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Within just two years, we’ve seen the total market cap of crypto increase tenfold and literally trillions of US dollars pour in and out of the market. While these price movements may cause excitement for some, it’s important to really understand if it’s good to invest in cryptocurrency.

In this guide, we’ll show how to invest in crypto in UAE, give our opinion on what is the best crypto to invest in now, and figure out exactly how much should you invest in crypto nowadays

Contents

How to invest in cryptocurrencies in UAE?

If you want to go straight and start to invest in cryptocurrency, then we can give a step-by-step guide showing you how.

Step 1: Open an Account with eToro

how to invest in crypto

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 invest in crypto in UAE with eToro. First, head to the eToro website and click on the Start Investing button. Simply fill in an email and password to apply. If you have an existing Facebook, Google, or Apple account, you may link this to start the registration process as well.

Step 2: Upload ID

invest in crypto

Before you can deposit funds and start trading, you’ll need to verify your account by uploading a valid ID. The platform will prompt you to verify your account by uploading IDs such as a driver’s license or passport.

Step 3: Deposit Funds

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With eToro, there are multiple deposit options from wire transfer, bank cards like Visa and MasterCard, and other e-payment methods like PayPal. The minimum deposit requirement is US$50.

Step 4: Buy cryptos

how to invest in crypto in uae

After successfully funding your account, you can now invest in crypto in UAE! If you know what is the best crypto to invest in, you can search it through the overview dashboard of the eToro platform. Click on the Trade Now button to open an overview of crypto 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.

Why Invest in Cryptocurrencies?

With thousands of other available assets to trade, why invest in cryptocurrency? Though there are certain pros and cons with some of the best cryptos to invest in now, here are some of the reasons why many flocks to crypto assets.

Decentralization of cryptocurrencies gives you control over your assets

Our current system of money now is it cash or digital is overall controlled by central authorities. If you store money in a bank, for example, they can do whatever they want with the money. Usually, it’s investing or loaning it, but the point is that you don’t have full control of the money.

Because of how cryptocurrencies were designed, they are decentralized in nature. When you store your crypto in a crypto wallet, it is completely under your control so you can stake it, lend it, and trade with it.

Cryptos are mostly deflationary in nature

Many cryptocurrencies have a maximum supply of coins. This means that there exists a limited supply and therefore deflationary. Some cryptos are programmed to intentionally burn the supply of coins to increase their value. In any case, some may consider the deflationary properties of a token when learning how to invest in crypto in UAE.

Cryptos are transparent and secure

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Most mainstream cryptocurrencies like Bitcoin, Ethereum, and Litecoin have their transactions public on the network. Anyone can view transactions happening over the various blockchains, so everything is very transparent. On top of this, it’s virtually impossible to create fake transactions on the blockchain making it secure too.

Crypto investments could give you big returns

When you learn how to invest in cryptocurrency properly, your crypto investments could give you big returns. It’s almost common to see new coins double or triple in value in just a few days. Depending on which crypto to invest in and the best days to invest in crypto, you can earn a lot but also lose a lot as well.

Crypto trading provides you with the necessary independence and flexibility

Crypto markets operate 24/7 in contrast to stock exchanges which limit many to the timezones they operate in. For crypto traders, a market that’s always open not only makes it easier to learn how to invest in crypto in UAE but also allows for more flexibility in trading schedules.

Where You Can Buy Crypto in UAE?

In order to find the best platform to help you invest in cryptocurrency, you might want to answer some questions like: how much money should I invest in crypto? Along with considering other preferences, you’ll better understand what is the best place to trade for you.

1. eToro – Overall Best Cryptocurrency Trading Platform

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Our overall recommendation for trading cryptocurrencies is the eToro platform. Aside from a smooth and simple trading experience, eToro offers zero commissions trading for all instruments.

In terms of security, the platform is licensed by top regulators such as the UK’s FCA, ASIC, and the CySEC. Rest assured that your accounts are protected and follow many accounts and financial safety protocols.

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 crypto
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

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There are ways to trade and invest in cryptocurrencies without actually having to hold the crypto-asset itself. With the regulated CFD broker Alvexo, you can trade crypto CFDs with zero commissions. Alvexo also has a trading academy that can help users better learn how to invest in crypto UAE and give them tools to identify what the best crypto to invest in is.

