Before buying bitcoin, you will, however, need to do a bit of research when deciding on where to buy bitcoin in the United Arab Emirates.
The UAE government is actively promoting digital finance and encouraging crypto trading. According to “The Future of Financial Services Report,” a significant 67% of UAE residents are interested in investing in crypto assets in the next five years.
A recent study shows that young people between the ages of 25 and 34, comprising 74% of the participants, are more interested in cryptocurrency than older adults aged 45 and above.
In the UAE, 40% of respondents trust digital currencies, making it one of the top markets globally. The government’s enactment of the country’s first law governing virtual assets has contributed to this trust. This move by the government has boosted confidence in the use of cryptocurrencies among the people.
Is it legal to buy Bitcoin in the UAE?
Yes, cryptocurrency is legal to buy in UAE.
The Emirates of Dubai has brought a new law in place called Law No. 4 of 2022 which is the Dubai Virtual Assets Law. It is aimed to regulate the industry of global virtual assets in the Emirates of Dubai. This law does not apply to the Dubai International Financial Centre and is valid only for the special development zones and free zones. This was brought into effect on the 11th of March 2022.
The Dubai Virtual Assets Regulatory Authority (VARA) has been established by the Dubai Virtual Assets Law. This VARA supervises, regulates, and oversees the virtual asset services in Dubai and it plays a very significant role in the virtual asset industry.
The virtual asset platforms that provide operational and management services would have to have prior permission from the VARA. This permit is also applicable to the management and safekeeping of virtual currency, wallets of virtual assets, and trading using virtual tokens services. VARA fully controls all these virtual asset services and holds the right to cease or suspend virtual asset deals in Dubai.
Given that these laws are in their developing stage, their effective implementation will ensure buying a Bitcoin in UAE becomes hassle-free and legal.
Buying Bitcoin in UAE
Among the cryptocurrencies, bitcoin is considered to be the most fluid. It allows UAE residents to open an account and trade by accessing crypto exchanges. Bitcoin is the globally acknowledged cryptocurrency among many others and it aims to purchase all other cryptocurrencies, virtually.
Identifying a Secured Bitcoin Wallet
Before you jump in buying a Bitcoin or maybe any other cryptocurrency for that matter, it’s crucial to have security in its storage. Some of the hardware wallet choices that are popular among UAE citizens are Trezor and the Ledger Nano S. For protecting your coins, cold storage hardware wallets are also widely accepted as an ideal way of protection.
Most of the Bitcoin exchanges offer in-built wallets. Since these in-built wallets are centralised, their vulnerability to theft is a possible consequence. Once you choose a dependable wallet, the next step should involve choosing a cryptocurrency exchange that suits your needs. Your requirement should include verifying your identity which varies with each broker and ultimately buying and trading bitcoins.
Even though buying Bitcoins in the UAE market is not difficult, what is relevant is the exchange or the broker we select. The first and foremost step in buying bitcoins in the UAE is to open an account at a trusted cryptocurrency exchange.
How to Choose a Suitable Cryptocurrency Exchange
The cryptocurrency exchanges based in the UAE are ample in number, and they offer Bitcoin among several other digital currencies.
The official support for cryptocurrencies has made Bitcoins an attractive investment. This patronage is despite the fact that the Bitcoin values can oscillate dramatically related to the value of the national currencies.
You can either opt for a local exchange in the UAE or select one among the many international exchanges that are in acceptance by account holders from the Emirates.
Most of the investors based in UAE use a cryptocurrency exchange in their region than the one based in countries like the US or Europe.
Buying Bitcoins from Cryptocurrency Exchange
Buying Bitcoins from crypto exchanges works big time for traders and investors and let us see how.
(a) If you purchase from an exchange it guarantees that you receive the Bitcoins in your wallet before leaving the exchange.
(b) The rates of Bitcoin keep consistently changing and by connecting with an exchange you can keep close track of the changes, without additional fees.
(c) By knowing the rates, you can buy Bitcoin at amounts feasible to you.
