Search TradingPlatforms
Home » bitcoin » bitcoin trading

There are many different ways to make money through Bitcoin. You can mine it, invest in it, but if you want to learn how to trade Bitcoin for beginners, then there are a few things you’ll need to know.

Luckily, you have plenty of options in understanding how to trade Bitcoin in UAE. In this guide, we’ll show how to trade Bitcoin without fees, how to trade Bitcoin with leverage, and more.

Contents

How to Trade Bitcoin in UAE – Step by Step Guide

If you aren’t familiar with opening a trading account yet, here’s a step-by-step guide on how to trade Bitcoin in UAE through our recommended trading platform, eToro.

Step 1: Open an Account with eToro

how to trade bitcoin

67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Here is how to trade with Bitcoin on eToro. First, go to the eToro site and create an account. All you need is to fill in an email and password. If you have an existing Facebook, Google, or Apple account, you may use this to connect for the registration as well.

Step 2: Upload ID

how to trade bitcoin in uae

The next step is to upload a valid ID in order to verify your account. As you continue on the registration process, the platform will prompt you to upload an ID such as a driver’s license or passport, and should take some time to validate your submission.

Step 3: Deposit Funds

how to trade with bitcoin

With your account and IDs verified, you can start adding funds to your account. Etoro allows different methods for depositing such as wire transfers, bank cards (Visa and MasterCard), and other e-wallet methods like PayPal. The minimum deposit requirement is US$50.

Step 4: Trade Bitcoin

how to trade in bitcoin in uae

With your account now funded, here’s how to trade Bitcoin in UAE. On the eToro dashboard, search for BTC or Bitcoin. Click on the Trade Now button to open an overview of Bitcoin and proceed to buy the underlying asset.

67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

What is Bitcoin?

Founded in 2008 and launched in the succeeding year, Bitcoin is the largest cryptocurrency today in terms of market cap US$830 billion at the time of writing. Just last year, Bitcoin peaked at a 1 trillion USD market cap.

Bitcoin was designed to be a store of value and a better version of digital currency. IT allowed people to send currency anywhere around the world without the need for centralized power. 

Unlike the current fiat systems that we have in place today which run on the government and central banks, Bitcoin is decentralized and has a max supply of 21 million coins. This gives Bitcoin some unique properties like being deflationary and hard to hack. 

learn how to trade bitcoin for beginners

Another important thing to understand about Bitcoin is that it uses what’s known as a proof-of-work (PoW) method to validate transactions in the blockchain. Anyone with the right hardware can become a validator of Bitcoin and essentially mine it. How this works is by using computing power to solve the algorithmic hash functions of each block.

As of 2022, there are hundreds of exchanges and platforms that can show you how to trade Bitcoin USD and show you how to trade Bitcoin in UAE. There are also many companies and platforms that have accepted payments via Bitcoin and let you convert Bitcoin when you know how to trade Bitcoin into cash.

Other Types of Bitcoin Assets

If you want to trade and invest in Bitcoin other than actually buying and selling the coin, then there are other types of Bitcoin assets that you can look into.

Bitcoin ETFs

An exchange-traded fund (ETF) is an aggregate of securities that are usually hundreds or thousands of stocks or bonds and managed by financial experts. If you’re wondering how to trade Bitcoin futures or how to trade with Bitcoin ETFs, then we have some useful information for you.

The ProShares Bitcoin Strategy ETF (BITO) is the first U.S. bitcoin-linked ETF and offers investors exposure to Bitcoin returns through a convenient, liquid, and transparent manner. Through bitcoin futures contracts, BITO aims to provide capital growth and appreciation. It also became the fastest ETF to reach $1 billion dollars in assets under management, having launched in October 2021.

Bitcoin Funds

how to trade bitcoin futures binance

Being concerned with knowing how to trade bitcoin without fees or how to trade Bitcoin in UAE without actually investing in the coin might lead you to find Bitcoin funds. Bitcoin ETFs are considered Bitcoin funds as well and the Grayscale Bitcoin Trust (GBTC) was one of the best fund options before BITO.

Bitcoin CFDs

If you’ve used an all-in-one trading platform that offers contract for difference (CFD) trading, then chances are you’ve come across crypto CFDs. Even if you don’t yet know how to trade Bitcoin with leverage, Bitcoin derivatives are a great way to make high returns with minimum capital.

Although not recommended in guides on how to trade Bitcoin cryptocurrency for beginners because of the high amount of risk involved, Bitcoin CFDs remain another option to earn from the crypto.

