Although cryptocurrency is a relatively new medium of exchange, it has already made significant inroads in Qatar. Presently, there are a number of cryptocurrency exchanges operating in the country. This article provides an overview of these exchanges, their services, and how they are regulated. But before we do that, let’s understand what cryptocurrency is and how it operates.
What is Cryptocurrency?
A cryptocurrency is a digital asset that is used as a medium of exchange. It uses cryptography to secure its transactions, control the generation of new units, and verify the movement of assets. Additionally, cryptocurrency is a decentralized system, meaning that it is not controlled by the government or financial institutions.
Bitcoin, the first and most well-known cryptocurrency, was created in 2009. Ever since, hundreds of different cryptocurrencies have been created. These are called alternative coins, or “altcoins,” for short. Ethereum, Litecoin, Zcash, and Monero are just a few of the many altcoins on the market today.
Cryptocurrency trading occurs on decentralized exchanges. These are online platforms that enable users to trade cryptocurrencies without the need for a middleman. Thus, no central authority, such as the government or a bank, can control the exchange.
Most cryptocurrencies use blockchain technology. A blockchain is a digital ledger that records all cryptocurrency transactions. It grows constantly as new recordings are added to “completed” blocks. A timestamp, an encrypted hash of the previous block, and details of the previous transaction are included in each block.
The blockchain allows Bitcoin nodes to distinguish legitimate transactions from attempts to re-spend coins that have already been spent.
What is a Crypto Exchange?
A cryptocurrency exchange is a platform where you can buy, sell, or trade cryptocurrencies for other digital assets or traditional fiat currencies. The exchange acts as an intermediary between buyers and sellers of cryptocurrencies.
Crypto exchanges can be online platforms, mobile apps, or even brick-and-mortar businesses that accept and facilitate cryptocurrency transactions. In general, exchanges provide a service for users to trade digital assets in a secure and efficient manner.
Besides crypto exchanges, users can also trade cryptocurrencies through other means, such as peer-to-peer (P2P) exchanges. However, P2P exchanges can be less reliable and secure.
This is because they do not have the same security measures as crypto exchanges and may be more susceptible to hacks. In addition, since traders are directly dealing with each other, there is a greater risk for scams.
Overall, crypto exchanges provide a reliable and secure way to trade cryptocurrencies.
Why Invest in Cryptocurrency in Qatar?
The reasons for investing in cryptocurrency will vary from person to person. Some may see it as a way to make a quick profit through price appreciation, while others may believe that cryptocurrencies represent a long-term investment opportunity due to their unique features and limited supply.
Some of the benefits of investing in cryptocurrency include:
- Potential for high returns: Cryptocurrencies are still in their early stages of development, which means that they offer investors the potential for large price gains.
- Decentralized nature: Cryptocurrencies are decentralized, so they are not subject to government or financial institution control. This makes them less vulnerable to interference and ensures that transactions remain anonymous.
- Global reach: Cryptocurrencies can be used anywhere in the world, giving investors a global reach for their money.
How to Buy Cryptocurrency in Qatar: A Step-by-Step Guide
With the crypto’s rise in popularity, more and more people are looking for ways to buy Bitcoin and other digital currencies. While there are many options available, not all exchanges can be accessed from Qatar.
This guide will show you how to buy cryptocurrency in Qatar. We will walk you through the process of creating an account, adding a payment method, and buying Bitcoin.
These are the steps to buy cryptocurrency in Qatar:
- Find a reputable cryptocurrency exchange that accepts customers from Qatar. We will review the best options later in this article.
- Create an account on the exchange. Most platforms allow signing up with your Google account to make the registration process more seamless.
- Verify your identity on the exchange (if required). Prepare your identification documents ahead so that you can take a picture right away.
- Add a payment method to your account, such as Qatari Riyal or wire transfer.
- Buy Bitcoin or another cryptocurrency on the exchange.
Payment Methods for Buying Cryptocurrency in Qatar
Cryptocurrency exchanges in Qatar accept the following payment methods:
Credit/Debit Cards
Most cryptocurrency exchanges allow users to fund their accounts using credit/debit cards. Go to the “Payment” or “Deposit” section of the platform and select “Credit/Debit Card” as your method of payment.
