Cryptocurrency’s biggest challenge is achieving mainstream acceptance among asset managers, wealth managers, and individual investors. For many, digital currencies conjure images of shady dealings or complex computing they could never comprehend.

Despite the approval and launch of the first Bitcoin exchange-traded funds (ETFs), a recent cryptocurrency investor trends survey shows that crypto managers still find it challenging to attract investors beyond Gen Z and millennial men.

According to the survey, 23 percent of respondents say they’re very likely to buy cryptocurrency, a decent percentage. The issue is that the people with the most interest and trust in cryptocurrency remain young males, many of whom have already invested in it.

But behind the fear and mystery is an asset class and technology rapidly moving into the mainstream. This has recently accelerated with:

• Several major financial firms, including BlackRock, the world’s largest asset manager, taking stakes in crypto companies.
• Many wealth managers recommending virtual currency as a portfolio holding.
• The incoming Trump administration speeding crypto’s move into respectability.

Cryptocurrency investment companies must convince people to invest in crypto and firms to partner with them in ways that the average person can understand and buy into.

This guide explains the hurdles crypto investment companies face in becoming mainstream and how they can overcome them.

1. Helping the Uninitiated Understand Cryptocurrency Investing

Let’s begin with the top issue firms face when marketing crypto investments: Most people still find it baffling. They won’t embrace it if they don’t understand it.

According to the survey referenced above, 18 percent of respondents say they understand how crypto works very well, down from previous years the survey was conducted. A record high 33 percent said they don’t know how crypto works at all, up significantly from earlier surveys.

Until people understand crypto, they will unlikely want to invest in it.

Here are two ways to help people understand how crypto works so they can become more comfortable buying into it.

Don’t speak crypto; speak plain language

To help people get over the crypto understanding hump, avoid using the insider jargon crypto professionals often turn to. It may make them feel smart, but it makes most others feel inadequate. Technical terms quickly turn off most people. Instead, use easy-to-understand analogies and relatable language to explain complex concepts. For instance, comparing crypto investments to more familiar forms will make them relatable to average investors.

Let the professionals tell your crypto story

Leverage public relations to get experienced communicators to tell your company’s crypto investing story. The media today is hungry for original ideas related to the topic. Reporters who are expert communicators about crypto, blockchain-speak, and investing can explain your approach to crypto so you don’t have to. They can translate the core benefits for average people. It’s their job to ensure readers understand the content they publish.

2. Overcoming Negative Perceptions About Crypto

For most people, cryptocurrency seems like a novel concept, even though it’s been around for over a decade. Crypto is viewed as an innovation (maybe even a major disruptor) and innovations come with risks.

According to the study referenced earlier, security concerns are the top reason crypto skeptics won’t invest in it (36 percent). Almost one in four respondents view crypto as a scam and 28 percent worry about the lack of a reputable governing body overseeing cryptocurrency.

Crypto’s market volatility and history of hacks have only fueled prospective investors’ worries.

Building mainstream trust in cryptocurrency investing requires confronting issues head-on and spotlighting protections. It’s the only way to foster consumer and investment-industry trust. Educational content should transparently evaluate crypto investing’s potential risks versus rewards so wealth managers, asset managers, and prospective investors have the information they need to make informed and confident decisions.

Here are additional things you can do to combat the negative perceptions of cryptocurrency.

Be proactive about addressing security concerns

Address cybersecurity and safe storage of crypto assets upfront during the marketing and sales process. Doing so will prevent investors from writing off your crypto offerings. Explaining evolving best practices like cold wallet storage and multi-signature protocols demonstrates your commitment to safeguarding funds.

Highlight crypto safeguards in the press

People are more likely to believe things written by a known reporter in a respected publication than claims made by a company. That’s why it’s wise to supply reporters constantly looking for novel crypto stories with information about the latest security advancements. In addition to cyber protection measures, firms should highlight how they follow regulations like Anti-Money Laundering (AML) and Know-Your-Customer (KYC), which could go a long way toward reassuring the public that you support complying with existing financial regulations and will be willing to do the same with crypto regs as they happen in the years ahead.

