Cryptocurrency Trading in Dubai, UAE – 6 Best Crypto Exchanges

Cryptocurrency trading in Dubai, UAE is easy for investors and businessmen as they can purchase and sell cryptocurrency from any digital exchange. Choosing the right and best crypto exchange in Dubai and the UAE is the main challenge for them.

Picking the best crypto exchange in the UAE is difficult. Users may find it difficult to select the best alternative because there are many exchanges available to traders in the UAE. These exchanges offer different staking options, liquidity levels, varying fees, and overall trading experiences. To sign up with a crypto exchange that will meet your requirements, it is important to be aware of your investment goals and expertise level.

This article talks about crypto trading in the UAE and its related details. It also compares the best crypto exchanges in the UAE in terms of fees, security, payments, markets, and other factors. We compared the top crypto exchanges after reviewing various available options for UAE traders. To make it easy for you to decide on an option, we weighted their overall performance across 8 key categories.

Cryptocurrency Basics

Any kind of money that exists in digital or virtual form and uses cryptography to safeguard transactions is known as cryptocurrency. It is also referred to as crypto-currency or simply crypto. Cryptocurrencies use a decentralized mechanism to track transactions and create new units rather than a central body to issue fresh units and keep a track of transactions.

This digital payment system doesn’t depend on banks to validate transactions. Instead, it is a peer-to-peer technology that makes it possible for anybody, anywhere, to receive and send payments. Payments made using cryptocurrencies do not exist as they are not actual physical coins that can be transported and exchanged. Rather, they only exist as digital entries to an online database that explains every transaction. A public ledger keeps track of all cryptocurrency transactions that involve crypto transfers. Digital wallets are where cryptocurrency is kept.

The fact that transactions are verified using encryption gave cryptocurrency its name. This implies that the storage and transmission of cryptocurrency data between wallets and public ledgers require sophisticated coding. Encryption’s goal is to offer security and protection to the users and transactions.

The first cryptocurrency was created in 2009 and is still the most well-known in the present times called Bitcoin. A large portion of cryptocurrency interest is in trading for financial gain, with speculators occasionally taking prices very high.

Working of Cryptocurrency

A distributed public ledger known as the blockchain, which is a record of transactions maintained and updated by currency holders, is the foundation of cryptocurrencies.

Through a process known as mining, which uses computing power to solve challenging mathematical problems for making coins, units of cryptocurrencies are created. Additionally, users have the option of purchasing the currencies from brokers, then spending and storing them in digital wallets.

When you hold cryptocurrencies, you don’t actually own anything in physical form. What you possess is a key that enables you to transfer a unit or record of measurement between people without the use of a reliable third party.

Despite the fact that Bitcoin has been available for a long time, the financial applications of blockchain technology, and cryptocurrencies are constantly developing, and more are anticipated in the coming years. The technology could someday be used to trade bonds, equities, and other financial assets.

Cryptocurrency Examples

Following are some of the best cryptocurrencies in the UAE:

Bitcoin

The original cryptocurrency and still the most traded, Bitcoin was established back in 2009. The cryptocurrency was created by Satoshi Nakamoto. He was commonly thought to be a pseudonym for a person or people, whose exact identity is still unclear.

Ethereum

Ethereum, a blockchain platform created in 2015, has its own digital currency called Ether (ETH), also known as Ethereum. After Bitcoin, it is the most widely used cryptocurrency.

Ripple

It is a distributed ledger system created back in 2012, some years after Bitcoin. Ripple is a tool that can be used to track cryptocurrency transactions along with other types of transactions. The organization that created it has collaborated with numerous financial organizations and banks.

Litecoin

Despite moving more quickly to develop new ideas, such as speedier payments and processes to allow more transactions, Litecoin is most comparable to bitcoin.

Is Cryptocurrency Legal in UAE?

Cryptocurrencies are not accepted as legal money or authorized by the Central Bank of the UAE-The financial institution that is accountable for the UAE’s financial and monetary stability and consumer protection. Crypto assets, however, are not prohibited and can be traded on platforms from various crypto exchanges running in Dubai, UAE. Residents of the UAE are permitted to keep, deposit, and trade cryptocurrencies.

Role of VARA and VAL for Cryptocurrency Trading in Dubai, UAE

On February 28, 2022, Dubai passed the Virtual Assets Regulation Law (VAL), the country’s first crypto law. To oversee the regional cryptocurrency industry, Dubai also established the Virtual Assets Regulatory Authority (VARA), an independent regulatory organization. Dubai’s crypto law becomes operative on March 11, 2022. 

Sheikh Mohammed Bin Rashid, the ruler of Dubai, made the announcement and stated that the adoption of these rules will solidify the position of the Emirates in the industry. 

