Increasing awareness but declining understanding.
Cryptocurrency is an emerging industry a lot of people are interested in investing in. The UK Financial Conduct Authority estimates that 2.3 million adults now hold crypto assets, 400 thousand more than last year. However, educating people about cryptocurrencies can be challenging for several reasons. This article will explore the challenges of crypto education and how they can be overcome to foster a better understanding of this emergent space.
Crypto is new, making crypto education hard to find
By now, investors are well aware of crypto existing as an asset class. The FCA survey found 78% of adults had heard about crypto assets, 5% more than last year. However, awareness does not equal education.
Finding good crypto education continues to be challenging. All cryptocurrency exchanges on the market offer some sort of crypto trading education, but that rarely remedies the fact that users don’t want to deal with it or don’t understand the content. Only 71% of responses identified the correct definition of cryptocurrency in the FCA survey, indicating that exchanges fall well short of presenting the information in a digestible way. More than that, many people have zero to very little knowledge about a crypto business. They may choose to trade on a low-fee crypto exchange currency which compromises the security and customer service. (We have a comprehensive article of CoinSpot Fees Explained to show you why low fees actually expose your investment to danger)
Crypto is constantly changing
While the basics in crypto, i.e., how to buy, send, and store coins or how a blockchain works, always remain the same, new possibilities and products are popping up continuously. Few but the most hardcore users of cryptocurrencies can understand all the intricacies of the space. This poses a challenge for those who want to create comprehensive education about cryptocurrencies: how do you educate lay people about something that is in constant flux? Even fundamental building blocks to the blockchain space, like the Ethereum blockchain, keep evolving, which only adds to the difficulty.
Crypto is very technical
Creating crypto education without going into some of the technicalities about how the tech works is practically impossible. Providers of crypto trading education would be well-advised to focus on the use cases and real-world applications of blockchain technology and cryptocurrencies. Few people can tell what an IP is or what http does for the internet, but everyone knows how to use a browser. It may not be necessary for the general population to understand how blockchain technology works if people understand its applications.
Crypto suffers from conflicting information
Small wonder 38% of crypto users see it as a gamble when they are constantly bombarded with half-truths (coming from mainstream media) or technical information (coming from crypto enthusiasts). Users suffer from information overload and, as a result, start believing those who shout the loudest. Unfortunately, even within the blockchain space, proponents of cryptocurrencies don’t manage to speak with a single voice but tend to suffer from infighting between communities of different blockchains.
Conclusion
Crypto education needs to focus on simplifying information and doing a better job of explaining to users what benefits blockchain technology offers . Consequently, crypto trading education will find it easier to provide investors with the knowledge they need to make an informed decision instead of having to deal with explaining the underlying fundamentals.