Qatar has been one of the most stable countries in the Middle East region politically and economically. The country has a high per capita income, and its economy is diversified. Qatar’s currency, the Qatari Riyal (QAR), is pegged to the US dollar.
The cryptocurrency market in Qatar is still in a nascent stage, with not many exchanges operating in the country. However, there are a few ways to buy and sell cryptocurrencies in Qatar. In this article, we will discuss how to invest in cryptocurrency in Qatar and the legal aspects and regulations around it.
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What is Cryptocurrency?
Cryptocurrency is a digital or virtual asset designed to serve as a medium of exchange. It uses cryptography to secure its transactions and control the creation of new currency units. Cryptocurrencies are decentralized and independent of governments and financial institutions.
The first and most well-known cryptocurrency is Bitcoin, which was created in 2009. Since then, over 4,000 different types of cryptocurrencies have been created.
Bitcoin is a decentralized cryptocurrency that facilitates instant payments through peer-to-peer technology. Using cryptography, network nodes verify transactions and record them in a public ledger called a blockchain.
Bitcoins are also generated as a reward for a process known as mining. The crypto asset can be exchanged for other currencies, products, and services. As of February 2020, over 18 million Bitcoins were in circulation, with a total market value of around $145 billion.
What is the Legal Status of Cryptocurrency in Qatar?
The legal status of cryptocurrency in Qatar is unclear. There are no specific regulations around online cryptocurrency trading platforms. However, the Qatar Financial Centre (QFC) has issued guidance on banning the trade of virtual assets only in QFC.
This means that cryptocurrency trading is currently not regulated in the country. However, this does not mean you cannot trade cryptocurrencies in Qatar. You can still buy and sell cryptocurrencies on many online exchanges. Although it will take some gymnastics to withdraw your earnings from an online exchange into your Qatari bank account, it is possible.
Why Invest in Cryptocurrency?
Cryptocurrencies have become popular in recent years due to their decentralized nature, anonymity, and global reach. Bitcoin, the most popular cryptocurrency, has grown in value from around $1,000 in 2017 to over $10,000 in 2020.
Here are some of the benefits of investing in cryptocurrency:
1. Decentralization
Cryptocurrencies are decentralized, which means they are not controlled by governments or financial institutions. This decentralization gives cryptocurrencies a number of advantages.
2. Global reach
Cryptocurrencies can be used anywhere in the world. There are no borders or restrictions, unlike traditional fiat currencies.
3. Anonymity
Investors can remain anonymous when using cryptocurrencies. This anonymity is also one of the reasons why some people use cryptocurrencies for illegal activities such as money laundering and tax evasion.
4. 24/7 trading
The cryptocurrency market never sleeps. Investors can buy and sell cryptocurrencies 24 hours a day, 7 days a week.
5. Potential for high returns
The potential for high returns is an advantage of cryptocurrencies. For example, Bitcoin’s price increased by over 1,000% in 2017.
Although cryptocurrency investment is a risky venture, it can yield high returns. Before investing, you should understand how cryptocurrencies work and the risks involved.
Ways to Invest in Bitcoin
There are a few ways to buy and sell cryptocurrencies in Qatar. These two are the most popular and safe methods:
- Crypto Exchanges: The most common way to buy and sell cryptocurrencies is through crypto exchanges. These are online platforms that allow you to buy and sell cryptocurrencies. One of the most popular exchanges in Qatar is BitOasis.
- P2P Exchanges: Another way to buy and sell cryptocurrencies is through peer-to-peer (P2P) exchanges. These platforms connect buyers and sellers directly and allow them to trade cryptocurrencies without the need for a middleman. Some of the most popular P2P exchanges in Qatar are LocalBitcoins, Paxful, and Remitano.
Payment Methods On Buying Bitcoin In Qatar
The most common payment methods for buying Bitcoin in Qatar are:
- Credit/Debit Cards: The easiest way to buy Bitcoins is by using a credit or debit card. There are many exchanges that allow you to do this. One popular exchange in Qatar that accepts credit/debit cards is eToro.
