Bridging Crypto and Financial Literacy

As the U.S. National Financial Literacy Month comes to a close, conversations around financial education have largely remained within the bounds of traditional institutions and investing. However, the rising influence of cryptocurrency as a tool for financial empowerment highlights an urgent need to explore how crypto ownership intersects with financial literacy.

According to the Crypto Market Sizing Report, 2024 saw a 13% global increase in crypto ownership, thanks to a rise in institutional crypto adoption. In the United States, 21% of adults owned some form of crypto in 2025, a considerable jump from crypto ownership rates at the beginning of the decade. Another 14% of non-owners are planning on entering the market in the next year according to Security.org.

Let’s take a look at what financial literacy represents within an ever growing crypto community.

What Is Financial Literacy?

Financial literacy is measured by our ability to understand and apply concepts like risk diversification, inflation, basic numeracy and interest compounding. To be financially literate is an important skill to have and to continuously improve upon for our own personal and financial growth. It also has broader social and economic impacts — to have a financially literate society makes for a stronger economy.

What Is Crypto Literacy?

Crypto literacy, on the other hand, is understanding specific to the functioning of cryptocurrency and of blockchain technology. It includes general financial literacy but also technical knowledge about concepts like peer-to-peer networks, wallets and transactions.

Financial and crypto literacy are all the more important for cryptocurrency owners given how volatile and complex the crypto market is. Although the learning curve is steep, a growing number of online and print resources are available to help us start learning and building our skills. Understanding the basics of cryptocurrency or how to safely navigate the crypto world with all it has to offer will help us down the line in our broader financial journey.

Furthermore, to improve on our crypto and financial literacy is to put all the odds in our favour when it comes to security.

How Financially Literate Are Cryptocurrency Owners?

Compared to Non-Crypto Owners

At present, it seems that current cryptocurrency owners lag behind the admittedly low global average in financial literacy. Only 25% of cryptocurrency owners are sufficiently financially literate according to the PiP World report, compared to 33% globally.

However, cryptocurrency owners do have better crypto literacy than non-crypto owners.

Within the Crypto Community

There are also differences in financial literacy rates among different demographics of the crypto community itself. For instance, according to PiP World, owners of large amounts of cryptocurrency, known as “whales”, and long-term crypto holders, known as “hodlers”, stand out as having high financial literacy rates.

Crypto investors have also been demonstrated to have higher financial literacy as opposed to their peers who instead mainly use crypto for transactions.

There is additionally a positive correlation between crypto literacy and financial literacy—you are more likely to be financially literate overall if you have a good understanding of cryptocurrencies. Unfortunately, only 31% of Bitcoin owners have high levels of crypto literacy.

Socioeconomics

The socioeconomic patterns of financial literacy among cryptocurrency owners closely resemble those found in the global population. In general and within the crypto community, higher educational attainment positively affects financial literacy. Older Bitcoin owners also tend to be more financially literate than their younger counterparts, as well as more affluent crypto owners.

While there is a documented gender gap in financial literacy among non-crypto owners, this gender gap is not statistically significant among Canadian men and women who own Bitcoin. On the other hand, regardless of ownership status, women are more likely than men to answer questions about crypto knowledge incorrectly or with uncertainty.

Broader Implications

To be financially literate has broader positive impacts on our lives, empowering us to make better financial decisions and allowing us the possibility of upwards mobility.

The positive correlation between crypto literacy and financial literacy suggests that taking the time to research and learn about cryptocurrency is likely to translate into traditional financial knowledge. Research shows that those with higher crypto literacy have the habit of seeking out professional guidance to complement the knowledge they already have. This suggests that financial education is a continuous practice. As markets continue to evolve, developing both crypto and financial literacy is essential to making the most of our financial journeys

Nevertheless, the low rates of financial literacy among surveyed members of the crypto community are concerning. This puts crypto users in a vulnerable position, where scammers can easily take advantage of the community, and investment decisions taken without calculations might lead to missed opportunities for personal gain. Lack of crypto and blockchain understanding specifically can lead to the neglect of security practices.

The state of crypto and financial literacy around the world and specifically within the crypto community is alarming. As more and more people are turning to crypto assets, whether to diversify their investments portfolios or to conclude transactions in a secure and discreet manner, promoting accessible educational resources is of the utmost importance.

At EZO, we believe everyone deserves the right to financial empowerment—beginning with tailored financial solutions and access to essential financial knowledge. Explore a wide range of topics on our blog.

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Frequently Asked Questions

What Is Financial Literacy?

Financial literacy is the ability to understand and apply basic financial concepts including risk diversification, inflation, basic numeracy and interest compounding.

What Is Crypto Literacy?

Crypto literacy is the ability to understand and apply fundamental concepts of cryptocurrency and blockchain technology, including how to use exchanges safely and responsibly.

Why Is Being Financially Literate Important?

Financial literacy is key in emerging from poverty, and most importantly, staying out of poverty. Financial literacy enables us to make the right financial decisions for a better life.