User Onboarding In The Cryptocurrency Industry: Guide to a Seamless Onboarding Process

The cryptocurrency industry is emerging as one of the biggest markets, driving the global economy. Forbes has it that the global cryptocurrency market cap today is $2.51 Trillion, with a +5.65% change in the last 24 hours. This goes on to say that this is a darned big market with more people and countries getting onto the bandwagon as the years go by.

Every user on the crypto platform wants to have a seamless user onboarding process as this is the cornerstone of success for any industry. User onboarding is the first impression a user receives about an organisation while signing on. It guides them through the initial steps and helps set the stage for long-term engagement. 

As good as this market is, onboarding users on a cryptocurrency trading platform can be a massive pain in the rear as the world of cryptocurrency presents unique challenges in onboarding. Unlike traditional platforms, cryptocurrency users go through unfamiliar concepts like digital wallets, blockchain technology, and often volatile markets. Alongside the complex verification processes and security concerns, this can take new users on a steep learning curve that may downright discourage them. 

With this in view, an improvement must be made to the user onboarding process in crypto platforms to encourage a wider adoption of the digital currency; and that means simplifying the process. In this article, we shall discuss how to successfully conduct a simple, yet compliant process of user onboarding in the cryptocurrency industry.

The Current State of User Onboarding in the Cryptocurrency Industry

Even though cryptocurrency is promising with innovation and financial freedom as the main gains, the journey for new users often starts on a bumpy road. Currently, the crypto industry’s onboarding process is infested with challenges that can turn a curious newcomer into a frustrated dropout.

1. A Complex Know Your Customer (KYC) verification process: Lengthy forms, stringent identity checks, and delays are an unnecessary wall guarding the crypto playground. This bureaucratic maze is one way to discourage potential users who enter the crypto world.
2. Technicality/Technical Jargon: Terminologies like "blockchain," "wallets," and "gas fees" may be strange to the new user, who may be overwhelmed by how much he needs to understand these concepts to thrive in the crypto space; often pushing them to the sidelines and out eventually.
3. Difficulty of setting up and managing wallets.: Unfortunately, new users may be intimidated by the use of crypto wallets which act as a storage for their digital assets. The fact that these new users have to choose between using custodial and non-custodial wallets, understanding private keys, or navigating seed phrases, can make the process feel cumbersome.

Unfortunately. these pain points are undeniable and mostly cause high drop-off rates during the onboarding process. This paints a bleak future for new users in the system as they are faced with complex verification, technical jargon, and wallet woes; forcing them to simply abandon ship. 

Unfortunately, this also retards the overall growth and adoption of cryptocurrency, hindering its potential to become a mainstream financial tool or acceptable legal tender in countries around the world.

This leads to the question of how to carry out a successful and seamless process of user onboarding in the cryptocurrency industry.

Read Also: Data Privacy and User Onboarding in the United States

How to Simplify User Onboarding Process in the Cryptocurrency Industry

1. Automating The Onboarding Process

Automating the user onboarding process is crucial in the cryptocurrency industry to ensure compliance with regulatory requirements while providing a seamless customer experience. One key aspect of automating the onboarding process is leveraging AI-powered identity verification and KYC (Know Your Customer) solutions. 

These technologies can automate the collection and verification of customer information, such as scanning government-issued IDs and performing biometric checks like facial recognition. This not only streamlines the onboarding flow but also helps cryptocurrency platforms stay compliant with anti-money laundering (AML) and counter-terrorist financing (CTF) regulations.

Another important component of automated onboarding is the use of smart, dynamic forms that adapt based on the customer's responses. This reduces the time and effort required for customers to complete the onboarding process, as they only need to provide the necessary information. Additionally, integrating the onboarding process with a unified API system can further enhance efficiency by seamlessly connecting different systems and applications.

2. Use of Simple Terms: 

They can also make the process simpler by using clear and concise language in their onboarding process. They have to ditch the technical jargon so new users can understand. They will also have to explain complex concepts in simple terms and avoid overwhelming users with acronyms.

Furthermore, the crypto industry has to create step-by-step guides and tutorials for users during each stage of the onboarding process from sign-up to their first transaction.

To crown it all, the crypto industry must ensure that they use intuitive, user-friendly interfaces for both wallets and platforms. Simplicity is key for users to navigate, find the information they need, and complete tasks effortlessly.

3. Providing Education and Support

Educating new users about the crypto world is crucial, so the industry must ensure that they embed educational resources within onboarding: This could include short explainer videos, interactive tutorials, or glossaries defining key terms.

They also should integrate diverse learning formats to cater to different learning styles through a variety of educational materials, including articles, videos, and interactive tutorials.

It is also advisable for the crypto industry to embed robust Frequently Asked Questions (FAQ) section and customer support in their platforms to address common user concerns. These customer support platforms should also be multiple-channeled with options like live chat, email, or phone support.

4. Building Trust and Confidence

Building user trust and confidence in the cryptosystem starts with the industry being transparent about the security measures each platform takes to protect user funds. Platforms should highlight features like two-factor authentication and secure storage solutions.

User testimonials and community endorsements also come in handy in earning and maintaining user trust and confidence in the platforms in the industry. Positive user experiences through testimonials and community endorsements should be showcased; they might also get a popular brand ambassador to help them showcase their strengths and usefulness. They could also have satisfied users speak for the platform and build trust with newcomers.

Crypto platforms also need to put in place investment guidance and risk management tips to equip new users with the knowledge they need to make informed decisions. Let them know in clear terms the inherent risks associated with cryptocurrency; and guide them to make informed decisions.

Implementing the strategies highlighted above is the first step the crypto industry needs to create a more welcoming and user-friendly onboarding experience. This will help pave the way for wider adoption and unlock the true potential of cryptocurrency for a new generation of users.

Conclusion

By leveraging these user onboarding best practices in the cryptocurrency industry, the process of user onboarding can be streamlined, compliant and easy for users. Youverify offers a seamless and automated onboarding process for businesses and firms to experience a frictionless onboarding process while ensuring the security and integrity of their platforms.

Join over 750 global organisations and businesses enjoying the best AI-powered ID verification to ensure a seamless and compliant onboarding process in your crypto platform. Request a demo today.