Despite imposing a nationwide ban on cryptocurrency payments in April last year, the Turkish cryptocurrency landscape continues to prosper; states latest industry insight.
This landscape forms the centrepiece of Gate.io‘s latest report, which identifies the characteristics of the country’s crypto market and the main body of users engaged with it.
The crypto exchange’s report found that despite Turkey’s ban on cryptocurrency payments, a move which dominated headlines at the time, the country’s crypto investment strategies remain unchanged.
Crypto assets, and particularly stable coins, are presenting a viable option for preserving wealth in this instance.
According to Chainanalysis‘ data, Turkish cryptocurrency transactions grew 1,500 per cent from 2020 to 2021, perhaps in an effort by users to dodge rising inflation and depreciating currency rates.
As backed by tripe-a‘s continuous tracking of the global crypto market, there are currently 3,811,882 crypto users in Turkey this year; 4.5 per cent of its domestic population.
Who are the Turkish cryptocurrency users?
According to the findings of Gate.io’s report, the main demographic of Turkey’s crypto users are educated, young to middle-aged men.
As many as one in nine of the users are male, with 52 per cent holding a bachelor’s degree or higher, while oppositely, six per cent have less than secondary school education.
Seventy-one per cent are aged between 25 and 44, while 20 per cent are between 18 and 24 years old.
In terms of employment status, 41 per cent don’t hold a stable job, or are otherwise freelancing, unemployed or working part-time; leaving them more leisure time to specialise in crypto.
On the reverse, 58 per cent of investors have a job with a stable income.
Turkish crypto investors are scattered from all walks of life. Thirteen per cent work in construction-related jobs and 10 per cent in computer/mathematics-related jobs.
These users working in computer/mathematics-related industries tend to be more familiar with the principles of crypto and various types of financial services on major exchanges.
This knowledge has led some to write their own investment programmes in some instances.
It is worth noting that the percentage of users whose occupation is college students is six per cent, which ranks fourth among all categories. This data shows that the group of college students has a rather considerable potential.
What is the attitude of Turkish cryptocurrency users toward investing?
During the user interviews, the exchange uncovered an enthusiasm for crypto investments among college students specifically.
Many admitted to using their spare time to attend relevant lectures and learn about the industry; cementing their confidence in the future of the industry and their position within it.
Speaking of investment attitudes, the majority of Turkish users are mainly prone to medium-risk to medium-return, accounting for 44 per cent respectively, followed by high-risk to high-return, accounting for 30 per cent.
The report uncovered the differing attitudes toward crypto investing among various groups of users.
Based on the percentage of high-risk and high-return, the younger the users are, the more aggressive their investment style is, and they are more accepting of high-risk investments and have higher expectations of returns.
Compared to other groups, users over 55 years old are more inclined to low-risk and low-return investments, but their requirement for capital preservation is the lowest among all people.
The occupational status of users will also affect their investment attitudes. Among the users who expect high-risk and high-return, unemployed workers account for the highest proportion at 36 per cent.
This statistic is followed by part-time workers at 35 per cent. It is speculated that their relatively lower incomes would lead them to seek higher returns.
Users with doctoral and professional degrees are more likely to expect high risk and high return, accounting for 43 per cent and 40 per cent respectively.
Secondary school students who have yet to achieve a diploma are more likely to expect a high-risk and high return, accounting for 43 per cent; followed by secondary school graduates who are most likely to expect medium risk and medium return, accounting for 52 per cent.
This is followed by users with bachelor’s degrees, with exaclt half of them expecting medium risk and medium return.
When users are first introduced to crypto, they expect high risk and high returns from their investment.
But as experience sets in, their investment attitude is expected to lean more towards medium risk and medium return.
Interestingly, the report found that when they are very experienced and have invested for more than five years, their expectation of high risk and high return will rise again.
Graduating from Aarhus University with a degree in communication and media studies, Kristina has been an avid writer and follower of the finacial news and cybercrymes space since 2011. A well-traveled journalist within the industry, Aubrey has written for many well-known outlets, and can often be found poring over white papers when she isn’t writing for Financial Magazine