How To Buy Crypto From UAE – that will be the topic of today’s article.
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Introduction
We’ve seen Bitcoin hit a new all-time price in recent years and more institutional buy-in of cryptos from major companies. All the while, people’s interest in buying cryptos has continued to increase and skyrocketed. But, to be honest, why do you think Elon Musk’s post got people’s attention on social media?
In many ways, the first half of 2021 has been a breakthrough. In fact, there’s a tremendous focus and attention is being paid to the crypto industry. Although it’s difficult to predict where things are headed long-term, but one can predict from regulations to the institutional adoption of crypto payments.
While exact predictions are possible, experts are paying attention to take advantage of the crypto space for the rest of 2021. Specifically, the United Arab Emirates (UAE) has taken an interest in cryptocurrency, and buying crypto in the country is quite easy but what matters most is the broker and the exchangers you select.
Have you been surfing the internet to get the right process to buy cryptocurrency in the United Arab Emirates? If that sounds like a YES, worry less as you’ve landed on the right platform. Here, we’ll teach you how to open an account at a crypto exchange and keep the money safe in your wallet today.
However, we have compiled this article to walk you through the ways of buying cryptos from the UAE. Aside from this fact, we will walk you through the step-by-step guide, the best crypto exchanges in UAE, and many others, to mention a few. Would you love to see what we have unleashed for you? Read further now!
Why Buying Cryptos in Today’s Digital World?
Having emerged as the digital alternative to more traditional exchange methods like cash or credit cards, the benefits of using cryptos cannot be overemphasized. More so, there’s a school of thought which sees cryptocurrencies as a financial medium for terrorists, criminals, and even terrorists.
This could even be triggered especially given their involvement in ransomware scams and trading on the dark web. Well, recent upsurges in the value of Bitcoin, for example, have established cryptocurrency as a viable investment with the possible hype surrounding the blockchain technology that backs it up.
In this section, we’ll be looking at the more positive aspects of using cryptocurrency in today’s digital world. And considering the plus points that make it a workable alternative to more established forms of financial trade, crypto is making it wave. Without further ado, let’s quickly walk you through the benefits.
More Confidential transactions
Under the cash or credit system, the entire transaction you make may become a reference document for the bank or credit agency involved each time you make a transaction. This means it might involve a check on your account balances to ensure that sufficient funds are available.
On the other hand, the cryptocurrency market is quite different. This is because; the transaction you make is a unique exchange between two parties, the terms of which may be negotiated and agreed upon in each case.
No Transaction Fees
While using cryptos, you have no doubt reading your monthly account statements from the bank or Credit Card Company. Not only that, but the transactions fee can take a significant bite out of your assets, especially if you’re performing a lot of transactions in a month. But using crypto can reduce such costs.
Easier International Trade
It’s only the cryptocurrency trade that could allow you to do an international transaction with ease. Though largely unrecognized as legal tender on national levels at present, cryptos, by their nature, are not subject to exchange rates, transaction charges, interest rates, o other levies imposed by a specific country.
Opportunity for Individual Ownership
In a traditional banking system, you effectively turn stewardship of your funds over to a third party that can exercise the power of life or death over your assets. Perhaps, the greatest advantage of cryptocurrency is that you’re the sole owner of your wallet and the corresponding private and public encryption keys that make up your cryptocurrency network identity or address.
Strong Security System
Once a crypto transfer has been authorized, it can’t be reversed, as in the case of charge-back transactions allowed by credit card companies of the traditional banking system. However, this process is a hedge against fraud, and it requires a specific agreement to be made between a buyer and seller.
Nonetheless, the cryptocurrency has strong encryption techniques employed throughout the distributed blockchain to safeguard users against fraud and account tampering and guarantors of consumer privacy.
Best Broker to Buy Cryptos in UAE
Cryptocurrency, especially Bitcoin, has proven to be a popular trading vehicle even if legendary investors such as Warren Buffett speak wrongly or take advantage of the market. However, the futures involve a lot more risk in exchange. To know more about cryptos, here are the best brokers to buy cryptos in UAE.
1. eToro
eToro is one of the leading brokers to buy cryptos in the United Arab Emirates. It’s a safe online trading platform regulated by top-tier financial regulators in the country. This broker is known for commission-free trades, features-rich trading platforms, and advanced social copy trading features.
2. AvaTrade
AvaTrade is the second on our list. It is known to be the best versatile trading platform. Avatrade was founded in Dublin in 2006, and it offers average-to-competitive fee spreads and several tradable currency pairs, and CFD’s overstocks. Their minimum deposit is $100, while there are inactivity fees.
3. IQ Option
IQ Option is another broker to trust in the United Arab Emirates. Aside from this fact, it’s the best online broker for options trading, known for low spreads, a sophisticated trading platform, and a free demo account. Also, it is a great platform for traders looking to invest in options on a feature-rich platform.
4. Pepperstone
Pepperstone is a reliable Forex and CFD broker in UAE. They are known for their diversity of trading platforms, fast account opening, great support, and good industry-leading pricing. Not only is that, but they also offer Meta Trader and cTrader trading platforms with multiple self-developed add-ons.
