Since its introduction in 2009, Bitcoin is the most popular cryptocurrency globally and works as a P2P electronic cash system without the involvement of any third party for maintenance.
Satoshi Nakamoto is the codename for the team or the person that developed Bitcoin as a cryptocurrency and payment system. The currency has a total supply limit of 21 million and is denoted as BTC.
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A public ledger maintains and holds all the Bitcoin transaction data in servers located worldwide. Individual computers known as nodes can connect to this server. Once a Bitcoin transaction takes place, it is broadcasted from node to node.
Individual validators who verify the transactions are known as miners. They receive BTC as rewards once a new block is created in the blockchain or public ledger. The blockchain encrypts the transaction data with a 256-bit hexadecimal number, also known as the SHA-256 hashing algorithm.
Like many other cryptocurrencies, Bitcoin does not have any physical assets attached to it. However, the market dynamics and perceived value will eventually determine its worth. Thus, as an investor, you will need to find the right time to make a profit out of your investment in Bitcoin.
Like many other countries globally, you can also buy Bitcoin in the UAE. There are plenty of options, including global and regional cryptocurrency exchanges, P2P marketplaces, and brokers that let you invest in Bitcoin in the UAE. This article will walk you through the steps and provide detailed information to assist you in buying Bitcoin in Dubai.
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If you are looking to buy BTC in the UAE, you have several options to choose from. The most popular method of buying Bitcoin is through a cryptocurrency exchange. There are over 300 cryptocurrency exchanges globally, and almost all of them support multiple countries and currencies.
First, you will need to identify an exchange that supports the UAE in the country list and preferably supports AED as a currency. Fortunately, supporting AED is not mandatory because you may still use your international credit or debit card to make the purchase.
Each exchange has its pros and cons. Compare your options and their compatibility with your investment profile before deciding.
Apart from cryptocurrency exchanges, several peer-to-peer or P2P marketplaces also let you buy and sell BTC. A P2P marketplace lets you trade Bitcoin directly with another user, without any intermediary, bank, or third party in the middle. Conveniently, the fees are usually lower than over-the-counter exchanges. However, at the same time, this method is less secure.
Some local brokers in the UAE let you buy Bitcoin directly from a physical shop with cash, bank cheque, or credit cards. Like purchasing any other products, you can book an appointment, calculate fees online, and visit their store to make a purchase. The brokers also help you set your e-wallet if you do not have one.
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The global cryptocurrency market has achieved substantial growth over the last decade, and Bitcoin has been at the forefront. There are many reasons to buy or invest in Bitcoin in the UAE. Let’s go through a few significant advantages:
As Bitcoin is the pioneer of the global cryptocurrency industry, it has the highest market capitalization and market share among all cryptocurrencies. Moreover, being the most popular of all cryptocurrencies, it is highly accessible and widely accepted.
Compared to many other cryptocurrencies, Bitcoin is also more versatile to use. As a result, millions of firms now accept this as a medium of payment.
Bitcoin is traded at all significant cryptocurrency exchanges globally. Thus, you can convert it to USD or your desired currency at any moment. Also, there is a Bitcoin-based ATM in Dubai, the capital of UAE, where you can deposit or purchase other major cryptocurrencies or cash.
Similarly, you can also visit Coinsfera in Dubai to sell Bitcoin for AED, so you do not need to hold it longer than you want. In addition, you can trade Bitcoin with other cryptocurrencies from the exchanges whenever you want without breaking a sweat.
Despite being highly volatile in the short term, the overall cryptocurrency market has excellent long-term growth potential. As a result, cryptocurrencies are highly suitable for a “buy-and-hold” investment strategy.
According to Vantage Market Research, an internationally acclaimed research organization based in the USA, the global cryptocurrency market is expected to grow at a compounded annual growth rate (CAGR) of 6.9% from 2022 to 2028.
Moreover, with the growing interest of the global population in non-fungible tokens (NFT), web 3.0, and metaverse, Bitcoin is looking to grow steadily over the upcoming years.
If you prefer anonymity while sending money or receiving it from someone, Bitcoin would be a great choice.
Once you open an account, you will receive a public key from your e-wallet provider. Then, you can use that public key as an address to complete transactions. You won’t have to use your name or address as you do for banking or credit card transactions. Instead, the public key will be your physical address and keep your identity confidential.
When you calculate the total transaction fees you had to pay over a year against your total transaction amount, you will be surprised to see how hefty it is. However, you will see that compared to fiat money, the transaction fees for Bitcoin are surprisingly lower.
As there are no third parties or controlling authorities, market dynamics will determine the transaction fees, which is competitive. As a result, you will only pay a minimal amount to the miners and exchanges.
There is no option for a chargeback in Bitcoin. With fiat money, a sender can often receive a chargeback against a valid transaction where services have already been exchanged. Banks frequently have to deal with such fraudulent chargebacks. However, there is no reversal once a transaction is complete.
Central banks of countries often print money to deal with the supply crisis of fiat money, leading to inflations. However, due to the supply limitations of Bitcoin and other cryptocurrencies, they are less prone to inflations.
