How to Buy Bitcoin in the UAE - Beginner's Guide

How to Buy Bitcoin in the UAE

If you’re looking for a simple way to buy Bitcoin in the UAE, all you need to do is sign up with a crypto exchange.

You can access it online with a computer, smartphone, or tablet to quickly buy and sell Bitcoin and a range of other cryptocurrencies. The best platforms are listed below as well as a quick step-by-step guide on purchasing Bitcoin in the UAE.

1. Choose a Platform

Find a crypto platform that meets all your needs. Different platforms will provide different features and charge different fees. The safest platform to use is a regulated and reliable one, like the options listed below.

2. Create and Fund an Account

Click the join button and provide any details necessary to create an account. You’ll need to provide an image of your photo ID to complete KYC. Then choose a payment option on the deposit page to fund your account.

3. Buy Bitcoin UAE

Find the BTC/AED trading pair if your platform has one. Otherwise, you will need to buy another currency first, like USDT. Create a buy order for the amount of Bitcoin you wish to purchase and click the buy button.

How to Buy Bitcoin in the UAE - Step-by-Step tutorial

You can use the steps below to buy Bitcoin on eToro in no time at all.

1. Sign up with eToro

Head to the eToro website and click the button that says “Join Now”. Fill in your username, email address, and password on the registration form and accept the terms and conditions. Then you can click on “Create Account”.

2. Verify Your Account

To verify your email address, just click on the link emailed to you. Then you’ll need to complete your profile by providing details such as your full name, date of birth, and address, as well as answering questions about your investment experience.

Upload images of your ID and proof of address according to the onscreen instructions.

3. Make a Deposit

Click on “Deposit Funds” and then select AED from the dropdown list of currencies. Enter the amount you want to deposit and choose your preferred payment method from the list. Complete your deposit by filling in any payment information required for your chosen payment method.

4. Buy Bitcoin

Look for Bitcoin using the search box and click the “Trade” button. You can switch to “Order” if you want to make a limit order to BTC in the future. To make a purchase now, just fill in the amount and click the “Open Trade” button.

What Is Bitcoin & How Does It Work?

Bitcoin was launched in 2009 as a way to make peer-to-peer payments without intermediaries. Its anonymous creator is known only by the pseudonym Satoshi Nakamoto, and Bitcoin introduced the world to the concept of cryptocurrency.

The Bitcoin blockchain is secured by miners who provide computational power to validate transactions in a system known as Proof of Work. Anyone can become a miner or make transactions on the blockchain as it is completely decentralised, so no one controls it.

Bitcoin has the largest market cap of any cryptocurrency and is by far the most popular crypto coin. It is an entry point to crypto for many investors, and even institutional investors like Tesla are getting in on the action.

Is Bitcoin a Good Investment?

It is ultimately a decision for each individual investor whether to buy BTC, but here are some things you may want to consider first.

Bitcoin has already established its longevity, making it one of the safer cryptocurrencies to invest in. It is still only held by a small minority of people, however, meaning investors can still get in relatively early.

It is particularly attractive as an investment after its price has dropped. Bitcoin is also favoured by investors as it has a history of outperforming stocks, and many platforms provide access to leveraged trading and Bitcoin derivatives.

Bitcoin’s strength as an investment comes from its technology and economics. It won’t be devalued through inflation like fiat currencies as Bitcoin has a finite supply. It also can’t be stifled by banks and governments as the Bitcoin network is decentralised.

The blockchain provides some level of anonymity, while its mining algorithm makes Bitcoin very secure.

Bitcoin is an accessible investment as you don’t need to be a professional with a lot of money to invest—anyone can join a crypto platform and purchase a tiny fraction of a Bitcoin.

There is an ever-growing number of businesses that accept BTC as payment, and you can even put your coins into savings accounts provided by platforms like Nexo in order to earn interest.

The returns investors have made throughout Bitcoin’s price history have been huge, and the cryptocurrency is starting to see investment from more and more institutions. These factors could all point to strong price potential for Bitcoin in the future.

Risks of Buying Bitcoin

There are a few risks inherent to purchasing Bitcoin or any other cryptocurrency. As the regulatory landscape develops, it’s possible that UAE regulators could restrict crypto trading in the future. You also need to watch out for scams and be wary of hackers.

To mitigate these risks, you should only buy Bitcoin on reputable and regulated platforms and store it somewhere secure like a hardware wallet. Additionally, never share your private keys or passwords, and watch out for phishing scams.

