Do you want to start investing in cryptocurrencies and living in the UAE? For beginners or those who are interested to invest in cryptocurrency the process of purchasing can be complex. Don’t worry! This practical guide will provide you with all the information you need know on how to buy cryptocurrency in the UAE safely. Starting from selecting an appropriate exchange to comprehending various regulations and buying your first coin, it is an ever-evolving and effective guide from Coincashy to smoothly enter the world of cryptocurrencies.
Understanding Cryptocurrency
Cryptocurrencies are also termed virtual or digital currencies that use cryptography, which makes them secure and function within a decentralized system called the blockchain. These include Bitcoin (BTC), Ethereum (ETH), Tether (USDT), and a host of others. These digital assets are also attracting this demographic because of the relatively low transaction costs as compared with banking and the potential for greater transactional transparency.
People are turning towards cryptocurrencies as a way of diversifying their investment portfolios and as part of the new generation of a decentralized global economy. Therefore, in order to comprehend the intricacies of cryptocurrencies, as well as their advantages in the context of modern financial realities, it is crucial to begin with the given basics.
Why purchase Cryptocurrency in the UAE?
The UAE currently has a progressive outlook on blockchain technology and cryptocurrency and this has made it an attractive destination for crypto lovers. UAE is the most friendly country to cryptocurrencies. The regulator has said that it is ready to engage with crypto-related companies that are based in the DIFC. Besides that, the members of the sector can use the numerous conferences related to cryptocurrencies occurring in Dubai and Abu Dhabi.
The market associated with cryptocurrencies has been rapidly growing in the last few years. This of course implies that the investor has to pay more taxes. However, the UAE gives you an opportunity to avoid taxes that are laid by Western countries. When you relocate to Dubai, the government sees to it that you are relieved of the payment of taxes completely. This exemption concerns any form of dealing with cryptocurrency – buying/selling, high-frequency or algorithm trading, mining or trading Non-Fungible Tokens, etc
Most countries are required to declare the profits using the FIFO (First in, First out) or LIFO (Last in First out) method or using the IFRS-IRS accounting standards. But if you are using these digital currencies in a personal manner to carry out transactions within the UAE, you will not need to go through the cumbersome and expensive calculations. However, the authenticity of the coins and their source must be established when cashing out.
Steps how to buy cryptocurrency in the UAE
Conducting Thorough Research
Hence, the question arises whether it may be important to do research before getting involved in trading. It is advised to begin by grasping the basic concepts of other cryptocurrencies, such as Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP).
To do this, one needs to have a basic understanding of their features, usage scenarios, and the technical aspects of the technology. Continuously monitor activities in the crypto market, such as newswires, trends, and rules and regulations governing the industry. It will also enable you learn the areas to invest on based on the knowledge provided here.
Developing a Trading Strategy
In this regard, it is important to have a good plan of trading in the crypto market to make the right decision. It is important to assess one’s objectives, ability to handle risks and time horizon before investing. Decide on the amount of money that you are willing to invest and then sort the various digital currencies based on this amount.
This is because the longer the chart time frame the higher the price movement, so set entry and exit strategies alongside take profit and stop loss levels. By employing indicators such as candlestick charts, moving averages, and trendlines, it becomes easier to spot patterns and trends, which are beneficial for trading.
Managing Risk
Trading in cryptocurrencies has its risks that come with it, and those risks need to be addressed and managed. It is always wise to use money that you can afford to lose since crypto currencies are volatile. Invest in different types of cryptos because this measure will lower the risk of your investment.
Stop-loss orders can also be used as another effective tool for managing risks. These orders help you set key prices for buying and selling your assets, and if they hit that price, the orders will trigger the sale of your assets, thus preventing you from incurring huge losses.
Choose a Reliable Exchange
In order to start purchasing cryptocurrencies, an individual must identify a registered and legitimate exchange. Coincashy is a top Bitcoin exchange located in Dubai to trades in different types of coins that are safe and easy to use.
- After you have visited the website you want to bet on, you must make a deposit. Payments can be made through bank transfer or in cash to the physical Coincashy office in Dubai, UAE.