You’ll be asked to enter your card details, such as your name, number, expiry date, and CVC/CVV code. Then, type the amount you wish to deposit.
The platform will verify your card first. You should then see the funds in your account, after which you can start buying cryptocurrency. Note, however, that using this payment method may entail hefty fees.
Wire Transfer
Another popular payment method for buying cryptocurrency is via wire transfer. Wire transfers are quick, reliable, and secure, making them a good choice for those looking to purchase digital assets.
A wire transfer is typically initiated through online banking or by going to a physical bank branch. When sending a wire transfer, the sender will need to provide the details of the recipient and exchange. The funds will then be transferred from the sender’s account to the recipient’s account within one to two business days.
An advantage of using wire transfer to buy cryptocurrency is that it allows you to avoid the fees associated with credit and debit card purchases. However, one downside is that you may need to pay a fee to your bank to send the wire transfer. Additionally, not all exchanges accept wire transfers as a payment method.
Cash Deposits
You can also buy cryptocurrency in Qatar through cash deposits. This can be done through online exchanges or offline businesses that accept cash payments for digital assets.
The main advantage of using cash to buy cryptocurrency is that it is fast and convenient. You can simply hand over the cash and receive the cryptocurrency in your account immediately.
However, there are also some disadvantages to using this method. Firstly, finding a reputable exchange or business that accepts cash payments can be difficult. Secondly, you may have to pay higher fees when using this method. Lastly, it entails the additional step of having to deposit your money into your account on the exchange.
Best Cryptocurrency Exchanges in Qatar
eToro
eToro is an Israeli cryptocurrency exchange that offers a wide range of digital assets, including major cryptocurrencies like Bitcoin, Ethereum, Litecoin, and Dash. It also has one of the most user-friendly interfaces in the industry, making it a great choice for first-time investors.
eToro is completely legal in Qatar. The Qatar Financial Markets Authority (QFMA) has allowed the exchange to operate in the country even with the government’s hesitancy to invest in cryptocurrency.
One advantage of eToro is that it offers a variety of payment methods, including credit and debit cards, PayPal, and bank transfers. This makes it one of the most convenient exchanges for Qataris looking to invest in cryptocurrency.
Another advantage is that eToro offers a demo account with virtual money. This is an excellent way for new investors to get started without risking any real funds. This way, you get to explore the platform and its features before investing any of your hard-earned cash.
Moreover, the exchange offers a variety of trading and investment tools. For example, you can use the CopyTrader feature to copy the trades of other successful investors. This is a great way to learn from the best and make profits in the process.
With over 25 million users, eToro is one of the largest and most popular cryptocurrency exchanges in the world. It is also one of the most trusted, with a long history of providing excellent service to its clients.
Key Features:
- Copy Trading: When you copy trade, you don’t need to do much research or make decisions about what to buy or sell. Instead, you just copy other traders’ portfolios on the eToro platform. You can choose which trader to copy based on their past performance, how much risk you want to take, and other factors.
- Social Trading: eToro is also considered a social trading platform where you can share experiences and insights with other users.
- Minimal Fees: The platform doesn’t charge a commission fee for trades. It only charges a flat fee of 1% for buying or selling crypto.
Fees:
- Trading Fee: 1% for cryptocurrency
- Minimum Deposit: 50 USD / approximately 182 QAR
- Withdrawal Fee: 5 USD / approximately 18 QAR once converted to fiat
Binance
Binance is a cryptocurrency exchange founded in 2017. The company is based in Malta and has offices in Singapore, Tokyo, and Hong Kong. Binance is the world’s largest cryptocurrency exchange, with a daily trading volume of over $2 billion. The company offers a variety of services, including spot and margin trading, derivatives trading, and a mobile app.
Its mobile app is one of the most beginner-friendly platforms in the market today. With this, investors can buy, store, and trade a variety of cryptocurrencies with ease. The company also has a strict know-your-customer (KYC) policy to ensure that all its users are legitimate.