The two primary targets of the Virtual Assets Regulation Law Dubai are as follows:

• Regulation of cryptocurrencies in Dubai, UAE
• Protection of investors

However, the Dubai International Financial Center financial-free zone is not governed by the VAL. The Dubai Financial Services Authority is in charge of this area. It already has its own rules for the market for virtual assets. In addition to that, the UAE’s securities regulator, the Securities and Commodities Authority (SCA ), has said that it will shortly introduce its own regulatory framework. VARA and Dubai World Trade Centre Authority (DWTCA) will soon be linked together. 

The following are the responsibilities of the Virtual Assets Regulatory Authority:

• Making sure that the investors’ data is protected
• Regulating the sale of virtual tokens and asset
• Authorizing and regulating virtual asset providers

Best Crypto Exchanges in the UAE

1. eToro

The top cryptocurrency exchange in the UAE in regard to all aspects is eToro. Since its 2007 debut, over 27 million people have utilized it for crypto trading. It is home to more than 70 popular cryptocurrencies, such as Bitcoin, Decentraland, Ethereum, Zcash, Shiba Inu, and AAVE.

The crypto exchange and the trading platform support these coins for various purposes. PayPal, bank transfers, NETELLER, SEPA, and other methods are quick ways to make deposits for coins. Additionally, it provides copy trading and tons of other special features.

Best Things About It

• Extremely low fees
• Multiple cryptocurrencies to trade
• The minimum deposit is no more than 50 dollars
• Purchase cryptos such as Bitcoin with low fees
• Many top-tier entities regulate it
• User-friendly cryptocurrency trading app
• Accepts PayPal deposits and debit/credit cards

2. ByBit

ByBit is a cryptocurrency derivatives exchange that was founded in 2018 and offers users 100:1 leverage on a variety of trading pairs, including XRP/USD, BTC/USDT, and BTC/USD.

Users of ByBit can earn high APYs with the help of a variety of passive income options, such as:

• DeFi mining
• Crypto staking
• Dual asset farming
• Liquidity mining

It is a compelling option for mobile crypto traders at all levels because of its user-friendly mobile app, accessibility to a variety of order types (complex order types, limit, market, and, stop loss), and quick trade execution (100,000 transactions/second).

Best Things About It

• Top 3 highest derivatives trading volume
• USDT and Coin settled contracts
• Lower risk of liquidations and price manipulation
• Awesome Bonuses

3. BitOasis

BitOasis is based in the UAE. It is a fine crypto exchange with AED-based pairs. It specializes in providing Middle Eastern customers with cryptocurrency exchange services. Over 40 famous cryptocurrencies, including metaverse tokens, Bitcoin, DeFi coins, Ethereum, and others, are supported by the platform.

The BitOasis Core platform will suit your skill set if you are a fresh person in this field. Simply select the cryptocurrency you wish to purchase, enter your stake, and confirm your order. As an alternative, seasoned traders will favor the amazing features and comprehensive tools available in the BitOasis Pro platform.

Best Things About It

• Top-rated UAE crypto exchange
• More than 40 pairs supported
• Supports AED trading pairs
• UAE-Based platform

4. Alvexo

The Cyprus Securities and Exchange Commission (CySEC) has licensed Alvexo. For its investors, Alvexo provides a commission-free trading platform. One of the various investment opportunities existing here is cryptocurrency. Every type of trading activity is available to you, including CFDs, Forex, indices, commodities, stocks, and bonds. Alvexo offers its investors a huge variety of services, such as seminars, instructional resources, webinars, economic news updates, and trade courses.

Alvexo holds numerous annual events, has a robust research department with a huge number of training resources and provides its clients with the top MetaTrader 4 trading platform along with its in-house WebTrade. Since Alvexo seeks to achieve long-term customer satisfaction through FX and CFD trading, education is another standout element of this platform. On the downside, copy trading tools and social trading features are absent from Alvexo online trading. 

Best Things About It

• Seychelles FSA and Cyprus CySEC regulate it
• A lot of educational resources for advanced traders and beginners
• Competitive spreads and tiered account options
• A huge variety of financial instruments and markets
• Ease of trading strategies, trading signals, and daily market analysis

5. Crypto.com

Crypto.com offers a complete cryptocurrency ecosystem besides a simple cryptocurrency exchange. Everything is available on this crypto platform, including interest-bearing accounts, crypto debit cards, and an NFT marketplace for cryptocurrency. Crypto.com also allows you to instantaneously purchase virtual currencies such as Dogecoin using credit or debit cards. Its application is very much user-friendly.

You must first create an account and download the Crypto.com application in order to buy digital currencies. Your chosen digital tokens will be added to your portfolio after you pay a credit/debit card fee of 2.99%. This makes crypto.com an affordable platform to purchase cryptocurrencies in the Emirates. You can also use a regular bank wire to deposit money for this purpose.

Best Things About It

• Huge selection of crypto assets
• User-friendly application
• If you fund your account with cash transfers, fees become low.

6. Rain

Rain is a Bahrain-based cryptocurrency exchange that provides services to several Middle Eastern countries. The U.S. dollar is one of the fiat currencies supported by Rain.