(d) Buying through an exchange will help in resolving issues that you may encounter with proper guidance.
(e) Trading through an exchange will help you in meeting people with whom you trade, which builds trust that all is fine. You also have the assurance that your money will not be lost and the Bitcoin you buy will definitely reach your wallet.
Buying Bitcoins from the Local Market
The regulatory policy in Dubai recently has become more familiar with cryptocurrency. This as expected has spurred a huge demand for cryptocurrency services in the city. Local markets like Coinsfera are well-ready and fully equipped to serve their clients on the lookout to exchange cryptocurrency for cash. These local markets also help new investors get started in this fast-growing market.
Buying Bitcoins from Over-The-Counter (OTC)
Cryptocurrency trading can also be done through private dealings for buying and selling. This type of deal related to cryptocurrencies and Bitcoins is called Over-The-Counter or OTC Trading. These tradings are not conducted in regular exchanges and are done privately between the buyers and the sellers.
Dubai-based BitOasis was founded in the year 2015 and is one of the biggest cryptocurrency exchanges in the Middle East. It specialises in trading Bitcoins among other cryptocurrencies. Transactions in BitOasis can be done in USD and AED and usage of local credit cards is also well permitted. This provides the users with the option of storing cryptocurrencies on this platform through online wallets.
BitOasis can be accessed apart from the UAE in countries like Oman, Qatar, Kuwait, Saudi Arabia, and Bahrain. UAE patrons can also deposit their funds through exchange houses.
The platform does not charge any registration fees, but users will be levied a 0.5 per cent flat transaction fee for all deposits, withdrawals, and trades. It is required to note that for amounts below $500 (Dh1,836) per week, no verification is required. However, transactions above the weekly limit of $500 (Dh1,836), are not considered private and identity verification will be needed.
Palmex is also a Dubai-based cryptocurrency exchange established in the year 2018 and is one of the newly formed cryptocurrency exchanges. In contrast to its website’s claims of providing better security and minimal trading charges, Palmex does not accept deposits as fiat currency. We need to open an account with Bitcoins or other authorised and accepted cryptocurrencies.
This platform become the world’s largest cryptocurrency exchange in a short period of eight months since its launch in July 2017. Binance is a Hongkong-based exchange and processes more than $1 billion (Dh3.67 billion) daily.
Their trading fee structure is based upon a 30-day trading volume or a 24-hour Binance Coin holding. The traders of this cryptocurrency exchange are classified into VIP Levels, and they range from Levels 0 to 9.
This exchange helps in the deposit and withdrawal of funds through both crypto and fiat money. Users who do not own a Binance-supported cryptocurrency can purchase one by using their credit or debit card, their cash balances, or by third-party payers.
Kraken is one of the largest cryptocurrency exchanges in the global market, and the largest in Europe based on its average daily trading volume. It was founded in the middle of the year 2011 and is now present in almost all countries.
This trading platform charges a 0.25 per cent fee that is comparatively lower, falling up to 0.1 per cent with sufficient trading volume. Among trade analysts and surveyors, it is highly rated for data protection and security. This exchange requires ID verification and hence is not considered to be private.
Kraken is based in the United States and complies with that country’s regulations. So, they offer only about 20 coins for trade, which when compared to Binance is less as that offers more than 100. Kraken’s withdrawal fees are common and are typical of most cryptocurrency exchanges.
Bybit, headquartered in Singapore, is an exchange of cryptocurrency founded in March 2018. The purpose of the exchange is to provide a professional platform wherein cryptocurrency traders can identify a matching engine that is rapid, outstanding customer service, and community support that is multilingual.
This company strives to be the most reliable exchange for the emerging digital asset class by providing innovative online spot-on trading services. Bybit is one of the most trusted and transparent cryptocurrency trading platforms in the world, at the moment.
Crypto.com is a major cryptocurrency exchange with its base in Singapore. As of now, the company has customers totalling around 50 million. There are around 4000 employees who serve customers at crypto.com.
