Crypto can’t free people if they don’t know how to buy it
Education: Crypto the eighth largest economy in the world. Gabriela Reyes, CEO of Lively Verse asks, how can it lift people who need to use it the most, when they feel it is difficult to buy crypto at all?
It is no surprise that the first half of 2022 has not been kind to the global financial markets, especially for cryptocurrencies. Nevertheless, their adoption continues to grow globally, even as the crypto winter is in full swing.
Daily cryptocurrency trading volume has increased to $93 billion. The global market cap is currently over $1 trillion, making crypto the eighth largest economy in the world. Especially in low- and middle-income regions such as Africa, Latin America and Slavic countries, crypto adoption has increased significantly. People see digital assets as an alternative means of increasing financial stability.
But this unprecedented growth in adoption is not matched by the increase in knowledge and literacy. According to a recent survey, 96% of Americans and 99% of Brazilians and Mexicans failed the basic crypto literacy quiz. This is even though almost 30% of the world’s Bitcoin supply circulates in North and Latin America.
But why is crypto literacy so critical? Isn’t it as simple as buying coins at a lower price and selling at a higher price for profit? Let’s discuss.
The Importance of Crypto Education: Investments, Scams, and Jobs
Basically, cryptocurrency trading works just like the stock market. Consumers buy the assets when prices are low and sell when they rise. Sound simple? Unfortunately, it’s not that easy.
Education and smart investments
Only 13 years have passed since the first bitcoin was issued. Other mainstream cryptos like Ethereum and Solana are less than a decade old. At the same time, the wider use of crypto assets started less than five years ago. The market is still young – and as a result very volatile. Prices can fluctuate significantly in a single day. Without proper education, users will not be aware of the indicators that can help predict these fluctuations.
For example, every cryptocurrency follows a supply and demand mechanism. By being able to observe and analyze the circulating supply of such assets, users can make concise investment decisions. Several other indicators such as regulatory updates, mining status and market inflation rates can drive better decisions in this area. But without proper education, investors will not be aware of these indicators, thus risking their financial positions.
Steer clear of fraud
It is important to understand that cryptocurrencies are decentralized assets. No regulators or institutes monitor these assets to ensure compliance and user safety. That is why the sector is full of scams and scam projects.
Take the Squid Game token, for example. After the huge popularity of the Korean show on Netflix, scammers launched the $SQUID coin and ended up making off with millions.
There are several ways to identify a scam coin. Such projects often do not have a concrete whitepaper or an actual roadmap. Developers and CEOs are anonymous: just NFT avatars with nicknames. Nevertheless, those with little or no literacy in the subject will hardly notice it. And in fact, scammers use this lack of literacy to trick newbies into investing, ultimately stealing their hard-earned money.
Education = better job opportunities
Crypto also creates new job opportunities. These are not just digital assets, but basic infrastructures. They are linked to next-generation technologies such as blockchain, NFTs, metaverse and the entire DeFi sector. So being crypto literate means pursuing different opportunities across this new and innovative spectrum of digital industries.
Therefore, education is critical. Being crypto literate will help people make better financial decisions, protect them from fraud, increase security in the digital space and open the doors to new economic and employment opportunities. The scope is unlimited.
How should crypto education be organized?
The responsibility for increasing crypto competence falls on the shoulders of the users and education providers. Platforms offering blockchain or DeFi education need to know what to prioritize.
Firstly, it is important to focus on financial literacy. Education providers need to set realistic expectations for beginners. They need to talk about the risks instead of over-romanticizing the benefits. It is important to learn the financial basics of decentralized assets, how they work, their characteristics and how markets change.
There should also be in-depth lessons on how to invest. Referring to the survey findings, only 1 in 3 investors feel it is easy to buy crypto. Education providers must change this perception. Structured lessons on how to invest in digital assets can influence faster adoption.
Finally, it is important to focus on how the audience is reached and targeted. Most educational media and content in the blockchain and DeFi space is mixed and bland. They put too much emphasis on technical elements, which creates confusion for new users. Instead, crypto education should be fun and accessible, just like any other education. And preferably have a good deal of gamification.
Lively Verse is a good example here. It is the first ever blockchain platform to provide education through its TV show, “Lively World”. It’s a fun and engaging way to educate beginners while influencing their mainstream adoption. Platforms like Lively World can drive crypto literacy through creative audiovisual content that can inspire and excite audiences. This encourages people to interact with the ecosystem and dive even deeper into the subject.
To summarize, crypto adoption will only continue to grow with the increased use of blockchain technology, DeFi protocols and the rise of Web3 (Metaverse). But literacy in this sector must also be increased later to influence financial stability and make the space safer for new users.
About the author
Gabriela Reyes is a Spanish entrepreneur with a growing footprint in the blockchain scene both globally and in Spanish-speaking countries. Lively Verse aims to use the immense power of the media to raise mass awareness of blockchain and helps businesses and startups raise funds for their projects as well as give them exposure.
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