How To Buy Bitcoin In Dubai, UAE
With cryptocurrencies getting more mainstream media attention, it appears that everyone is grinding their teeth wishing that they could get a piece of the action and buy bitcoins in Dubai, United Arab Emirates. Today, we have thousands of cryptocurrencies in the market, with more cropping up every day. But if you ask most people what a cryptocurrency is they will tell you it is, “Bitcoin”. Well, this is not further from the truth because bitcoin was the pioneer of cryptocurrencies and remains the most popular and most adopted.
Yes, sometimes the prices of bitcoin drop, but that’s the nature of such markets: volatility is inevitable! Over the last few years, the digital currency has been trending upwards hitting record highs and making headlines. If you missed out on the bitcoin craze, you still have a chance. The adoption of bitcoin is still in its infancy, so there’s a lot of room for growth.
Buying bitcoin can be challenging for beginners who want to try they luck on the cryptocurrency market. Purchasing the digital currency in Dubai and UAE is even harder because there are not a lot of options. If you are based in the Gulf region, and particularly in the beautiful city of Dubai, we are going to take you through how you can acquire some bitcoins in your wallet and build your portfolio. But let’s start with a brief look at what Bitcoin is and the mother technology that’s behind its inception.
Bitcoin and Blockchain in a Nutshell
Bitcoin is merely a kind of decentralized digital currency invented by Satoshi Nakamoto. No one knows who the inventor was or if it was a group of developers; the identity remains a mystery. To process transactions efficiently without involving an intermediary, bitcoin utilizes the Blockchain technology. This of this technology as a network of nodes/computers that work together to ensure the transaction is validated and hack-proof.
You might ask. Where do bitcoins come from? Well, for starters, the supply of this digital currency was set at 21 billion, meaning that after the last coin is acquired there won’t be any more on the market. The value of each coin by then will likely skyrocket!
To release bitcoins into the market, miners work together to solve a mathematical equation to verify transactions. Those that manage to crack the code are rewarded with new bitcoins, and that’s how the supply Works.
Benefits of Bitcoin
There are many reasons to love bitcoin. Late last year, we saw Dubai making headlines when a residential real estate was sold in digital currencies, notably bitcoin. Yes, it happened in September when Aston Plaza started offering off-plan studio as well as one and two bedroom units for around 30 – 70 bitcoins, a time when the digital currency was worth around $4,900 (Dh18,000). This showed the world that indeed it could be used as a payment option and not just as a digital asset.
Here are reasons why bitcoins are taking the world by storm:
- User anonymity – While can be easily traced from one address to another, the identity of users remains discrete. Personal purchases from a wallet cannot be associated with your details unless you wish to publish your transactions publicly.
- No third-party influence – Unlike the fiat currency which is widely controlled by central banks and governments across the glove, bitcoin is unique because third parties do not influence it. It operates purely on peer-to-peer, guaranteeing more freedom and control.
- Low transaction fees – Standard bank transfers involve huge fees. Cross-border payments attract even more considerable costs because of intermediaries. With bitcoins, transactions cost are low.
- Faster payments – Bitcoin payments take less time to complete, unlike the traditional payments which could take days to weeks. There are no wait periods for authorization requirements, and everything is handled on the blockchain network, which is faster.
- No paperwork – With bitcoin payments, forget about sending proof of address or using your passport or ID card. You just need a wallet, an address, and of course some bitcoins.
- Appreciating value – Apart from being used as a digital currency, bitcoin can also be used as a store for value. Your bitcoins could be worth $100 today and $200 the next day.
Buy Bitcoins in Dubai
Now that you have an idea what bitcoin is, let’s get back to our main agenda – how you can acquire this cryptocurrency while in Dubai. There are many options, but we will take you through the most accessible routes: exchanges! There are three main exchanges that you can use to purchase bitcoin. These are:
- LocalBitcoins – Dealing with local sellers
- BitOasis – Tested cryptocurrency exchange
- Regal Assets – Precious metals firm specializing in cryptocurrency
Note: Remember that each of these exchanges has their pros and cons, which we will look at, so weigh your options depending on your needs.
