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.
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.
Ways To Buy Bitcoin In UAE
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.
Why Buy Bitcoin In UAE?
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:
1. Pioneer of the cryptocurrency
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.
2. High liquidity
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.
3. An excellent tool for investment
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.
4. Your identity is protected
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.
5. Lower transaction fees compared to banks
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.
6. Payer cannot charge back
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.
7. Less prone to inflation
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.
8. Favorable business conditions in the UAE
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.
Payment Methods For Buying Bitcoin In 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.
How To Buy – Step By Step
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.
- Choose An Exchange. Your first step is to compare and choose an exchange house. Take your time to research the unique features, pros, and cons of each of the exchanges. Carefully go through their fees and risk factors. Then, choose the suitable exchange to buy Bitcoin in the UAE. Ensure that UAE is included in the supported country list of the exchange you choose.
- Open An Account. Once you choose your exchange, create an account. This process is relatively straightforward and will take less than ten minutes. You will usually need to input your basic information, name, email address, country of residence, and contact information.
- Deposit Funds. Moving on, you will need to deposit funds for your purchase. You can deposit the fund usually through a credit card or PayPal. Some regional exchanges also allow money transfers from banks. However, that may take additional time as the bank and clearinghouse will process and transfer your payment.
- Find Bitcoin And Click ‘Trade.’ Usually, on the homepage of the major exchanges, you will notice Bitcoin or its symbol BTC listed. Alternatively, you could also use the search bar to find BTC. Once on the BTC page, click trade. This will take you to the exact page where you can choose to buy Bitcoin.
- Enter The Amount Of BTC Buy. On the trade page, you can either buy or sell Bitcoin. Once you select to buy, you will need to enter the amount you want to purchase. There are typically few options here. You can directly enter the Bitcoin amount, and the screen will show you the appropriate USD or AED amount you will have to pay. Or, you can enter the USD or AED amount and see how much BTC you can purchase.
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.
- Confirm And Complete Transaction. Once you input all the details, the final step is to finish your transaction by clicking the submit button. Once the transaction takes place, you will see a screen confirming the transaction details that you can print or save to keep the record.
Where To Buy Bitcoin
1.Rain
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.
Key Features:
- Multiple Deposit Methods: Clients can use whatever deposit method is convenient for them, such as credit or debit cards, wire transfers, or paying by cash in one of the local offices of Rain. On top, Rain’s interface is straightforward and intuitive.
- Shariah Compliant: The central bank of Bahrain has approved Rain as a Shariah-compliant cryptocurrency exchange, meaning it fully adheres to the Islamic financing principles. This feature is essential as many users from the UAE are concerned about it.
- 24/7 Support: Rain provides 24/7 support, and it offers excellent liquidity and confidence to investors. You can sell your cryptocurrency assets and have your funds ready for withdrawal whenever you want.
2. BitOasis
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.
Key Features:
- Debit Card Deposits: You can directly deposit your funds using UAE-based local debit cards, which is a great convenience as most international exchanges accept only credit cards.
- Versatile Interface: The interface is customizable for beginners and professionals. Beginner users can trade using the “core” version of the user interface, whereas more serious and professional users can use the advanced “pro” version. It also has a mobile wallet for iOS users.
- Trading Functions: To help you benefit from your investment, BitOasis offers several trading functions for all users, which are market, limit, stop and stop-limit.
Fees:
- Trading fee: Maker / Taker: 0.24%, 0.48%, for 0 to 50,000 AED
- Inactivity fee: Free
- Withdrawal fee: 0.0005 BTC per withdrawal
3. Coinmama
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.
Key Features:
- Fast Verification: The verification process is speedy in Coinmama, so you can complete your purchase within a few minutes.
- Comprehensive Support: Coinmama is specifically aimed toward beginner traders. The customer support has a very positive and helping attitude toward helping you with any issues, even if your concerns are minor.
- Easy to Use: Coinmama supports only ten popular cryptocurrencies. It helps the exchange to keep the user interface very simple and beginner-friendly.
Fees:
- Trading fee: Up to 3.9%
- Inactivity fee: Free
- Withdrawal fee: Zero
4. Binance
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.
Key Features:
- Savings Account: Binance lets you use your cryptocurrencies in the format of a savings account, offering 8% per annum on your average account balance.
- Spot Trading: The availability of spot and arbitrage trading combined with one of the lowest transaction fees lets you trade frequently and benefit from market trends.
- Integrated Payment and Marketplace: Binance has its integrated payment system and marketplaces known as Binance Pay and Binance Marketplace.
Fees:
- Trading fee: 0.1%
- Inactivity fee: Free
- Withdrawal fee: 0.0002 BTC
5. Paybis
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.
Key Features:
- Instant Payout: You will have your Bitcoins available in your connected wallet immediately after you make a payment. The security checks are prompt and will not keep you on hold.
- Multi-Currency Support: Paybis supports over 30 cryptocurrencies and 47 fiat currencies, while the team is working on expanding it further.
- Lower Fees: Paybis charges a lower fee for wire transactions than several other major cryptocurrency exchanges. As a result, you can conveniently pay from your bank accounts. There are also no fees for your first transaction, making it easy to try out.
Fees:
- Trading fee: 2.49%
- Inactivity fee: Free
- Withdrawal fee: 0.99%
FAQs
1. Is Coinbase available in the UAE?
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.
2. How do I get started with buying Bitcoin in Dubai?
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.
3. Can I pay in cash to buy Bitcoin in the UAE?
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.
4. How can I store my Bitcoin after I purchase it?
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.
5. Is Binance legal in the UAE?
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.