How to Buy Crypto from UAE
Buying crypto from the United Arab Emirates is legal, simple, and safe. However, you need to choose the right broker or cryptocurrency exchange to get the best transactions. In other words, buying from a reliable broker is the best when it comes to buying crypto. Below are the guides to buy crypto from UAE.
● Open a Trading Account with Crypto Exchange
The first step to take when you’re buying crypto for the first time is to open a trading account with the right broker or cryptocurrency exchange, depending on the kind of crypto you wish to buy. Meanwhile, the most common and secure way to buy cryptos is through eToro. And this is because; they allow you to buy physical cryptos, CFDs while still offering safe storage in e-wallets.
● Upload your Credentials
Uploading your credentials is another thing to put into consideration. While planning to buy any crypto, you may need to upload a copy of your government-issued ID and proof of address in order to comply with KYC (know your customer) requirements. This way, you’ll be able to buy the cryptos without restriction.
● Deposit Money to your Crypto Wallet
Depositing money to your crypto wallet is essential after you might have completed your registration. To deposit money to your account, you’ll have to select a payment option. Exchanges have you choose between a bank account and a debit/credit card, as cryptocurrencies are structured to be volatile.
BTC, for example, is legal in the UAE, but some banks don’t allow deposits to crypto-related sites or exchanges. That being said, it is best to verify at your local bank to allow you to know whether they have crypto restrictions or not. But, have it in mind that you’ll need to deposit before you can use the platform.
● Buying the Cryptocurrency
After you might have chosen the right payment option, you can place an order for your cryptocurrency. Exchanges offer different order types and investing opportunities market and limit order, as well as a stop-loss order. This way, traders can buy physical cryptos like BTC through an exchange and get ownership of the underlying asset.
Again, you can also BTC as CFD in UAE. When you pay it as CFDs, you do not get ownership over the underlying asset as with physical BTC. In this case, you can sign a contract and bet against the broker that the price of BTC will go up and down. This way, you could make a profit when your prediction is right.
● Store the Cryptos in your Wallet
The safest way to store a digital asset is in your e-wallet account. This means you’ll definitely store your wallet after you might have bought it. And this is due to the fact that it ensures that only you have access and control over your funds with a private key. Moreover, a personal digital wallet constitutes an excellent way to avoid the risk of losing funds because of a hacker attack, and that’s why many exchanges offer e-wallets for their customers.
However, you can buy cryptocurrency in the United Arab Emirates the same way you buy Bitcoin. But the most common way to buy this crypto in UAE is through a regulated online broker like eToro. This is because; they offer exchange services and at the same time offer traders unlimited options to buy, sell and hold cryptocurrencies in the United Arab Emirates.
In addition, we recommend new crypto users to check the exchange or broker if they trade with the cryptocurrency they’re interested in buying before opening an account with them.
Best Broker for Cryptocurrency Trading Today
1. Robinhood
This is one of the best brokers in the United Arab Emirates. This is a great option for buying cryptocurrency directly, and you’ll also get to take advantage of Robinhood’s wildly popular trading commission-free. More so, if you’re into more than just cryptocurrency, you can stick around for stock and ETF trades for the same low price. This Robinhood’s slick app makes trading so easy, though those looking for a full-featured trading experience will be disappointed in some ways.
2. TD Ameritrade
TD Ameritrade is one of the leading top full-service brokers on the market. Not only that it offers access to traditional products such as stocks and bonds, but it has expanded its offering to include Bitcoin features. Additionally, this broker does not allow trading directly in digital currency today. This means you’ll need to meet the account minimum to get started with the cryptocurrency features.
3. Interactive Brokers
The interactive brokers allow you to trade four cryptocurrencies directly, including Ethreum and Bitcoin, for one of the lowest/smallest commissions in the market. Aside from this fact, it also allows you to buy Bitcoin futures rather than owning the currency directly. In this broker’s case, you can actually buy futures on the Chicago Mercantile Exchange, with all-in contracts costing $15 with five BTC per contract.
4. Charles Schwab
This is another broker to trust in UAE. They’re routinely one of Bankrate’s picks for a top broker, and this investor-friendly company offers to trade in Bitcoin futures. Again, Schwab also has no account minimum when it comes to trading cryptos, but any futures contracts you trade will require some minimum margin to hold them open. Meanwhile, this broker offers an attractive commission of about $1.50 percent.
5. TradeStation
In recent years, this broker has been proven its uniqueness among other brokers in the country. They have a couple of options that have rolled out direct currency trading via TradeStation Crypto, with commission-based pricing for traders. Moreover, their pricing is based on your account balance with the broker and whether your order is directly marketable to earn profit in the long run. Also, you can buy and sell Bitcoin futures as well as take advantage of substantial volume trading discounts.
6. Coinbase
Undoubtedly, Coinbase is a specialized cryptocurrency-focused platform that allows traders to trade digital currencies directly, including Ethereum, Bitcoin, Litecoin, and Bitcoin cash. This way, you’ll have access to more than three dozen cryptocurrencies. Moreover, you’ll be able to store your coins in a vault with time-delayed withdrawals for additional protection. Also, this broker commission structure is steep as they charge a spread markup of about 0.5 percent and adds a transaction fee depending on the size of your transaction.