Concerning Bitcoin specifically, you should be aware that when the network gets congested, the network fees can be high. This could make it uneconomical to move your Bitcoin around if you don’t hold very much.

What Payment Methods Can I Use to Buy Bitcoin in the UAE?

As the most popular cryptocurrency, there are many different ways of buying Bitcoin. We’ll discuss a few in more detail below.

Credit Card

Buying Bitcoin with a credit card is seen as the most convenient method by many—it’s fast, widely accepted, and gives you the flexibility to pay later.

The main downside is that it can be more expensive—Binance charges 1.8% for card deposits, KuCoin 3.8%, and BitOasis 3.99%. To avoid these charges, you can use eToro, where deposits are free.

Bank Account

Although bank transfers can take longer, they are preferred by a number of investors as they are usually the cheapest deposit option. Not all crypto platforms accept wire transfers from the UAE, but you can make bank deposits to eToro, Rain, and BitOasis for free.

PayPal

PayPal is a convenient way to pay online as it is fast, easy to use, and secure—PayPal won’t share your payment details with third parties. You can use PayPal to buy Bitcoin on P2P platforms, such as those provided by Binance or OKX, or make free PayPal deposits on eToro.

Neteller

Neteller is a digital wallet provider that makes it quick and easy to manage your money online. There aren’t many places where you can buy Bitcoin with Neteller in the UAE, but eToro is one of the few platforms that offer free Neteller deposits.

Skrill

Similar to Neteller, Skrill is another digital wallet service for fast and simple online payments.

You can buy Bitcoin with Skrill on eToro, where deposits are free.

Ways to Invest in Bitcoin UAE

There are a few choices of how to invest in Bitcoin. We’ll discuss each in more detail below to help you decide which is best for you.

Buy and Hold Bitcoin

As you would expect, this strategy involves buying some Bitcoin and holding onto it for the long term. It’s the easiest strategy as you don’t need any particular skills to profit from it.

It also doesn’t take up much of your time and enables you to increase your returns by putting your BTC into a savings account, like the one provided by Nexo .

Trade Bitcoin

You could instead take a more hands-on approach by buying and selling BTC more often to generate profits on a more regular basis. Trading Bitcoin will take up more of your time, and technical analysis skills will be useful in helping you decide when to buy and sell.

You can also trade Bitcoin derivatives like futures on platforms such as Binance and OKX. If you trade Bitcoin with leverage, you can increase any profits you make, but any losses will also be increased, so this should not be attempted by inexperienced traders.

Mine Bitcoin

Bitcoin mining provides another way to make a profit. You can earn some BTC in the form of block rewards by providing the computational power necessary to secure the blockchain and validate transactions.

Electricity is cheaper in the UAE than in many other countries, making Bitcoin mining more affordable, as it requires a lot of power.

However, the power, equipment, and mining pool fees still represent a significant cost, which is why many prefer the simpler and cheaper option of buying a cloud mining contract from a company such as CCG Mining .

Choosing a Bitcoin Wallet? - Storing Bitcoin Safely

There are many Bitcoin wallets available. The information below should help you decide which is best for your needs.

Bitcoin Software Wallets

• Web wallet: Traders and investors who only hold a small amount of BTC will likely find web wallets to be the most convenient option. They are, however, the least secure type of wallet, which is why it is important only to use the web wallets provided by reliable platforms. Those reviewed in this guide provide free web wallets.
• Mobile wallet: You can download this type of wallet onto your mobile device for a convenient way to manage your Bitcoin. Mobile wallets are also free, and Bitcoin.org recommends Unstoppable for iOS devices or Bitcoin Wallet for Android devices.
• Desktop wallet: Another free and convenient wallet, desktop wallets are downloaded onto a computer and store your private keys locally on your device. You can store Bitcoin in most desktop wallets, but Bitcoin Core is the most popular full node wallet.

Physical and Hardware Wallets

• Hardware wallet: Hardware wallets are the most secure way of storing Bitcoin, which is why they are the most expensive option. They’re great for investors who are holding a large amount of BTC for a long time, and the most popular options are Trezor, BitBox, and Ledger.
• Paper wallet: You can use an online key generator to create a public and private key. To create a paper wallet, you simply write down or print the resultant character strings or QR codes, but this isn’t a secure way to store Bitcoin.

