Empowering the Next Generation of Crypto Investors: The Importance of Education and Engagement

By Christian Niedermueller CEO of Blocktrade

The cryptocurrency industry has experienced explosive growth in recent years, moving from the fringes of finance to the mainstream. 2021 was a historic year with interest in the space reaching an all-time high and legacy financial players entering at record numbers. In contrast, the last 18 months have presented a number of challenges — from the spectacular collapse of some of the industry’s biggest players, to market speculation, and increased scrutiny from regulators. Outside the confines of crypto, an uncertain landscape also lingers. Amid rising inflation rates and a cost of living crisis, people are scrambling to generate meaningful wealth. 

The Next Wave of Investors

In search of a hedge against inflation and portfolio diversification, many are turning to digital assets and exploring the possibilities of cryptocurrencies. According to a recent study from Bank of America, millennials are allocating more of their portfolios to alternative assets like cryptocurrencies, indicating a growing interest in the space among young people. Traditionally, investing has been confined to those with the capital and the knowledge to do so, but this is now changing.

Against this backdrop, education around new and emerging technologies has never been more important. Despite the growth and interest in the blockchain and crypto industry, a dearth of education lingers, particularly among the younger generation. Engaging and empowering the next generation of crypto investors means providing the materials and resources needed to help users educate themselves on safe and sustainable investments, but whose responsibility is that? And where do individuals, organisztions, and regulators even start?

Empowering through Education

Industry and government can play a significant role in increasing education and engagement in the crypto space. Their task is not an easy one. Striking the balance between regulation and innovation remains challenging — and education must be a part of the process, not collateral damage. Despite a long legal process, the European Union (EU) has cautiously embraced digital assets through the introduction of a clear-set legal framework for crypto as the US still tries to figure out the direction for its legislation with congressional hearings still ongoing.

Regardless of where governments and regulators fall, there is a responsibility to provide guardrails for businesses, investors, and consumers alike and, consequently, educating them with the knowledge and skills needed to navigate new and emerging markets. At the highest level, a robust regulatory framework would help to achieve these aims. In addition, engaging in constructive dialogue through workshops, seminars, and online courses would also help. Government officials have a real opportunity to collaborate with industry leaders and experts to develop best practices and standards for the crypto industry, which can help to build trust and confidence among investors and consumers. 

Corporate responsibility in educating the public on crypto is crucial. Businesses who actively engage in educational activities can help promote financial literacy ensuring that everyone has access to the benefits of cryptocurrency. While some companies have invested in education tools and resources, a coordinated effort by all crypto institutions to explain the concepts of digital assets in a simple and engaging way is needed. By taking these steps, industry and government can help to increase education and engagement in the cryptocurrency space and support the growth and development of this dynamic industry.

Ease-of-use and Engagement

User experience (UX) and ease-of-use are critical when it comes to driving crypto adoption. Confusing or overly complicated interfaces can lead to a poor user experience, which can cause users to become frustrated and even give up on using cryptocurrency entirely. According to Statista, only 9% of traders are satisfied with the crypto exchanges they use. Good UX design such as gamification can help increase adoption rates. However, many cryptocurrency exchanges do not address the pain points and needs of their users, leading to a poor user experience. 

Gamification of crypto is helping to tackle the lack of public education by applying game design elements to non-gaming contexts, such as trading cryptocurrencies. By incorporating elements such as rewards, leaderboards, and challenges, gamification can create an exciting and engaging environment that encourages learning and participation. By empowering new users to engage and explore digital assets with confidence, we can help to shape the future of this burgeoning industry and ensure its continued growth and success.

Looking to the Future 

Empowering the next generation of crypto investors requires a multifaceted approach, spanning engagement programs, user centricity, and educational initiatives. Education and gamification in crypto is also a crucial aspect of the future of cryptocurrency. By incentivizing positive financial behaviors, increasing user engagement, and improving user retention, gamification can help young people understand the importance of financial literacy, the potential impact of decentralized systems on the global economy, and, most importantly, their future. 

About the author: Christian Niedermueller, CEO & Shareholder

With over 15 years of experience in the banking and financial markets, Christian has been operating in a variety of leadership and business expansion and innovation roles. Eventually, Christian went full time into the DLT/Blockchain and digital asset universe; he is a co-founder and board member of the DAAA (Digital Asset Association Austria) and co-founder of two companies in the digital asset space. In early 2022, Christian took over Blocktrade to speed up the strategic development of the platform and further scale the Team.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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