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. Binance - Best Crypto Exchange for New Coins

best crypto coin to invest inOne of the best ways for beginner crypto investors to immerse themselves in the crypto space is by using the Binance platform. It is one of the best crypto exchanges that feature the latest coins. With a collection of over 500 cryptocurrencies and virtual tokens, users can really diversify their crypto portfolios through Binance. 

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. 

4. Coinbase - Great Beginner Platform for Crypto UAE

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Featuring some of the most popular and best cryptos to invest in now for beginners, Coinbase, the online crypto exchange for new investors. Not only do Coinbase users have the option of trading 50 different cryptocurrencies but they also have access to many informational and easy-to-read educational resources.

Coinbase fees

Fee Amount
Crypto trading fee Commission, starting from 0.50%
Inactivity fee Free
Withdrawal fee 1.49% to a U.S. bank account

 

Pros:

  • Over 100 tradable cryptocurrencies
  • Great for beginners
  • Easy-to-use platform
  • Registered as a Money Services Business with FinCEN
  • Tons of crypto-related educational resources
  • 24/7 live phone support
  • Supports debit cards and bank transfers
  • Top-rated mobile app
  • Offers a crypto asset wallet

Cons:

  • Limited trading tools
  • No copy trading or social trading features
  • crypto only – unable to invest in other assets like stocks

Your money is at risk.

5. Crypto.com - Fast and Secure Cryptocurrency Exchange

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With many different crypto investing products, Crypto.com is perhaps one of the fastest and most secure crypto trading platforms in the industry. Not only can you trade over 250 cryptocurrencies and stablecoins but also use Crypto.com’s crypto wallet that enables a 14% per annum return when staking stablecoins.

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.

6. Evonax - Easy and Instant Cryptocurrency Exchange with No Fees

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Evonax offers fast and easy exchanges for the most popular cryptocurrencies in the world. If you’re looking to exchange your cryptocurrencies securely and anonymously, then Evonax is one of the quickest and most simple platforms to do so. They also have no fees, meaning users only need to focus on the exchange rate of the cryptos offered.

Evonax fees

Fee Amount
Crypto trading fee Depending on the crypto pair exchange rate
Inactivity fee Free
Withdrawal fee Free

Pros:

  • No registration required
  • No fees
  • Maintain total anonymity
  • Enjoy instant transfers
  • Available for over 100 countries
  • Supports the exchange of 11 cryptocurrencies including BTC, ETH, and DOGE

Cons:

  • Only support exchanges to USD through Advanced Cash
  • No crypto trading interface

Your capital is at risk

Invest in Crypto 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 invest in crypto in UAE.

  eToro Alvexo Binance Coinbase Crypto.com Evonax
Crypto trading fee Spread, 0.75% for crypto Commission Commission, starting from 0.1% Commission, 0.034% 0.04% maker and taker fees Depending on the crypto pair exchange rate
Inactivity Fee $10 a month after one year US$10 per month after three months Free Free Free Free
Withdrawal Fee $5 for Gold tier members and below. Free for Platinum tier and above. Free 7.5 AED 1.49% for a US bank account According to the currency withdrawn. 0.0004 for BTC Free

Best Crypto to Invest In

how much money should i invest in crypto

There are certain characteristics to look at if you want to find out what is the best crypto to invest in. For some, it is the safest crypto to invest in which is best while others believe that the coins with the most potential are the best crypto to invest in now.

One way to see how to invest in crypto in UAE is to see the sentiments of other more popular and successful investors. You might ask, does Warren Buffett invest in crypto? The famous investor who once called Bitcoin “rat poison” has just invested one billion USD in a bank that focuses on cryptocurrency.

Although you don’t need a billion dollars for a crypto-focused bank to invest in cryptocurrency, you have plenty of options in the crypto space to choose from. Over 17,600 cryptocurrencies to be exact. 

Major cryptocurrencies to Invest In

It can be said that major cryptocurrencies are safe ways of learning how to invest in crypto in UAE. These cryptocurrencies have established themselves as the leaders in both market cap and adoption.

Bitcoin (BTC)

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With a market cap of US$830 billion, Bitcoin is the largest cryptocurrency to date. It was the first crypto that was launched way back in 2009 and is probably in the portfolios of many major institutions.