Bitcoin Futures

Similar to Bitcoin CFDs where the investor does not have to hold the underlying crypto asset itself, Bitcoin futures are similar to a futures contract for stocks and commodities. Essentially, Bitcoin futures allow traders to speculate on the future price of Bitcoin. Be aware though that futures trading are usually riskier investments as well.

Advantages of Trading Bitcoin

how to trade your bitcoin

As a completely different type of asset than stocks, commodities, or bonds, cryptocurrencies have certain advantages that make them attractive to many types of traders. For Bitcoin, in particular, knowing the advantages of trading is important for those who want to learn how to trade Bitcoin for beginners.

24/7 Trading

Much like the foreign exchange market, the cryptocurrencies market runs twenty-four hours a day. This means that there is no market close or market open and anyone can trade at any given time.

If you’re an NYSE or NASDAQ stock trader living in the UAE, then you’re normally restricted to trading in the evening until later in the night as those stock exchanges operate in that time frame. If you’re a Bitcoin trader, however, you can trade Bitcoin anytime.

High Volume and Liquidity

The daily traded volume of Bitcoin is in the tens of billions of USD, meaning there’s plenty of potential to earn every day. With average price swings above 3%, the crypto asset is also highly volatile which is one short-term traders often look for.

For those who know how to trade with bitcoin, this is good news as they can take advantage of price swings and the liquidity available. Bitcoin has the highest liquidity among cryptocurrencies and is day-traded by hundreds of thousands of investors and bots.

Secure and Lower Costs

An important thing to know when you learn how to trade Bitcoin for beginners is that the Bitcoin blockchain is decentralized and is designed to keep users anonymous. For those who know how to trade Bitcoin in UAE, this absence of government taxes and fees makes trading crypto relatively cheap.

Risks of Buying Bitcoin

When you learn how to trade Bitcoin for beginners, it’s important to figure out how to trade your Bitcoin safely. For this, you’ll need to know some of the risks involved when buying bitcoin.

Crypto Volatility

how to trade bitcoin into cash

The volatility of any asset is really a double-edged sword for investors.  Bitcoin, along with the rest of the cryptocurrencies, is known as highly volatile assets. This means that at any given time the prices of these digital assets can shoot up quickly and fall down just as fast. 

Generally speaking, volatility is riskier due to the range that the price moves. It should be noted by those looking to learn how to trade Bitcoin futures Binance and how to trade Bitcoin with leverage.

Margin Calls for CFD Trades

Bitcoin derivatives which include leveraged CFDs and futures are really high-risk high reward. This is because accounts that have these types of bitcoin trades can get margin calls. This happens when the price of the asset being traded hits a certain limit.

When this happens, either the funds used to invest in the position have to be liquidated or the investor needs to add more capital to keep the position alive.

Cyber and Bitcoin Wallet Security

Another thing to know about Bitcoin is that transactions happen from one Bitcoin wallet to another. Wallet addresses, letters, and numbers are used in Bitcoin transactions.

Make sure to keep your wallet private keys secure and not share them to others. News of crypto wallets being hacked or people getting scammed is usually due to security measures that could have been better managed. There have also been hacks of Bitcoin wallets in the past, so that is another risk to take note of when you learn how to trade Bitcoin for beginners.

67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Can You Trade Bitcoin in UAE?

There is currently no regulatory framework that prohibits buying and selling of bitcoin in the UAE. If you want to learn how to trade Ethereum for bitcoin or how to trade bitcoin without fees, you can use many crypto resources that are available for UAE residents.

Bitcoin Trading Strategies in UAE

Support and Resistance

One of the most widely known trading techniques not just for how to trade bitcoin in UAE but for other assets as well as support and resistance trading. Essentially, this requires you to look at the historical price chart of bitcoin via technical analysis. Afterward, you’ll need to determine some levels that historically show where price peaks and where the price levels.

how to trade ethereum for bitcoin

Note that the history of any asset’s price does not predict its future movement. Learn how to trade bitcoin for beginners and how to trade with bitcoin by understanding some strategies and analyses.

Trend Trading

There’s a saying in day trading that goes ‘the trend is your friend’. This line comes from the trading technique known as trend trading where investors look at increases in trading volume and price to try to predict the price movement of an asset.

For Bitcoin, trend trading can be useful especially combined with good fundamental data such as news.

Investing and Copy Trading

There may come a point after you’ve learned how to trade Bitcoin in UAE and have done a couple of short-term trading wherein you’ll think about just holding the asset for longer. Investing in Bitcoin is a legitimate way to earn if your strategy calls for different risk management.

You may also opt to look for a copy trader on a platform such as eToro. Leaving the trading to those who trade professionally or perhaps a trading bot can be viable.

