Many people are looking to get their hands on digital currency; there are several reasons you might want to invest in buying cryptocurrencies.
What are cryptocurrencies?
A cryptocurrency is simply a digital or virtual currency that works using cryptography for security so that it’s complicated to counterfeit, this allows the creator of the cryptocurrency to have more control over the money supply, and it also prevents anyone from making changes once a transaction has been accepted and added to the blockchain.
There has been an increase in demand for cryptocurrencies, and prices have fluctuated dramatically, with some seeing ten-fold increases in their value.
Many different types of cryptocurrencies are available, such as Bitcoin, Litecoin and Dogecoin. Here is a list of all the cryptocurrencies available.
Are cryptocurrencies backed?
The first question you might be asking yourself is if cryptocurrencies are backed by anything?
And to answer that question, the short version would be no; they are not supported by anything – their value comes from what people think they are worth.
However, many currencies are created with an idea or group of ideas that went into creating them; Dogecoin, for example, was made as a joke but has now taken on something of its own life and has become more than just a virtual currency.
Bitcoin skyrocketed in terms of its value after it was suggested that it could potentially replace gold as an official method to pay back national debt.
There are various exchanges where you can trade digital currencies using Bitcoins.
For example, you can use Mt. Gox, the most commonly used business in the market, but their prices are at a premium, so you might want to look elsewhere if you would like to get your hands on them for cheaper.
Is it possible to use cryptocurrencies in Dubai?
The answer is yes! However, there are not many places at this point that accept them.
One place is the Dubai based website BitOasis, which helps customers in UAE, KSA and other Middle Eastern countries to buy Bitcoins using AED wire transfers.
You can then store your Bitcoins on their site or withdraw them to your wallet.
Types of cryptocurrencies
One of the most prominent players in the cryptocurrency game, BTER, offers trades between Bitcoins and Litecoins, Namecoins, Peercoins, Feathercoins and Terracoins. They provide this service in all countries, except Japan.
Some exchanges will give you access to buy Dogecoin if that’s what you’re into – an example being Cryptsy which also allows its users to trade Bitcoins for US Dollars.
Then there is BitSquare which takes a peer-to-peer approach to exchange Bitcoins and acts more like a marketplace where you can find someone willing to trade their Bitcoins for your Euros, GBP or other currency.
Finally, near the end of our list, we have Coinapult, which allows you to lock in a price for a certain amount of time and then receive the locked-in amount of Bitcoins once that time has elapsed. This service is available in over 190 countries.
There are many places where you can spend your digital currencies, like best crypto etf.
How do I safely store my digital currencies?
Well, you can use an online wallet like Coinbase that FDIC insures up to USD 250,000, where you can keep track of all your digital currency transactions securely.
You also have the option of downloading a wallet directly onto your desktops, such as MultiBit or Electrum.
9 fun facts of Cryptocurrencies in Dubai.
- Cryptocurrencies are digital or virtual tokens that use cryptography to secure their transactions and control new units’ creation.
- Cryptocurrencies are decentralised, not subject to government or financial institution control.
- Bitcoin, the first and most well-known cryptocurrency, was created in 2009.
- Cryptocurrencies are often traded on decentralised exchanges and can also be used to purchase goods and services.
- Dubai is a popular destination for cryptocurrency traders due to its well-regulated crypto-friendly environment.
- The Dubai Multi Commodities Centre (DMCC) is home to several leading global crypto exchanges, including BitOasis, BitMEX, and Kraken.
- According to Emirates 24/7, the UAE plans to introduce an official cryptocurrency by 2021. This would be the first time a government has issued its digital currency.
- Dubai is home to several companies that are researching blockchain technology, including Dubai Holding and Nakheel PJSC.
- Blockchain technology uses cryptographic algorithms to create decentralised ledgers for transactions across networks without intermediaries or central authority control.
Thus, many consider cryptocurrencies one of the first applications of blockchain technology that can replace traditional payments systems such as credit card payment gateways or PayPal accounts with near-instantaneous peer-to-peer payments at a meagre cost.