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Despite the lack of a regulatory framework for cryptocurrencies, demand for digital currencies has increased. Cryptocurrencies are becoming more popular in Turkey, even as the country faces a financial crisis. A KuCoin survey found that interest in digital assets grew among women and older generations.
The Turkish lira has lost nearly 50% of its value, and inflation runs wild. To avoid the decreasing purchasing power from savings in lira, consumers are turning to alternative investment solutions. The U.S. Dollar and gold remain favored options, but demand for exposure to cryptocurrencies is rising.
A recent survey found that 40% of internet users aged 18 – 60 own cryptocurrencies or have traded such assets in the past six months. Moreover, 59% of crypto investors say they’ll increase their exposure in the first half of 2022. These findings suggest that cryptocurrencies are on track for mass adoption.
Cryptocurrencies have become trendy to most Turkish residents for the first time, resulting in many new traders exploring what the technology offers in the past half-year.
A recent study by KuCoin has found that just one in four traders have been trading crypto assets for over a year. The study also identified a need for more educational efforts to ensure the market remains secure and stable.
The KuCoin report also found that women in Turkey are nearly as well-represented as men when trading and investing in cryptocurrencies. Female accounts represent 47% of investors and 63% of the crypto-curious.
This suggests that Turkey is well on its way to achieving gender parity for trading and investing in cryptocurrencies.
Research shows that Turks over the age of 40 are increasingly interested in cryptocurrencies. A survey conducted by a major Turkish bank found that this age group is particularly interested in investing in or trading cryptocurrencies.
This is a shift from the trend seen in the West, where millennials and younger generations typically favor Bitcoin and similar assets. However, Turkish consumers are not afraid to invest in digital currencies even as their value fluctuates.
Turkish residents who invest in cryptocurrencies pay attention to three main concepts:
- Stablecoins
- Derivatives
- Metaverse projects.
The demand for stablecoins makes sense, as it provides U.S. Dollar exposure in digital format through Tether’s USDT. Additionally, USDT is a very liquid asset supported by almost every trading platform worldwide and is used in spot and futures trading.
Furthermore, derivatives—futures and options—are essential risk management tools when dealing with volatile assets.
Metaverse projects are a hot trend globally, and Turkey is no exception. According to figures from the KuCoin exchange, BlokTopia – a project built on the Metaverse blockchain – is the third-most traded asset among Turkish investors throughout 2021. Verasity, a video streaming platform built on the Metaverse blockchain, is also in the top eight.
Despite the extreme volatility of these assets in this early stage of development, there is growing interest among investors in trading project tokens. This is in line with global trends; as more people become aware of Metaverse and its potential, they are keen to invest in projects built on it.
This report comes as a welcome development for KuCoin, which has seen unprecedented growth in recent months. The exchange plans to use the new capital to expand its team, build new features, and improve customer support. According to CoinMarketCap, KuCoin is currently one of the top 5 crypto exchanges. Also, Forbes named KuCoin as one of the Best Crypto Exchanges for 2021. In 2022, The Ascent named KuCoin the Best Crypto Exchanges and Apps for enthusiasts.