A major advantage of Binance is that it features over 150 different cryptocurrencies, which gives users a wide array of options to choose from. It allows buyers to diversify their portfolios and lower the risks associated with trading and investing in cryptocurrencies. Click here to read the full Binance Review.
Furthermore, the company has a very efficient customer support system available 24/7. In case of any issues, users can easily reach out to the customer support team and get their queries resolved in a timely manner.
Key Features:
- A Variety of Cryptocurrencies: Binance supports multiple cryptocurrencies, including Ethereum, Cardano, Shiba Inu, and their own BNB.
- Comprehensive Charting Options: This feature allows you to conduct technical analysis on various cryptocurrency price charts. Its advanced features let you create your own custom indicators and overlays or take advantage of 22 built-in ones.
- User-Friendly Interface: The trading interface for both mobile and web apps is also highly intuitive and easy to use.
Fees:
- Trading Fee: 0.1% for spot trades
- Minimum Deposit: 10 USD / approximately 37 QAR
- Withdrawal Fee: Depends on the type of coin you withdraw
Kraken
Kraken is another platform to consider if you’re looking for viable Qatar cryptocurrency exchanges. The exchange has a proprietary platform and offers access to a value-rich portfolio. It currently has more than 70 listed digital assets and provides access to global markets.
Kraken is known for its security features, low fees, and advanced trading tools. It also offers margin trading with up to 5x leverage along with a mobile app for both Android and iOS devices.
Kraken also allows you to trade traditional fiat currencies against cryptocurrencies. It accepts deposits in USD, EUR, CAD, GBP, and JPY. You can also deposit cryptocurrencies and trade them against other digital assets.
One thing that sets Kraken apart from other platforms is that it doesn’t have any strict limits in place. You can deposit and withdraw as much as you want. However, the exchange may ask for KYC verification if your account activity is deemed suspicious.
Another advantage is its transparent fee structure. Kraken doesn’t charge any deposit or withdrawal fees. Instead, it charges a small flat fee for each trade. The fees start at 0.16% and go all the way down to 0.02% if you’re a high-volume trader. Lastly, the platform is active and liquid, which means you can always find a buyer or seller for your coins. Click here to read the full Kraken Review.
Key Features:
- Kraken Futures: Users can leverage up to 50x with Bitcoin and altcoin futures.
- Proof of Reserves: The platform has developed and launched an innovative and cryptographically verified auditing system.
- Bug Bounty: Kraken gives Bitcoin as a reward for users who find significant bugs in their platform.
Fees:
- Trading Fee: 0.9% for spot trading of stablecoins, 1.5% for other crypto or FX pair
- Minimum Deposit: Depends on the type of coin you want to buy
- Withdrawal Fee: Depends on the type of coin you want to withdraw
Check out Kraken’s minimum deposit and withdrawal fee structures to learn more.
CEX.IO
CEX.IO is a United Kingdom-based cryptocurrency exchange. Founded in 2013, it started as a cloud mining provider and eventually became a Bitcoin exchange in 2015. CEX.IO offers cross-platform trading via mobile app, website, WebSocket, and REST API, offering high liquidity order books for major currency pairs on the market.
CEX.IO allows users to buy and sell cryptocurrencies using Visa, Mastercard, and bank transfers. In addition, it offers margin trading with a leverage of up to 3x.
CEX.IO is among the oldest platforms in the space and one of the most popular exchanges online, with over 2 million users.
The exchange sets itself apart from the competition with its ease of use, clean interface, and fast transactions. Users can enjoy a seamless trading experience on CEX.IO.
[maxbutton id=”3″ url=”https://cex.io/r/0/up149733641/0/” text=”Trade with Cex” ]
Key Features:
- Multiple Cryptocurrencies: CEX.IO supports over 100 major cryptocurrencies.
- Crypto Staking: Users can earn income from their cryptocurrency investments through staking.
- Regulated and Licensed: The platform has legal permission to operate in 193 countries, including Qatar.