 Generally, the crypto market follows the movement of Bitcoin, so consider investing in Bitcoin if you have a general bullish sentiment on crypto as a whole.

Ethereum (ETH)how to invest in crypto

The second-largest cryptocurrency is Ethereum which was officially launched in 2015. Many consider Ethereum as the blockchain that changed the entire perspective on blockchain technology. It’s a native token, Ether, was not just a store of value but a necessary coin to power the execution of decentralized smart contracts. This brought about an entire ecosystem of decentralized finance (DeFi), decentralized apps (dApps), and non-fungible tokens (NFTs).

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.

Small cryptocurrencies to Invest In

Major cryptocurrencies might have a lot of institutional investors in, but they can be extremely expensive. Smaller cryptocurrencies tend to be much cheaper and in earlier stages. This means that there is more room for growth as well.

Algorand (ALGO)

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Algorand is characterized by fast transaction speeds, its consensus mechanism, and its native token Algo. As a Pure Proof of Stake blockchain, holders do not actually have to stake their Algo coins to earn more Algo like in normal proof-of-stake systems. All ALGO holders receive the equivalent of 4-6% annual percentage rate (APR) in the native token. 

Harmony (ONE)

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One is the native token of the Harmony blockchain, a network that focuses on facilitating the development of dApps. It operates on a sharded PoS consensus which means that it is more energy-efficient, secure, and decentralized. What makes One one of the best crypto to invest in now is because it can be staked. Holders can earn incentives and be paid for making positive contributions to the function and sustainability of the blockchain.

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.

New Cryptocurrencies to Invest In

If you’re looking to invest in cryptocurrencies that are some of the newest, then we have some options for you.

LuckyBlock (LBLOCK)

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Officially launched earlier this year, LuckyBlock is a worldwide lottery token that aims to use blockchain protocols to create fairness and transparency in online gaming. If you’re wondering what is the best crypto to invest in this year, then consider LuckyBlock.

Holders of LuckyBlock or LBlock have the potential to get to spend some of their tokens to participate in a daily jackpot lottery. However, holders can also opt to just leave their tokens in their wallets and earn the daily dividend payout.

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.

Curve (CRV)

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Launched in 2020, the Curve altcoin (CRV) is the native token for the Curve decentralized autonomous organization (DAO). Curve is actually a decentralized exchange that focuses on the trading of stablecoins through an automated market maker (AMM). If you’re bullish on DeFi and the use of the Curve exchange, then consider learning how to invest in cryptocurrency for this coin.

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.

Best cryptocurrencies to invest in 2022 for the long-term

Understanding how to invest in crypto in UAE in the long term means identifying which crypto assets are the best to hold for the long run. Logically, investors might gravitate towards the more established cryptocurrencies when looking to invest for long.

Bitcoin and Ethereum, two of the major cryptocurrencies, are possible options. However, it is a good investing practice to diversify your portfolio to minimize risk. Aside from investing in those two coins exclusively, you can also opt to invest in different crypto assets as well.

Best cryptocurrencies to invest in 2022 for the short-term

For those looking to invest in cryptocurrency for the short term, a great way to do so is to research some of the latest coins and see how popular or usable they might become in the future. For example, LuckyBlock doubled in price within a week and it hasn’t even been a month since the coin was listed.

How to build a good crypto investment portfolio?

Step 1: Find the right crypto exchange

Part of learning how to invest in crypto in UAE and figuring out what is the best crypto to invest in if first finding a good crypto platform or exchange. Based on your needs, you’ll want to consider a platform’s fees, features, and even the type of investments it lets you make.

Step 2: Identify your strategy

If you start to invest in cryptocurrency without a proper strategy, you’ll most likely fail. If you can figure out how long you’ll hold your investments, what methods you will use to invest in cryptocurrency, and how much you are willing to invest, then you can start to plan out a good strategy.

Step 3: Diversify

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Any smart investor knows that you shouldn’t put all your eggs in one basket. One of the most essential aspects of a good crypto portfolio or portfolio for any other asset for that matter is proper diversification.

For example, the legendary hedge fund manager Michael Burry makes sure to have at least 15 different assets in his investment portfolio. This means that even if one investment falls, the other can make up for it.

