At one point this summer, it was a hot topic that Turkey had the highest rate of crypto adoption in the world. While it was later to be proven false, it did not surprise many and adoption is on the rise. With high rates of inflation and unemployment in the country, the Turkish Lira has lost a lot of value against the United States Dollar, leading many Turkish investors to look to alternatives, such as Bitcoin and cryptocurrency.
While it may not have had the highest rate of crypto adoption in the world at the time, experts believe that Turkey could have massive potential for it. In the past 12 months, Paxful, a peer-to-peer exchange, has seen a 274% increase in Turkish registration. If you are looking to buy Bitcoin in Turkey, our guide has all the information you will need.
Best Bitcoin Exchanges in Turkey
1. Kraken
2. Coinmama
3. Kucoin
4. CEX.io
Is Cryptocurrency Legal in Turkey?
Cryptocurrency is legal in Turkey. There is no specific Turkish legislation regulating the production or use of cryptocurrencies in Turkey at the moment. Unless released by the Turkish government or by a licensed private institution in Turkey, cryptocurrency cannot be considered electronic money. It is also therefore not subject to supervision by banking regulators in Turkey. You can buy Bitcoin in Turkey with no legal consequences. There are talks of developing a framework to oversee crypto markets but nothing negative.
Crypto is treated as an economic asset in Turkey, much like gold or silver. This means that using crypto in Turkey has tax implications. The first of these implications is that if you make a profit when you buy and sell Bitcoin or any other cryptocurrency, it will be considered a business profit and subject to income tax. The second implication is that trading cryptocurrency is subject to value-added tax (VAT), meaning you will be paying tax on crypto purchases.
Cryptocurrency has become an attractive investment opportunity for Turkish citizens as the Turkish Lira has suffered greatly over the years, meaning many savings accounts have lost significant amounts of value. Investing in economic assets like crypto, gold, or silver, allows them to not only maintain the value of their investment compared to holding fiat but often profit as well.
How do I Buy Cryptocurrency in Turkey?
Buying cryptocurrency in Turkey is a fairly straightforward process. While there are options such as Bitcoin ATMs where you make a cash deposit, it is likely faster and more convenient to use a peer-to-peer Bitcoin exchange. You will need to register for the exchange, which will likely entail providing some personal information to verify your identity. You should choose to register with an exchange that is reputable and offers a variety of trading pairs. Try to make sure they support any altcoin you are hoping to buy before registering, or you will have to start the process again with another exchange. Check out our cryptocurrency exchange reviews for more insight.
After you are registered it is easy to buy Bitcoin instantly with a debit card, or a credit card, or take the slower route and use a bank transfer to fund your account. If you are simply funding your account with fiat currency instead of directly purchasing crypto you will need to then exchange your fiat for Bitcoin or any other supported altcoin that the exchange supports as a trading pair for your fiat. Buying Bitcoin is the best way to buy any other alternative cryptocurrency you are interested in as all crypto assets are paired to Bitcoin.
What is the Best Crypto Exchange in Turkey?
When choosing the best crypto exchange in Turkey the main thing to consider would be whether the exchange accepts Turkish Lira (TRY) as a payment method for deposits and withdrawals, while also offering trading pairs in TRY as well. Many cryptocurrency exchanges will accept TRY as a currency, but because they have no trading pairs with it you end up converting your TRY to another fiat currency and then end up dealing with conversion rates and exchange fees that reduce the total amount of fiat you get in the end.
While they are not the most well-known cryptocurrency exchanges, Paribus and BtcTurk are two of the best cryptocurrency exchanges in Turkey. They both accept Turkish Lira for deposits and withdrawals, while also offering direct trading pairs for TRY. This means you can buy and sell Bitcoin both with and for TRY. They are reputable exchanges, with great customer support available to anyone buying for the first time. For any Turkish citizen or person looking to fund their cryptocurrency investment with TRY, they are the best option for maximizing purchasing power.
Best Wallets for Turkish Users
Unlike the type of fiat currencies an exchange accepts, cryptocurrency wallets are all but universal. Depending on the amount of security you are looking for there is a variety of choices available. The most secure crypto wallets are hardware wallets such as the Ledger Nano S. If you are okay with a software wallet then you can choose from options such as Exodus or Atomic Wallet.