Turkey's Bitcoin Investment Guide: Getting Started

Investing in Bitcoin in Turkey is a relatively straightforward process. The country is home to several trusted online cryptocurrency exchanges, including Binance, Kraken, and ByBit, which allow users to buy and sell Bitcoin. These platforms offer various payment methods, such as credit and debit cards, bank transfers, and more. Additionally, Turkey has a growing number of crypto ATMs and physical exchange offices, where individuals can buy and sell Bitcoin with cash. The popularity of crypto in Turkey is attributed to its representation of freedom from inflation, national currency, and economic constraints.

Choosing a crypto exchange

When choosing a crypto exchange, it is important to do your research and consider a variety of factors. Here are some key considerations to help you make an informed decision:

• Location and Regulation: Does the exchange serve customers in your country or state? Different exchanges comply with different laws and regulations based on their locations. It is important to understand the legal ramifications of your investments. Look for a physical address associated with the exchange, as transparency is often a sign of legitimacy.
• Security: How secure is the exchange? Has it had any security issues or been hacked in the past? Does it offer two-factor authentication (2FA) and cold wallet storage? The harder it is to create an account, the better, as this indicates a more trustworthy exchange.
• Reputation: What do other users say about the exchange? Have there been any negative stories or complaints? Check reviews and social media to get a sense of the exchange's reputation.
• Fees: Understand the fee structure of the exchange. Are there transaction fees, withdrawal fees, or other charges? Be sure to consider how these fees will impact your investing strategy.
• Asset Availability: Does the exchange offer the crypto assets you want to trade? Not all crypto assets are available on every exchange.
• Liquidity: Is there a high enough volume of orders flowing through the exchange? Low liquidity can lead to dramatic price fluctuations during times of high volatility.
• User Experience (UX): Is the exchange user-friendly and intuitive? Are there different layout options for basic and advanced users? Consider choosing an exchange that aligns with your level of trading experience.
• Customer Support: Is the exchange responsive and helpful when issues arise? Are customers generally satisfied with the level of support?
• Insurance: Does the exchange offer insurance to protect user funds in the event of a hack or theft?
• Fiat Compatibility: Can you transfer national currencies (fiat) into and out of the exchange for trading purposes? Are there specific banks or fiat currencies that are compatible?

Payment methods

There are several payment methods available for buying Bitcoin in Turkey. These include:

• Credit and debit cards: Most exchanges operating in Turkey offer this option, although it requires completing a Know Your Customer (KYC) process.
• Bank transfers: This can include local bank transfers, SEPA transfers (for EEA countries), and SWIFT transfers.
• Cash: While less common, it is possible to buy Bitcoin with cash in Turkey. This can be done through Bitcoin ATMs or physical crypto exchange offices. NakitCoins, for example, is Turkey's first on-site Bitcoin exchange office and accepts cash in USD and EUR. Coinsfera, with a branch in Istanbul, also accepts cash and credit cards.
• PayPal: PayPal can be used as a payment method for buying and selling cryptocurrencies in Turkey.
• Altcoins: Cryptocurrencies like Ethereum, Tether, and Dogecoin can be used to purchase Bitcoin.

It is worth noting that the availability of these payment methods may vary depending on the chosen exchange or platform. Popular exchanges in Turkey include Binance, Kraken, and ByBit, each offering different payment options.

Crypto wallets

Hot Wallets

Hot wallets are digital tools whose connection to the internet cannot be severed. They are more convenient to use as your public and private keys are stored and encrypted on your wallet's respective app or website. This means you can access them anywhere with an online connection. Examples of hot wallets include:

• Coinbase Wallet - Best for Beginners
• MetaMask - Best for Ethereum
• TrustWallet - Best for Mobile
• Electrum - Best Desktop Bitcoin Wallet
• BlueWallet - Best Mobile Bitcoin Wallet
• Exodus - Best for Desktop
• Crypto.com - Best DeFi wallet

Cold Wallets

Cold wallets store your digital keys offline on a piece of hardware or sheet of paper. Examples of cold wallets include:

• KeepKey - Best Cold Wallet for Beginners
• Ledger Nano S Plus - Best Hardware Crypto Wallet
• SafePal - Best Hybrid Crypto Wallet

How to Choose a Crypto Wallet

When choosing a crypto wallet, it is important to consider the following:

• How often you trade
• What you want to trade
• How much you are willing to spend
• What functionality you need in a wallet

Other important attributes to consider include the safety and security features of the wallet, such as two-factor authentication and multi-signature support. It is also crucial to ensure that the wallet has a strong, stable history and positive user reviews.