Best Platforms to Trade Bitcoin in UAE?

1. eToro – Overall Best Cryptocurrency Trading Platform in the UAE

how to trade bitcoin usd

Our overall best Bitcoin and cryptocurrency trading platform is eToro, an all-in-one platform that offers trading of multiple assets with zero commissions. One of their features is demo trading which is a great way to learn how to trade Bitcoin for beginners.

Note that with eToro, there are no commissions and only a spread of 0.75% is the cost to be looked at for Bitcoin. In terms of security, the platform is licensed by top regulators such as the UK’s FCA, ASIC, and the CySEC. 

eToro fees

Fee Amount
Commodities trading fee Spread, starting from 2 pips
Forex trading fee Spread, 2.1 pips for GBP/USD
Crypto trading fee Spread, 0.75% for Bitcoin
Inactivity fee US$10 a month after one year
Withdrawal fee US$5 for Gold tier members and below. Free for Platinum tier and above.

Pros:

  • Spread-only investing in cryptocurrencies
  • 0% commission on all its financial instruments
  • Trade stocks, crypto, forex, ETFs, commodities, and indices
  • The minimum deposit at just US$50
  • Offers card payments, eWallets, and local bank transfers
  • Regulated by the FCA, CySEC, and ASIC
  • Beginner-friendly platform
  • Copy-trading and social trading tools
  • Mobile app available

Cons:

  • No support for MT4 and MT5
  • Lacks some advanced tools

67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

 2. Alvexo - Best Crypto UAE Exchange Without Commissions

how to trade bitcoin cryptocurrency for beginnersAre you looking to trade Bitcoin CFDs? Alvexo is another platform without commissions that offers crypto CFD trading. This may work to some traders’ advantage as they will not need to hold the underlying crypto asset. Launched in 2017, Alvexo is well regulated and offers 450 other trading instruments as well.

Learn and better understand how to trade Bitcoin without fees and how to trade with Bitcoin thanks to Alvexo’s trading academy. They have numerous educational materials to help you learn how to trade bitcoin for beginners as well.

Alvexo fees:

Fee Amount
Stock trading fee Variable Spreads
Forex trading fee Variable spreads. 3.3% for EUR/USD on its Classic account
Crypto trading fee Commission
Inactivity fee US$10 per month after three months
Withdrawal fee Free

Pros:

  • Trade stocks, crypto, forex, indices, and commodities CFDs
  • FSA regulated
  • Zero commission trading
  • MT4 and WebTrader integrations
  • Trading academy with live webinars and seminars
  • Multiple advanced trading tools are available
  • Updated with market news and economic events

Cons:

  • Missing several other financial instruments
  • High US$500 minimum deposit

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

3. Crypto.com - Fast and Secure Cryptocurrency Exchange

how to trade bitcoin without feesAnother place to find leveraged bitcoin positions is Crypto.com, one of the fastest and most secure crypto exchanges in the industry. With over 250 tradable cryptocurrencies and stablecoins featured, it also offers many different coins that rival other larger exchanges.

Crypto.com lets you take on leveraged positions through perpetual and futures contracts that go as high as 1:100 in margin. The minimum investment per transaction for Crypto.com is US$1.

Crypto.com fees

Fee Amount
Crypto trading fee 0.04% maker and taker fees
Inactivity fee Free
Withdrawal fee According to the currency withdrawn. 0.0004 for BTC

Pros:

  • Supports over 250 cryptocurrencies and stablecoins
  • 14% annual returns on staking stablecoin on the platform
  • Spend with the Crypto.com Visa Card and get up to 8% back
  • NFT marketplace available
  • Multiple DeFi integrations on the site
  • Fees that are competitive, transparent, and offer discounts
  • Support a cryptocurrency ecosystem

Cons:

  • Higher fees unless you use CRO
  • Difficult to navigate trading fee discounts

Your capital is at risk.

4. Binance - Best Crypto Exchange in Dubai for New Coins

how much money do you need to trade bitcoinNot only will you find and trade Bitcoin on Binance, but you’ll also find some of the newest coins in the crypto exchange. Other crypto investing products are available on Binance such as staking, rewards, and a non-fungible token (NFT) marketplace.

Want to know how to trade bitcoin Binance? The platform not only has a great help center to get you started, but it also has video explanations on how to use their trading site.

