"How to buy bitcoin in UAE" is probably one of the most asked questions among people in the crypto-friendly country. With bitcoin being the first-ever digital currency, it's no surprise to see people in UAE wanting to stack some of the flagship cryptocurrency that disrupted the world of finance.
So if you're one of the people who don't want to miss the hype, and are interested in the world's largest cryptocurrency, then this article will give you everything you need to know on how to buy bitcoin in UAE.
How to Buy Bitcoin in UAE
Trading of bitcoin was made available in 2015 with the launch of the first crypto exchange in the gulf. While Blockchain and distributed ledger technology (DLT) are one of the UAE government priorities, trading in cryptocurrencies was not made legal in the UAE till 2019.
It’s worth noting that the UAE doesn’t recognize bitcoin and it is deemed illegal by the central bank. However, citizens can buy, sell, and hold BTC, but are not allowed to buy anything with it.
Widely known for the rapid modernization of its legal system, UAE is currently working on adopting new legal frameworks and regulations that will set ground rules to become the biggest hub For crypto and blockchain technology in the world.
Although crypto markets are known for volatility and many scams, this didn’t stop people in the UAE from buying bitcoin. Whether you are a crypto fanatic or an utter skeptic, In this article we’ll walk you through how to legally buy Bitcoin in one of the most crypto-friendly regions!
But before jumping in with both feet, do your due diligence by reading and learning about the technology that is behind bitcoin. Another thing you should know is that the market is saturated with scam projects. That is exactly why you should be super careful where you put your money.
Choose Crypto Exchange to Buy Bitcoin in UAE
Crypto exchanges are businesses that provide a marketplace in which users can buy, sell, and trade their crypto assets in exchange for fiat money or other cryptocurrencies. Some of these exchanges allow customers to buy bitcoin with credit cards.
So the first step in buying bitcoin in UAE is choosing the best crypto exchange that serves your goal is essential. Choose wisely based on your regulatory status, the number of coin options provided, and trading volume. One important thing is picking an exchange that has good customer service.
Here are our hand-picked Top 5 Crypto Exchanges in MENA!
Once you decide on an exchange, your bitcoin journey by creating an account. Depending on the exchange you would be asked to provide documents that verify your identity. This procedure is known as Know Your Customer (KYC), so don’t take this personally.
Add Funds to Your Crypto Exchange Account
After setting up your account and getting verified, you can now link up your bank account or credit card to buy bitcoin! As the central bank of UAE doesn’t recognize bitcoin as a legal tender, some local banks might not allow you to deposit money into crypto-related exchanges. Our advice is to double check this with your personal bank first to avoid any account sanctions or restrictions.
If that didn’t work well, depending on the crypto exchange you had chosen, some exchanges allow you to add funds with cash or cash deposits.
Once you have a funded account in a crypto exchange, now you can place your first bitcoin buying order! It’s important to know that there are many trading options available in exchanges; as some provide the option to limit orders or stop-loss orders.
Another option is to buy bitcoin using a bitcoin atm machine, this website can help you allocate the nearest bitcoin atm machine! But to be honest, it is cheaper to use an exchange as most bitcoin ATMs charge a fee of 6-12%.
Store Your Bitcoin Safely
Although many crypto exchanges offer built-in wallets, it is not recommended to store your BTC online. There are two types of wallets: non-custodial wallets, and hosted wallets.
Non-custodial wallets can be a physical hardware device, a program, or an app on your mobile or can be a hosted service wallet. Non-custodial wallets don't rely on a custodial or a third party so you would be fully in charge of your crypto possessions. The best non-custodial wallets to consider in 2021: Ledger Nano X, Trezor One, and Metamask among others.
Hosted wallets, hence the name, are a service that is hosted by a third party. You can think of it as how a bank holds your money on your behalf. The most practical feature about this kind of wallet is that in case you have forgotten your passwords they can still retrieve your crypto while if you used the non-custodial wallets, your money would be lost forever. Among the best-hosted wallets to consider in 2021: Blockchain.com wallet and BitGo.
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