If you’re looking for a cryptocurrency exchange created keeping the requirements of Middle Eastern customers in mind, Rain is the best option for you. Its extensive exchange offers and reliable reputation make it worthwhile to take into account for a top-rated crypto exchange option.

Early in 2019, Rain launched its operations following the completion of a $2.5 million seed funding round and the acquisition of a Crypto-Asset Module license from the CBB (Central Bank of Bahrain).

BitMEX Ventures and Blockwater, a cryptocurrency fund with its headquarters in Kuwait, jointly led this round of fundraising.  500 Startups MENA, Vision Ventures, and Taibah Valley were among the additional participants.

Best Things About It

• 24/7 customer support
• It allows you to purchase bitcoin in the Middle East with ease
• Licensed and regulated by the CBB (Central Bank of Bahrain)
• Bahrain-based Middle East Exchange
• Shari’a Compliant
• Less fees

How To Buy Cryptocurrency in UAE?

Follow the steps mentioned below to buy cryptocurrency in UAE:

1. Open a Trading Account

First, you have to create a trading account by signing up with a cryptocurrency exchange or broker. The leading cryptocurrency brokers in the UAE include eToro, Crypto.com, Alvexo, and Rain. Additionally, you can create a trading account with exchanges for cryptocurrencies like Kraken, Coinbase, etc.

2. Deposit Money

Depositing funds into your trading account comes next after the account has been validated. Credit cards, direct bank transfers, debit cards, and virtual cards are all options you can opt for to do so.

3. Buy Cryptocurrency

It can take three days or so for the money you deposited into the account to show up. You are now prepared to acquire cryptocurrencies once the process of buying the crypto is finished. Depending on what the exchange or broker is offering and what your needs are, you are eligible to purchase cryptocurrencies. Either a full coin or a piece of a coin can be purchased.

4. Store Cryptocurrency

After you have bought the cryptocurrency, the next thing you need to do is to store it securely to prevent loss and theft. You can ensure the security of your cryptocurrency purchase by keeping it in an electronic wallet with a private key, which can either be web-based or hardware-based.

Tips for Beginners to Invest in Cryptocurrency in a Safe Way

Risk is associated with all investments but according to some experts, cryptocurrency is one of the riskier investing options available today. These things might assist you in making an informed decision if you intend to invest in any cryptocurrency.

Diversification is Key

When developing a sound investment strategy, diversification is crucial, and investing in cryptocurrencies without diversifying investments is no exception. Don’t invest all of your funds in a single coin, Bitcoin for instance, just because you are familiar with the name. There are countless choices out there in the crypto world. Thus it’s best to diversify your investments among multiple cryptocurrencies.

Learn Methods to Store Digital Currency

You must store cryptocurrency if you purchase it. Learning the methods to store digital currency is crucial. You can save it in a digital wallet or on an exchange. Wallets are available in many types, and each has security standards, advantages, and technical needs that must be met. You should research your options before investing in a currency, just like with crypto exchanges.

Conduct Research

Learn about available cryptocurrency exchanges before making an investment. There are possibilities to be more than 500 exchanges available. Before making a decision, do your homework, study reviews, and consult with more experienced investors to enrich yourself with a lot of information.

Be Ready for Volatility

Due to the high level of volatility in the cryptocurrency market, you should be ready for ups and downs. There will be substantial changes in price. Cryptocurrency might not be the best option for you if your investment portfolio or mental health can’t bear that.

In the present times, cryptocurrency is all the rage. However, keep in mind that cryptocurrency is regarded as highly speculative and is still in its relative infancy. Be ready for challenges as they come with investing in anything new. Do your homework and start investing carefully if you intend to take part in the crypto market.

Using a comprehensive antivirus that protects you from spyware, malware infections, and data theft as well as protects your online transactions with bank-grade encryption is one of the best ways to be safe online in the crypto world.

Obtaining a Crypto License in Dubai

In the UAE, the steps for obtaining a crypto license are essentially the same. Here is how to get a license to trade cryptocurrencies in Dubai, UAE:

1. Get the registration form from your free zone authority.
2. Complete the registration form and send it along with your company’s legal paperwork and any other necessary documentation such as photographs, details of the shareholders, passports, etc.
3. Select a location that is appropriate for your company and create a rental agreement.
4. Pay the premises rent and the fees for crypto trading licenses.
5. Your license will be issued once all of these procedures have been finished. It takes almost one week to do all the steps.
6. Now, you can open a bank account in the UAE and apply for a residency visa.

Get Your Crypto Trading License in Dubai with RIZ & MONA

Cryptocurrency trading in Dubai, UAE is quite an easy thing to do. But it does require some research and study before jumping into it. You also need to get a crypto trading license in Dubai. You can consult experienced business consultants in Dubai, UAE like RIZ & MONA to obtain a crypto trading license. Contact us now and we will handle your process to make sure you get your license in no time.