Why is it not profitable to buy cryptocurrency in Azerbaijan?

Although interest in cryptocurrency is growing all over the world, it is believed in Azerbaijan that it is not profitable to invest in cryptocurrency.

In remarks for Report, crypto-investor Elnur Guliyev noted that it is most convenient to purchase cryptocurrency through exchange services:

“They offer the exchange of the most popular cryptocurrencies and tokens, which, as a rule, are in the TOP-20 in terms of market capitalization. To carry out operations on the services, no registration or downloading of any documents is required, which further simplifies the work of users,” he said

According to Guliyev, there are currently more than 400 exchange services: “They differ from each other in the number of exchanged cryptocurrencies, the size of the commission, the possibility of replenishing with MasterCard/Visa cards, the variety of electronic wallets used. At the same time, buying from hand is a risky and illegal process.”

The expert justifies the lack of interest in this area in our country with a low level of technical knowledge and high taxes: “Since a commission of 10% and a value-added tax of 18% are provided for the purchase of cryptocurrency in Azerbaijan, buyers are not very interested in this. There are interest rates in many countries around the world, they are not that high.”

E. Guliyev notes that currently no company in Azerbaijan is engaged in the sale of cryptocurrencies due to the lack of legislation in this area.

The country’s statistics on cryptocurrency can be found by registering on the exchange websites and looking at the list of users from Azerbaijan. But even this cannot be considered a transparent indicator, since exchanges are not obliged to disclose statistics.

Currently, the most expensive coin on the cryptocurrency market is Bitcoin. The cost of one token is AZN71,227.28.