Key Takeaways
- The Crypto Literacy Scale is a peer-reviewed, 10-question assessment designed to measure practical cryptocurrency knowledge.
- Participants in the main US study scored an average of 4.1 out of 10, while nearly 15% did not answer a single question correctly.
- A shorter five-question version produced similar results, although the researchers say the scale still requires testing across other countries and languages.
Updated: September 9, 2026
The Crypto Literacy Scale gives researchers a standardized way to test what people know about cryptocurrency, rather than how knowledgeable they believe themselves to be.
Its 10 questions cover transaction validation, blockchain technology, private keys, noncustodial wallets, network fees, central bank digital currencies and differences between major crypto assets.
University of Cincinnati researchers publicly introduced the scale in 2023. Michael Jones, Truong Luu and Binny Samuel subsequently revised and validated the assessment before publishing the final study in the peer-reviewed Journal of Consumer Affairs in October 2025.
The peer-reviewed study details how the questions were selected, reports results from a US sample stratified by age, sex, and race to broadly match 2021 Census estimates, and examines whether scores are associated with crypto ownership and learning habits.
Researchers Validate a 10-Question Crypto Literacy Scale
The researchers define crypto literacy as the knowledge needed to use cryptocurrency and blockchain-based assets in ways that protect and improve a person’s financial well-being.
The questions test knowledge that conventional financial-literacy measures do not cover, including how private keys, transaction validation and noncustodial wallets work. A person may understand inflation or diversification without knowing who controls funds in a self-custodied wallet or whether a blockchain transfer can be reversed.
Users of noncustodial wallets are responsible for protecting their keys and recovery phrases, with no bank or broker able to reverse a transaction or restore lost access.
The CLS measures this crypto-specific knowledge using objective questions. Earlier studies often relied on self-assessments or focused narrowly on Bitcoin. The completed scale includes several types of crypto assets and tests both technical and financial concepts.
Researchers Build and Test the CLS
The researchers developed their initial questions through a review of existing literature, feedback from cryptocurrency users and discussions with academic and industry specialists.
They first asked 100 crypto adopters which topics should appear in a cryptocurrency literacy assessment. The team combined that input with academic research and discussions held during a university workshop, an expert interview and an industry blockchain event.
Using that input, the researchers selected 16 potential questions for testing. The assessment was completed by 544 US participants recruited through the Prolific research platform. After participants who failed attention checks were removed, 538 responses remained.
The sample was stratified by age, sex, and race to broadly match 2021 US Census estimates. It included crypto owners and people with little or no direct exposure to the market.
The researchers used item response theory to examine how difficult each question was, how effectively it distinguished between different knowledge levels and how likely respondents were to guess the answer. Six questions were removed, leaving a final scale with 10 items.
The completed CLS tests whether respondents understand:
- Who can validate a Bitcoin transfer
- Which private-key storage method is most exposed to cyberattacks
- Who controls funds in a noncustodial wallet
- How tokens are distributed through a fair launch
- What a blockchain is
- What a seed phrase does
- How central bank digital currencies differ from decentralized crypto assets
- How Bitcoin and Ethereum differ
- What influences Bitcoin transaction fees
- Whether Bitcoin transactions are anonymous or pseudonymous
Each correct response receives one point. Incorrect answers and “don’t know” responses receive zero, producing a score between zero and 10.
Early coverage of the working paper described scores of zero to four as low literacy, five to seven as medium and eight to 10 as high. The final peer-reviewed paper analyzes results across the full 10-point scale without establishing those bands as formal diagnostic categories.
US Participants Averaged 4.1 Out of 10
Participants recorded an average CLS score of 4.1 out of 10. Nearly 15% failed to answer any of the 10 questions correctly, while relatively few achieved scores at the upper end of the scale.
Cryptocurrency ownership was one of the strongest predictors of a higher score. Greater financial risk tolerance was also associated with stronger performance.
The researchers conducted a separate validation survey involving 501 cryptocurrency owners, of whom 492 were included in the final analysis. Higher scores were associated with longer periods of ownership, holding a larger variety of crypto assets and spending more time learning about cryptocurrency.
Participants who owned at least five different crypto assets averaged 8.0 on the scale. People who had acquired crypto through mining or because of an interest in new technology also tended to perform better.
Among crypto owners, 63% said they used social media or online forums to learn about cryptocurrency, while 5% reported using credentialed courses. Respondents who consulted sources the researchers classified as credible media were more likely to achieve higher scores.
These relationships do not establish that owning more tokens or reading particular publications causes greater crypto literacy. More knowledgeable participants may also be more likely to explore several assets, remain in the market longer and seek information more frequently.
Quick 5 Offers a Shorter Crypto Literacy Test
The researchers also created a condensed version known as the Quick 5 CLS. It focuses on five subjects:
- Bitcoin transaction validation
- The definition of a blockchain
- The purpose of a wallet seed phrase
- The factors affecting Bitcoin transaction fees
- The pseudonymous nature of Bitcoin transactions
Scores on the Quick 5 were strongly correlated with results from the complete assessment. The correlation coefficient was 0.91, indicating that people who performed well on the shorter test generally performed well on the full CLS.
The authors designed the Quick 5 for inclusion in other survey instruments, where a shorter questionnaire may be easier and less costly to administer.
The complete CLS adds questions covering private-key storage, noncustodial wallets, token launches, CBDCs and differences between Bitcoin and Ethereum.
The Scale Has Limits Beyond the US Sample
The academic Crypto Literacy Scale should not be confused with the Crypto Literacy Quiz operated by CryptoLiteracy.org. The industry initiative runs its own questionnaire and publishes separate annual survey results.
Figures from the two projects cannot be compared directly. They use different questions, samples, scoring systems and research methods. An increase in the percentage of people passing the CryptoLiteracy.org quiz therefore does not demonstrate an increase in CLS scores.
A 2025 OECD report found that 29% of surveyed adults across 39 economies met its minimum digital financial literacy target. Among respondents who owned crypto assets, 55% understood that the assets were not legal tender in their jurisdiction. Those figures measure digital financial literacy rather than performance on the CLS.
The questions were developed and tested through online US surveys in 2024 and have not yet been validated across other countries, languages or regulatory environments.
The questions may also require revision as wallet design, transaction systems and commonly used crypto assets change.
A high score demonstrates knowledge of the concepts covered by the assessment at a particular point in time. It does not guarantee that someone will manage risk effectively, avoid fraud or make profitable investment decisions.
The researchers have proposed further work to test the scale internationally, examine connections between crypto literacy and consumer outcomes, and evaluate educational programs.
For now, the CLS gives researchers a common 10-question measure for studying practical crypto knowledge in a US setting.