- Bank Transfer: Another popular payment method is bank transfer. This can be done through online banking platforms like FilsPay and Al Rajhi Bank.
- eWallets: You can also use eWallets to buy Bitcoins. These are online wallets that investors can use to store, send, and receive cryptocurrencies. An example of such is eToro, a popular eWallet in Qatar.
How To Invest in Bitcoin – Step By Step
As mentioned earlier, the easiest way is through a crypto exchange online. Here’s a general guide on how to buy cryptocurrency:
- Find a reputable crypto exchange: There are many exchanges to choose from. Some of the most popular exchanges in Qatar are eToro, Binance, and CEX.IO.
- Register and verify your account: You will need to provide some personal information and documents in order to verify your identity.
- Deposit money: Once your account is verified, you can deposit money into it using one of the supported payment methods.
- Buy cryptocurrency: After depositing your money, you can use it to buy cryptocurrency.
- Withdraw cryptocurrency: Once you have bought cryptocurrency, you can withdraw it from a wallet or exchange.
Before investing in cryptocurrency, be sure to do your research and understand the risks involved. This guide is for informative purposes only and should not be taken as investment advice.
How To Choose The Right Cryptocurrency Exchange?
Now that you understand the benefits and hows of investing in cryptocurrency, the next step is to choose the right exchange.
When choosing a cryptocurrency exchange, there are a few things to consider:
- Fees: Make sure to compare the fees charged by different exchanges. Some exchanges charge higher fees than others.
- Payment methods: Some exchanges only accept certain payment methods. Choose an exchange that accepts the payment method you want to use.
- Cryptocurrencies supported: Not all exchanges support all cryptocurrencies. Look for an exchange that supports the cryptocurrency you want to buy or sell.
- Country of operation: Some exchanges only operate in certain countries. Make sure to choose an exchange that operates in Qatar.
- Reputation: It’s important to choose an exchange with a good reputation. Read reviews and compare the different exchanges before choosing one.
Where To Buy Bitcoin In Qatar?
1. eToro
eToro is currently accessible in over 100 countries worldwide, including Qatar. In addition to Bitcoin, you may trade SHIB, LTE, ETH, ADA, and many more prominent cryptocurrencies on the site. If you don’t have much expertise, you can use the platform’s social trading product, called Copy Trader. This feature allows you to replicate a whole portfolio of various crypto assets. You may also follow in the footsteps of other professional traders who invest in Bitcoin and other cryptocurrencies.
If you have an eToro account, you will be given access to your very own wallet. This is a safe and secure location where you may deposit, receive, and send Bitcoins or other currencies.
In eToro, there is no commission when trading “un-leveraged” cryptocurrencies. Furthermore, if you are a newbie, you may like the fact that you may purchase cryptocurrencies for merely $25, with a $200 minimum deposit (Qatar residents). Following the initial minimum deposit, recurring deposits can be as little as $50.
Key Features:
- Copy Trading – eToro’s Copy Trading feature enables you to automatically replicate the trades of other traders on the platform.
- Social Trading – eToro is a social trading platform where you can follow and copy other traders.
- Trade Stocks, Indices, Commodities, Currencies – You can trade a variety of assets on eToro, including stocks, indices, commodities, and currencies.
- No Commission – There is no commission when trading “un-leveraged” cryptocurrencies.
- Virtual Portfolios – You can test your strategies with virtual portfolios before investing real money.
Fees:
- Minimum Deposit: $200
- Trading Fees: 0.75% spread
2. CEX.IO
Cex.io is a renowned Bitcoin trading platform that keeps its offerings up to date. It has turned into one of the safest exchanges on the market since 2013. If you want to purchase Bitcoin in Qatar, it is a well-regulated and secure marketplace.
Cex.io is one of the original Bitcoin cloud-based mining companies, and it is currently one of the oldest Bitcoin exchanges. Ghash.io, the company’s mining pool, used to control 42% of the network’s mining power. That said, Cex.io ceased mining activities in 2015 and is now just a Bitcoin exchange.