Binance fees

Fee Amount
Crypto trading fee Commission, starting from 0.1%
Inactivity fee Free
Withdrawal fee 7.5 AED

Pros:

  • Hundreds of billions in trading volume per day
  • Highly liquid markets as a central exchange
  • Provides support for hundreds of cryptocurrency pairs
  • Bank cards available for deposit options at almost instant speeds
  • Commissions start at just 0.1% per slide
  • Earn 25% discount when using Binance Coin (BNB) for fees
  • Earn from cryptocurrency holdings - based on the Binance Earn review
  • Provides cryptocurrency savings accounts

Cons:

  • Not FCA regulated
  • Not a decentralized exchange

Cryptoassets are speculative and carry high volatility levels. Always consider the risks involved. 

5. Kraken - One of the Most Established Crypto Exchanges

how to trade bitcoin futures

Kraken is one of the most established crypto exchanges after having launched just a few years after bitcoin in 2013. With over 50 cryptocurrencies offered on the platform, there are plenty of options to diversify as well.

That Kraken mobile app is available for iOS and Android and has two different installable applications depending on the use case. You can create an account with the Kraken crypto platform in just minutes with a minimum deposit requirement of US$10.

Kraken fees

Fee Amount
Crypto trading fee 0.9% fee for USD to any stablecoins,

1.5% fee for any other crypto pair

Inactivity fee Free
Withdrawal fee Flat fee depending on the coin; 0.00002 BTC for Bitcoin

Pros:

  • Advanced Kraken Pro for more technical tools
  • 95% of all deposits are kept in highly secure offline cold storage
  • Two-factor authentication available
  • Account information encrypted at rest at both the system and data level
  • Over 50 cryptocurrencies available at competitive fees
  • Low minimum deposit required at just $US10
  • Up to 5x leveraged crypto trading for select countries
  • 24/7 support

Cons:

  • AED not available as a funding currency
  • Limited customer support available

67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

How to Trade Bitcoin UAE - Fee Comparison

Here is a table of the fees from the best crypto exchanges that you can check out when looking into how to trade bitcoin in UAE.

  eToro Alvexo Crypto.com Binance Kraken
Crypto Trading Fee Spread, 0.75% for Bitcoin Commission 0.04% maker and taker fees Commission, starting from 0.1% 0.9% fee for USD to any stablecoins,

1.5% fee for any other crypto pair

Inactivity Fee $10 a month after one year US$10 per month after three months Free Free Free
Withdrawal Fee $5 for Gold tier members and below. Free for Platinum tier and above. Free According to the currency withdrawn. 0.0004 for BTC 7.5AED Flat fee depending on the coin; 0.00002 BTC for Bitcoin

Conclusion

In the end, it may take some time to learn how to trade bitcoin for beginners and eventually fully understand how to trade bitcoin in UAE. To get started in your bitcoin trading journey, we recommend using eToro as it’s an easy-to-use interface and zero commissions will benefit any trader.

If you want to start trading Bitcoin with 0% commission, click on the link below and start investing in bitcoin with eToro!

eToro – Best Platform to Trade Bitcoin With 0% Commission in UAE

how to trade bitcoin binance

67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

FAQs

What are the best Bitcoin trading platforms in UAE?

The best Bitcoin trading platforms let you trade with ease and make sure the entire experience is smooth. Some of the best Bitcoin trading platforms are eToro, Binance, Kraken, Alvexo, and Crypto.com.

Can I trade Bitcoin ETFs in UAE?

Yes, you can! For example, you can trade BITO, a U.S. bitcoin-linked ETF offering investors an opportunity to gain exposure to bitcoin returns in a convenient, liquid and transparent way.

How to learn to invest in Bitcoin?

There are many ways to learn how to invest in Bitcoin and some crypto trading platforms like eToro have beginner-friendly guides to get started. Other platforms even offer free trading courses and other educational resources and seminars.

Is Bitcoin a Buy?

Whether or not you should buy Bitcoin should be entirely up to you. Based on the information that we can provide, Bitcoin is a deflationary, established, and secure asset that millions have invested in.

Is Bitcoin trading illegal in UAE?

Presently, no regulations on crypto assets are expressly mentioned on legal frameworks for the UAE. This means buying and selling Bitcoin is legal in UAE.

How much money do you need to trade Bitcoin in eToro?

You don’t need much to start trading Bitcoin in eToro. If you have an account, the minimum amount you need to spend to open a Bitcoin position is US$10. If you don’t have an account yet, you just need to deposit US$50 to start trading.

aquinoapa@gmail.com'
About Jose Rafael Aquino
About Jose Rafael Aquino

Jose Rafael Aquino is a Filipino writer and entrepreneur that specializes in finance, technology, cryptocurrency, and sports. Versed in the startup tech space, he has written for websites such as The GUIDON, StockApps, and BuyShares.