Undoubtedly, participation in the crypto ecosystem has never been easier. After the central powerhouse Coinbase recently began allowing its users to contribute a portion of their paper salary to the exchange in the form of cryptocurrencies, more and more people are beginning to recognize the potential of the industry and participate in this ever-growing ecosystem.
But cryptocurrencies are often seen as being fundamentally complex or not having the right interfaces, and right or wrong has been around for some time. Some people will always find the idea of digital currencies too complicated. However, in recent times, for those who want to learn more, there have been easier paths in the coding space.
It is important to determine why you should consider using cryptocurrencies. As is the case with the rest of the industries in the world, digitalization is revolutionizing every aspect of our lives. Being able to understand this early on will help more people understand the benefits of this technology in the financial world and get used to a future that will likely include many cryptocurrencies.
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For this reason, you should make cryptographic entry points as accessible as possible to all developers in the field. But that doesn’t detract from the fact that the industry has come a long way and continues to prove why decentralization is the key to a productive economic future.
What are the entry points to the cryptocurrency at the moment?
Finding current entry points into the cryptocurrency industry is certainly easier than it was a year ago. However, much more needs to be done to ensure that the existing paths to space for newcomers are preserved, constantly improved and brought to the right people.
There are tools that not only help you learn about and buy cryptocurrencies, but also apps that support these assets. Yield farming is a relatively simple approach to cryptocurrencies: a form of high return on your deposit that was once seen as a complex feature in DeFi but has evolved into a product that just about anyone can understand and quickly start earning from their wallets. By simply purchasing a few tokens, you can put them in a liquidity or lending pool and let them accumulate value.
What’s more, we are now seeing a newly known non-fungible token (NFT) entry point. NFTs are “unique” assets in the digital world that can be bought and sold like any other property, but they may not have their own tangible form. The space saw explosive growth in 2021, with NFT sales alone in the first half of the year totaling $2.5 billion.
Essentially, NFTs are new and alien to the mainstream. Since they have become known to the mainstream masses only recently, there is a lot of striking power, and this increases desire and demand. The “art” world is seeing a huge growth in the NFT sector where digital artists can reach millions of people/customers cheaply and instantly.
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Another reason for the growing popularity of NFTs is the sense of status they have. Some NFTs have even created their own cult communities like Crypto Punks and Bored Apes and having one of these makes you feel like a member of their very exclusive club, not to mention potentially very rich. We are seeing some NFT art being sold for huge sums and this is just the beginning of a very small ecosystem.
What is the problem with these existing entry points?
To increase the accessibility of crypto, projects need to be able to adapt as things like high gas prices push people away from the Ethereum network. Due to predatory gas taxes, this has led many projects and users to other cheaper blockchains such as Solana, which recently experienced an NFT surge with the launch of Solana Monkey Business, Degenerate Ape Academy and Meerkat Millionaires Country Club.
Work needs to be done to ensure encryption is available, and accessibility issues, high gas fees, and a complex user interface prevent new users from reaching their full potential. But more education is needed to help build the confidence of these new users so that they can confidently use these products and not worry about losing the money they may have invested in cryptocurrencies.
Related: DeFi is booming as blockchains and alternative NFTs thrive
There have been notable advances in DeFi that are helping create easier access points to crypto, but the NFT space remains elusive for now. Considering the apparently high prices of some of the most popular NFTs such as Bored Apes and Crypto Punks, which have sold for hundreds of thousands of dollars, this is approx.