Cex.io uses Fill-or-Kill (FOK) orders, which means you only get Bitcoin for the price you decide to pay, which eliminates liquidity concerns. For example, if you opt to buy Bitcoin at a specific price, you will always get the same value (or better).
Other trading platforms may require you to wait for a seller willing to accept your desired price, so you may not be able to purchase or sell when you want or at the price you anticipate.
Key Features:
- Robust Coin Offering – Cex.io offers a robust coin offering with Bitcoin, Ethereum, Bitcoin Cash, Dash, and Zcash.
- Quick Purchases – Cex.io uses Fill-or-Kill (FOK) orders which means you always get your order at the price you want or better.
- Virtual Portfolios – You can test your strategies with virtual portfolios before investing real money.
- Secure – Cex.io is a well-regulated and secure marketplace.
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Fees:
- Minimum Deposit: $20
- Trading Fees: 0.25% Taker and 0.15% Maker Fee
3. Coinmama
Coinmama, like Cex.io, is one of the world’s earliest cryptocurrency exchanges. It has been trading Bitcoins for fiat cash for a while now, and it’s also one of the safest. Coinmama does not store your acquired cryptocurrency on its servers; instead, it sends it to your personal wallet, removing any motivation for hackers to target it.
Coinmama, unlike competitors such as eToro, does not offer a mobile app. You can only access it through your browser.
You may buy Bitcoin valued up to $100,000, but you must first authenticate your identity. Moreover, you must contact the staff directly through email to complete a form in addition to submitting your government-issued ID and proof of address.
On Coinmama, you may buy Bitcoin with a credit or debit card, a bank account, and other methods. However, Coinmama has higher rates compared to others. Because of this, various fees may rapidly pile up when buying crypto.
Trading commissions are 3.81% or less, depending on your loyalty program. For reduced commissions, you must spend at least US$5,000 in 90 days. Other charges include credit and debit card transaction fees of 5% and a 2% markup on the market price.
Key Features:
- Offers Different Payment Options – You can buy Bitcoin with a credit or debit card, a bank account, and other methods.
- Good Customer Support – Coinmama has good customer support and is available to answer your questions through email.
- Secured 2FA – Two-factor authentication is available to secure your account.
Fees:
- Minimum Deposit: $30
- Trading Fees: None
4. PAXFUL
Paxful is a Bitcoin marketplace that allows users to buy and sell Bitcoin with a variety of payment methods. You may find better prices for buying Bitcoin on Paxful than on other exchanges. Basically, Paxful is a peer-to-peer marketplace that enables its users to buy and sell Bitcoin with each other. You may also transfer money to your relatives and loved ones anywhere in the world using Bitcoin.
There’s no need to verify your identity to create a Paxful account, which makes it easy to use. Unfortunately, this also means that you have no way to recover your account if you lose your login credentials. So be sure to keep them secure at all times.
Paxful supports over 400 payment methods, including bank transfers, gift cards, and even video games. When you buy fractions of cryptocurrency on Paxful, you may start with as low as 37 QAR and incur no fees.
Key Features:
- Bitcoin Wallet – Paxful has a built-in Bitcoin wallet that allows you to store your BTC securely.
- No ID Verification – Paxful does not require ID verification for account creation, which makes it easy to use.
- 400+ Payment Methods – You may choose from over 400 payment methods, including bank transfers, gift cards, and even video games.
Fees:
- Minimum Deposit: 0.50%
- Trading Fees: $10
5. Binance
Binance is one of the most popular cryptocurrency exchanges in the world. It offers a wide variety of digital assets, including cryptocurrencies, tokens, and ICOs. You may also use Binance to convert one cryptocurrency into another. For example, you may convert Bitcoin into Ethereum.
Binance has two different types of accounts: basic and advanced. Basic accounts do not require ID verification but have withdrawal limits of 2 BTC per day. On the other hand, advanced accounts require ID verification and have higher withdrawal limits.
