5 Challenges in Crypto Adoption and How to Overcome Them

Despite the significant development in the crypto space over the past decade, multiple challenges still prevent its wider adoption.

According to a report by Triple A published in May 2024, global crypto ownership surpassed 560 million (~7% of the global population) in 2024, a 34% increase from 2023. The crypto industry has a lot to do to boost its adoption by providing a better user experience to beginners in this space.

In this article, we'll cover the 5 major challenges restraining crypto adoption and the potential solutions to overcome them.

1. Complex Onboarding Process

Crypto is often misperceived as complex and intimidating by users outside this space. According to Web3Auth's survey in 2023, 24% of users chose the learning curve of blockchain technology as one of the biggest hurdles for Web3 users. 

Solution: Intuitive On-Ramping Products

Transak offers a smooth onboarding process to its first-time users, which is as simple as using their mobile banking apps. Users can opt for multi-level KYC according to their convenience and buy crypto assets worth up to $75,000 in a single transaction.

Fiat currency users have numerous options on Transak, such as fiat-to-smart contract interaction using Transak One and flexible NFT transactions starting from $0.01 up to $75,000. Along with its Web3 products, solutions, and integrations, Transak also provides online resources to educate users for a better crypto onboarding experience.

2. Limited Payment Options

Unlike people in developed countries, who have multiple payment options, people in emerging countries have limited access to global payment methods.

Considering this disparity, crypto platforms need to provide numerous payment methods, including local payments, to foster crypto adoption globally. 

Solution: Localized APM Integration

Transak offers more than 20 localized payment methods, such as GCash and GrabPay, to buy over 175 crypto assets. For example, in July 2022, Transak introduced local payment methods for Thailand users, following the crypto popularity in the Southeast Asian (SEA) Region.

In addition to local payments, users across 180 countries can use other global payment methods, such as debit cards, credit cards, Google Pay, and Apple Pay. 

3. Liquidity Fragmentation

Liquidity fragmentation is a serious issue faced by users who want to buy, sell, or swap crypto assets at a desired price. For example, if you place your buy order at a decentralized exchange (DEX), your price slippage can be higher than your order price. 

Solution: Multiple Liquidity Sources

Transak’s live pricing feed is provided to its users directly from major CEXs, DEXs, and OTC desks to offer the best available market rates with reduced fees. Transak also aims to add more liquidity sources to reduce price slippage to a minimum percentage.   

4. Difficult to Exit the Market

Users find it challenging at times to cash out their crypto assets due to the limited availability of platforms that facilitate crypto to fiat services. This difficulty restricts crypto users from accumulating more crypto assets in the fear of non-liquidation. 

Solution: Reliable Off-Ramping Products

Transak's easy-to-integrate off-ramp product allows users to convert over 40 major cryptocurrencies to cash out directly to their bank account. Visa's partnership, with support for over 145 countries, helps users execute instant crypto-to-fiat conversion.  

5. Poor Wallet UX

The concept of creating a new wallet, storing its seed phrases, integrating it with dApps, etc., deters new Web3 users. According to Coinbase Institute’s survey, 60% of users still hold their crypto assets in centralized exchanges (CEXs) even after witnessing numerous CEX collapses, including the FTX in November 2022. 

The lack of wallet-based technical knowledge, gas fee calculations, and the consequences of losing private keys compel crypto users to risk their funds with centralized exchanges. 

Solution: Account Abstraction

The introduction of embedded wallet services using the integration of account abstraction on crypto platforms allows users to enjoy seamless crypto services without switching multiple apps for minimal fees. 

The emergence of smart accounts also removes the concept of private keys for beginners with options for gasless transactions. Transak allows users to buy crypto assets directly to their smart wallets just by entering their designated wallet address.

Conclusion

With technological advancements in the crypto space, it’s important to address existing challenges, such as poor wallet user experience, liquidity fragmentation, etc., to boost adoption in the future.

Transak, with its advanced products and solutions such as flexible NFT checkout, off-ramp, multi-level KYC, localized payment methods, fiat-to-smart contract interaction, and smart wallet address support, helps tackle major crypto challenges and foster crypto adoption.