.1%) of users will use other unique methods for verification.
Overall, most users rely on official channels and applications to confirm the authenticity of information, but some users also conduct multiple verifications through social media and direct communication, indicating that users adopt diverse strategies to ensure the accuracy and reliability of information, although more users confirm official website information first, using official announcements as the standard.
How to seek Binance's help when encountering suspicious behavior during transactions?
In this survey, we conducted detailed statistics on the methods respondents use to seek help when encountering suspicious behavior during transactions. This survey helps us understand users' responses to potential risks. This question allows multiple selections, and each respondent can choose multiple options. We categorized users' methods of seeking help into three categories:
Main methods for seeking help:
Most users (73%) tend to directly contact Binance customer service for help.
71.4% of users report scams on the Binance 'Scam Reporting' page after encountering fraud.
Secondary methods of seeking help:
44.1% of users seek help from official personnel or community support to obtain additional assistance and advice.
Other methods:
Notably, 7.9% of users are unclear on how to seek help when encountering issues.
0.6% of users have adopted other uncommon methods to seek help.
Overall, most users tend to seek help through official channels such as customer service and reporting pages. Binance's 'Scam Reporting' link is also more familiar and chosen by more users, but some users still rely on community support or are unclear on how to respond, indicating a need for strengthening user security education to ensure all users can timely obtain help when encountering issues.
Types of security protections that users most hope exchanges will enhance
In this survey, we conducted detailed statistics on the types of security protections users hope exchanges will strengthen. This survey helps us understand users' specific needs for enhanced security during transactions. This question allows multiple selections, and each respondent can choose multiple options. We classified the results into three categories based on importance.
Main concerns:
71.8% of users hope that exchanges can real-time intercept high-risk transactions, showing strong awareness of the immediate risks that may arise during transactions, and hoping that exchanges can proactively identify and stop potential threats.
64.8% indicate that users hope exchanges can provide a comprehensive scam address database to check before trading. This reflects users' awareness of preventing known scams and their demand for preventive protection from exchanges.
Secondary concerns:
58.3% of users are concerned about device security and expect exchanges to provide solutions to prevent malware. This indicates that users are aware of the importance of device security for overall trading safety.
51% show interest in enhancing security through biometric technology, hoping that exchanges will strengthen the integration of biometric authentication, indicating a positive attitude towards the application of new technologies in identity verification.
Other concerns:
45.8% of users hope to receive alerts when abnormal operations occur, indicating an expectation for exchanges to timely notify users of potential risks.
39.5% of users hope for human customer service to provide anti-fraud support, emphasizing the importance of human support in complex fraud situations.
38.8% of users hope exchanges can provide more anti-phishing education, indicating users' demand for enhancing their security awareness.
0.9% show other specific personalized security needs.
Overall, user demand for exchange security protection mainly focuses on real-time monitoring, preventive measures, and the application of emerging technologies, while also hoping to enhance their security awareness through education and human support. This indicates that exchanges need to adopt a dual approach in technology and services to meet users' diverse security needs.
Types of security protections that decentralized wallets most hope to enhance
We investigated the specific needs of users regarding wallet security protection. This question allows multiple selections, and each respondent can choose multiple options.
On the wallet side, 67.7% of users hope wallets can strengthen private key management, and 54.7% of users hope to enhance secure backup and recovery options.
Regarding external risks, 60% of users emphasize the importance of detecting phishing dApps, 52.3% hope to enhance detection of phishing transactions, and 58.5% of respondents wish to identify hacker attacks more efficiently. Additionally, 47.3%, 46.7%, 46.2%, and 43.7% of users hope to strengthen monitoring of tokens, transactions, authorizations, and similar address poisoning transactions.
0.8% of users proposed other personalized security needs.
These data indicate that users have multifaceted demands for the security features of decentralized wallets, especially in private key management and phishing attack prevention, which provides a direction for subsequent platform optimization.
Do you trust the exchange's asset protection mechanisms (such as Binance's SAFU fund)?
In cryptocurrency trading, the asset protection mechanisms of exchanges (such as Binance's SAFU fund) play a crucial role. We investigated users' trust in these mechanisms.
Specifically, 39.6% of users completely trust the asset protection mechanisms of exchanges; 45.9% of users have a generally trusting attitude; only 2.1% of users express distrust, while 12.4% of users indicate they do not understand these mechanisms.
Survey results show that the vast majority of users have a certain level of trust in the exchange's asset protection mechanisms. However, some users need more information to enhance their understanding and trust in these mechanisms. Exchanges can further enhance users' confidence in their security measures through transparent information disclosure and user education.
Areas for improvement in the platform's anti-fraud education content
As cryptocurrency-related fraud methods continue to evolve, the importance of the platform's anti-fraud education content has become increasingly prominent. We investigated several aspects that users believe these contents can improve. This question allows multiple selections, and each respondent can choose multiple options.
49.7% of users believe that anti-fraud education content is too professional and difficult to understand, nearly half of the users hope the content can be more accessible to better understand and apply.
42.2% of users stated that the frequency of anti-fraud content delivery is too low, suggesting an increase in delivery frequency to improve users' vigilance and knowledge level.
46.2% of users pointed out that anti-fraud education content lacks localized examples, hoping to see real cases related to their living environment to increase the relevance and practicality of the content.
34% of users feel that the current interactive format is too singular, suggesting the adoption of more diverse interaction methods to enhance user participation and learning effectiveness.
Additionally, 2.5% of users proposed other improvement suggestions, indicating users' personalized needs for anti-fraud education content.
The survey results indicate that users' understanding and acceptance of the platform's anti-fraud education content need to be improved, in order to enhance the efficiency of anti-fraud education and help users better identify and prevent online scams.
Part Five: Security Features and Education Preferences
This chapter focuses on users' awareness of fraud prevention, particularly regarding their tendencies to accept security alerts and willingness to participate in anti-fraud simulation tests organized by the platform, helping the platform more effectively assist users in identifying cryptocurrency-related fraud and preventing issues before they arise.
Tendency to receive security alerts
In today's world where information security is increasingly important, users have different preferences for receiving security alerts. We investigated users' specific tendencies in this regard.
55.1% of users prefer to receive security alerts through app pop-ups, push notifications, or in-site messages. This immediate notification method is considered by most users to be the most effective way to remind them.
25.8% of users prefer to receive security alerts via email. This method suits users who frequently check emails in their work or daily life.
12.8% of users choose SMS reminders, reminding us that traditional methods should not be overlooked.
5.9% of users prefer to receive security alerts through social media or community announcements, which may not be widely accepted due to users' inability to obtain information immediately.
0.4% of users suggested other ways to receive alerts, reflecting a small number of users' personalized needs.
Survey results show that most users prefer to receive security alerts through instant app notifications. However, to meet different user preferences, platforms can provide various notification methods to ensure that security information is communicated timely and effectively to all users.
Willingness to participate in anti-fraud simulation tests organized by the platform (such as identifying phishing links)
Anti-fraud simulation tests are essential means to enhance users' security awareness and skills. We investigated users' willingness to participate in anti-fraud simulation tests organized by the platform.
Specifically, 59.2% of users indicated a willingness to participate in anti-fraud simulation tests, 38% of users' willingness depends on rewards, and only 2.8% of users are unwilling to participate.
This suggests that the vast majority of users are open to participating in such tests. Platforms could also design reasonable incentive mechanisms to increase user participation, thereby enhancing users' ability and awareness of security prevention.