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 store your crypto in a secure wallet?

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eToro Money Wallet

As our overall recommended platform to invest in cryptocurrency, eToro also offers the eToro Money Wallet. This crypto wallet allows you to fully control the crypto that you buy. Store crypto such as Bitcoin, Bitcoin Cash, Ethereum, and Litecoin on the eToro Money Wallet.

Coinbase Wallet

With support for over 4,000 crypto assets and many dApps, the Coinbase wallet lets you safely store crypto. The application is available for Android and iOS and has industry-leading security protocols as well.

Binance Exchange Wallet

Trust Wallet is Binance’s official crypto wallet. This crypto wallet lets you use dApps, staking services, and other features that let you earn from your stored cryptocurrencies. You can also use this wallet to swap cryptocurrencies on different DEXs. 

Security and risks of crypto investing

Being fully digital, cryptocurrencies, especially those stored in hot wallets, can be hacked if you do not properly store your private keys. It's best to avoid scams in the crypto sphere as they are rampant from time to time. For beginners learning how to invest in crypto in UAE, it’s also wise to not start with crypto derivatives trading. These innately have higher risks and can cause massive amounts of capital loss.

Compare Dubai crypto Exchanges

  eToro Alvexo Binance Coinbase Crypto.com Evonax
Regulatory/Safety bodies FCA, CySEC FSA FCA MSB, FinCEN FDIC N/A
Minimum deposit US$50 US$500 None None US$1 None
Number of cryptos 49 22 500+ 50+ 100+ 11

Is cryptocurrency mining a better investment?

Anyone can mine crypto as a way to invest in cryptocurrency. The important aspects to consider when crypto mining are computational power, electricity costs, and even timing. You’ll usually need to calculate the costs of all of these versus the potential profit that you will make when you sell your mined coins.

Is cryptocurrency staking a better investment?

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If crypto mining is not the way to invest in cryptocurrency for you, then you might want to consider crypto staking. For digital assets that work on the proof-of-stake consensus model, you can essentially stake your coins and earn rewards as you contribute to the overall sustainability of the blockchain system when doing so. 

Selling your cryptocurrency investment

When the time comes for selling your cryptocurrency investment, you can either close your position or exchange your coin from your crypto wallet. In any case, selling your cryptocurrency investment means that you want to liquidate the asset.

Taxes and regulations regarding crypto in UAE

Presently, no regulations on crypto assets are expressly mentioned on legal frameworks for the UAE. However, crypto assets are regulated in Onshore UAE, the Abu Dhabi Global Market (ADGM), and the Dubai International Financial Centre (DIFC). 

Conclusion

In conclusion, we find many different possibilities for what is the best crypto to invest in. Depending on your time frame, investment opportunity, and risk tolerance, the best crypto to invest in now will ultimately come down to your decision. The eToro platform is a great place to discover cryptocurrencies as well as trade them.

If you want to invest in cryptocurrency with a 0% commission, click on the link below and start investing in crypto with eToro!

eToro – Buy Cryptos With 0% Commission in UAE

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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

How much to invest in crypto?

The amount that’s required to invest in crypto depends on how much capital you are willing to place away for crypto. Many platforms don’t require high amounts of capital to start investing in crypto. In eToro for example, you can open a crypto position with a minimum of US$10.

How many people are investing in cryptocurrency?

With a current market cap of $824 billion and reaching a peak of $1 trillion back in 2021, there are an estimated 79 million unique crypto wallets.

How to learn to invest in cryptocurrency?

There are many ways to learn how to invest in crypto 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.

How to invest in Bitcoin ETF?

Even if your broker does not offer crypto trading, you can still invest in the price action of Bitcoin via a Bitcoin ETF. Check if your broker has Bitcoin ETFs available such as the BITO.

Are banks investing in cryptocurrency?

Yes, many major institutions have invested quite heavily in crypto. Big names like Standard Chartered and Morgan Stanley have invested in crypto and other cryptocurrencies.

What is the best cryptocurrency to invest in?

Ultimately, the best crypto to invest in will depend on your time frame and overall attitude to the digital asset. Generally, users looking to invest long-term would look to huge names like crypto and Ethereum for their crypto investments. Others look to more niche crypto to invest in that promises to offer tons of value in the future.

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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.