In times of economic uncertainty, how do people protect and grow their wealth? For many Turkish investors, traditional savings methods are no longer enough. With rising inflation, currency volatility, and shifting government policies, a new wave of financial strategies has emerged. This article explores the four most popular investment methods among Turkish citizens in 2025: cryptocurrency, stocks, gold, and foreign currencies—particularly the US dollar.
These trends reflect not only economic necessity but also a growing appetite for alternative assets that offer stability, liquidity, and long-term growth potential.
1. Cryptocurrency: A Hedge Against Currency Collapse
Amid persistent Turkish lira depreciation, an estimated 5 million Turkish citizens have turned to cryptocurrency as a reliable store of value. Daily trading volume in Turkey now ranges between $10 billion and $20 billion, signaling strong market engagement.
“Most crypto holders here are young, tech-savvy, and open to innovation,” says Ahmet Turan Han, a seasoned cryptocurrency investor. “It makes sense—crypto is easy to access, trades 24/7, and unlike forex, isn’t taxed when purchased locally.”
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A key catalyst for this surge was the unexpected dismissal of Central Bank Governor Naci Agbal, which sent the lira into another sharp decline. In response, investors liquidated over $90 billion in foreign exchange holdings, funneling profits into digital currencies like Bitcoin.
Bitcoin usage in Turkey grew by 600% over the past year, far outpacing other cryptocurrencies. Some stablecoins are even pegged to the US dollar, offering a direct hedge against local currency instability.
While the Central Bank has banned using crypto for payments—citing risks of irreversible transactions and potential misuse for illicit activities—this hasn’t deterred retail investors. Instead, concerns are rising about possible future taxation on domestic exchanges or tighter restrictions on offshore platforms.
Still, the appeal remains strong:
- No trading limits during off-hours
- Immediate reaction to geopolitical or policy shifts
- Growing peer-to-peer (P2P) networks for seamless transfers
Cryptocurrency isn’t just speculative; for many Turks, it’s becoming a practical tool for wealth preservation.
2. Stock Market Surge: Retail Investors Take Center Stage
Over the past two years, Turkey’s stock market has seen unprecedented retail participation. The number of investors on the Istanbul Stock Exchange (BIST) jumped by 87% in just 12 months, reaching 2.57 million active accounts by March 2025.
Figen Ozavci, Assistant General Manager at Meksa Yatırım, explains:
“Traditionally, Turks preferred bank deposits, real estate, gold, or forex. But with negative real interest rates, these options lost appeal.”
With inflation consistently outpacing deposit returns, investors are chasing higher yields in equities. Social media buzz around high-growth stocks has further fueled interest, especially among younger demographics.
Initial Public Offerings (IPOs) have played a major role in attracting new entrants. Fast gains from newly listed companies created a “fear of missing out” (FOMO) effect, drawing in first-time investors.
Additionally, BIST’s ban on short selling has contributed to increased volatility—benefiting day traders and momentum investors who capitalize on rapid price swings.
Government credit expansion policies also indirectly boosted the stock market. In 2024 alone, over 86 billion USD worth of loans were issued, much of which flowed directly into equities rather than savings accounts.
Abdurrahman Yildirim, a financial columnist, noted:
“The number of new investors entering the market last year equals the total from the previous two decades combined. This is unprecedented.”
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3. Gold: A Time-Honored Safe Haven
Gold has long been a cultural and financial staple in Turkey. During the pandemic, demand surged—driving prices up by 28% as millions sought tangible assets amid uncertainty.
In 2024, Turkey’s gold imports doubled, hitting $26.6 billion, reflecting strong domestic appetite. Jewelry purchases, wedding traditions, and intergenerational gifting all contribute to sustained demand.
However, experts warn this trend may be cooling.
“Gold’s appeal is fading slightly in 2025,” says economist Kavcı. “Two main factors are at play: first, gold prices have stabilized or declined slightly, reducing speculative interest. Second, many households used credit to buy gold last year and now face repayment obligations.”
With consumer loan repayments rising over the coming months, disposable income for non-essential purchases—including gold—is expected to shrink.
Still, gold remains a trusted asset during crises. Many families continue to view it as a form of emergency savings or inheritance planning.
4. Foreign Currencies: The Dollarization Trend
The shift toward foreign currency holdings, especially US dollars and euros, reflects deepening distrust in the lira. By late 2024, Turkish individuals and businesses held over $235 billion in foreign currency deposits in local banks.
High inflation—driven largely by food and energy costs—and near-zero real interest rates made holding lira increasingly unattractive.
When Governor Agbal was dismissed, triggering another lira plunge, citizens sold off more than $11 billion** in foreign exchange within days. Yet within two weeks, they began repurchasing nearly **$2 billion worth—indicating ongoing reliance on hard currencies as a safety net.
This “buy-sell-buy” pattern highlights a broader phenomenon: partial dollarization of household finances. Many Turks now keep a portion of savings in USD or EUR, either in cash or bank accounts, to protect against sudden devaluation.
While the government discourages widespread dollarization—fearing loss of monetary control—the behavior persists due to economic reality.
Frequently Asked Questions (FAQ)
Q: Why are so many Turks investing in cryptocurrency?
A: Due to high inflation and lira depreciation, many see crypto—especially dollar-pegged stablecoins—as a more stable alternative to traditional banking.
Q: Is stock investing risky for beginners in Turkey?
A: While all investing carries risk, the surge in IPOs and social media education has lowered entry barriers. However, understanding market dynamics is crucial before investing.
Q: Can I buy gold easily in Turkey?
A: Yes—gold is widely available through banks, jewelry stores, and digital platforms. It’s often used for gifts, weddings, and long-term savings.
Q: Why do people prefer holding US dollars?
A: The US dollar maintains its value better than the lira during inflation spikes. Holding dollars helps preserve purchasing power over time.
Q: Are there taxes on cryptocurrency gains in Turkey?
A: As of 2025, purchasing crypto is not taxed, but regulatory changes may come. Always consult updated financial guidelines before trading.
Q: How has government policy affected investment trends?
A: Expansionary credit policies have pushed cheap loans into stocks and crypto markets. Meanwhile, central bank interventions influence confidence in both lira and foreign exchange.
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The financial landscape in Turkey is evolving rapidly. Driven by economic pressures and technological access, citizens are embracing diverse investment vehicles beyond traditional banking. Whether through cryptocurrency, equities, gold, or foreign currencies, the goal remains the same: protecting wealth in uncertain times.
For forward-thinking investors, understanding these four pillars offers not just insight—but opportunity.