How to Buy Bitcoin in Saudi Arabia 🇸🇦 [2024]

Hey Xploras in Saudi Arabia! With all the buzz around Bitcoin lately, I know many of you are interested in getting your hands on some. However, buying Bitcoin can be tricky, especially here in Saudi Arabia with our unique regulations. I understand the process myself, so I wanted to share my knowledge to help simplify things for you.

Purchasing Bitcoin here does require some extra steps compared to other countries, but it’s absolutely doable if you know what you’re doing. I’ll walk you through the whole process step-by-step so you can buy your first Bitcoin smoothly, safely, and fast.

Sound good? Okay, let’s dive in!

First, though, let’s quickly go over what exactly Bitcoin is and why it’s become so popular globally. Understanding the basics will help you make wise decisions when you buy.

What is Bitcoin?

In simple terms, Bitcoin is a digital currency that only exists online. It was created in 2009 by an anonymous person/group called Satoshi Nakamoto. Bitcoin uses blockchain technology to allow payments to be sent directly between individuals without going through banks or financial institutions. Cool right?

Some key things that make Bitcoin unique:

It’s decentralized – no central authority controls it
Limited supply – only 21 million Bitcoins will ever exist
Transactions are anonymous
Funds can’t be frozen or seized easily

Because of these features, Bitcoin has grown from an obscure experiment to a major worldwide phenomenon. Today, tens of millions of people around the globe use Bitcoin to make payments, store value, or trade like any other asset.

Now even though Bitcoin is popular globally, here in Saudi Arabia we need to consider if trading Bitcoin complies with Islamic finance principles.

Is Bitcoin Halal?

For those considering purchasing Bitcoin in Saudi Arabia, a pertinent question arises: Is Bitcoin halal?

Many scholars have analyzed Bitcoin to determine if it’s permissible according to Islamic law. There is a healthy debate among Muslim experts regarding this issue. However, the majority opinion seems to be that Bitcoin is halal and can be traded if certain conditions are met:

It’s not used for any illegal/unethical purposes
Speculation and uncertainty are avoided
Proper Islamic finance principles are followed when trading

So in summary, most experts agree Bitcoin itself is halal. But as with any asset, it must be traded ethically and not used to facilitate haram activities.

Now that we’ve covered the basics, let’s get into the exact steps you need to take to buy Bitcoin safely here in Saudi.

How to Buy Bitcoin in Saudi Arabia

Alright, we’ve covered the basics of Bitcoin and made sure it’s halal. Now let’s walk through the nitty gritty steps of actually buying Bitcoin here in Saudi.

Researching and Choosing a Reliable Exchange

The first step is finding a good cryptocurrency exchange that operates in Saudi Arabia. There are a few options, but you want one that is compliant with local regulations and has a solid reputation.

Here are the key factors to look for:

Regulatory Compliance

Any exchange you use should be registered with the Saudi Arabian Monetary Agency (SAMA). Unregistered exchanges are risky so I’d avoid those. Make sure to do your due diligence.

Reputation and Security

Look for exchanges that have been operating for several years with no major security incidents. Check reviews online from other users. An exchange that takes security seriously is critical.

I personally use BitOasis and find them very professional. Rain is another popular licensed exchange.

Creating an Account on a Bitcoin Exchange

Once you’ve chosen an exchange, create an account and provide your basic personal information. The process is similar to opening any online account.

Verifying Your Identity (KYC)

Exchanges here require ID verification to comply with anti-money laundering laws. You’ll need to provide info like your national ID, proof of address, etc.

Funding Your Account

Major exchanges accept direct bank transfers for depositing SAR into your account. You’ll see the bank details to transfer funds into when logged into your exchange account.

Placing a Buy Order

Time for the fun part! Go to the trading page of your exchange, select Bitcoin, and enter the amount of SAR you want to spend. Double check the details carefully before placing your order.

