Crypto Tech is More Anti-people Than You Think

Crypto investors are often seen as tech-savvy trailblazers who are unafraid to dive into complex tech and even more complicated topics like decentralised finance (DeFi) and blockchain. The reality, however, couldn’t be further from the truth. Soaring crypto prices have attracted millions of new participants, but many are still novices. Although financial inclusion and freedom lie at the heart of crypto, the current experience often does exactly the opposite - leaving users hamstrung with complexity and too confused to participate. This presents a unique and urgent challenge for the crypto community: designing tech that works for beginners.

Just how many new users are we talking?

Spoiler alert: it’s more than you think.

The crypto market isn’t just growing; it’s expanding rapidly. According to Statista, the number of cryptocurrency users globally surged by over 40 million in the first half of 2024 alone. Meanwhile, cryptonomist reports that the number of active addresses has 400+ million people - further evidence that a significant portion of the global population is engaging with crypto.

What is their experience of crypto?

Spoiler alert: It’s not all sunshine and smooth sailing.

Despite these increasing numbers, many potential crypto investors encounter frustration when trying to invest. A staggering 72% of people say they find the process confusing and “do not know where to start.” Common concerns include that information is difficult to understand; and they don’t know who to ask for help. These barriers are mirrored among those who have invested, showing that the problem transcends novice users and affects the entire community.

Bottom line: the crypto industry need to do better - we can’t afford to keep making new investors feel like they’re navigating a labyrinth of jargon and technicalities. If the industry wants to scale effectively, it must prioritise making crypto a lot more approachable and accessible.

Education needs to become our focus

It’s time to stop speaking in code and start speaking human.

If we’re serious about mass adoption, we need to shift our mindset from designing ‘crypto solutions for the tech-savvy' to ‘crypto for humans’. This means prioritising simple, plain-language communication across all platforms and tools. Resources shouldn’t just be informative but welcoming - a place where investors can get the answers they need without having to wade through a swamp of confusing terminology. Exchanges, in particular, need to do more than just host transactions - they need to help users make informed decisions, equip them with up-to-date knowledge and be a source of trusted information.

Make the user experience (UX) simpler and more inclusive

It shouldn’t take a PhD to secure your wallet.

Crypto can be intimidating, especially when it comes to securing your assets. Using long seed phrases to protect crypto wallets, for example, has scared off many potential users. To gain trust, we need to simplify the user experience and ensure that people can manage and recover their wallets more easily, without fear of losing access. Self custody doesn't have to mean using a seed phrase. You can own your own funds while taking advantage of the backup and protection of third party software that not only enables you to sign transactions but, importantly, gives you simpler options around how you secure and protect your funds.

Crypto friendly doesn’t equal scam savvy!

Just because they’re ready to invest doesn’t mean they’re ready to defend.

Being ‘crypto friendly’ (keen to invest) doesn’t automatically mean being scam-savvy. Fraudsters are continuously evolving their tactics and there has been an increase in scams targeting beginners who are often more vulnerable due to their lack of experience. Without better safeguards and education, this risk is only going to grow.

Scammers are becoming more sophisticated, using tactics like phishing, Ponzi schemes and fake exchanges to trick newcomers. Crypto teams should always assume that their users may not be aware of these threats.

The blockchain is about enabling financial transparency - yet tech providers often fail to be upfront about how they’re helping keep users safe. Educating users about the most common scams and teaching them practical security tips - such as enabling multi-factor authentication (MFA), using strong passwords, and spotting phishing attempts - is crucial. Importantly, this education shouldn’t just be the job of exchanges; it should be an industry-wide standard.

Tap into tech for better protection

Fraud prevention should be multifaceted, combining technological innovation with regulatory oversight. For instance, verifying users’ identities to prevent the creation of fraudulent accounts is essential. Crypto platforms should employ both automated and manual monitoring systems to detect and respond to suspicious activities swiftly.

Advanced tech, such as transaction monitoring and behavioral analytics, can flag unusual behavior and trigger real-time intervention. What’s more, security measures like transaction limits should be standard to mitigate potential losses in case of compromised accounts and users should expect these strict security measures and verify that they’re in place before trusting a platform.

People should be able to appreciate what crypto delivers without needing to be deeply technically savvy to use it. Think of it this way: you don’t need to understand the inner workings or physics of how an airplane flies to enjoy the benefits of being able to fly across the world. Similarly, the crypto industry needs to focus on making the experience seamless and intuitive, so that users can benefit from its potential without being overwhelmed by the technical details. It’s time to set a new standard for technology that’s not just innovative, but inclusive, secure and welcoming for everyone.