As cryptocurrency adoption increases in Turkey, investors flock to the novel sector for different reasons, including the notion that they could enrich their pockets by trading digital assets.
A new survey by the world’s largest crypto exchange, Binance, found that the potential for profits motivates roughly 66% of Turkish investors to trade digital assets. This factor is followed closely by the ease of monitoring positions, which has lured 56% of Turkish investors into the digital asset sector.
Why Turkish Investors Are Interested in Crypto
Binance, in collaboration with consumer research company Twentify, conducted the study from April to May 2023 and received responses from 606 Turkish participants. The survey questions were based on the investors’ attitudes, adoption, and outlook toward cryptocurrencies.
Besides the potential for profits and the ease of monitoring positions being the most motivating factors for Turkish investors, 38% of the respondents revealed that lack of minimum investment compelled them to invest in crypto, while 33% attributed their digital assets investment decisions to low transaction costs.
On the other hand, 40% of non-investors said the risk of cryptocurrencies was their biggest hurdle for not adopting digital assets. Other factors, such as insufficient knowledge, safety concerns, time consumption, and the inability to find trustworthy platforms, were also selected as reasons for not investing in cryptocurrencies.
Despite the fears associated with investing in crypto, a majority of the respondents have an optimistic outlook for digital assets. Roughly 73% believe the number of crypto investors will increase in the next five years, while 64% expect that prices will rise next year.
A Higher Adoption Rate
Compared to traditional assets like precious metals, stocks, and bonds, crypto has a higher adoption rate in Turkey, fueled by a challenging macroeconomic climate and interest in blockchain innovation. Approximately 21% of the respondents were found to be invested in cryptocurrency.
Binance revealed that the Turkish Lira has recently emerged as its platform’s largest fiat trading pair, accounting for 75% of all fiat volume in early September. This comes as Turkey surges past other major economies to become the fourth-largest crypto market by transaction volume globally.
Although a significant number of Turkish investors entered the crypto market during the last bull season two years ago, around 27% dipped their feet into the sector last year, indicating continued interest in digital assets even during an unfavorable period.