A Beginner’s Guide to Getting Started on Crypto in the UAE
Everything you wanted to know about crypto, but were too distracted to ask…
Chances are some of you have included “buying crypto” on your 2022 vision board, but literally have no idea how to go about it. Maybe you’ve found yourself awake at 3 a.m. staring at the ceiling, plagued by the thought that you’re missing the plunge without really knowing, or caring enough to Google, what “the plunge” actually is. “.
You’re not alone. According to a survey conducted by Triple A in 2021, less than two percent of people in the UAE own crypto, half the global average. And while that number is growing, it also means you haven’t missed the early adopter boat. In fact, he’s still at the virtual dock, furiously blasting the foghorn, with plenty of room in the cabin and a sizable berth on the poo-coin deck.
Isn’t it super complicated?
Well, a little, but not necessarily. One of the biggest perceptual barriers to engagement is that, at first glance, it can all seem a bit nebulous. We sympathize. Five minutes into any explanation of what “Blockchain” is – and we’re ready to start turning the tables. Sure, it’s good to master the basic terminology, but being able to hold a TEDTalk on the nuances of peer-to-peer records is absolutely not a prerequisite for a basic, foot-in-the-door investment.
We promise that if you can reach the bottom of the page without destroying the digital device you’re reading it on, you’ll be ready to take your first paddle into the crypto pool. And we’re definitely not getting into the subject of NFTs here, dear reader, that’s a story for another day.
To do almost anything in the crypto world, you will need a virtual wallet of some sort. This is where you will store your cryptocurrency. There are several different types of wallets (none of which are LV-branded, which we recognize is off-brand for Dubai) available to you, but for those just starting out, it’s worth noting that most crypto exchanges offer wallets as part of their trading platform. .
These exchanges are places where you can trade real-world currency (Fiat) for cryptocurrency or, once you’ve accumulated those stacks of e-cheddar, trade one type of cryptocurrency for another. These trading platforms are live and offer up-to-date prices for each coin (with their current value displayed against a range of fiat currencies (like USD or AED for example).
The cryptocurrency at the top is Bitcoin (BTC), all other coins, including ripping stock Ethereum (ETH), are known as “altcoins”. These digital drip tokens (altcoins) are the wild west of cryptocurrency, fortunes are made and lost here through activities like short selling and speculative hedging, but (with the exception of Ethereum ) unless you’ve really done your research, we recommend newbies head clear of dropping any serious money on them.
Do not initially aim to take trips “to the moon”. With the inevitable arrival of the Metaverse, it is enough to own “a few” cryptos.
Opening your account
So, orientation complete, you are now ready to offer yourself some crypto. The easiest way we have found so far, for those based in the UAE, is with CoinMENA. It is a Middle East-based company that is fully licensed by the Central Bank of Bahrain and recently signed an agreement with DWTC to establish a crypto hub in Dubai. It’s available on most smart devices through a handy app that lets you transfer money in AED directly from your bank account and exchange it (for a small transaction fee) for BTC or a small collection of coins. other altcoins (including ETH).
Account creation is not instantaneous. To help maintain the integrity of the crypto market, service operators must ensure that you are who you say you are, to protect against fraud, and to ensure there is an audit trail just in case. you are planning some kind of big crypto heist. . You will need to upload a few documents, including the first page of a bank statement, utility bill, and ID. Verification takes a few days at most, and then you’re free to start collecting coins like the Super Mario you’re clearly born for.
But remember that the golden rule of any speculative investment is to never bet more than you can afford to lose. Whether it’s 5 Dhs or 5 Bitcoins (currently around 136,068 Dhs). You won’t become the wolf of Al Khail Street overnight, crypto markets are volatile and there’s every chance you’ll take a beating in your investment journey. But if you’re willing to stick with it for the long HODL, it certainly doesn’t look like crypto is going to be a passing fad. Unlike Pokémon GO. RIP sweet prince.
To help you start your investing journey on the right and most informed footing, we spoke to an expert. Zeid Bataineh, CoinMENA’s Content Marketing Manager, was kind enough to share his top five newbie tips for investing in crypto.
- Use a regulated exchange (like CurrencyMENA): This is very important because with a regulated exchange, you can deposit in your local currency and withdraw your money to your local bank account at any time. With license-free international exchanges, you can only deposit your money, but not withdraw!
- Start small: Only invest what you can afford. Start with a small allowance to get “skin in the game” and start paying attention and learning. The best way to learn something is to participate!
- Think long term: The best investors in the world think in years, not days or months. Warren Buffet once said,Don’t take annual results too seriously. Instead, focus on four- or five-year averages.
- Do your homework: There are established cryptocurrencies like Bitcoin and Ethereum, and there are “meme coins” like Doge and Shiba. They are not the same. While you’re at it, Google what “dollar cost average” means.
- Be patient, not greedy: “Rome Wasn’t Built in a Day” Cryptocurrency gains can be exciting, but volatility works both ways.
In the best interest of you, the consumer, we are compelled to tell you that there are other regional exchanges you can get involved in, all we can do is give you feedback on what has worked for we. CoinMENA has been easy to use, as secure as crypto trading can be, and the best way we’ve found to open an account for the impending world of the Metaverse. Whether you are ready or not, it happens…