What is Cryptocurrency? How to Buy Cryptocurrency? 
Cryptocurrency Exchange
8 min read time
|Updated: 2026-03-17
Cryptocurrency refers to assets that run on blockchain infrastructure and can be transferred digitally. In this ecosystem, prices can change within short periods depending on market conditions, supply-demand balance, and global developments. In this guide, we will explain the basic concepts in plain language, clarify the points that beginners often confuse, and clearly outline the general steps of the crypto buy-sell process in Türkiye.
What Is Crypto?
The word “
crypto” basically refers to the logic of encryption (
cryptography). In the cryptocurrency world, encryption is used to verify transfers, protect wallet ownership, and keep records on the network securely.
In practice, this structure provides trust that transactions “belong to whom” and are “recorded without being altered.” In addition, cryptography forms the basis for wallets to work with private key and public key logic; thus, the authority required to make a transaction from a wallet belongs only to the person who holds the key. For this reason, the concept of crypto is at the center of the security infrastructure of the cryptocurrency ecosystem.
What Is Cryptocurrency?
Cryptocurrency refers to assets that can be transferred digitally and operate on distributed ledger infrastructures such as blockchain, without being tied to a central authority (e.g., a central bank). While examples such as
Bitcoin and
Ethereum are generally referred to as coins because they are the native assets of their own networks; many projects may be in the form of tokens created with smart contracts on an existing blockchain. In practice, cryptocurrency is a digital unit of value that is transacted according to the rules of the network; its price is shaped by supply-demand balance and market conditions.
How to Buy Cryptocurrency?
In Türkiye, the most common way to buy-sell crypto is to trade through a cryptocurrency exchange where transactions can be made in
Turkish Lira (TRY). This process generally proceeds as opening an account, completing identity verification, and then moving on to buying cryptocurrency with TRY. For beginners, the most practical approach is to apply the steps in order for an exchange that has a user-friendly interface and offers the ability to trade with the local currency.
How to buy cryptocurrency from CoinTR in 3 steps?
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Sign up and complete KYC: After opening an account on CoinTR, activate your account by completing the identity verification (KYC) step.
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Deposit TRY into your account: Prepare your balance for buying by depositing Turkish Lira into your CoinTR account via methods such as bank transfer.
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Start buying and selling crypto: From the Markets/Spot section, select the cryptocurrency you want to buy, make a quick purchase with a market order or place a limit order at your target price; you can keep the assets you buy in your CoinTR wallet or withdraw them into your personal wallet.
Beginner’s Guide to Cryptocurrency
What Is Coin vs Token?
A coin is the native crypto asset of its own blockchain (e.g., Bitcoin). Coins are mostly used for network transfer fees, the security/incentive structure, and on-network economic mechanisms.
A token, on the other hand, is a crypto asset generally created with smart contracts on an existing blockchain (e.g., ERC-20 tokens on Ethereum). Tokens can be designed for DeFi, gaming, NFTs, governance, and different application scenarios.
Also See:
Differences between Token and Coin
How to Create Crypto Wallet?
A
crypto wallet is not so much a place where assets are “stored,” but rather a private key (private key) management system that provides access to those assets. The main purpose of wallet setup is to view assets, transfer them, and provide secure access for buy-sell transactions when needed. For beginners, the two most common approaches are:
-
Exchange wallet: Automatically created when you open an account on crypto exchanges. It is suitable for trading, initiating transactions with TRY, and practical use.
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Personal wallet: Can be set up as a mobile/desktop or hardware wallet. The private key control belongs to the user; therefore, the responsibility for security also shifts to the user (such as backups, recovery phrases, device security).
What Is Blockchain Technology? How Does It Work?
Blockchain technology is a distributed recording system where transactions are recorded in blocks and each block is cryptographically linked to the previous one. Thanks to this structure, records are not kept in a single center; many computers (nodes) on the network hold a copy of the same ledger.
Transactions are approved according to the rules of the network by validators (miners in some networks) and added to blockchain. Thus, it is aimed at keeping records in a way that is difficult to alter and traceable without the need for central authority.
What Is Cryptocurrency Mining? How Is It Done?
Cryptocurrency mining is the validation process carried out in some blockchain networks to produce new blocks and secure the network. This model is especially seen in Proof of Work (PoW) networks; miners validate transaction blocks and in return may receive a block reward and/or a share of transaction fees.