Buying Bitcoins using LocalBitcoins
LocalBitcoins is more of a person-to-person marketplace because it offers a platform where you interact with sellers and choose one that provides a more favorable price. The best thing about it is that each seller is allowed to use a variety of payment options, so when it comes to paying your choices are flexible. Here’s how to go about it:
Step 1: Sign up on the site, ensuring that you use a secure password that can’t be easily hacked. Remember that you can interact with a trader even without signing up because the website also shows sellers who are within your city or region, but it is recommended that you get your account first so that you can enjoy the escrow services that the platform offers.
Step 2: Once you have signed in, go ahead and search for sellers on the ‘Buy’ section. You will likely see many offers with different payment options. Now, your job is just to hit Buy, ensuring that the user you select has a favorable rating (preferably more than 90%), for a swift trade.
Step 3: When you click Buy, you will be redirected to a page with details about the terms of trade (created by the seller), information on trade limits, payment methods, and some fields, where you are supposed to enter either the number of bitcoins you wish to purchase or the amount of money in AED. There’s also a chat section where you add more information. When you are done filling these fields, hit “Send trade request.’
Step 4: The seller will now receive a notification of your request, and the number of bitcoins you intend to buy will credit from their account to LocalBitcoin’s escrow. They will also respond on the chat section, asking you to send the payments. Don’t worry about anything – go ahead and make the payments, and once you finish, click on the confirmation on the bottom right of the page.
Step 5: Once the seller confirms your payments, they are supposed to release the bitcoins, which will then reflect in your account. This process should be seamless, but if there’s a case of disagreement, the platform will step in to resolve the issue. LocalBitcoins saves the chats for some time should you return with a complaint about the transaction.
- Protection by escrow services
- 2-Factor authentication to help you secure your account
- Effective conflict resolution
- Wide range of payment options
- Trades can be instant if the seller responds on time
- No tedious verification
- Low fees of 1% – traders can decide their price for more profits
- There could be many scammers on the platform, so make sure you perform the trade through the site
- The prices of bitcoin will be a bit higher compared to the current market value
- If you want to buy a large number of bitcoins, some sellers could insist on verification (driver’s license or ID)
Buying Bitcoins using BitOasis
Another attractive alternative to LocalBitcoins is BitOasis. It was the first platform to offer cryptocurrency buying/selling services in the Middle East, covering the entire Gulf region. If you are in Dubai, this could be a great place to start when purchasing bitcoin. Here’s how to go about it:
Step 1: Start by signing up on the platform, and ensure you use a secure password (again).
Step 2: In order to proceed with the purchase, you will be required to create a voucher so that you can exchange it with the number of bitcoins you want. To do this, you will be requested to make a payment via credit card or bank transfer. The credit card takes less time and is the most recommended method. Bank transfer is cheaper but will for some time before confirmation.
Step 3: Click on the Buy Bitcoin tab found on the left side of the page, input the amount (voucher amount) as well as the payment method, in this case, credit card, and then hit Next. The charges will be around 6%, so you will pay a processing fee of 300 AED for bitcoins worth 500AED. Check that the transaction details displayed on the voucher correctly reflect the number of bitcoins you want to buy.
Step 4: Confirm the payments by clicking “Proceed With Payment,” and you will be redirected to the platform’s payment gateway, where you will be required to fill in your credit card details. Click on the “Pay Now” tab and wait for verification of the transaction. This could take anywhere from a few minutes to 15 minutes, depending on the number of requests.
Step 5: And you are done! After some time, you will see the bitcoins in your BitOasis wallet.
