Many things have happened in the crypto space in the past three years alone. There was the FTX trial, Binance’s regulation issues with Changpeng Zhao (aka CZ) subsequently stepping down as CEO, the legal battle between Ripple and SEC, and, of course, the latest crypto update that shook the entire trading space — the approval of spot Bitcoin ETFs, a move that propelled Bitcoin (BTC) price above the $40k mark again. 

Clearly, cryptocurrencies stop for no one. They go on a bullish or bearish run whenever they please, which, in turn, leaves crypto traders both impressed and perplexed. 

But if you’re among those loyal crypto enthusiasts, here’s one thing we can offer you: a simple guide to safe trading on a Dubai crypto exchange. So, without further ado, let’s get started. 

Is Dubai crypto-friendly? 

Before even trying to trade crypto in the city, you must familiarize yourself with the Dubai financial market first. You have to know if Dubai is even a crypto-friendly city or not. 

Bottom line? Dubai has long been deemed crypto-friendly—perhaps one of the most inclusive countries when it comes to crypto trading out there. What’s more, cryptocurrency trading in Dubai comes with zero taxes. Since there’s also no zero-income tax in the city, this combination attracts investors and traders to go and try to trade crypto in Dubai. Furthermore, being crypto-friendly not only lures individual traders but also entrepreneurs to establish their own crypto or blockchain companies in the city! 

In fact, perhaps being crypto-friendly is an understatement; maybe Dubai is indeed a safe haven for crypto traders. 

Now that you know that Dubai is crypto-friendly, you’re set to begin your crypto trading journey—starting with choosing the right Dubai crypto exchange. 

Tips on Selecting a Safe Dubai Crypto Exchange 

When you select which Dubai crypto exchange to use, there’s a lot of factors to consider. Of course, since crypto trading is still another form of investment, it’s advisable to trade at your own risk and do your own research first before you dip your toes into it. 

That said, here are three useful tips to help you choose the right crypto exchange to use: 

Tip #1: Choose a reliable and regulated exchange. 

Whenever you buy something online, what’s the first thing that you do? You search on Google and/or look for reviews about those products, right? The same thing applies to choosing the right crypto exchange. It’s advisable to know if the exchange has a good reputation and position in the crypto market; along with a good line of licenses to back them.  

The major crypto and financial trading authorities in Dubai are: 

Virtual Assets Regulatory Authority (VARA)  

Emirates Securities and Commodities Authorities (ESCA) 

Dubai Financial Services Authority (DFSA) 

Tip #2: Choose a secure and safe platform. 

The Dubai crypto exchange that you should use has to be really, really secure. Why? We’re talking about your investments here—your money. So, it’s only right to make sure that your money is safe with them, and your transactions are secure on their platform.  

Tip #3: Choose a platform that offers a wide variety of assets. 

There are thousands of cryptocurrencies available for crypto trading out there today, so, it's essential to not only verify whether your chosen platform supports your preferred cryptocurrency but also to explore the range of options they offer—like, stablecoins, altcoins, memecoins, etc. 

But, luckily for you, trading platforms like amana also provide various asset classes like stocks, ETFs, CFDs, derivatives, and indices, in addition to cryptocurrencies. Meaning, with amana, you’re not only confined to crypto trading but other forms of trading, too. 

Learn more about amana. 

How to Start Cryptocurrency Trading in Dubai 

After you finally choose a Dubai crypto exchange to use, you can now start trading cryptocurrencies. 

Step 1: Register with your chosen exchange.  

The first thing that you’ll need to do is open an account in the crypto exchange. And often, exchanges ask for your personal information like email, passwords, and any other security authentication—just the regular KYC and AML (anti-money laundering) checks. 

What’s unique about crypto trading, though, is its need to have a separate digital crypto wallet that you will connect to the crypto exchange before you can trade. Notably, some crypto exchanges already offer digital wallets as a part of their platform (which makes the lives of traders so much easier!) 

Important note: There are two types of crypto wallets—Hot (online) and Cold (hardware) Wallets. 

Step 2: Fund your account. 

Once you’ve set up your account, it’s ripe time to fund it now. The majority of cryptocurrency platforms and exchanges enable users to purchase cryptocurrencies through either a bank account or a credit card.  

Important Note: Crypto wallets have unique wallet addresses that are used to send or receive assets from other people or, well, from your other wallets.  

Step 3: Start cryptocurrency trading in Dubai. 

Once your checklist is complete, a.) crypto wallet, b.) crypto exchange c.) registered account on the exchange and d.) connection of the wallet and the exchange, then you can now start cryptocurrency trading in Dubai. 

How Do I Earn from Crypto Trading? 

Many treat crypto trading as a way to diversify their portfolio. While every Dubai crypto exchange differs from another, the ways to earn passive income through crypto are most likely the same. Here’s a closer look at earning through crypto trading: 

Yield-Farming: Here, the DeFi (decentralized platform) enables you to earn money through participating directly in the lending process—through contributing coins and tokens to a shared pool.  

Mining: Crypto mining uses the proof-of-work (PoW) algorithm, and requires ‘miners’ (well, or people,) globally to compete in finding the encrypted solution for a block—and the winner earns crypto for it. 

Staking: Here, users would need to stake (or hold) their cryptocurrencies in their chosen network’s consensus process and then, receive a reward for it. 

P2E Games: You can also earn crypto rewards by playing online games—P2E or play-to-earn games. There are several P2E games already available in the market, like Axie Infinity and Decentraland. 

Disclaimer: Again, because crypto trading is still a form of investment, it’s important to know the risks that it entails and be knowledgeable about the market and its procedures, before you start investing in crypto. 

Bottomline 

But, if you want to start your crypto trading journey right away, amana is here for you! 

As a leading neo-broker in the MENA region, we offer over 100 cryptocurrencies (physical and leveraged), in addition to various assets in our trading platform like stocks, ETFs (including Bitcoin-based ETFs), CFDs, commodities, indices, and of course, cryptocurrencies, among several others. 

With amana’s web and mobile versions, as well as MT4 and MT5 platforms, you can trade cryptocurrencies and other kinds of assets anytime, anywhere!  

And if you have any questions or if you feel lost with your crypto trading journey, you can send an email to our customer support team, [email protected], who’s ready to assist you 24/6.