Verification and security

When investing in Bitcoin in Turkey, there are several verification and security measures that you should be aware of. Here are some key considerations:

• Know Your Customer (KYC) Verification: Before purchasing Bitcoin in Turkey, you will need to complete a KYC process. This is a legal requirement for almost all exchanges in the country. Be prepared to provide a passport, national identity card, or driver's license for identity verification. The process typically involves taking pictures of both sides of your chosen identification document. Most exchanges will approve your verification instantly, but it can take up to 1-2 days in some cases.
• Secure Internet Connection: When registering and completing the KYC process, ensure that you are using a private and secure internet connection. Avoid using public WiFi as it may pose security risks.
• Two-Factor Authentication (2FA): Utilize a mobile phone to set up two-factor authentication for added security. This will help protect your account and personal information.
• Fiat Currency Deposits: To purchase Bitcoin, you will need to link a bank account or credit card to your chosen exchange. Make sure you have the necessary payment methods, such as a credit card, debit card, or bank account, set up in advance.
• Crypto Wallet: Choose a secure crypto wallet to store your Bitcoin. While exchanges offer built-in wallets, it is highly recommended to use your own personal cold wallet for optimal security. This helps protect your Bitcoin from potential security risks associated with exchanges, which are often targeted by hackers.
• Exchange Security: Select an exchange that prioritizes security. For example, Binance offers two-factor authentication, multi-signature wallets, and cold storage options. Kraken provides cryptography-verified proof of reserve audits to verify the total amount of cryptocurrency held.
• Transaction Security: When making transactions, ensure that you are using a secure platform and a trusted exchange. Look for exchanges that utilize secure protocols, such as HTTPS, to protect your information.
• Anonymous Purchasing: If you prefer to maintain anonymity, consider using P2P (Peer-to-Peer) exchanges like Bisq, Paxful, or LocalSwap. These platforms allow you to buy Bitcoin without completing the traditional KYC process. However, they may be less user-friendly and are usually recommended for more advanced users.
• Bitcoin ATMs: Another option for purchasing Bitcoin anonymously is through Bitcoin ATMs. These ATMs are often located in convenience stores, shops, restaurants, malls, or airports, and they typically have minimal KYC requirements.
• Personal Information Protection: When choosing a wallet or exchange, prioritize those that do not store your personal information, backup files, or private keys. This ensures that your data remains secure and cannot be accessed by third parties.

Crypto ATMs

Using a crypto ATM is similar to using a regular ATM. However, instead of using a credit card, you scan the QR code from your crypto wallet. Crypto ATMs offer various benefits, such as not requiring users to download specific crypto wallets or apps, providing anonymous transactions below a certain amount, and being easily accessible. For example, the Bitcoin ATM in Istanbul – Beyoğlu is located near the main exit of the Takim Metro Station and is open 24/7.

It is important to note that not all Bitcoin ATMs in Turkey support cash purchases of cryptocurrency, and the supported coins may vary. Additionally, most crypto ATMs charge higher fees than exchanges, so it is recommended to research the ATMs before using them. Some crypto ATMs in Turkey may also have minimum transaction amounts or identity verification requirements for larger transactions.

When using crypto ATMs, it is essential to prioritize security and privacy. Using a secure and private internet connection is recommended, as public WiFi may pose security risks. It is also crucial to withdraw your crypto to your personal hardware wallet for optimal security, as leaving coins on an exchange can make them vulnerable to hackers.

Frequently asked questions