Crypto Currency Investment in UAE: An Overview

By Sakshi Srivastav - 15 Mar 2021 Last Updated: 23 Oct 2021
Crypto Currency Investment in UAE: An Overview

Although Bitcoin is considered the most liquid, the UAE does not recognize it as a legal tender. The only legal tender in UAE is the Dirham. However, UAE residents can involve an exchange and open an account. They can trade in Bitcoin and other crypto currencies while operating these accounts. Bitcoin is universally accepted and you can use it to trade in any currency.

Choosing a secure Bitcoin wallet

It is true that with certain limitations you can trade in some other digital currencies in the UAE, but whichever currency you are trading in, you definitely require a secure method to store such a currency. Cold storage hardware wallets are accepted widely as the best method to protect your crypto currency. The popular hardware wallets are the likes of ledger Nano S or the TRezor. They are widely accepted as the cold storage wallets which are excellent when it comes to protect your peer to peer money.     

There are the exchanges that have the benefit of built in wallets, but they are vulnerable to theft because they are centralized. Once you have chosen a wallet that you can rely on, the next step is to choose a reliable and suitable currency exchange where you may have to involve verifying your identity for some transactions and these transactions will vary with each broker. Finally comes the actual step of buying any of the accepted decentralized money.

Here you need to understand that it is quite easy to buy Bitcoin in the UAE. However, the exchange or the broker you select is the most important decision. The first step to buy crypto currency in the UAE is to open an account at a crypto currency exchange. Along with this you also need to get a crypto wallet as explained above. This wallet is to store your coins, give gifts and make purchases.

Let us see how to choose a suitable Crypto currency trading platform UAE

  • There are many magic internet money exchanges based in the UAE which offer a number of other digital currencies.
  • There are reasons why many exchanges and digital currencies have a base in the UAE.
  • The main reasons behind this are low tax rate, regulatory environment and stability in the political arena are the reasons why these exchanges and digital currencies have set up base in the Emirates.
  • Apart from the above mentioned benefits, there is official support for crypto currencies which makes bitcoins an investment that draws many people to invest.
  • Although there can be dramatic variations in the value of the bitcoins relative to the national currency, people are still ready to take a risk and invest in them.

Benefits provided to investors

Then again the investors in the UAE have the option to choose among local as well as international exchanges that accept accounts from the Emirates. However, most of the investors from the Emirates prefer local digital currency exchanges. The main reason behind this is that there are many foreign based exchanges like the US based CoinBase, which don’t allow investors in some geographical areas to trade on their platforms.  

The best part is that there are also UAE based exchanges along with the foreign ones. These exchanges accept accounts from UAE residents. The main among them are:

POPULARITY OF CRYPTO CURRENCY IS INCREASING IN THE UAE

The Middle East has accepted the digital currency explosion just as it does all new technology. Many governments in the Middle East are now joining hands with the financial companies to issue their own peer to peer currency. Almost all the countries have been affected by the electronic currency bug and UAE has especially taken it very seriously. There were plans by the securities and commodities authority of the UAE started to regulate the initial coin offerings in the first quarter of 2019 and it has steadily been growing.

Conclusion

Like most of the investments, crypto has also come with a variety of risks and immense potential of rewards. Cryptocurrency is certainly a revolution to the digital business sector and dignified to join the ranks of conservative payment methods. It is precise to state that the future belongs to Cryptocurrency, and it is certainly here to stay.

Investments Related FAQ

Frequently Asked Questions

  • Why should one Invest?

    Earning money now is insufficient, since it may not be enough to meet life's financial objectives. As a result, it is critical to spend money. Saving money in the bank is the same as giving up an opportunity to make money. It is crucial to invest carefully in the different plans available on the market, choosing the one that is ideally tailored to your objectives.

  • What is the eligibility to buy Investment Plans?

    With new technologies and goods, the investment market is rising by the day. The conditions for investing in different forms of investment instruments differ depending on the providers in the UAE.

  • What are the best Investment for Expats in UAE?

    Expats can invest in stocks, bonds, real estate, cash, UAE mutual funds, or other forms of funds in the UAE.

Get Instant Advice