Securing Your Bitcoin: Choosing a Wallet

Now you need a Bitcoin wallet to store the coins you’ve purchased. More on different wallet options later, but for starters, I suggest using a software wallet like Exodus or a hardware wallet if you bought a significant amount.

Bitcoin ATMs in Saudi Arabia

Now let’s talk about another way to get Bitcoin here – through cryptocurrency ATMs.

Bitcoin ATMs function like traditional cash ATMs – except you can use them to buy and sell Bitcoin!

Locating Bitcoin ATMs in Saudi Arabia

There are currently Bitcoin ATMs in Jeddah, according to the ATM tracking site.

Using Bitcoin ATMs for Purchases

Buying Bitcoin is easy. You insert cash, scan your wallet address, and receive the Bitcoins. Some even support biometric authentication now for enhanced security.

How to Sell Bitcoin

Selling your Bitcoin is just as important as buying it. You’ll want to follow similar steps:

Choose a licensed Saudi exchange
Place a sell order for the amount of Bitcoin you wish to liquidate
Withdraw the SAR funds back to your bank account

Take the time to sell responsibly just like you took care when purchasing.

Bitcoin Wallets Available in Saudi Arabia

Let’s now discuss the best Bitcoin wallet options here. There are generally 3 types of wallets:

Online wallets – accessed through exchange or wallet provider’s website
Software wallets – downloaded and installed on your PC or phone
Hardware wallets – physical USB-like devices for offline storage.

Popular Wallets Accessible in Saudi Arabia

Based on local availability, my top recommendations are:

Hardware: Trezor Safe 3, Ledger Nano X
Online: BitOasis Wallet
Software: Exodus, Electrum

Security and Best Practices

Now that you know how to purchase Bitcoin, let’s chat about how to keep your investment secure. Bitcoin gives you full responsibility over your funds, so you need to take safety seriously.

Consider these tips:

Use Secure Wallets: Opt for reputable wallets with robust security features. Hardware wallets, in particular, offer an extra layer of protection by keeping your private keys offline.
Keep Private Keys Offline: Your private key is your digital signature. Keep it offline, preferably on a hardware wallet, to mitigate the risk of online hacking attempts.
Regularly Update Software: Whether it’s your wallet or any other software related to Bitcoin, stay up-to-date. Developers often release security patches, and keeping your software current ensures you’re fortified against potential vulnerabilities.

Two-Factor Authentication (2FA) and Secure Passwords

Enhance the fortress around your Bitcoin holdings with two-factor authentication (2FA) and strong passwords:

Enable 2FA: Two-factor authentication adds an extra layer of security by requiring a secondary verification step, typically through a mobile app or SMS. Enable it wherever possible.
Create Strong Passwords: Your password is the frontline defense. Craft a robust password with a mix of letters, numbers, and special characters. Avoid easily guessable information like birthdays or names.

Recognizing and Avoiding Scams

Bitcoin’s popularity has unfortunately attracted some unsavory characters. Be vigilant and steer clear of scams:

Phishing Awareness: Be cautious of phishing attempts. Double-check URLs, especially if prompted to enter sensitive information. Legitimate platforms use secure websites (https://).
Educate Yourself: Stay informed about common scams. Awareness is your best defense against fraud.
Verify Contacts: If someone promises guaranteed returns or requests your private information, pause and verify their legitimacy. Scammers often prey on urgency and misinformation.

Conclusion

We’ve covered a lot of ground today! Here are the key takeaways:

Research exchanges and choose one that is licensed and secure
Verify your ID and deposit SAR to purchase Bitcoin
Use a wallet appropriately to store your investment safely
Implement security best practices like 2FA to avoid theft

I hope this guide gives you a clear path for buying your first Bitcoin in Saudi Arabia! Use it legally and ethically to support your financial goals. Be a leader in responsible crypto adoption in Saudi! Let me know if you have any other questions. I’m always happy to help fellow crypto enthusiasts in our country get started safely with this exciting new technology.