The UAE is a global business hub and one of the most important business locations in the Middle East and North Africa (MENA) region. Currently, the government of the UAE has not put any legal restrictions to hinder the trading of cryptocurrencies.
The Dubai International Finance Center (DIFC) had been the authority to monitor the use of cryptocurrencies until 2021. However, in early 2022, the government of the UAE formed the new Dubai Virtual Assets Regulatory Authority (VARA), anticipating the growth and expansion of cryptocurrency uses.
As the country houses many international business organizations, you will have little to worry about if you hold Bitcoins because of the liquidity you will enjoy in Dubai and the UAE. If you are a beginner in the world of cryptocurrencies, we suggest you use an exchange for buying Bitcoin in the UAE.
You will find payment methods when buying Bitcoin in the UAE. The payment medium will also vary based on the marketplace or exchange you are using. For example, most cryptocurrency exchanges will let you use PayPal, credit cards, or supported debit cards to make payments.
A few MENA-based exchanges, such as Rain, allow payment through bank cheques or online transfers. If you buy Bitcoin in the UAE from a physical store like Coinsfera, they will allow you to pay by cash.
All websites with a payment gateway use a secured protocol for data encryption. Thus, your credit or debit card information will remain safe and encrypted online.
As Bitcoin is the world’s most popular cryptocurrency, almost all the exchanges support buying Bitcoin directly by paying USD. You can also pay with AED if you use one of the MENA-focused cryptocurrency exchanges.
The basic process is similar across all exchanges. However, there might be minor differences depending on the marketplace and the payment method you are using. Also, different exchanges and marketplaces have different requirements for your identity verification.
We will tell you the step-by-step process of how to buy Bitcoin in the UAE using a cryptocurrency exchange.
Also, a few exchanges will let you set a portion of your portfolio that you want to invest in BTC. You can configure that as well.
Headquartered in Bahrain, Rain is a popular cryptocurrency exchange focused on the Middle East. Rain keeps 98% of the funds in a cold storage place authenticated with multiple signatures, making it very secure.
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BitOasis is a popular cryptocurrency exchange headquartered in the UAE. With BitOasis, you can invest in decentralized finance (DeFi), Altcoins, metaverse and NFTs. At present, it supports over 40 well-known cryptocurrencies, including Bitcoin, Ethereum, Tether, and Bitcoin Cash. You can get a live update of their pricing in AED.
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Introduced in 2013, Coinmama is one of the world’s most well-known cryptocurrency exchanges supporting 188 countries, including the UAE. Coinmama has several payment options, including credit card, debit card, wire transfer, Google Pay, Skrill, and Apple Pay.
Coinmama has a straightforward user interface with basic trading features that are particularly aimed toward basic and first-time users. The exchange transfers your BTC to your connected e-wallet within an hour after completing payment. The spending limit is up to USD 30,000 at a time.
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With over $75 million in 24-hour trading volume across 600+ listed cryptocurrencies, Binance has 90 million registered users globally. The transaction fees of up to 0.1% are one of the lowest, which contributed to the popularity of Binance.
Unlike the beginner-focused cryptocurrency exchanges, Binance offers plenty of advanced integrated tools to support spot trading and arbitrage trading to experienced users so that you can benefit from the market’s price fluctuations.
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Paybis is an international cryptocurrency exchange registered in the FinCEN Department of the Treasury in the USA and supports over 180 countries. Due to strict regulatory requirements, Paybis takes the users through a detailed KYC information form.
Paybis does not have a wallet, which is a security advantage. You will not lose access to any of your funds even if there is a server failure because Paybis does not store any funds within itself.
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Despite supporting over 100 countries and being one of the most frequently-used cryptocurrency exchanges globally, Coinbase does not support transactions to UAE citizens yet. However, many international cryptocurrency exchanges, including Capital, eToro, Alvexo, Coinmama, Binance, and others, have support transactions from UAE citizens, and you can use those.
To buy Bitcoin in Dubai, you have some options to choose from. You can buy Bitcoin from cryptocurrency exchanges, a P2P marketplace, or a few physical shops. Typically, the most convenient option to buy Bitcoin in the UAE is to use local, regional, or international exchange houses.
If you live in the UAE, you can buy Bitcoin with USD or AED from a physical store known as Coinsfera. The steps are the same as when you purchase your everyday items. However, you will need to bring your valid ID documentation. If you are looking to make a large purchase, you may visit their website and book a meeting with one of the agents. The shop also assists you with opening a wallet if you do not have any.
You will need a wallet to store your Bitcoin after buying it in the UAE. There are typically two major wallet types – software-based wallets and hardware wallets. Hardware wallets are more secure, whereas software wallets are more convenient. Two popular hardware wallets are Ledger Nano and Trezor. You can also use Binance’s software-based wallet to store your Bitcoins.
Binance has a history of facing regulatory crises in recent years. However, it has received all the necessary legal and regulatory permission to operate in the UAE in March 2022 from the Abu Dhabi Global Market (ADGM), the regulatory body for global businesses operating in the UAE. While granting permission to Binance, ADGM considered the reputation of the cryptocurrency exchange in the MENA region and other countries.
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