Wallet Combinations

Depending on your activities, you might want to use more than one type of wallet in combination. If you intend to trade some of your Bitcoin while also holding some for the long term, it could be useful to use both a web wallet and a hardware wallet. If you use the Ledger hardware wallet, you could also download the Ledger Live app to manage your Bitcoin on the move.

Should I Buy Bitcoin Now? - Things to Consider Before Buying Bitcoin in the UAE

Some of the points covered in the section on whether Bitcoin is a good investment will be pertinent to this question. Other things you might want to consider are detailed below.

Bitcoin Fees

When making a transaction on the Bitcoin blockchain, there are network fees involved, which can get pretty high when the network is busy. You likely won’t need to concern yourself with these fees when buying and selling on a platform, though, as many platforms just charge a flat fee on each transaction.

Platforms may charge you fees for other actions, such as deposits and withdrawals. Whether these incur a fee and how much will depend on the platform and payment method you choose.

Other things that may carry a cost on some platforms include account management, inactivity, and overnight fees.

Bitcoin Regulations in the UAE

The UAE is one of the more progressive countries when it comes to cryptocurrency. The Emirates Blockchain Strategy 2021 was launched in 2018 with the aim of moving half of government transactions onto the blockchain by 2021.

Bitcoin is one of three cryptocurrencies accepted as payment by the Dubai Financial Services Authority (DFSA) for various trade licences and visas.

In 2022, Dubai approved its first cryptocurrency law and set up the Dubai Virtual Assets Regulatory Authority (VARA), which will regulate the sale of cryptocurrencies, authorise virtual asset service providers (VASPs), and promote transparency and security for crypto investors.

The regulatory landscape is still evolving as the Securities and Commodities Authority (SCA) develops its own crypto regulatory framework, and the DFSA works on its own rules for crypto regulation in the Dubai International Financial Centre (DIFC).

There is no personal income tax in the UAE, and this exemption also applies to cryptocurrencies, so residents of the UAE don’t need to report their crypto activities to any regulatory authority or pay tax on any profits they make.

When to Buy Bitcoin?

The best time to buy Bitcoin will likely be influenced by your strategy and investment goals. Investors who opt for a buy and hold strategy believe that the price of Bitcoin will rise in the long term, so the exact time at which they buy isn’t that important.

When it comes to trading, you might want to use a signal from the news or a technical indicator, like the relative strength index, to decide when to buy. You can even buy whenever a more experienced trader makes a purchase if you use eToro’s CopyTrader feature.

Some traders and investors aim to buy the dip, which requires some skills in price prediction, as we shall see below.

Bitcoin Price and Price Prediction

Bitcoin price is affected by a variety of different factors, such as project news and upgrades, crypto laws and regulation, and the global economic situation.

Bitcoin halving events can also have an impact on the coin’s price. This is an event that happens roughly every four years and involves the block reward paid to miners being halved. The four-year cycles that have so far defined Bitcoin’s price history appear to correlate with these events.

You can spot price trends and reversals by developing skills in technical analysis. These skills and an understanding of the factors that affect Bitcoin will help you predict its future price action.

Buying Bitcoin Safely in the UAE

The safest way to buy Bitcoin is on a regulated and reputable platform, where you can enjoy the best security, as well as better support and features.

A platform like Binance or BitOasis that is regulated in UAE should provide a safe trading environment for UAE residents, while platforms that are compliant with other regulators around the world also use top-level security practices, like cold storage, insurance, and two-factor authentication.

You should always invest responsibly by never risking more than you can afford to lose. Secure storage is another important consideration, and hardware wallets are the safest option. Make sure to keep your seed phrase somewhere safe so you won’t lose access to your wallet.

Attempts to scam or hack investors are common in the crypto world, so be cautious of emails that claim to be from your platform or wallet provider. Authentic emails will never ask you to reveal your passwords or private keys, and you should never share this information with anyone.

Buying Bitcoin Anonymously in the UAE

You cannot buy Bitcoin anonymously on regulated platforms, as they require users to provide accurate contact information and undergo identity verification by submitting an image of an ID, like a passport.

The only way to buy Bitcoin anonymously is, therefore, to use an unregulated platform. You could use a peer-to-peer (P2P) marketplace such as Paxful, where you can create an account with just an email address and buy BTC from some sellers without completing verification.

Decentralised exchanges (DEXs) can also be used anonymously as all a user needs is a wallet. However, as none of the popular DEXs support the Bitcoin blockchain, you would only be able to buy Wrapped Bitcoin (WBTC).

