Crypto Security Becomes Top Concern for Indian Investors
A pan-India survey by CoinSwitch highlights that crypto security has overtaken earnings as the primary concern for Indian crypto investors. According to the “Crypto Safety Pulse: 2025” report, 33.9% of respondents cite security risks as their main hesitation, while only 8.2% credit secure platforms for their confidence. Investors demand stronger safety nets: 25.8% prioritize a recovery program in case of hacks over independent audits or 24/7 support.
These concerns follow a series of high-profile cyberattacks on Indian crypto exchanges, which have exposed multi-million dollar losses and undermined trust. To address the trust gap, traders should look for platforms with audited proof of reserves, demonstrating a 1:1 backing of all user funds in crypto and INR. Enterprise-grade security measures—such as cold wallet storage, Multi-Party Computation (MPC), and ISO/IEC 27001:2022 certification—are now essential. Robust risk management, keeping less than 5% of assets in hot wallets, and strong financial backing further signal a trustworthy platform.
As Indian crypto investors shift from profit-driven choices to safety-conscious decisions, crypto security and platform trustworthiness will increasingly shape trading activity and market stability.
Neutral
While heightened focus on crypto security may prompt short-term caution among traders, the emphasis on audited proof of reserves and enterprise-grade security protocols is likely to restore confidence over time. Historical precedents—such as security upgrades after major exchange hacks—show that robust safety measures can revive trading volumes and support market stability. In the immediate term, investors may pause new positions until platforms implement stronger safeguards, but long-term improvements in trust infrastructure tend to have a neutral to slightly bullish effect on adoption and liquidity.