- Ensure you provide necessary identification documents for a smooth and secure transaction.
- Select currency. Their choice of cryptocurrencies is vast, and it comprises Bitcoin, Ethereum, Tether, and many others. Choose the cryptocurrency you would like to buy based on the investment plan and level of risk that you are comfortable taking.
- Once you choose the favorable cryptocurrency of your choice, type in the amount of money you want to spend to buy the cryptocurrency and click on the buy cryptocurrency, this will take you to the contact information. Coincashy guarantees that your cryptocurrency will be received within your digital wallet as soon as the transaction is completed.
Benefits of Using Coincashy
Security and Reliability
Coincashy ensures the security of its users and provides them with reliable services. Being a well-established platform, it gives you confidence in making your transactions with the knowledge that your money is safe with Coincashy.
Wide Range of Cryptocurrencies
Coincashy offers a vast pool of different cryptocurrencies and alternatives to create a diverse portfolio of digital money. Whether you are going for the big boys like Bitcoin and Ethereum or are looking to venture into the altcoins, this platform has you sorted.
Competitive Fees
Coincashy provides some of the lowest fees among the industry, enabling traders to get better value when trading cryptocurrencies. This also goes a long way in ensuring that you get the best out of your investment .
Customer Support
Coincashy offers exemplary customer care for clients who may need assistance with their transactions or have any concerns. The support agents are available 24/7 which guarantees that you get the help you need at the right time.
The Fundamental Concept of OTC and P2P Trading
With regard to the purchase of cryptocurrency, it is significant to make a distinction between Over-the-Counter (OTC) and Peer-to-Peer (P2P).
OTC Trading
OTC trading refers to a process, where one party buys a financial instrument directly from another party without using an exchange. This is favored in large transactions since it is relatively more private and has a smaller impact on the market. Coincashy helps to find counterparts for OTC trades, so that both participants can securely deal.
Read More: What are Crypto OTC desks.
P2P Trading
Also known as C2C, P2P trading refers to a form of business that is done on the Internet whereby customers are put together to facilitate the exchange of goods. Although the ability to directly trade with other users may be more convenient, it has more risks because the company does not directly monitor the transaction and it is more likely for a scam to occur. Due to the inherent risks involved in trading cryptocurrency, Coincashy aims to engage in OTC trading to ensure there is less risk to the traders.
Cryptocurrency Regulations in the UAE
Cryptocurrency regulations in the UAE reflect a progressive stance towards digital assets:
- Legal Status: Cryptocurrency transactions are fully legal in the UAE, allowing residents in certain emirates to buy, hold, and invest in digital currencies without restrictions.
- Dubai’s Regulatory Approach: Dubai has been at the forefront of integrating blockchain and digital currencies. Recently, the city revised its regulations in 2022 to establish a structured legal framework. This includes defining legal categories for digital assets, implementing a licensing system, and imposing penalties for illegal activities. The Virtual Assets Regulatory Authority (VARA) was also established to oversee and regulate virtual currencies, NFTs, and related assets.
- Objectives: These regulatory efforts aim to enhance Dubai’s global competitiveness by positioning it as a leading hub for digital assets. They support the growth of digital currency businesses, ensure consumer protection, and combat illicit financial activities.
- Buying Cryptocurrency: Residents and visitors in the UAE can purchase cryptocurrencies through authorized exchanges like Coincashy. These platforms adhere to UAE regulations, providing a secure and compliant environment for cryptocurrency transactions.
Amidst the global debates about the proper regulation of cryptocurrencies, the UAE has taken the lead in actively regulating cryptocurrencies to encourage innovation while ensuring the safety of financial assets.
Final Thoughts
Investing in cryptocurrencies in the UAE is easy if one knows the right platforms to invest in, such as Coincashy. The complete services and OTC, low fees, and detailed customer support home make Coincashy perfect for new and experienced trading in the UAE.
As the cryptocurrency market continues to evolve, staying informed about regulatory changes and market trends is crucial. Whether you are looking to diversify your investment portfolio or explore new financial opportunities, buying cryptocurrency in the UAE offers a promising avenue for growth and innovation.