Published on: November 26, 2023
Author: Derar Hasn
|Table of Content
|How to invest in Bitcoin in Dubai
|What is Bitcoin?
|Is it worth investing in Bitcoin in the UAE?
|Is it legal to buy Bitcoin in Dubai?
|Which app can I use to buy Bitcoin in Dubai?
|How to buy Bitcoin in the UAE?
|Buying Bitcoin in Dubai with cash
Bitcoin has been making headlines for a few years now. It’s no surprise that people are interested in this cryptocurrency and might be thinking of investing in it in Dubai. We also understand that buying a new type of asset class might be overwhelming. But don’t worry. After reading this guide, you’ll know everything you need to start investing in Bitcoin in the United Arab Emirates. Let’s dive in, shall we?
Launched in 2009 by an unidentified developer or group of developers known as Satoshi Nakamoto, Bitcoin (BTC) is a type of cryptocurrency operating as a decentralized digital currency. It functions as a medium of exchange and a mode of payment outside the influence of any individual, organization, or authority, eliminating the requirement for intermediaries in financial transactions. This virtual currency, which can be bought through various trading platforms, is given to miners who validate transactions.
Investing in Bitcoin in Dubai, UAE, can be a smart decision for several reasons. First, Bitcoin has shown tremendous growth and has gained popularity globally, making it a potentially lucrative investment opportunity. BTC is the world’s largest cryptocurrency by market capitalization. The Bitcoin price has gone through a real rollercoaster, starting from a few cents in 2010 to hitting $64,455.37 in 2021, its all-time high. But you also need to remember it’s a risky and volatile asset because, after its peak, it plummeted to $16,552.32.
And we’re pretty sure you’ve heard about those wild guesses like: “BTC to $100,000 by this year.” Nothing is guaranteed in the markets. Only time will tell. But one thing is certain: there will be upfalls and downfalls, which means volatility and potential opportunities for trading Bitcoin in both directions.
Secondly, Bitcoin is considered a store of value due to its limited supply of only 21 million coins that can ever be mined. Period. No one can change that ever, not like a national currency, which can be printed at the discretion of central banks. This fixed supply has the potential to make Bitcoin an attractive store of value, as its worth primarily relies on demand. That’s why it’s also called “digital gold.”
If demand for Bitcoin rises, its value could increase. It means investors have an opportunity to invest in Bitcoin, hold it, and potentially profit from the rise of its value.
What’s more, the UAE, as a technologically advanced country, has embraced Bitcoin and other cryptocurrencies, with various platforms and exchanges available for trading the asset. It seems like a smart move, while some other countries have banned trading cryptos. Additionally, the UAE government has taken steps to regulate cryptocurrencies, introducing policies to protect crypto investors.
Furthermore, Bitcoin's decentralized nature might offer protection against inflation and political instability, making it an attractive alternative to traditional assets. With its potential for high returns (but also high losses) and the UAE's supportive environment, investing in Bitcoin can be a promising venture for traders and investors in Dubai. However, remember to manage your risk properly, as Bitcoin is a highly volatile asset.
Yes, it is! What a relief, right?
While cryptocurrencies aren’t licensed or officially recognized as legal tender, it’s worth noting there are no specific laws in the UAE that prohibit the purchase, ownership, or trading of Bitcoin or other cryptocurrencies.
And did we mention there’s no capital gains tax in Dubai? Yes, that’s right! There’s also no personal income tax, and you don’t need to worry about any cryptocurrency trading tax. So, it’s no coincidence the UAE has surged in popularity among cryptocurrency and blockchain companies, making it a real crypto hub worldwide. All of the above makes a great point for investing in Bitcoin in Dubai.
There are many exchanges with apps in Dubai that you can use to buy Bitcoin. One of them is amana, a Dubai-based leading neo-broker, allowing you to invest or trade Bitcoin and 100+ other coins without a need to send it to an external wallet. This means a faster and more convenient process for you.
So, how can you get access to buying Bitcoin in Dubai through amana?
Step 1. Download for free the amana app from the App Store or Google Play.
Step 2. Open a free account.
Step 3. Deposit your funds.
Step 4. Invest or trade.
Trusted by 125,000+ investors and traders worldwide, the amana app allows you to invest and trade Bitcoin no matter where you are. But why is this such a deal on the Dubai trading scene? Listen, some brokers offer only leveraged assets, taking away from you the possibility of investing in Bitcoin.