OTC Crypto Exchange locally in Dubai
Pallapay is the only cryptocurrency exchange dealing with Over-the-Counter trade legally in Dubai, UAE. It provides various cryptocurrency-related trading services and has been in operation since 2018. It was awarded the most trusted cryptocurrency exchange award for the year 2021 at Crypto Expo, Dubai.
Coinsfera is a locally-based shop dealing with Bitcoins in Dubai which is specialized in cryptocurrency exchange with cash. Ever since 2015, Coinsfera has facilitated the transfer of cryptocurrencies to cash and vice versa for thousands of people.
For its services, Coinsfera has been acknowledged with an award by the largest blockchain conference in the Eurasia and MENA area.
In selling Bitcoins, Coinsfera exemplifies itself from other Dubai local exchanges because of the competitive price it offers. Coinsfera permits its users to exchange more than 2000 cryptocurrencies, apart from selling Bitcoins in Dubai
Peer-to-Peer (P2P) Marketplaces
Paxful is one of the topmost people-powered Bitcoin trading places in the world at the moment.
For starters, what you need to do is to create an account in Paxful and verify it for purchasing Bitcoin immediately. You can buy Bitcoin in Dubai, UAE for 37 AED which is very low, with no additional fees. It supports nearly 400 payment methods that include Western Union, PayPal, credit and debit cards, bank transfers, and many others.
LocalBitcoins provides the facility for people from different countries to exchange their related local currency into Bitcoins. It allows users to create advertisements where they can specify the payment mode and rates of exchange to buy and sell Bitcoins from them and also to other users of LocalBitcoins.
On replying to such advertisements, a trade window gets opened and the escrow protection is activated automatically. This escrow protection helps both buyer and seller by keeping the Bitcoins safe till the buyer makes the payment and the seller decides to release Bitcoins to the buyer. LocalBitcoins also has the provision of an online wallet wherein we can send and receive transactions using Bitcoins.
1. Why you should buy Bitcoin in a trustable exchange?
While it is easy to buy Bitcoins in Dubai, UAE, we should be more conscious of the broker or exchange we select. The exchange needs to be trustable, and reliable with sufficient security cover.
Because many cryptocurrency exchanges dealing with Bitcoins offer inbuilt wallets. These wallets are centralised and hence are with the possibility of being stolen. Thus, you need a trustable exchange to buy and trade with Bitcoins.
2. What to keep in mind when buying, and trading Bitcoin in the UAE?
(1) Bitcoin Price
You need to understand that there is no official Bitcoin price that is fixed. The price tends to vary tremendously and the pricing needs to be monitored on a daily basis.
Before deciding to purchase Bitcoins you need to know the latest price. Different exchanges levy additional fees and there are also trading nuances. W
(2) Storage of Bitcoins
You need to find a trustable and reliable wallet to store Bitcoins. You need to securely store our cryptocurrencies and it can be done only by having a highly-secured wallet.
Avoid storing Bitcoins in a wallet that is online as it will compromise security. It is very much possible that if you do not have access to your private key, you may not be able to access your cryptocurrency as well.
(3) Buying at the Right Time
No expert can predict exactly the right time to buy a Bitcoin. You need to spend time analysing Bitcoin prices and learn the history of prices to make the right decisions on your own. Understand that Bitcoin prices are not dependent on a country’s economic stability and are tough to predict.
(4) Buy Bitcoins
The most important part of buying a Bitcoin is in choosing the right trading person. The number of people doing such trading has grown sky-high,
The best location to buy a Bitcoin is a cryptocurrency exchange. Though it might be complicated to find your ideal exchange, you have to make the right call based on your opinion on reviews, proximity, liquidity, and fees. Also, you need to identify a cryptocurrency exchange, that offers payment options suitable for your needs.
(5) Cancellation of Bitcoin Transactions
Any sort of Bitcoin transaction cannot be cancelled. Once you initiate the transaction, and the cryptocurrency leaves your wallet, there can be no reversal. You have to make sure that you have done everything as needed and check it twice before finalising your transaction.