Fees:
- Trading Fee: Different fees apply for different trade volumes
- Minimum Deposit: 20 USD / approximately 73 QAR
- Withdrawal Fee: Different fees apply for different withdrawal methods
Coinmama
Coinmama is one of the top cryptocurrency exchanges in Qatar, especially if you’re looking for secure accounts. They offer a friendly interface and high-speed transactions. The platform is best if you plan to use credit/debit cards to fund your account.
Coinmama was established in 2013 in Slovakia and has since then grown to be one of the leading exchanges in Europe. In 2018, it launched services in Qatar.
Coinmama is an excellent option for those looking for an exchange with high-security standards. They offer two-factor authentication and follow the Know Your Customer (KYC) guidelines.
The only downside is that their fees are on the higher side. They charge a 5% transaction fee and a 10% fee for credit/debit card transactions.
Key Features:
- High Spending Limits: The platform offers higher transaction limits based on your verification level.
- Fast Verification: A level 1 verification just requires a photo of your government-issued ID and a piece of paper where you write the date and the word “Coinmama.”
- Flexible Payment Methods: You can fund your account through credit cards and even Apple Pay.
Fees:
- Trading Fee: 6.3% for each purchase
- Minimum Deposit: 30 USD / approximately 109 QAR
- Withdrawal Fee: No fees for crypto withdrawals
CoinMENA
In early May, CoinMENA was reported to become the first regional digital assets exchange to operate right in Qatar. As such, residents can easily open accounts with the platform and access its features. CoinMENA is a subsidiary of the Qatar Stock Exchange and licensed by the Qatar Financial Markets Authority. The digital assets trading platform only supports Bitcoin (BTC) and Ethereum (ETH), but more coins will be listed in the future.
It’s also the first onshore licensed crypto exchange in Qatar to introduce limit trading. This means users can set their own buy and sell prices, which is a big plus for those who want to be more in control of their trades. CoinMENA charges a 0.5% taker fee and a 0.2% maker fee. There’s also a deposit fee of 1 QAR (about $0.27) for bank transfers.
Key Features:
- Regulated and Licensed: CoinMENA operates legally in Qatar, which means it’s a complaint platform.
- Competitive Fees: The platform offers a competitive volume-based fee structure.
- Referral Program: Users can earn monetary rewards for referring friends to trade on the exchange.
Fees:
- Trading Fee: 0.5% taker fee and a 0.2% maker fee
- Minimum Deposit: 10 USD / approximately 36 QAR
- Withdrawal Fee: 50 USD / approximately 182 QAR
Frequently Asked Questions
Why should I buy cryptocurrency?
You should consider investing in cryptocurrency because it has the potential to appreciate in value like other investments. It can also be used to purchase goods and services and provides a way to diversify your investment portfolio.
Is cryptocurrency legal in Qatar?
While the Qatari government has been hesitant about cryptocurrency on an institutional level, it has permitted some platforms to operate legally in the country. CoinMENA’s conception is also attributed to Qatar Central Bank’s change in stance towards cryptocurrency and its potential use cases.
What are good cryptocurrencies to buy?
Popular cryptocurrencies include Bitcoin, Ethereum, Litecoin, Bitcoin Cash, and Ripple. You can buy any of these at most major exchanges. They’re great starting points for beginners because they’re all relatively stable and have large communities backing them.
How much cryptocurrency should I buy with my first transaction?
The amount of cryptocurrency you should buy during your first transaction depends largely on your budget and investment goals. When you’re looking to test the waters of cryptocurrency trading, buying a small amount may be a wiser decision than investing a large sum of money right away.
What are the risks of investing in cryptocurrency?
The risks of investing in cryptocurrency are mainly related to the volatility of prices. Cryptocurrencies are not backed by any government or asset, and their prices can fluctuate significantly. As a result, they are risky investments, but also ones that offer high returns.
What are the benefits of investing in cryptocurrency?
Cryptocurrencies have become more popular as investment options over the past few years. Many people are attracted to cryptocurrency because of its potential for high returns and its decentralized nature. Cryptocurrency is also a relatively new asset class, which means that there is still a lot of potential for growth.