UAE: 3 Things To Consider Before You Buy Bitcoin

Published February 16th, 2020 - 01:05 GMT
 UAE: 3 Things To Consider Before You Buy Bitcoin
Buying bitcoin in Dubai is more or less the same as buying bitcoin anywhere else. (Shutterstock)
The extremely volatile nature of this cryptocurrency has always been one of its major characteristics.

It has been just over a decade since the inception of Bitcoin and the buzz surrounding it doesn’t seem to be dying out. As a matter of fact, it’s probably only just beginning. A lot of people think it will be the future of online and offline transactions and they are not wrong to think so.

So many people today find ways by which they can earn Bitcoin one way or another. But for a lot of people living in Dubai, it tends to be a bit of a struggle…or so it seems.

The extremely volatile nature of this cryptocurrency has always been one of its major characteristics. This might be the reason why people feel indifferent about owning bitcoin. But to many others, this is where they see an opportunity to invest and make a profit from it.

Even though there have been rumors about how major governments have accepted the inculcation of bitcoin into their nation’s system as a legitimate means of transacting, the kingdom of Dubai’s stance on this subject hasn’t been made totally clear. That’s not to say that bitcoin or other cryptocurrencies are banned from use in this region.

Things to know about buying Bitcoin while in Dubai

Buying bitcoin in Dubai is more or less the same as buying bitcoin anywhere else. The only difference is, there are only a handful of bitcoin merchants that are recognized in the region and that’s the information you need to familiarize yourself with. Of all the available bitcoin exchanges available, these three are the ones I will recommend; Coinmama, CEX, and Bitex UAE.

In this section, we talk about the nitty-gritty details involved in ensuring you have the best experience possible as you begin your journey into the world of cryptocurrency with Bitcoin.

1. Get a wallet: Because bitcoin is a non-tangible form of money doesn’t mean it can be kept in thin air. You need a place to put all that money, it makes it easier to track and monitor. And of course, wherever you decide to put it has to be somewhere safe! There are a handful of options for you to choose from when trying to find a suitable wallet to store your cryptocurrency.

For example, there are online wallets and there are offline wallets. As the name implies, online wallets have the bulk of their entity available online. Most of these types of wallets have mobile applications to facilitate ease of use. Hardware wallets, however, can’t be accessed online and have more of their entity off the internet, in a device similar to a hard drive. This ensures that they are more secure from hackers. Be sure to choose a trusted wallet and minimize the risk of a hacker attack.

2. Link an account: Since you’ll be trading traditional currency in exchange for BTC, you’ll need to link a bank account to your wallet to facilitate purchases. Alternatively, you can as well link one of your debit cards or credit cards too. Connecting either your bank cards has its advantages as opposed to connecting your account directly and vice versa.

Connecting and using your cards will facilitate instant bitcoin purchases. However, if the nature of your transactions will involve huge sums of money, it will be better to have your bank account linked to your wallet but this can take a couple of days to confirm, especially for new investors. One thing you should note is, you can only purchase cryptocurrency with traditional money and not necessarily the other way around.

3. Join an exchange platform: Now you have your wallet set up and have linked your account and/or card to it, it’s time to get yourself some bitcoin. Just like how you have to get to a Bureau de Change to exchange one currency to another, you’ll also need something similar to turn that money you have in your bank account to bitcoin. That’s exactly what an exchange platform functions as.

There are a number of exchange platforms available for you to choose from and they all vary in a manner of ways. They have different reputations, levels of security, exchange rates and some also have certain cryptocurrencies they support. Of all the major crypto exchange platforms, the most used and probably the most reliable within the region of UAE has to be Coinmama. 

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