Guides to invest in Cryptocurrency
It’s no doubt that cryptocurrency has emerged as an asset class that provides traders with a chance to invest and earn a substantial return in today’s digital world. This asset class has garnered massive popularity in recent years, and many people are taking advantage to invest.
To start trading or buying cryptos, you’ll need to set up an account while investing as little as Rs 100 to being with. Despite the lack of government backing, this asset class is becoming increasingly popular, and everyone can take advantage of the market. Without further ado, below are the guides to invest in cryptos.
Step 1: Select the Right Crypto Exchange
Due to the absence of crypto regulation in many countries, there’s no fixed structure or uniformity to trading in cryptocurrency. On the flip side, with the help of the crypto exchanges platform, you can easily buy and sell your digital currency. The six crypto exchanges mentioned above are the most popular ones to trust in the United Arab Emirates.
Step 2: Open a Trading Account
You can open a trading account after selecting the right cryptocurrency in the United Arab Emirates. In the long run, this account will be similar to that of the one in your bank. Therefore, while registering, the exchange will verify your credentials based on the service you want, the amount you plan to invest, and the available coins trading options.
Step 3: Fund your Wallet/Account
After you might have successfully opened your account, the next thing to do is to transfer your fund online from your bank account to the crypto-trading account. This way, you may need both accounts to complete your trading or investment process successfully. Meanwhile, depending on the broker’s policy, you may have a waiting period before purchasing digital coins.
Step 4: Buying and Investing in Cryptocurrency
Following an account and money transfer procedure, you need to decide on the coins you intend to invest. As of today’s 21st century, there are tons of cryptos, so buying the right one will allow you to make a potential profit in the long run. That’s why we recommend you to research well before jumping into any crypto market today.
Step 5: Storing your Cryptocurrency
This is the last step when it comes to buying cryptocurrency in the United Arab Emirates. Besides, storage is the most important part after you make your purchases. Again, it does not have any formal institution backing them, and they most assuredly do not carry your average insurance policy. Therefore, you may need to store your codes to your account and your assets securely in a crypto wallet.
Crypto Regulation in the United Arab Emirates
As of today, the United Arab Emirates (UAE) has a rapidly modernizing legal system. This overall system is a civil law system that’s influenced by shariah (Islamic law), the major legal codes of which include the Civil Transactions Law, the Panel Code, commercial Transaction Law, and many others, to mention a few.
In addition to these federal laws, some states have their own laws and regulations in areas with no federal law. So, in the field of financial and capital markets, the UAE Central Bank and the Securities and Commodities Authority (SCA) are the federal regulators. This way, each emirate has its own free zone.
Nonetheless, blockchain and distributed ledger technology (DLT) is a government priority of the UAE, which has initiated various blockchain-released ventures and initiatives, having many collaborations with other jurisdictions. From a regulatory perspective, the ADGM has been the most active as they have been issued extensive regulations since 2018.
Security and Investment Laws in UAE
If you’re planning to buy cryptocurrency from the United Arab Emirates, you need to be aware of certain rules and regulations to avoid being blocked for certain reasons. At the time of writing this article, we have researched to see about 3 to 5 investment laws, so let’s quickly walk you through these laws in UAE.
Law I: Onshore UAE
Onshore UAE is one of the first things to put into consideration while buying cryptocurrency. This law entails the UAE Central Bank and the SCA share to share responsibility for the regulatory oversight of the UAE’s financial and capital markets. This includes the non-financial free zones such as the Dubai Silicon Oasis (DSO) and the Dubai Multi Commodities Centre (DMCC). These laws emphasized professional investment in the country and having a good idea of what you want to invest in before jumping into it.
Law II: DIFC
This law currently does not regulate crypto assets, but it’s subjected to change with the introduction of a framework for security tokens and a later framework for crypto assets in the near future. This means the DFSA had in the past adopted a wait and sees the approach to crypto regulation despite having issued several warning messages. Therefore, they licensed true investment law to prohibit financial promotions.
Law III: Banking and Money Transmission
In no doubt, the Central Bank is the UAE’s banking, credit, and monetary regulator. Aside from this fact, they provide general regulation of banking-related matters, supervises banking and other licensable financial activities, and advises the government on financial issues and maintaining foreign exchange reserves in the United Arab Emirates. So, you might find it difficult to buy some assets with cryptos.
Law IV: Anti-money Laundering (AML)
Expats need to be careful not to get caught with anti-money laundering in this country. And this is because; it defines the crimes of money laundering and terrorist financing and details the sanctions for the activities in the UAE. Additionally, you must not conduct any transaction aiming to conceal the funds’ illegal source, true nature, and many others, to mention a few.
Conclusion
Buying cryptocurrency in the United Arab Emirates is now a simple and burden-free process. If you truly want to buy any crypto like Bitcoin Ethereum, and many others from the UAE, it would be better to go through the process mentioned in this article to understand better. For more information, refer to this platform.
