8/10 Investors Store Crypto on Hot Wallets: CoinGecko Survey

• According to a CoinGecko survey, 8 out of 10 crypto investors store their digital assets on hot wallets.
• Meanwhile, 7 out of 10 respondents said they held their assets in centralized exchanges while another 3 out of 10 said they used cold wallets.
• After the FTX collapse, Bitcoin reserves shifted into self-custody wallets, and crypto organizations began to turn to self-custody services.

CoinGecko Survey Reveals Popularity of Hot Wallets

A recent CoinGecko survey observed crypto storage behavior post-FTX collapse and revealed that 8 out of 10 crypto investors store their digital assets on hot wallets. Seven out of 10 respondents said they held their assets in centralized exchanges while another 3 out of 10 said they used cold wallets.

FTX Collapse’s Impact

The FTX collapse pushed Bitcoin (BTC) reserves into self-custody wallets — almost reaching 15 million BTC in November 2022 which accounted for 78% of the circulating supply at the time. In response to the crash, crypto organizations have started to turn to self-custody services as well — with Robinhood launching its own self-custody wallet in January and Juno publicly advising its users to withdraw crypto assets into a private wallet or sell them in January as well.

Crypto Community Sentiment

The report suggests that the current popularity rate of centralized exchanges is reflected in the community sentiment when it comes to crypto storage options — prioritizing convenience over security. The study also noted that despite three out of ten participants preferring cold storage for their crypto, this percentage was not strong enough to suggest a change in community sentiment overall.

Hot Wallet Preference

The study found that eight out of ten investors prefer hot wallets for storing their digital assets due to its convenient features and accessibility compared with other storage methods such as cold wallets or paper wallets. This preference is likely due to a combination of factors including cost efficiency, ease-of-use, and availability across different platforms and devices.

Conclusion

The CoinGecko survey concludes that 8 out of 10 investors are currently opting for hot wallets over other types such as cold storage or paper wallets due largely convenience features offered by these types of holders compared with other methods available for storing cryptocurrencies securely.