🌎 Understanding Different Types of Crypto Users and Their Needs

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Crypto is becoming increasingly popular, bringing the entire web3 industry into the spotlight. With more news, regulation, and government acceptance, the decentralized finance sector is seeing a surge in participation. However, many people feel intimidated by the complex nature of trading or using defi tools, which can leave them feeling left out. This is a natural friction as the industry grows and matures.

Understanding Different Types of Crypto Users

We need to address the needs of different types of users, as their requirements vary greatly.

The Newbies

These individuals have recently noticed crypto in the headlines and are now eager to get involved. They might create their first wallet address or open an account on a centralized exchange.

The Degens

These are seasoned users who are well-versed in the defi experience. They typically manage multiple wallets and hold accounts on numerous exchanges. While they are comfortable with the technology, they seek greater efficiency in their operations.

There are also many other types of users, such as Bitcoin Maxis, whales, and traditional traders. However, for now, we will focus on these two main groups, as many products and companies design their solutions to cater to one of these groups but rarely both.

User Experience and User Custody: A Balancing Act

Many people enter the web3 space for its technical features—pseudonymity, custody, decentralization, security, speed, and smart contracts. However, some, typically the newbies, enter the space to speculate on pricing or make quick trades without regard for the fundamental values of the underlying assets.

For instance, buying Ethereum and storing it on a centralized exchange can ironically defeat the purpose of Ethereum’s existence. However, platforms like Binance have reached 200 million users because they prioritize user experience over the technical applications that web3 and defi tools allow for.

On the other hand, degens care more about having custody over their own money. They manage their own digital wallets and private keys, which are more secure but come with greater responsibility. With centralized companies like Binance, there is customer support to guide users. However, with decentralized exchanges, if a user makes a mistake with a transaction or loses their wallet keys, nothing can be done due to the decentralized nature of the industry.

Navigating the Web3 Space

Even the most experienced degens can find it challenging to navigate the web3 space. For example, converting Polygon into Ethereum, or vice versa, can be complicated. Wrapped MATIC and various bridges can feel like temporary solutions rather than permanent fixes. Many bridges in the market are slow, unsecured, and too complicated to use, even for experts.

More dApps need to be developed to enhance the user experience for existing degens. Proper design with robust security protocols is essential. This is the only way new dApps can compete in a relatively mature market. Better dApps would also reduce friction, allowing newbies to become degens more quickly, safely, and easily.

A prime example is the emergence of Telegram for dApps. Many crypto communities globally use Telegram for information, education, communication, support, and more. Building games, dApps, and other tools on Telegram could make it easier and more convenient for users to interact with the web3 industry. This approach prioritizes the user experience without centralizing the entire process.