Stop Confusing Non-Web3 People: The Dos and Don’ts for Crypto Wallets
Have you ever tried explaining crypto to your relatives? You start talking about wallets, and suddenly, you’re hit with many questions. «What’s a private key? Do I need a password for this? How do I send tokens?»
February 7, 2025
And then there’s the issue of gas fees, «Why do I need to pay extra just to send my tokens? And why is it in a different token?» It’s not just your friends and family. Many newcomers to crypto feel the same way. These concepts create a significant barrier for anyone new to the space. If crypto will ever reach the mainstream, wallets need to be more straightforward and intuitive.
In this article, we’ll explore how minor improvements in UX can make crypto wallets more accessible to everyone without confusion.
The Gap Between Evolving Technology and Human Behavior
Blockchain tech is introducing innovations that seem almost futuristic. But for the average user, even basics can be overwhelming. While tech is evolving quickly, human adoption tends to be slower. People need time to adapt, understand, and feel confident about new systems, and often, they’re not ready to research complex processes just because the technology exists.
The core issue lies in how crypto products are designed by insiders, for insiders. Most developers, well-versed in blockchain terminology, approach design from a highly technical perspective, creating products that make sense to them but leave newcomers feeling lost.
This is especially true in crypto wallets, where the lack of profound user research can lead to poor designs that don’t account for the user’s needs.
As highlighted by seasoned designers, many Web3 projects fail to reach broader audiences because they prioritize technical functions over intuitive user flows. Without a deep understanding of the non-Web3 user, designs risk being confusing, inaccessible, and off-putting.
Crypto products must evolve beyond this insider-centric mindset to ensure that UX meets the needs of the mass market, helping them feel at ease rather than overwhelmed.
Defining the «Newcomer Persona»
When designing crypto wallets, it’s essential to shift focus from experts to everyday individuals, the «newcomer.» This is someone aware of crypto’s potential but feels intimidated by its complexity. Whether they’re just curious or ready to dive in, they need a product that speaks to their concerns, fears, and learning style.
Fear of Hacks and Scams
For the newcomer, security is at the top of their minds. They’ve heard horror stories about lost funds due to phishing attacks or stolen private keys. The fear of losing money in a hack can paralyze even the most eager crypto explorer. To win them over, wallet designs must emphasize security features like two-factor authentication, seed phrase backups, and clear, reassuring messaging about safe practices.
Reluctance to Share Personal Info
Privacy is a huge concern. Unlike traditional finance, Web3 often requires more personal information, whether it’s for KYC compliance or linking bank accounts. This is intimidating for newcomers, especially when they don’t fully understand how their data will be used. A good wallet design will ensure that privacy options are clear and that users feel in control of what they share.
Desire to Learn at a Manageable Pace
Crypto wallets can overwhelm newcomers with jargon and complex processes. The newcomer needs a user-friendly, bite-sized learning experience. Instead of dumping a ton of information at once, the design should introduce concepts gradually, using tooltips, pop-ups, or interactive guides that allow users to learn as they go—at a pace that feels comfortable and non-intimidating.
The Onboarding Hurdle
For newcomers, the request for sensitive personal information during the KYC process can be overwhelming. In the world of crypto, where privacy is frequently emphasized, asking for ID and financial details upfront can feel intrusive and deter potential users right from the start.
Repetitive Steps
Compounding this issue is the need to provide the same personal data across multiple wallets and exchanges. This repetitive process can frustrate users and make them question the security of their information, especially when they’re just getting started in the space.
Possible Solutions
To ease this process, wallets should provide clear explanations of why KYC is necessary and how user data is protected. Streamlining KYC across platforms, or offering aggregated solutions, can also help. For example, Mercuryo allows non-KYC onboarding for amounts under 700 EUR, making it easier for new users to start without a lengthy verification process.
A more transparent and simplified KYC approach will improve the onboarding experience and attract more users to crypto wallets.
Empty States: The Often-Ignored Part of the User Journey
«Empty States» occurs when a user creates a new wallet but hasn’t yet added any funds. The screen is often blank or empty, which can be a confusing and disorienting first experience. Without clear direction, users might wonder where to go next or, worse, abandon the wallet altogether.
In these moments, wallets may overwhelm users with unclear or too many calls to action. Some might show a list of actions but with no real guidance, while others might offer sparse, non-informative interfaces. This can leave users stuck, unsure of what to do next, leading to frustration.