What’s more, DEXs tend to only support crypto-to-crypto swaps, so you would still need to acquire another cryptocurrency from somewhere else.

It is more complicated to use an unregulated platform, and you could be at greater risk of being scammed. This is why anyone simply purchasing BTC, which is perfectly legal in the UAE, is better off using a regulated platform and spending a few minutes verifying their identity.

Best Ways to Buy – a Comparison between Centralised Exchanges & Decentralised Exchanges & P2P Exchanges

Centralised Exchanges

A centralised exchange (CEX) is run by a company that makes a profit by charging users fees. When you make a buy order on a CEX, it will go into the exchange’s order book, where it will be matched with a sell order to facilitate the purchase.

CEXs tend to provide free web wallets where users’ Bitcoin is stored.

CEXs provide the best user experience as they are often easy to navigate and provide a range of features, educational materials, and customer support, making them a popular choice for inexperienced users.

Advanced traders are also catered for on many CEXs, as they have technical trading tools and a variety of order types.

Decentralised Exchanges

A decentralised exchange (DEX) runs on the blockchain and is operated by smart contracts instead of any central company. There is no-one to act as an intermediary when trades are made on a DEX. Instead, trades are facilitated through pools of each cryptocurrency, known as liquidity pools.

As DEXs don’t require any personal information or take custody of users’ coins, they are popular with people who value anonymity and control of their own assets.

They tend to be harder to use, however, and don’t provide as many features or order types as CEXs. The fees can also be significantly higher when the underlying blockchain is congested.

P2P Exchanges

P2P exchanges are web platforms operated by a company, like CEXs, but they are often unregulated, don’t necessarily require identity verification, and facilitate trades directly between users, like DEXs.

Buyers can choose from a variety of crypto sellers and then send a payment directly to the seller to receive their Bitcoin. The payment and crypto are usually held in escrow to provide more security.

People who don’t want to go through identity verification may opt to use a P2P platform. Other benefits of P2P platforms are that they often don’t charge fees and accept a wider range of payment methods.

However, P2P platforms aren’t as safe as CEXs and don’t provide as many useful features. Some CEXs, like Binance and OKX, also have built-in P2P platforms to provide users with more choice.

Bitcoin ATMs in Dubai and UAE

Bitcoin ATMs tend to look similar to regular ATMs, and there are a small number of them in Dubai. Before you can use one to purchase Bitcoin, you will need to create an account with the ATM provider, which you can do at the machine by providing your phone number and entering a verification code.

You will need to have a wallet before you buy BTC from an ATM, and you can use a mobile wallet, an exchange wallet, or a paper wallet. You will have to scan your wallet’s QR code at the machine, and then your coins will be sent to that address once you pay by cash or card.

There aren’t very many Bitcoin ATMs in the UAE, so they’re not very convenient. They can also take up to an hour to transfer your BTC to your wallet, and some ATMs charge very high fees. It is, therefore, a lot faster and cheaper to use an online crypto platform.

Selling Bitcoin in UAE

When you should sell your Bitcoin may be affected by the strategy you choose to employ. If you’re using a long-term buy and hold strategy, for example, it’s less important to time your exit precisely.

On the other hand, when engaging in short-term trading strategies, you might get a sell signal from the news or a technical indicator.

The process of selling Bitcoin isn’t much different from that of buying it. On eToro, for example, you just go to your portfolio, choose Bitcoin, and click “Close”. On other platforms, you may need to create a sell order, which is very similar to creating a buy order.

Unlike most other countries, in the UAE you don’t need to report any profit you make when you sell Bitcoin, as there is no tax to pay on these profits.

Final Thoughts

There are a number of reliable crypto platforms that are available in the UAE, and all of them support Bitcoin purchases. The features, fees, and other coins offered differ from platform to platform, but the reviews in this guide should help you pick the one that best suits your needs.

In our opinion, eToro is the best platform for buying Bitcoin in the UAE, because it is user-friendly, has strong security, and provides innovative social investing features that you can’t get anywhere else. The process of buying Bitcoin on eToro is simple, as you can see from the step-by-step instructions earlier in this guide.

Methodology - How we picked the best platform to buy Bitcoin

We have strict quality control processes and do a great amount of research in order to provide our readers with information you can trust. We always test all the platforms we review thoroughly to help you make well-informed decisions about investing.

Some of the things we research when testing a platform include how to set up an account, the deposit options available, which types of trading are supported, number of cryptocurrencies available, features, fees, ease of use, educational resources, regulatory status, and customer service.