Also, you can trade spot or leverage trading on Binance up to 125x. However, this may be too risky for some investors. Margin or leverage trading means you’re borrowing money from the exchange to trade. The downside is that it can also increase your losses.
Other than that, Binance offers the largest selection of coins and tokens. They also have their own coin called Binance Coin (BNB). You can use BNB to pay your trading fees and enjoy a 25% discount.
Key Features:
- Wide Variety of Assets – Binance offers a wide variety of digital assets, including cryptocurrencies, tokens, and ICOs.
- Spot or Leverage Trading – You can trade spot or do leverage trading on Binance up to 125x.
- Margin Trading – Margin or leverage trading means you’re borrowing money from the exchange to trade. Your profits can be multiplied, but so can your losses.
- Large Selection of Coins and Tokens – Binance has the largest selection of coins and tokens of any exchange.
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Fees:
- Minimum Deposit: $1,000
- Trading Fees: 0.1% Spot trading
6. BitOasis
BitOasis is a cryptocurrency exchange headquartered in the United Arab Emirates and is one of the most popular exchanges in the Middle East. It was founded in 2014 by Ola Doudin, a Jordanian national. BitOasis allows you to buy, sell, and trade Bitcoin and other digital assets in the Middle East.
You may use BitOasis to buy Bitcoin with your credit or debit card. Registering only takes a few minutes. You must verify your identity before buying Bitcoin on BitOasis by uploading a government-issued ID. Once your identity is verified, you can purchase up to 5 BTC worth of Bitcoin per day.
BitOasis also has its own digital wallet that you can use to store your Bitcoin. The wallet is available on the web and on mobile devices.
Key Features:
- Easy to Use – The process of buying Bitcoin on BitOasis is simple and takes only a few minutes.
- Identity Verification – You will need to verify your identity before buying Bitcoin on BitOasis. To do so, you must upload a government-issued ID.
- Purchase Limits – Once your identity is verified, you can purchase up to 5 BTC worth of Bitcoin per day.
- Digital Wallet – BitOasis also has its own digital wallet that you can use to store your Bitcoin.
Fees:
- Minimum Deposit: 300 AED
- Trading Fees: 0.24% Taker and 0.48% Maker Fee
Conclusion
Cryptocurrency investors have a wide variety of options at their fingertips. You may choose to invest in a specific coin or token, trade on an exchange, or even use a peer-to-peer marketplace. These methods all have advantages and disadvantages.
Volatility is high in the cryptocurrency market, with prices going up or down quickly. So before investing, make sure you do your research. This includes understanding the risks involved and knowing your investment goals. Do not invest more than you can afford to lose.
For those seeking a specific coin or token, Binance offers the largest selection of coins and tokens of any exchange. Alternatively, if you want a convenient way to buy Bitcoin, Paxful is a good option. It offers a wide variety of payment methods and does not require ID verification.
Investing in Cryptocurrency in Qatar FAQ
1. Is it legal to invest in cryptocurrency in Qatar?
Yes, it is legal to invest in cryptocurrency in Qatar. To be specific, cryptocurrency trading is currently not regulated in the country, but you can dabble in it using crypto exchanges. However, there are some risks involved. Take the time to understand them before investing.
2. What are the risks of investing in cryptocurrency?
Volatility is high in the cryptocurrency market, with prices going up or down quickly. You may also be susceptible to fraud or theft. Thus, you should not invest more than you can afford to lose.
3. How can I buy Bitcoin in Qatar?
There are many ways to buy Bitcoin in Qatar. For example, you may choose from over 400 payment methods on Paxful, including bank transfers, gift cards, and even video games.
4. What is the best way to invest in cryptocurrency?
The best way to invest in cryptocurrency depends on your investment goals. Make sure you understand the risks involved before investing.
5. Should I invest in Bitcoin or Ethereum?
Bitcoin and Ethereum are both popular cryptocurrencies. It really depends on your investment goals. Do your research to find the right coin for you.
Noah is a Canadian copywriter with interest in technology, AI, VR, and clean-tech. When he’s not working, you’ll likely find him playing sports or reading.