Turkey is a crucial region for cryptocurrency adoption despite the lack of a regulatory framework for these assets. The KuCoin survey for Turkey in 2021 confirms interest in cryptocurrencies continues to grow, especially among women and older generations. The demand for digital assets grows amidst an ongoing financial crisis in the country.
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More specifically, the Turkish lira has lost nearly 50% of its value, and inflation runs wild in the country. To avoid the decreasing purchasing power from savings in lira, consumers flock to alternative investment solutions. The U.S. Dollar and gold remain favorable options, but overall demand for exposure to cryptocurrencies is rising.
The 2021 KuCoin report and survey on crypto in Turkey highlight some interesting trends. The first observation is how mass adoption of cryptocurrencies remains on track. Roughly 40% of the internet population aged 18-60 own cryptocurrencies or have traded such assets in the past six months. Moreover, 59% of crypto investors will increase their exposure in the first half of 2022.
Cryptocurrencies have become trendy to most Turkish residents for the first time, resulting in many new traders exploring the waters this past half-year. Additionally, just one in four traders have been trading crypto assets for over a year. KuCoin identifies this as a sign of a need for more educational efforts to ensure the market remains secure and stable.
One of the key takeaways from KuCoin’s report is how women in Turkey get involved in crypto. More specifically, they are almost as well-represented as men in the trading and investing segment. Female accounts represent 47% of investors and 63% of the crypto-curious.
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Age does not matter when it comes to cryptocurrencies. In the West, Bitcoin and similar assets seem designed for millennials and younger generations in general. In Turkey, consumers above age 40 show a growing interest in investing in or trading cryptocurrencies throughout 2021 and beyond.
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 too. 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. Although these assets can see extreme volatility in this early stage of Metaverse development, investors show a growing interest in trading project tokens. Bloktopia is the third-most traded asset on KuCoin in Turkey throughout 2021, whereas Verasity is also in the top eight.
For crypto exchanges like KuCoin, it is essential to gauge consumer sentiment to what they look for when selecting a trading platform.
- Security and stability matter to 70% of respondents. KuCoin has a strong reputation on this front and bounced back from a 2020 hack relatively quickly by recovering 84% of stolen funds and covering the other losses from its funds.
- Fiat deposits and withdrawal convenience is important to 66% of users. KuCoin supports many different fiat currencies and several convenient payment methods to make topping up and withdrawing from an account straightforward and convenient.
- User Interface is essential to 65% of respondents. The KuCoin user interface is straightforward and simple to navigate across all devices for a streamlined experience.
- The variety of tradable coins makes a difference to 63% of traders. The KuCoin platform provides exposure to over 640 coins and more than 1,100 trading pairs, granting users plenty of options.
- Transaction liquidity is a determining factor for 55% of users. KuCoin has a large order book supporting dozens of currencies and trading pairs. Moreover, the platform has roughly $1.5 billion in daily trading volume.
KuCoin continues to strive to check all these boxes and more to provide an optimal experience for all users.
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