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How Technical Literacy Impacts Crypto Adoption

10月09日 15:48

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## [TL; DR] 
Several researches have shown that lack of technical literacy contributes much to low adoption of cryptocurrencies.

Regulatory clarity and the introduction of suitable crypto regulation may lead to a higher crypto adoption rate.

Leading blockchain based projects should take a key role in providing crypto education.

## Introduction 
Cryptocurrency has been a disruptive innovation in the financial sector as it enhances decentralised transactions, security as well as promoting financial inclusivity. The world can benefit much from digital assets if many people use them in their daily lives to make financial transactions. Sadly, the adoption of digital currencies remains low due to various factors that include technical barriers and regulatory hurdles. Today, we focus on the effects of technical literacy on the adoption of digital assets, especially cryptocurrencies.

## Technical Literacy as a Roadblock to Crypto Adoption
Although cryptocurrencies have become very popular the greater population of the world has not yet adopted them. Several factors are contributing to the low crypto adoption rate despite their potential to help improve the living standards of people around the globe. The complexity of the technology is probably the greatest contributor to the low adoption of digital currencies on the global scale. Basically, many people find it difficult to manage digital wallets, use DeFi platforms and cryptocurrency exchanges. Sadly, some tech-savvy people do not take much interest in assisting those who have difficulties in using this latest financial technology.

A recent [survey which Swyftx, an Australian crypto exchange, conducted](https://swyftx.com/wp-content/uploads/2024/09/swyftx-cryptocurrency-survey-2024.pdf "survey which Swyftx, an Australian crypto exchange, conducted") shows how technical literacy is impacting the adoption of cryptocurrencies. About 43% of the respondents said they had not used blockchain technology due to low technical knowledge about how decentralized finance (DeFi) works. Another research, [the 2023 Crypto Literacy Survey](https://www.prweb.com/releases/2023-crypto-literacy-results-show-education-is-needed-to-increase-adoption-301998545.html "the 2023 Crypto Literacy Survey"), showed that 28% of the respondents shared a similar sentiment. On the other hand, research which [the United Kingdom’s Financial Conduct Authority (FCA)](https://www.fca.org.uk/publication/research-notes/research-note-cryptoasset-consumer-research-2023-wave4.pdf "the United Kingdom’s Financial Conduct Authority (FCA)") conducted in 2023 showed that at least 23% of the respondents lacked the technical literacy required to conduct basic DeFi transactions. Based on these researches and the current <a href="/zh/price" target="_blank" class="blog_inner_link">crypto market</a> trends, lack of the right crypto education and experience are some of the key technical barriers to the adoption of digital currencies.

## The Role of Education in Crypto Adoption
A recurring conclusion from various researches on digital currencies is that blockchain complexity is the greatest hurdle users face in their quest to use decentralized finance. Therefore, there is a need for proper crypto onboarding to increase their day-to-day usage. Essentially, crypto education is the key to enabling newbies to use digital assets. Experienced individuals and crypto projects should teach beginners the basic aspects of using digital assets. For example, they can teach them how to open accounts on cryptocurrency exchanges, how to send and receive digital assets and how to convert one digital currency to another. Also, newbies should acquire knowledge on how to navigate digital wallets and DeFi platforms. They should also acquire the basics of cryptocurrency storage, private key security as well as digital asset security.

Crypto projects at different levels and in different sectors should find the means to educate their users on how to use various blockchain interfaces and how to secure their digital assets. Once the <a href="/zh/price/view/new-cryptocurrencies" target="_blank" class="blog_inner_link">new crypto</a> users understand the basics of the blockchain technology and how to navigate blockchain user-interfaces they will be willing to use digital assets.

When educating newbies, it is important to keep the terminology simple. If the educators use many intricate jargons the beginners face difficulties. Too many unfamiliar terminologies scare people who are unfamiliar with the concepts.

One aspect which crypto education should cover is the use of the related hardware. For example, beginners should know exactly how to store and secure Ether (ETH) and <a href="/zh/price/bitcoin-btc" target="_blank" class="blog_inner_link">bitcoin</a> (BTC). This aspect of crypto asset management is critical in the sector as people are scared of losing their hard-earned digital assets. More importantly, it is vital to assist the unbanked on how to use digital currencies. In this case, [simplifying crypto education is vital](https://www.gate.io/blog/2380/knowledge-is-power-the-importance-of-crypto-education-with-gate.io "simplifying crypto education is vital") as most of these people may have very little education. However, crypto market entry will become easier for the unbanked once they acquire the right education and gain enough crypto user experience. Whenever possible, as part of the crypto education, the newbies should be guided to carry out practical activities such as transferring their digital assets or opening accounts on DeFi platforms.