In practice, mining depends on factors such as the hardware used (GPU/ASIC), electricity cost, and network difficulty. In Proof of Stake (PoS) networks, instead of classical mining, the staking approach stands out, where network security is supported by locking assets or contributing through delegation.
Bear Market vs Bull Market
-
Bull market: A period when the overall trend is upward, and prices more frequently form “higher lows and higher highs.” In this process, interest in the market may increase and risk appetite may rise.
-
Bear market: A period when the overall trend is downward, and prices more frequently form “lower lows and lower highs.” In this process, uncertainty may increase and investors may act more cautiously.
Since the crypto market can progress through these cycles, the market phase you are in (bull or bear) should definitely be considered when reading cryptocurrency commentary.
What Is Volatility in Cryptocurrencies?
Volatility shows how quickly and within how wide a range the price fluctuates. Cryptocurrency prices may be more volatile than traditional markets. For this reason, when making decisions, not only “price” but also the crypto chart, volume, and market sentiment are evaluated together.
Where to Buy Cryptocurrency?
Cryptocurrency is generally purchased through cryptocurrency exchanges. There are two basic approaches on exchanges:
-
Centralized exchanges (CEX): More practical for beginners with TRY deposits/withdrawals, customer support, and order types.
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Decentralized exchanges (DEX) : Transactions are made with a personal wallet; the responsibility is more on the user.
On the
CoinTR side, the process proceeds with a user-friendly, reliable flow that supports the steps of KYC (identity verification) + trading with TRY. In addition, in terms of regulatory compliance in Türkiye, the MASAK obligations (
KYC,
Travel Rule, etc.) framework is important for crypto asset service providers; Travel Rule implementation and compliance topics are detailed in MASAK guides.
FAQ
How is cryptocurrency produced?
Cryptocurrency production varies depending on the structure of the network: mining stands out in PoW networks, and the staking/validator model stands out in PoS networks. Tokens are mostly created with smart contracts under certain supply rules.
How to buy cryptocurrency from bank?
In Türkiye, the process of buying cryptocurrency via banks generally proceeds in two steps: TRY is transferred from a bank account to a
cryptocurrency exchange account, then a cryptocurrency buy order is placed on the exchange from the relevant trading pair. In some banks, deposit options for the exchange account may vary depending on integration; therefore, the steps applied may differ depending on the infrastructure of the bank and the exchange used.
How to open a cryptocurrency account?
To open a cryptocurrency account, you register on a cryptocurrency exchange, complete the identity verification steps, and then trade by depositing TRY. On
CoinTR, the process proceeds with the steps of registration + KYC + depositing TRY + spot order.
Is cryptocurrency legal?
In Türkiye, it is possible to buy and sell crypto assets; however, there is a framework introduced by the CBRT regulation regarding the use of crypto assets in payments. Since this topic may be updated over time with legislation, current regulations should be followed.
How much is the crypto tax in Türkiye?
Although the topic of crypto tax is on the agenda in 2026, the rates and implementation will be clarified according to the legislation in force. While proposal/draft news such as 10% appear in the press and the sector, the final framework may change. Therefore, up-to-date official announcements and professional financial advisory opinions are important. In the
CoinTR Trader Guide, we regularly cover the regulation and compliance side for users.
What happens if crypto volume drops?
A drop in
volume in cryptocurrencies generally means a decrease in liquidity. When liquidity decreases, price volatility may increase, the bid–ask spread may widen, and slippage may occur on large orders. Therefore, crypto charts and volume data are read together.
How to withdraw cryptocurrency?
Cryptocurrency withdrawal is generally done in two ways: transferring the balance on the exchange to a bank account as TRY, or transferring the crypto asset to a personal wallet address. In crypto transfers, selecting the correct network and entering the wallet address accurately are critical; in some transactions, additional information may be requested within the scope of compliance processes such as the
Travel Rule.
2024-11-25Legal Notice
The information, comments, and evaluations contained in this content do not constitute investment advice. This content is not intended to be prescriptive in any way and is intended to provide general information. It does not constitute investment advice. CoinTR cannot be held responsible for any transactions made based on this information or any losses that may arise.
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