Since the rise of Crypto Currency people have been debating and speculating if it is here to stay or if is it just a bubble that will eventually burst. But there is one aspect of it that both believers and non-believers cannot deny and that is among all the virtual currencies Bitcoin is the king.
Bitcoin has come a long way since it was introduced and there may have been times when people’s faith in Bitcoin and Cryptocurrency may have shaken, but for the most part, it has been a stable bet. So much so that countries like the United Arab Emirates have wholeheartedly accepted Bitcoin along with other currencies.
So today we will explore how Bitcoin and other Crypto Currencies are faring in the UAE and we will also learn how you can buy and sell Bitcoin in UAE.
What is Bitcoin and Crypto Currency?
Cryptocurrencies are virtual currencies that only exist in digital form. They are decentralized and not owned by any government or a single entity. These currencies are usually referred to as coins, like Bitcoin or meme coins and they can be traded online, just commodities and can be used to buy goods and services.
Bitcoin was the first currency to be assembled on the Blockchain and has only a limited supply of 21 million. Considering that there can be only 21 million bitcoins they are heavily coveted and this adds to their value.
Among all the Crypto Currencies Bitcoins are the most popular one and as a result hold the most value. Depending on the market the price of Bitcoin fluctuates and its price at the time of writing this guide may not be the same as when you are reading it.
Bitcoin compared to other Crypto Currencies
As mentioned before Bitcoin is considered the oldest and the original Crypto Currency on the Blockchain. As such its trading history has shown to be more stable than the rest of them, despite the many highs and lows over the years.
Not only is Bitcoin more stable and reliable than the other Crypto Currencies but it also holds more value as the next closest currency Ethereum is approximately worth 19 times less than Bitcoin. Overall, among the thousands of created Crypto Currencies only a handful are trusted and Bitcoin is the top among them.
Bitcoin and Crypto Currencies in UAE
From partnering up with popular cryptocurrency exchanges like Binance and creating licenses for cryptocurrency trading, UAE is one of the few countries that is actively promoting businesses associated with Crypto Currencies.
To regulate these businesses the government issues licenses and the procedure to get them is explained here. So, if you want to set up a business that handles virtual assets like Bitcoins and is involved in trading, you will need to get a license.
Steps to Buying Bitcoins in UAE
The steps to buying Bitcoins in the UAE are fairly simple and easy and not that different from buying and selling Bitcoins in any other country. These steps also apply to trading of all kinds of cryptocurrencies not just bitcoins.
Creating a Crypto Currency Wallet
To buy and sell Bitcoins you need to have a crypto currency wallet so that you can store your Bitcoin keys in there. There are several types of wallets, but they can be broadly divided into two categories.
- Software Wallets: Software wallets exist either on your desktop, your phone, or online. You can get online software wallets either through the exchange you are trading on or a third party. While easily accessible, software wallets are prone to hacking if proper security measures are not taken.
- Hardware Wallets: Hardware wallets, otherwise known as cold storage devices come in the form of physical devices on which you can store these keys. They often resemble a USB drive and have some kind of encryption on that and are generally more secure.
Adding Funds to the Wallet
Once you have created a wallet for Bitcoins next step is to add the necessary funds you need to buy the Bitcoins. In UAE there are several ways to add funds, you can use credit/debit cards or bank transfers, or depending on the exchange you are using, you can even use cash.
Choosing the Right Exchange
Choosing the right exchange is the most important process when buying Bitcoins. Quite a few cryptocurrency exchanges are operating in the UAE and here is a list of a few of them.
- Binance: It is by far the biggest Cryptocurrency exchange in the world and the biggest in terms of trading volume in the UAE.
- eToro: Not only does eToro deal with over 4500 cryptocurrencies, but also with Bitcoins EFTs and other virtual assets. When it comes to social trading, it is considered one of the best exchanges in the UAE.
- Rain: Binance may be the biggest in terms of volume in UAE but in terms of popularity Rain is the most popular exchange and is also Sharia compliant.
- Bybit: With over 1,100 plus digital assets Bybit is also a reliable choice for those trading in UAE.
- Gate.io: It is included among the top five crypto exchanges in UAE and has over 1,700 assets available for trading.
These are just some of the most popular exchanges available in the UAE. Choosing these or others depends solely on what you are looking for. Some of the things you need to take into consideration are the fees, exchange rates being offered, the types of spreads they are offering, and just your overall convenience.
Creating an account and placing the order
Once you have selected the exchange you want to trade on, you need to create an account with them. The steps to do that are fairly simple and explained on all their websites. After creating the account, you can either link your third-party or hardware wallet with the website or use the wallet offered by the exchange.
Now all that is left for you to do is to buy and sell Bitcoins and other currencies and assets that you see fit. However, always remember that no matter which cryptocurrency exchange you are using in UAE, it is proper to take security precautions and keep all your data encrypted.
