Buying Bitcoin in Dubai is fairly simple these days. You have 3 options to choose from which are listed below. Make sure you know and understand the differences as each option has it own pros and cons and security risks.
Bitcoin Exchanges in Dubai
Probably the most well know Bitcoin Exchange in Dubai is BitOasis. Exchanges typically charge you 3 separate fees: 1) deposit fee, 2) exchange fee, AND 3) a hidden margin on the buy/sell price which is already built into the price you see on the platform. Now these added together can tally up to a significant percentage of the total trade. On a 1000 USD trade the fee can be up to 10% hence it makes sense to invest a bigger amount rather than spread it out and deposit smaller ones. Also if you buy with your credit card the fees can be even higher. So please bear these in mind before you invest.
Exchanges come with exchange wallets where you receive your coins. It is super important you send out your coins from your exchange wallet to you own wallet. Exchanges get hacked all the time so best you secure yourself after each trade immediately. Read more about wallets here.
There are more exchanges coming to the Middle East luckily as regulation is making this type of investments safer for consumers.
Bitcoin Brokerages in Dubai
Bitcoin brokerage is a similar setup to an exchange but a lot simpler and there are no hidden fees. There is no dedicated Dubai bitcoin brokerage just yet. As an example for a good and simple brokerage just look at CoinCash, a European licensed broker service. No confusing charts, and long waiting time for on-boarding, you just place an order with them and they deliver the coins to your own digital wallet. These brokerages typically charge around 3% of the total trade.
Bitcoin OTC trading
OTC stands for Over The Counter trading. There are two types within this setup 1) professional OTC and 2) private OTC.
- Professional OTC companies typically deal with larger orders, ie over $100k per trade. These services usually offer the best rates (around 1-2%) because you buy in large volumes. As of now there’s no professional OTC Bitcoin Trader in Dubai.
- Private OTC traders are amateur individuals who buy and sell bitcoin on their own and put a small percentage on top of the trade. You usually setup a meeting online, meet the trader in a cafe or wherever you agree and then conclude the trade. This is usually happens real time you give them the cash and they transfer you the coins. Go to LocalBitcoins to learn more.