Bitcoin

Cryptocurrencies have proven to be a viable asset class but remain inaccessible to a large portion of the world's population. As it stands, there are just over 420 million crypto users globally, which is still a drop in the ocean compared to the potential market of 5 billion internet users. 
So, what's holding back this nascent market from going mainstream? While there are several factors, most notably the volatility of crypto assets and regulatory uncertainty, it's also worth asking whether the current crypto service providers are providing the necessary support to onboard the next wave of crypto users. 
For context, crypto services span around exchanges, peer-to-peer trading platforms, custodial solutions and other DeFi-specific features such as staking or yield farming.&nbsp; 
<h2 id="span-style-font-weight-400-adapting-to-the-diverse-needs-of-crypto-market-segments-span">Adapting to the Diverse Needs of Crypto Market Segments</h2> 
Like any business model, crypto encompasses diverse market segments. On one hand, we have geographical distinctions between developed and developing economies. On the other, we differentiate between experienced crypto users and newbies.&nbsp; 
<h3 id="span-style-font-weight-400-developed-vs-developing-markets-span">Developed Vs Developing Markets&nbsp;</h3> 
According to the recent global adoption index from <a href="https://blog.chainalysis.com/reports/2022-global-crypto-adoption-index/#our-methodology" target="_blank" rel="noopener noreferrer nofollow">Chainalysis</a>, crypto usage has seen a significant increase, especially in developing economies. Among the top 20 countries, only the UK and US, both high-income nations, made the list. In contrast, lower middle-income countries like Vietnam, Philippines, Nigeria, and Kenya dominated the rankings. 
Yet, it's paradoxical to observe heightened crypto activity in developing economies, given their customer service challenges relative to Western counterparts. Historically, innovators have often prioritized creating superior products for developed markets, sidelining developing economies with less efficient solutions. 
Luckily, this trend is poised for change. Key players are starting to recognize the vast potential. Pioneers like the Exinity Group, owners of renowned forex trading brands Alpari and FXTM, are expanding their product suite with Boxwind – a cutting-edge crypto exchange solution aimed at fostering adoption in regions like Southeast Asia, Sub-Saharan Africa, and South America. 
What distinguishes <a href="https://boxwind.com/" target="_blank" rel="noopener noreferrer nofollow">Boxwind</a> from established exchanges like Binance, Coinbase, and Mercado in these regions is the platform's user-friendly access and seamless onboarding process. More importantly, Exinity, being an illustrious FX solutions provider, brings a wealth of experience in customer service and operational support. 
In addition to customer service, prospective crypto users in both developed and developing economies could benefit from more on-ramping solutions and reliable custodial services. Currently, most top-tier banks are hesitant to offer crypto services following the recent SEC clampdown. Meanwhile, security remains a pressing concern, with the latest statistics <a href="https://www.cnbc.com/2022/01/06/crypto-scammers-took-a-record-14-billion-in-2021-chainalysis.html" target="_blank" rel="noopener noreferrer nofollow">revealing</a> that $3.8 billion was compromised in 2022. 
<h3 id="span-style-font-weight-400-expert-vs-newbie-users-span">Expert Vs Newbie Users&nbsp;&nbsp;</h3> 
The crypto market is segmented not only by geographical regions but also by user experience, differentiating between seasoned users and newcomers. Naturally, each segment has its unique needs. While customer service stands out as a predominant need, other factors also come into play.&nbsp; 
For crypto service providers, discerning which products cater to experts and which are tailored for newcomers is vital. 
To paint a better picture, consider established exchanges like Binance and Coinbase. Both have achieved commendable segmentation in their product offerings. However, bundling both experts and novices under the same pricing structure occasionally deprives users willing to pay for premium services the chance to access more specialized features. 
Given the ever-evolving nature of the crypto landscape, exchanges can implement a pricing strategy that factors in enhanced customer support. By setting prices slightly above the market rate, they can provide added educational and operational assistance, particularly for newcomers. This strategy underpins <a href="https://group.exinity.com/" target="_blank" rel="noopener noreferrer nofollow">Exinity Group's</a> vision for Boxwind, which is set to debut in lower-middle-income nations like Kenya and Nigeria. 
Another avenue for crypto service providers to elevate the user experience is by ensuring seamless access to the DeFi ecosystem, especially for seasoned traders. The total TVL (Total Value Locked) in the DeFi market currently stands at <a href="https://defillama.com/" target="_blank" rel="noopener noreferrer nofollow">$40 billion</a>. However, many entities, including institutional players, remain sidelined from its opportunities. 
And although the US government has historically been stringent on DeFi innovations like staking — exemplified by the $30 million fine imposed on Kraken exchange earlier in the year — this market void demands attention. Addressing it requires not just regulatory adjustments but also improvements in accessibility and the user interfaces of DeFi platforms. 
<h2 id="span-style-font-weight-400-closing-thoughts-span">Closing Thoughts&nbsp;</h2> 
Since the inception of Bitcoin in 2009, the crypto market has witnessed exponential growth. Now, it's imperative for service providers in this sector to elevate both the product and customer service experience. As emphasized in this article, the initial step is recognizing the distinct market segments in play. 
Subsequently, crypto service providers should hone in on specific market segments, addressing the unique challenges they present.&nbsp; 
But while there is room for customer service improvement in both developed and developing markets, the latter warrants heightened focus. This is not just because developing markets have historically been overlooked, but also due to the immense potential of providing financial services to the unbanked in these regions via cryptocurrency. 
The subject matter and the content of this article are solely the views of the author. FinanceFeeds does not bear any legal responsibility for the content of this article and they do not reflect the viewpoint of FinanceFeeds or its editorial staff.

Customer Service: The Key to Bridging the Crypto Divide for Seamless Global Adoption

Table of Contents

FinanceFeeds

Other articles published on Aug 9, 2023

Quant Analyst PlanB Predicts Extended 2-Year Bitcoin Rally Following Bullish Indicator

CoinEasy and Neo Blockchain Partner to Elevate the Neo APAC Hackathon

The status of the PowerAgent v2 testnet: What has been done and what’s next?

ShopNEXT supports Apple Pay launching in Vietnam

Russia’s Positive Signals: Legalizing Cryptocurrency Transactions?

Binance’s Proof-of-Reserves Discloses Strong Financial Position

Join our free newsletter for daily crypto updates!