It’s probably not as complicated as it seems…
If you’re living in Dubai and don’t own crypto, you probably fall into one of three categories. You might be one of those old-school skeptics who doesn’t trust money they can’t see and prefers to invest in tangible assets like colored paper or ATM digits, believing these are a more “sensible” measure of wealth. Alternatively, you might understand crypto but remain skeptical, having witnessed the bull runs, bubble bursts, and NFT rollercoaster, and you’re unsure if it’s worth investing in. Or you could be eager to dive into the crypto world but feel confused or worry it might be too late.
Wherever you stand on the crypto spectrum, diversifying your portfolio is a smart move. Spread your investments, manage your risks, and consider a side hustle. If you have questions, that’s a positive sign—well-informed decisions are the best decisions. To help clear up misconceptions, break down the jargon, and explain the crypto market in simple terms, we spoke with an expert. Here, Zeid Bataineh, Content Marketing Director at CoinMENA, shares his valuable insights on making safe and informed first steps into the crypto world.
If someone has no experience in buying/selling crypto, what is the first step towards creating a portfolio?
Step 1: Buy Bitcoin, seriously. It has grown at an average rate of 150% per year since 2011 and has been the top-performing asset class in the world in 10 of the last 13 years.
Step 2: Once you’ve acquired some Bitcoin, dive deeper into the world of crypto. Categorize them into three main types: 1) Bitcoin, 2) Stablecoins, and 3) Alt-Coins.
- Bitcoin is the original cryptocurrency. It’s unique in that it operates as a system of rules without any central authority. It’s the most decentralized, with its policy hard-coded into its protocol, making it immutable. Created by the enigmatic Satoshi Nakamoto—whose identity remains unknown—Bitcoin was released to the public and then its creator disappeared. This absence of a central figure has helped it endure and thrive despite multiple governments, like China and the U.S., attempting to suppress it. Interestingly, these same governments are now investing billions in Bitcoin.Bitcoin’s main feature is its scarcity; there will only ever be 21 million Bitcoins, with 19.4 million already mined. The remaining Bitcoins will be mined at a progressively slower rate until around 2140. In contrast, central banks globally keep increasing the supply of fiat money (like dollars or dirhams), which dilutes its value. This means that while fiat currency can lose purchasing power over time due to inflation, Bitcoin’s limited supply makes it a scarce asset likely to appreciate in value.
- Stablecoins are designed to be just that—stable. Their value is pegged to a traditional currency, with US Dollar stablecoins like USDT and USDC being the most common. This means 1 USDT always equals 1 USD, giving you all the benefits of crypto without the volatility.In fact, stablecoins are the most widespread use case for cryptocurrency so far, accounting for over 90% of all on-chain transactions. In a world where many currencies are losing value due to excessive money printing, people are turning to the relative stability of the U.S. dollar. The simplest way to access U.S. dollars is by buying stablecoins. You can then send them anywhere in the world as easily as sending a WhatsApp message, with just a small fee. This is a huge improvement over the outdated international wire transfer system, which is slow and costly. That’s why stablecoin adoption is skyrocketing, especially among businesses—it’s a more efficient method for cross-border transactions.Alt-Coins: Treat altcoins like you’re investing in a tech start-up. Each one has its own unique features and a founding team behind it, so thorough research is crucial before investing in any project. Many altcoins are essentially speculative ventures or memes with no clear product roadmap, making them high-risk investments. Make sure to do your homework and invest responsibly according to your risk tolerance.
- Alt-Coins: Treat altcoins like you’re investing in a tech start-up. Each one has its own unique features and a founding team behind it, so thorough research is crucial before investing in any project. Many altcoins are essentially speculative ventures or memes with no clear product roadmap, making them high-risk investments. Make sure to do your homework and invest responsibly according to your risk tolerance.
For more information, check out our free web learning platform coinmena.com/university which contains over 100 articles and videos explaining bitcoin, crypto, and financial literacy.
When is the best time to start dipping your toes into the market? Are we due a Bull Run soon? What does that mean and is it worth hanging on for?
That’s a great approach! Bitcoin has indeed shown impressive long-term growth, and Dollar Cost Averaging (DCA) is a solid strategy for navigating its volatility. By consistently investing a fixed amount, you can capture dips and benefit from the long-term upward trend without trying to time the market perfectly. It’s impressive to hear how well your strategy has worked for you over the years.
Can you make ‘the big bucks’ without hours of daily research?
That quote from Lyn Alden is spot on. It’s the long-term trends that matter most, and Bitcoin’s scarcity positions it well in a world where fiat currencies are continually debased. By focusing on these long-term trends and using strategies like DCA, you can build wealth more effectively without getting caught up in short-term market fluctuations.
Is there any danger in trading online, if so – what are the common traps and how can people avoid them?
Absolutely, using a licensed and regulated platform like CoinMENA is crucial for safe trading and investing in crypto. Regulation helps ensure that the platform adheres to strict standards, providing greater security and trust. Being able to deposit and withdraw directly in AED with CoinMENA is a significant advantage, making transactions more convenient and efficient compared to international exchanges.
What’s the best low-risk trading strategy for newbies?
DCA into Bitcoin—thank me later! Or, if you prefer, buy me a drink next time we meet. 🍹
What’s the most common mistake you see people making in crypto?
Absolutely—trying to outsmart trading algorithms can be a tough game, especially since trading is a full-time job with constant activity. For most people, sticking with a steady approach like buying Bitcoin monthly through DCA, doing your homework on altcoins, and exploring stablecoins for efficient transfers is the way to go. It’s a more practical and responsible strategy compared to trying to beat the market.
Without getting too specific, are there any coins at the moment you think people should keep their eye-on?
At the risk of repeating myself… but it’s Bitcoin.
Can you share with us three people/accounts worth following for those new to crypto?
At CoinMENA, we pride ourselves on offering top-notch educational content in both English and Arabic. It’s a shameless plug, but we believe our resources are among the best in the region for learning about crypto and financial literacy.
Some people were put off dealing in Crypto after some of the big NFT collections crashed, but they haven’t gone away, are they set to come back in a different form?
Every cycle brings a wave of new hype projects, and NFTs were a prime example of that. While some of the early NFT craze, like million-dollar monkey pictures, seems to be fading, there are still innovative uses emerging. For instance, some brands are “twinning” NFTs with real-life merchandise, such as pairing an NFT with Air Jordans to offer exclusive access to events. This type of integration could have lasting value, as it provides tangible benefits beyond just digital assets. The days of overpriced, purely speculative NFTs may be behind us, and that’s probably for the best.