3. Complying with Ambiguous Regulations

Beyond security fears, unclear regulations leave many wondering if the time to dive deeper into cryptocurrency is right. Understandably, investment firms and investors worry about accidentally running afoul without clear legal guardrails.

As policies evolve in the United States and worldwide, smart crypto firms must view compliance as an opportunity rather than an obstacle. Those staying ahead of regulatory changes will be the pioneering firms that earn trust ahead of others that do not.

Here’s how you can get over regulatory ambiguity.

Stay ahead of policy shifts

Monitoring legal developments across the United States and the world allows crypto businesses to get ahead of new requirements. Especially as global consensus on standards develops, early preparation will help make complying with regulations easier.

Feature  your diligence in marketing and communications. Discussing factors related to regulatory development will position your firm as a leader before regulations take effect.

Treat rules as evolutionary, not revolutionary

Backing the implementation of emerging regulatory standards reinforces institutional maturity versus cavalier businesses ignoring risks. As crypto oversight solidifies to protect purchasers, confident firms can shape perceptions by framing it as a natural evolution as adoption advances.

4. Standing Out in a Crowded Crypto Market

With so many new virtual currency projects launching, it’s challenging to stand out and get investors and prospective asset and wealth managers to pay attention to and register what makes firms unique.

Crypto companies that stand out can clearly explain their reason for being. They aren’t just latching onto the crypto hype machine. Being able to define why someone should do business with you is where the real opportunity lies. 

Here’s what else you can do to stand apart from the crypto crowd.

Define what makes your offerings unique

So, why did you develop your crypto offering? If you can’t articulate it, it will be impossible for your brand to stand apart from all the other crypto investments out there.

Of course, it is possible to retrofit a story onto your business. Consider your ideal investor and determine the value they get from your offering. If you find that challenging, talk to some investment managers and work with them to identify gaps in the strategies they recommend to clients. Then, figure out if your offering could fill them.

Create a narrative that resonates

Once you find a target audience and purpose for your crypto offering, craft a narrative that will resonate with investors, financial professionals, and the press. If you find this challenging, the marketing, branding, and public relations professionals at Sondhelm Partners are available to help. Schedule a complimentary conversation with Dan Sondhelm to discuss your business differentiation challenges.

5. Building a Human Connection to Digital Currency

Cryptocurrency investing is built on cutting-edge concepts and technology, but not much emotion. It takes a human emotional connection to get people to act.

Here are some ways to bring humanity to your crypto brand.

Share authentic stories

Tell stories about investors who benefitted from your crypto solution. If they achieved investing success, how did they use the proceeds? Explaining how crypto investing can improve someone’s life or purpose will encourage others to invest.

Also, share employee stories that reveal why they are passionate about your company and what they do. This will help bring your back office to life. Finally, consider getting involved in your community or with a charity and featuring it in your marketing. It will help demonstrate that there is a heart behind your crypto brand.

Communicate with prospective investors and business partners

Sure, it can be challenging to step away from your computer to connect in person with prospective investors and partners.

However, you can join conversations in social media and forums to get your brand voice heard. It will demonstrate that you’re committed to sharing valuable information with others and moving your business beyond being merely transactional.

Two-way engagement, even in the virtual realm, humanizes brands.

Overcoming the Top Crypto Investment Company Hurdles: The Final Word

While marketing cryptocurrency investing comes with significant challenges, overcoming them and taking advantage of today’s favorable environment is possible.

Crypto firms that get the basics right will find a smoother path to mainstream adoption, with more assets under management and greater revenue.

Defining your value, helping people understand why they need to invest with you, making them feel secure, building human connections, communicating regularly, engaging with the press, and telling stories—all things the best mainstream investment firms do—will attract more investors and interest from potential business partners in crypto companies.

Not sure you can do all this on your own? Schedule time with Dan Sondhelm to find out how Sondhelm Partners could help you ride the current crypto wave to success.