Bitcoin: Everything you need to know
Though it may have burst onto the scene a few years ago after a meteoric rise in value, bitcoin has been in existence since 2008.
Invented by an unknown person or entity, Satoshi Nakamoto, it was intended for use as a decentralised digital currency, outside the control of any central bank. Back in 2010, a single bitcoin was worth approximately USD 0.08. Today that same bitcoin is worth around USD 40,500.
This incredible rise has seen the creation of many bitcoin million- and billionaires. As a result, the cryptocurrency is seen by some as an investment rather than a means of purchasing goods or services.
With the price of bitcoin fluctuating, there is a strong belief that there is still some way to go before it hits it peak. And while the concept of cryptocurrency may be complex, with the right support, purchasing bitcoin can be very straightforward.
What is Bitcoin?
Bitcoin is a type of cryptocurrency. It is an entirely digital currency, with no physical coins in existence. Bitcoins are not issued by banks or governments. They are instead generated by a process called mining.
Mining requires the solving of a complex computational puzzle. Once the puzzle is completed successfully, a new block is discovered, which is added to the blockchain. When new blocks are added to the blockchain, miners are rewarded with bitcoins.
There are several types of hardware that can be used to mine bitcoin. All of which require vast computing power.
How does bitcoin work?
A bitcoin is, in essence, a file on a computer. It is stored in a digital wallet which can be an app or a physical piece of hardware. Bitcoins can be sent between wallets, either peer to peer or to organisations in exchange for good and services. Every transaction is publicly recorded on the block chain.
Organisations that accept bitcoin payments include AT&T, Microsoft, Subway, and Virgin Galactic.
Where can I buy bitcoin in Dubai?
To buy bitcoin in Dubai, or anywhere else for that matter, you’ll need to open an account with a cryptocurrency exchange.
There are plenty to choose from, including global exchanges like Binance, Bittrex, and Coinbase. One of the largest and most popular exchanges in the MENA region is BitOasis. Here you can securely buy, sell, and trade bitcoin, and other crypto assets like Ethereum and XRP.
To purchase bitcoin from BitOasis, you must deposit AED via your debit or credit card or through wire transfer.
Once you have obtained your bitcoin you can keep it on the exchange or move it to a digital wallet. The latter is considered the most secure option.
What is the minimum I can invest in bitcoin?
The minimum investment in bitcoin will depend on the exchange you use. Each will have their own limit. However, in most cases, minimums are low. You are not required to trade in whole bitcoins. Each is divisible to eight decimal places.
Can I buy bitcoin in Dubai with cash?
Bitcoin can be bought with cash in Dubai via specialist bitcoin ATMs. You are usually required to supply a phone number for verification. The money is then withdrawn from the cash balance of your personal bank account.
Purchasing in this way is generally considered to be more private than using an exchange.
Should I start a cryptocurrency business in Dubai, UAE?
If you wish to trade bitcoin on a grander scale or offer other related services, you have the option of starting a cryptocurrency business in Dubai.
Trading in crypto commodities is approved in the UAE, but, understandably, it is regulated in much the same way as other financial trading. To make sure you start your business in accordance with local laws and regulations, it’s a good idea to work with a company formation expert such as Business Incorporation Zone (BIZ).
We’ll help you choose and register you company name, find the free zone or mainland setup that’s right for you, and manage your trade license and visa applications on your behalf.
There are a couple more hoops to jump through when trading crypto – you’ll need to comply with anti-money laundering regulation and submit regular accounts, for example. We’ll can assist you with these requirements too.
We can even help you open your corporate bank account.
Are you ready to buy, sell, and trade bitcoin in Dubai, UAE?
As you can see, buying and trading bitcoin is easy in the UAE. And, if you’re armed with the right knowledge, setting up a crypto-trading business in the UAE doesn’t have to be overly complex either.
That being said, it does require a level of prior knowledge of the process. What’s more, it is important to note that the application process is only straightforward if your license application is complete at the time of submission and free from errors.
To help you to ensure that this is the case, it’s a good idea to work with a company formation specialist in Dubai such as Business Incorporation Zone (BIZ) when establishing a new company in the UAE.
We are a team of company registration professionals who are passionate about bringing the dreams of aspiring entrepreneurs and SMEs to life.
As well as handling your license application, BIZ can also assist with the opening of corporate bank accounts and advise on the most appropriate financial institution to suit your specific needs.
We also offer visa and immigration services and can handle all government formalities, permissions, work permits, and visas applications required to trade in the UAE.
In short, our experts can establish your company on your behalf, make your license and visa applications, and take care of all the necessary admin – leaving you free to get on with running your business.