Indian Crypto Investors Prioritize Security and Trust Amid Rising Cyber Risks

Indian crypto investors are increasingly prioritizing security and trust as the most critical factors when engaging with digital assets, according to a recent pan-India survey conducted by CoinSwitch, the country's largest crypto platform. The survey, titled Crypto Safety Pulse: 2025, reveals that nearly one-third (33.9%) of investors who feel negative or unsure about cryptocurrency cite security risks as their main concern. This underscores a growing disconnect between enthusiasm for crypto as an investment and confidence in the platforms that facilitate it [1].

The survey highlights a significant trust gap: while over 60% of respondents expressed optimism about crypto—driven by high returns and long-term potential—only 8.2% attributed their confidence to secure platforms. This indicates that, despite the rapid adoption of crypto in India, there is a pressing need for platforms that offer greater transparency, robust security, and clear mechanisms for accountability [1].

One of the most frequently requested features among investors is a recovery program in the event of a hack, cited by 25.8% of respondents. This suggests that users are increasingly aware of the risks associated with cyberattacks and are seeking platforms that offer not just prevention, but also post-incident support and redressal [1]. This trend has become even more relevant in light of recent high-profile cyberattacks on major Indian crypto exchanges, which have led to the loss of multi-million-dollar assets and eroded user trust [1].

As the market evolves, investors are placing a stronger emphasis on specific safety measures. Platforms that demonstrate audited proof of reserves—a mechanism to show that user funds are fully backed in both crypto and INR—are viewed as more trustworthy. Additionally, enterprise-grade security features such as storing the majority of assets in offline cold wallets, utilizing Multi-Party Computation (MPC) to reduce single points of failure, and maintaining ISO/IEC 27001:2022 certification are increasingly seen as essential [1].

Platforms are also expected to adopt robust risk management strategies, such as limiting the amount of assets stored in hot wallets—typically under 5%—to minimize exposure to cyber threats. Strong financial backing from reputable capital sources is another factor that contributes to investor confidence, providing an additional layer of assurance during market volatility [1].

The shift in investor priorities reflects a broader maturation of the Indian crypto market, where the focus is no longer solely on returns, but on the long-term reliability and integrity of the infrastructure. As platforms continue to strengthen their security and governance frameworks, the market is expected to see increased participation from both retail and institutional investors.

Source: [1] https://coinmarketcap.com/community/articles/68a4a557c80af677a89182c7/