If there is a well structured education program the crypto adoption rate for most regions should rise. At present, some regions have higher adoption rates than others. According to the [global crypto adoption index](https://www.chainalysis.com/blog/2024-global-crypto-adoption-index/ "global crypto adoption index"), Asia has the highest crypto adoption rate. For example, in 2024 India, Indonesia, Russia and Vietnam had very high adoption rates. On the other hand, Africa has the lowest crypto adoption rates. What this means is that Africa should scale up its crypto education in order for the global crypto adoption index to rise.

## Clarity in Regulation as A Key to Unlocking Crypto Adoption
No question, regulatory clarity in crypto will likely lead to the higher adoption of digital assets. Currently, lack of clear crypto regulations is forcing many people to avoid using them. Most of the people, unfamiliar with digital assets, remain on the side-lines until there are clear regulations governing the sector. At present, there are several initiatives to introduce clearer crypto regulations. For instance, in May 2023 the European Council adopted a legal framework for crypto for the region. Although other countries are slower in crafting crypto regulations there is hope that many will do so in the near future.

It is worth noting that some investors who want to benefit from the price volatility of cryptocurrencies can invest in crypto ETFs. The recently launched United States listed spot [bitcoin ETFs](https://www.gate.io/blog_detail/3839/bitcoin-etf-inflows "bitcoin ETFs") and [Ethereum ETFs are the leading crypto derivatives](https://www.gate.io/blog/4227/the-ripple-effect-how-ethereum-etfs-could-change-the-altcoin-market "Ethereum ETFs are the leading crypto derivatives") that traditional investors can invest in. With the crypto ETFs investors get exposure to different cryptocurrencies without owning them.

Read also: [Pros and cons of investing in Bitcoin ETFs](https://www.gate.io/zh/learn/articles/pros-and-cons-of-investing-in-bitcoin-etfs/2541 "Pros and cons of investing in Bitcoin ETFs")

## User-Friendly Platforms Demystify Crypto
There is no question that cryptocurrencies can appear very complex to the average person due to the associated advanced technology and highly complicated user-interfaces. The introduction of blockchain interfaces that are simple to navigate will help to overcome some crypto investment barriers. Blockchain based projects should not only focus on serving the needs of seasoned crypto investors such as traders but should also target newbies by introducing user-friendly crypto platforms. The reason why most people prefer traditional finance  to decentralized finance is its simplicity. And in most cases, banks and other financial institutions offer direct assistance to the users who face challenges when making transactions. Therefore, user-friendly interfaces should be complemented by the right crypto education.

A [survey carried out by Web3Auth](https://blog.web3auth.io/2023-web3-ui-ux-report-top-4-interesting-findings/ "survey carried out by Web3Auth"), a key management network, where over 3,378 people including developers, web-users and other decision makers participated concluded that a long learning curve and the blockchain complexity were the main reasons for the low adoption of digital assets. Only early adopters can easily overcome these complexities. Therefore, blockchain for beginners' education can help many people to use decentralized digital assets.

##  The Future of crypto security: Trends and Prediction for 2025
The future of crypto security is bright considering some on-going developments. First, regulatory clarity will likely increase around the globe. For instance, countries like the [United States and United Kingdom are leading in crafting relevant regulations](https://www.gate.io/learn/articles/top-10-countries-leading-blockchain-revolution-in-2024/2111 "United States and United Kingdom are leading in crafting relevant regulations") that may reduce risks in the crypto sector. The regulations will guide both institutions and individual investors on what they should do.

The advancement in technology will further enhance security in the crypto sector. As an example, crypto organizations may adopt artificial intelligence to prevent security breaches and to audit their systems. AI-driven technology will likely identify vulnerabilities and security threats in real-time.

In addition, crypto education may also focus on how users can improve the security of their digital assets. For instance, the users may choose self-custody for their digital currencies. That will likely reduce the volume of cryptocurrencies on exchanges and DeFi platforms. In cases of hacking it means fewer digital assets will be stolen.

## Conclusion 
Several recent surveys have concluded that blockchain complexities and lack of technical literacy are contributing much to the low adoption of decentralized digital assets such as cryptocurrencies. On the other hand, regulatory uncertainty and complex blockchain interfaces are contributing to lack of interest in cryptocurrencies. To assist newbies to adopt digital assets, [DeFi projects](https://www.gate.io/learn/articles/top-bitcoin-defi-projects/2726 "DeFi projects") and exchanges should introduce user-friendly interfaces and relevant crypto education.

<div class="blog-details-info">
<div>Author: Mashell C., Gate.io Researcher
<div class="info-tips">\*This article represents only the views of the researcher and does not constitute any investment suggestions.
<div>\*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.
</div>

TL_ DR

Introduction

Technical Literacy as a Roadblock to Crypto Adoption

The Role of Education in Crypto Adoption

Clarity in Regulation as A Key to Unlocking Crypto Adoption

User-Friendly Platforms Demystify Crypto

The Future of crypto security: Trends and Prediction for 2025

Conclusion

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