Binance market research has revealed that 40% of Turkish citizens have exposure to cryptocurrencies, making it one of the highest in the world.
The potential for profits is one of the major reasons most investors hold cryptocurrencies.
Turkish Crypto Investors Remain Optimistic About The Market
Binance Research, the research arm of the world’s largest cryptocurrency exchange, published a report about the state of the market in Turkey.
According to the report, Turkey has a relatively high level of crypto adoption, with around 40% of citizens having exposure to crypto. The report indicated that crypto is one of the most widely invested asset classes.
Turkey has become one of the leading cryptocurrency countries in the world. The report revealed that Turkey is the fourth-largest crypto market by estimated transaction volume globally, ahead of other major economies.
Furthermore, the Turkish Lira is the largest fiat trading pair on Binance, accounting for 75% of all fiat volume in early September.^
Although some people are in it for the technology, a large number of investors are in the market for the money. The Binance Research report indicated that 66% of investors surveyed believe that the most compelling case for investing in crypto is the potential for profits. Ease of portfolio monitoring and interest in the technology come in second and third place, respectively.
Operational factors also stand out as motivating factors for crypto investing. The report revealed that 3 out of the top 6 factors for entering the crypto market are related to: the ease of monitoring positions (56%), the lack of minimum investment (38%), and low transaction costs (33%).
Crypto Prices Could Surge Higher
The cryptocurrency market has performed excellently since the start of the year, with Bitcoin up by 125% year-to-date. However, Turkish investors are optimistic that prices could soar higher in the near to medium term.
In the near term, 64% of investors surveyed believe that crypto prices will increase in the next year. Looking ahead, 73% believe that the number of crypto investors will increase in the next 5 years, indicating rising adoption.
Despite the positivity, the risk associated with trading cryptocurrencies remains a major challenge for investors. 40% of non-investors surveyed cited that the risk of cryptocurrencies as the greatest impediment. Factors such as the lack of sufficient knowledge (#2) and safety concerns (#3) may also have contributed to the overall perception that crypto is risky.
The rising inflation in Turkey and its weak Lira currency remain some of the major reasons why Turkish investors are flocking to the crypto market.