To address this, wallets should offer clear, guided steps, like «Add Funds» or «Connect Bank Account,» to make the process straightforward. These steps should be accompanied by reassuring language that helps orient the user, such as «Start by adding some funds to begin using your wallet.» Offering simple, actionable instructions can help users feel more in control and confident as they begin their crypto journey.
Eliminating «Dead Ends» and Confusing Integrations
When navigating a crypto wallet, users don’t want to feel like they’re hitting walls or running into unexpected hurdles. For instance, integrating external payment processors or bridges can enhance wallet functionality, but when poorly explained, they can feel suspicious to users. Unclear processes or lack of context can make users second-guess whether they should trust these third-party services.
Another pitfall is failing to communicate location-based restrictions upfront. If users encounter these limitations after going through the setup or funding process, it can lead to wasted effort and frustration.
Another pitfall is failing to communicate location-based restrictions upfront. If users encounter these limitations after going through the setup or funding process, it can lead to wasted effort and frustration.
To avoid these dead ends, wallets must reinforce user confidence with clear, consistent branding and transparent messaging. Explaining why third-party integrations are needed, and upfront communication about restrictions, helps users feel secure and informed throughout their journey.
Protecting Users from Errors and Hacks
Blind signing is one of the biggest risks crypto users face. It occurs when users unknowingly approve transactions they don’t fully understand. This can lead to theft or loss of assets if the transaction is malicious or flawed. Without clear visibility into what’s being signed, users are vulnerable.
To mitigate this risk, wallets should make transaction details easy to understand. Displaying information in simple text, with icons or highlights that show key elements, ensures clarity.
Additionally, multiple confirmation steps and clear prompts are essential to guide users through each action, giving them a chance to double-check before committing.
Finally, user education on securing their seed phrase and implementing layered security—such as two-factor authentication—can help protect against common threats. Reminders about backups should be frequent and clear, as this is often the first line of defence against hacks.
Practical UX Tips for Crypto Wallets
To make crypto wallets more user-friendly, several practical design tips can significantly improve the user experience.
- Replace Generic Terms with Glossaries. Define technical terms like «address» or «seed phrase» in simple language. Use in-app glossaries or pop-ups to provide context without overwhelming the user.
- Use Friendly, Descriptive Copy. Avoid jargon and explain actions and potential outcomes clearly. For example, instead of «approve transaction,» say «confirm your payment.»
- Design the «Unhappy Path». Anticipate user errors or failed transactions. Provide clear steps for recovery or ways to cancel, so users aren’t left confused if something goes wrong.
- Seek Professional UX Help. Collaborate with designers who have experience in mainstream product design. Their expertise can help make complex crypto concepts more intuitive.
- Test with Real, Non-Technical People. Conduct usability tests with everyday users to identify confusing areas in the interface. This ensures the design meets the needs of both newcomers and experienced users.
The Future of Next-Gen Crypto Wallets and Emerging Complexity
As the crypto ecosystem grows, the complexity of wallet functionalities will increase. But that doesn’t mean user experience has to suffer. Here’s a look at some innovations shaping the future of crypto wallets.
The Future of Next-Gen Crypto Wallets
The future of crypto wallets is shaping up to be much more user-friendly. Here’s a look at some features that can improve the experience:
Account Abstraction
A new approach where smart contract accounts take care of the complex stuff like recovery and fees in the background. This means users don’t have to deal with multiple seed phrases or worry about the details.
Wallet-as-a-Service (WaaS)
Instead of building everything from scratch, developers can use third-party services to handle complex wallet tasks. This allows for a more seamless experience across different apps, and better user consistency.
AI Assistance
AI-powered guides can help new users navigate tricky steps, flag suspicious transactions, and recommend the best time to make moves based on past behavior. It’s like having a crypto coach.
Biometric Security
Logging in with your face or fingerprint can replace passwords and seed phrases, making security easier and less stressful. Of course, these systems should still have backup options just in case.
Cross-Chain Compatibility
With so many blockchains out there, wallets will need to support multiple networks, letting users move assets between them easily. One wallet for everything!
Progressive Onboarding
New users will get to know the basics first, like making simple transactions. As they gain confidence, more advanced features will open up, like staking or multi-chain swaps.
All these innovations go beyond tech. They’re about making crypto intuitive and accessible, empowering everyone to confidently engage with Web3.