People aware of blockchain technology will recognize its vast utility across the finance industry and many more. The lack of technological resources and financial education is resisting the technology from being exercised globally. 

Today, a few shortcomings have incapacitated the use of cryptocurrency. Developers and financial institutions must take a step forward to share the knowledge of cryptocurrency. Since it is a new technology to many, some people might find it overwhelming and suffer from “technostress”.

Barriers to Crypto Adoption

According to studies, only 33% of the adults around the World are economically literate. Decentralized finance (DeFi) is planning on providing knowledge to individuals with no access to traditional financial institutions and tools. 

• Lack of Awareness, and Traders
  Plunging into the crypto community market requires knowledge and understanding of the trading business. Prior knowledge of building blocks, and saving tips during market fluctuations is crucial to entering the market.Since setting up an account requires various complicated steps, it turns down various customers. Therefore, exchange software can use simple KYC methods for signing up an account rather than complex log-in methods.

• Low Liquidity
  The lack of knowledge about technology resists traders to quit traditional financing and invest in digital assets. Therefore, even when the cryptocurrency market is evolving it has low liquidity.With the flourishing crypto market, the invested capital is still lower than in other stock exchange and forex exchange markets. This is the main reason the crypto market is volatile.In countries like India, the Government imposes a 30% tax on every transfer of assets, along with TDS.
• Cyber Crime Issues
  There are security risks to your digital assets. According to studies, there is a 51% chance that hackers can breach your profile. Ethereum is the second most popular digital asset. In 2019, the colonial gas pipeline was hacked for several days making a loss of more than one million dollars. It is important to trade with a reliable cryptocurrency exchange software company
  to ensure security.

Also Read: South Korea Imposes New Legislation on Cryptocurrency

Here’s How You Can Break The Barriers to Crypto Adoption

Cryptocurrency is a new trend in the finance market. However, to bridge the gap, and break the barrier, here are some solutions that might inspire people and companies to adopt crypto.

Connecting Traditional and Digital Financial Systems:

A significant percentage of people store their maximum assets in traditional financial systems. If banks start allowing digital assets, the barrier to crypto adoption can be resolved. 

Tokenizing Assets:

Digitizing physical assets on blockchain technology will help users to track commodities which are not easily accessible, and trade their assets. 

Transaction of commodities traditionally requires long settlement periods and has high credit risk. Once tokenization takes place, it can be securely transacted between owners. 

Offering Educational content:

In the blockchain industry, and crypto exchange platforms steady flow of users is very important. 

To attract new investors to tokenize their assets, knowledge is crucial. Financial institutions are producing educational content where the technology is simplified. 

In Conclusion

Experts suggest an increase in activity among users in the coming years. With Russia already onboard by legalizing cryptocurrency for commodities exchange, various other banks and institutions will soon be ready for crypto adoption.