- Friendly interface
- Accepts credit and debit cards, as well as bank deposits
- Secure bitcoin wallet
- A little complicated process because of one must use a voucher to purchase bitcoins
- Higher fees than what’s charged by exchanges on other parts of the world
Buying Bitcoin through Regal Assets
If you are looking for a platform that allows you to buy bitcoins and get some help with storing them offline, then Regal Assets is the company to consider. It’s one of the few fully licensed crypto investment companies in the Middle East, allowing users to purchase Bitcoin, Ethereum Classic, Ethereum, Bitcoin Cash, and Litecoin.
In addition to cryptocurrency purchase services, Regal Assets also has impressive precious metals and Gold IRAs. It’s also running a Bitcoin IRA service, allowing users to secure their retirement by investing in Bitcoin. All these combined make the company a great resource for those looking to make some big buck in the cryptocurrency world.
Since this platform offers a unique way to purchase bitcoin in Dubai, let’s learn how precisely it works. One of the most striking things about it is the cold storage/offline wallet that it offers. When you purchase bitcoins with them, the private keys for your wallet are generated offline and stored in a hardware wallet. The company is responsible for storing them and guarantees that they will never lose it. In case they don’t live to their promises, the accounts are fully insured, meaning that you will be compensated for every coin that you lose.
Here’s how to get bitcoins and invest in Regal Assets IRA:
Investing in bitcoin with the company is pretty simple. You just need to visit the company’s official website and register an account, ensuring you fill out all the details correctly. There are three steps in the account creation: Account holder information, birth information, and source of funds.
Once you are allowed access, fill out the provided bitcoin IRA form, and your account will be reviewed and set up within 24 hours. The next step is funding your account, which again takes a short time. Once you are done, the job is now on the company’s side. They will load your wallet and proceed to put the funds in a cold stroke for utmost security.
To learn more about the company, request for a Kit by clicking on the “Get Your Free Kit” tab on the top right corner. The kit will be sent straight to the home address you provided, which takes less than a week to arrive for those who are far and earlier for users in Dubai.
- Provides offline key generations for better security
- Fully insured against hacking, natural disaster or theft
- Operated by a company that has been the gold market for long
- Offshore storage of bitcoins for better privacy, diversification, and safety
- Offers bitcoins IRAs
- Awesome support system
- Free kit to help you learn about the company’s operations and how to invest in cryptocurrencies
- Only offers a few cryptocurrency options for those looking to invest beyond bitcoin
- Investment process could be compared to other companies in the market
Other Options For Buying Bitcoins in Dubai
LocalBitcoins and BitOasis are not the only platforms where you can buy bitcoins in Dubai – they are just the most popular in the region. If you want to explore other options, you could also go on exchanges such as Changelly and CEX.IO. Remember though that the latter is more expensive than all other options, while Changelly might be a little bit complicated to use.
Storing your Bitcoins Safely
Purchasing bitcoins in Dubai is made easy by various exchanges, including those that we have covered. However, when you finish the process, you can’t just close your browser and hope for your investment to grow. These are centralized exchanges, and they can be hacked at any time or the administrations just decide to make the verification process intense, suspending user account. If any of these two things happen, it means one thing: your investment could just go down the drain!
This is why you need to move your funds to a secure wallet; one that is built for storing cryptocurrencies only. If you are just starting out and have a few bitcoins, you can go for an online wallet such as Blockchain.info or Jaxx. However, if you intend to get an immense amount of the digital currency, you need to get a more secure means of storage, say a hardware wallet, a desktop wallet or a paper wallet.
And as with any other investment, make sure you secure yours by keeping all information to your wallet safe. If you go for an option that gives you the privilege to store your private key, make sure you keep it private by all means.
For all those folks in Dubai that want to jump on the bandwagon and own some bitcoins before the prices start spiking, these are some of the platforms to use. If you go for LocalBitcoins, be careful when dealing with sellers and only go for reputable ones. If you decide to go with BitOasis, make sure that you use the right link (official page) as there are many impersonators that want to access user accounts and steal their funds. Lastly, if you want to store a high-volume of cryptocurrency with maximum security, take a serious look at Regal Cryptos. Do it the right way and enjoy this new investment vehicle. Happy investing!