Cryptocurrency is a virtual currency with purchasing power built on blockchain technology. It is an avenue for investment just like other commodities, stocks or bonds. While it is not regulated by a bank, it is overseen by an online, decentralised network of users. When you conduct a transaction using cryptocurrency, a group of computers verifies its validity before processing it.
Cryptocurrency is not easily accessible, and not as simple as walking into a bank. Similarly to using a key for a safe deposit box, cryptocurrency requires a private key that gives you access to your funds.
Smart contracts, business transactions, trading payments and travel bookings are some places where cryptocurrencies are accepted.
There are nearly 10,000 cryptocurrencies today, with a market cap of USD 2.5 trillion. The UAE has the highest adoption rate worldwide with 30% of the population owning cryptocurrencies.
Bitcoin has the highest valuation at USD 60,000 in 2024. Other leading cryptocurrencies are Ethereum, Tether, Solana, USDC, XRP, Dogecoin, Toncoin and Cardano.
Cryptocurrencies are not backed by any entity, which makes the wins and losses bigger and faster. It was due to this volatility that central banks introduced their own digital currencies giving buyers some security when investing in this alternative currency.
There are many ways to invest in cryptocurrencies. If you are new to this, or overwhelmed by the process, it’s always good to use an expert who does the work for you:
In most cases for either you will need to open an account, or sign up, and/or provide personal information such as a KYC, license, or passport.
As a decentralised currency, cryptocurrencies provide access and immense potential returns, but the risks can be high. Be sure to do your research before taking the plunge.
The views shared in this podcast are for general information and educational purposes only and do not constitute financial, investment, legal or tax advice. Listeners should seek independent advice from a qualified professional before making any financial decisions. Emirates NBD Bank PJSC accepts no liability for any loss arising from reliance on the content discussed.