We’ve eliminated any barriers for investors and traders, giving them access to both leveraged and unleveraged Bitcoin. It means you can speculate on the direction of Bitcoin’s price, going long or short with leverage. And on top of that, you can also invest in Bitcoin and sell it for profit when its price increases.
Don’t feel like buying an entire Bitcoin (1 BTC)? Thanks to the amana app, you can buy fractional Bitcoin, allowing you to own a portion of BTC.
Investing in Bitcoin in Dubai or anywhere in the UAE is relatively simple. You need to select a Bitcoin exchange, complete the registration and account creation, and deposit funds to buy BTC.
In addition to the amana app, you can find Bitcoin on other crypto exchanges. If you plan to hold your Bitcoin, it would be wise to transfer it from the exchange to a Bitcoin wallet or a more secure storage option such as a hardware wallet. So, let's go through the step-by-step guide to buying Bitcoin in the United Arab Emirates:
1. Select an exchange
When selecting an exchange, security is the crucial aspect. You should always conduct thorough research on the exchange, read online reviews, and evaluate the available coins, exchange listings, and associated fees.
To register with an exchange, you typically begin by providing your email address, choosing a password, and utilizing any other available security authentication methods. For your own safety, take advantage of any additional security options. As part of the registration process, you’ll likely need to submit an image of a valid photo ID to fulfill the exchange's Know Your Customer (KYC) verification requirements.
3. Add funds and buy
After creating an account, you can deposit funds from your fiat accounts or use your credit/debit card. Now, you can buy Bitcoin using the United Arab Emirates dirham (AED) through this method or choose an alternative trading pair.
What is the best Bitcoin wallet in Dubai?
There’s no good answer to that. It all depends on the plans of an investor or trader. There are many options for Bitcoin wallets to choose from to store your digital gold safely.
Online wallets (hot wallets) can be a better option for investors or traders who regularly move or use their cryptocurrency. Popular hot wallets like Electrum or Trust Wallet offer convenience and accessibility.
On the other hand, for larger Bitcoin holdings or funds that won't be actively used, hardware wallets like Trezor or Ledger Nano are considered safer than online wallets. They provide an extra layer of protection for long-term storage.
But here comes the tricky part. With great power comes great responsibility. If you want to be your own custodian, that’s fine. But remember, you need to keep your Bitcoin wallet safe, safeguarding it from hackers. And you can’t afford to lose your private key because it can be very costly. Just like Stefan Thomas who lost his private key to access his wallet of 7,002 coins worth over $232 million at the time. Imagine the pain!
With the amana app, you can forget the hassle of dealing with a Bitcoin wallet. Whether you invest or trade Bitcoin on amana, it’s securely stored on the platform. You don’t need to worry about losing your private key.
If you want to buy Bitcoin in Dubai with cash, there are many options.
Once you have an account with one of the Bitcoin exchanges or amana, you can add funds using a bank transfer or buy Bitcoin in the UAE with a credit/debit card.
If you want to buy Bitcoin directly for cash, you can do that in a Bitcoin ATM. Dubai welcomed its first Bitcoin ATM in 2019 at the five-star Rixos Premium Dubai Hotel. With the convenience of investing in Bitcoin with cash, come higher fees, ranging between 5 and 10% for most Bitcoin ATMs.
There’s one more way – a Bitcoin cash shop. It’s a convenient one-stop place where you can buy Bitcoin in Dubai for cash.
Selling Bitcoin in Dubai
It’s easy to sell Bitcoin in Dubai, just like buying it. You can do that using one of the above methods. But there’s an important thing to consider before buying and selling your Bitcoin. You need to know if your bank in the UAE is crypto-friendly.
First Abu Dhabi Bank (FAB) certainly is. It doesn’t place any restrictions on its customers when it comes to buying and selling Bitcoin, although the bank doesn’t offer direct crypto trading services. Moreover, FAB aims to further explore the potential of Web3 and digital assets for its customers.
Investing in Bitcoin in Dubai can be a smart decision for traders and investors. With its global popularity and potential, Bitcoin can offer an attractive investment opportunity.
The UAE's supportive tax environment and regulations for cryptocurrencies also make it an ideal hub for investing and trading Bitcoin. With so many physical and online options to invest in Bitcoin in Dubai, it's never been easier and more convenient to tap into the crypto universe.