Bitcoin has a market capitalization of over 162 billion USD making it the leading cryptocurrency in the entire crypto market. On 3rd January 2009, Satoshi Nakamoto mined the genesis block of bitcoin and started a revolution to separate the money from the state. In this article, we take a look at the top ways of keeping up to date with the price of the leading cryptocurrency in AED.
Top ways to check bitcoin price in AED:
1. News Aggregator like CryptoViral
CryptoViral is the leading crypto news aggregator that provides users with the latest happenings from the crypto and blockchain industry. Along with the latest news, you can also check the price of bitcoin and other cryptocurrencies on the platform. The news aggregator platform is a must if you are a serious crypto trader or a crypto enthusiast. Another news aggregator platform is Cryptopanic.
2. Crypto Exchanges
Crypto exchanges that operate in the United Arab Emirates are an easy way to check the real-time price of bitcoin in AED. You can keep track of the price of bitcoin on crypto exchanges like BitexUAE and BitOasis. Indexes on the crypto exchanges display the real-time fluctuations in the price of bitcoin and other cryptocurrencies. All crypto exchanges that operate in the UAE region have a price index for cryptocurrencies, where you can check the price of bitcoin. You can trade bitcoins on the Dubai Lifestyle app.
Note: Several known crypto exchanges like Coinbase do not operate in UAE.
3. Search Engines
One of the quickest ways to check the price of bitcoin in AED is by simply typing in “bitcoin price in AED,” on any of the leading search engines on the internet. Search engines including, DuckDuckGo and Google, show the price of bitcoin from crypto exchanges and crypto converters in real-time. At the time of writing, 1 BTC is worth 32,774 AED.
Note: Crpyo regulation in UAE are still in a grey area.
4. Peer-to-peer platforms
Peer-to-peer platforms act as a marketplace for buyers and sellers where no third party is involved. If you live in a country where crypto exchanges are censored, then peer-to-peer platforms are the only place where you can purchase and sell bitcoins and other cryptocurrencies. Peer-to-peer platforms allow sellers to offer their prices. LocalBitcoins and LocalCryptos are among the top peer-to-peer platforms.
In the article, we looked at the top ways you can keep track of the price of bitcoin in the United Arab Emirates Dirham. If you trade currencies, checking forex signals can also be beneficial using several news aggregators. Currently, there are no crypto regulations in place in the Asian country, but bitcoins can be bought and sold on peer-to-peer platforms.
Does Bitcoin’s ‘buy today, sell tomorrow’ strategy always work?
To the investment world, Bitcoin just doesn’t make sense. An asset with no financials, no quarterly earnings reports, no management to speak for it on investor calls, no valuations, no annual report, no head office, nothing. How does one value something like this in order to invest in it? There’s a simple answer – They don’t.
Bitcoin is more or less seen as an asset of the future. And for an asset of the future, you don’t look at present fundamentals, not just because there are none, but because you can’t evaluate it correctly. For this reason and more, Bitcoin is popular among a lot of traders. The fickle, fast-moving, and shrewd operators of the markets who don’t care about the worth of an asset, as long as it gives them a return. Let’s look at Bitcoin’s market based on the perspective of these people.
In order to consider this, let’s take a neutral stance. Let’s look at the Bitcoin market as a buy-today-sell-tomorrow kind, rather than a hodl for weeks, or make a handful intra-day trades kind. In part, because this would still come under the category of trading, but mainly because it’s easier to pull out the daily close price of Bitcoin, rather than its hourly, or even by-minute estimates.
Right, with that sorted, let’s get into the numbers. If you simply and blindly conducted a buy-today sell tomorrow strategy for all the eight completed months and the first 5 days of September, how much would you have made? Before answering this, bear in mind that Bitcoin began the year at $7,500, broke past $10,000 twice, before breaking down to $4,000. It’s now up over $10,000 again. Oh, and two weeks ago, it was over $12,000. Back to the question, how much do you think you’d have made?
Well, it’s a cool $2,993, or an average of 21.15 percent by buying and selling each day for 8 months. Granted, that’s too many transactions, 248 to be exact, and it doesn’t include order and withdrawal fees, but it’s still a good amount, isn’t it? In fact, if you would’ve ended your long trading game on 31 August, rather than 5 September, you would’ve made $4,476 or a 35.3 percent return by avoiding the 3 September drop from $12,000 to $10,000. In terms of a monthly return, five of the eight months returned positive and three negative. The positive returns totaled $7,765 and the negative $3,289.
So, make of that what you will, but it does go on to state that Bitcoin trading on a day-to-day basis, provided you have the time, capital, and an exchange that doesn’t eat up a lot in fees, will allow you to make a good profit for yourself.
Binance Says Regulatory Restrictions Preventing Traditional Brokers From Offering Crypto Services
Crypto exchange Binance says the current regulatory environment is keeping traditional brokers from offering crypto services.
In a recent report put together by the Binance Broker and Binance Research teams, the crypto exchange reveals that traditional brokers have not kept up with the changing needs of financial market participants.
“Due to regulatory restrictions, traditional brokers have not opened up spot crypto services (only derivatives and other instruments). As a result, crypto exchanges have established themselves as the center of the emerging crypto brokerage industry.
Consequently, large crypto exchanges have launched prime brokerage services to provide institutional investors with custody, block trading, aggregation trading, and other services.”
Binance notes that for many decades, prime brokers have positioned themselves as a “one-stop-shop of financial services” for large players in the industry, providing a wide array of offerings including trading, custody, cash management, risk management, stock buybacks, and leveraged trading among others.
As prime brokers struggle to tread the territory of digital assets, crypto exchanges have stepped up to meet the growing demand of institutional firms.
“Some crypto exchanges, wallets, and trading terminals have begun prime brokerage businesses. For instance, Coinbase offers prime brokerage starting from custody, whereas Huobi and Bequant offer prime brokerage with [over-the-counter] block trading….
Crypto broker service providers have empowered brokers to offer services to institutional participants from both crypto and traditional brokerage environments, promoting the lateral expansion of the industry through non-crypto companies offering dedicated crypto trading to their users, which is expected to further lower entry barriers in the industry.”
As to where the crypto brokerage industry is headed, Binance believes traditional brokers will soon start offering crypto services as regulatory requirements ease.
“As the crypto industry continues to develop, the gap between the conventional financial market and the crypto market will continue to narrow. With a growing base of retail and institutional users, an expanding market, and the emergence of increasingly specialized functions, a virtuous cycle of growth started.”
You can read the full report here.
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Bitcoin Could 14x to $3 Trillion Says Ark Invest Analysis
Ark Invest, which focuses on investing in disruptive innovation like AI and biotech, thinks bitcoin could more than 10x in the next five years from the current $200 billion market…
Ark Invest, which focuses on investing in disruptive innovation like AI and biotech, thinks bitcoin could more than 10x in the next five years from the current $200 billion market cap to $3 trillion.
In a comprehensive analysis they suggest bitcoin can capture numerous markets, starting with settlement networks for value exchange. They say:
“In the United States alone, deposits totaling $14.7 trillion generate $1.3 quadrillion in settlement volumes between and among banks each year.
If it were to capture 10% of those settlement volumes at a similar deposit velocity, we believe the Bitcoin network would scale more than 7-fold from roughly $200 billion to $1.5 trillion in value.”
They don’t quite explain why banks would use bitcoin to settle instead of their own Fed systems, but another potential market is asset protection.
“With good public and private key management, we believe bitcoin cannot be seized,” they say. Thus:
“In our view, a sensible allocation to bitcoin would approximate the probability that a corrupt or misguided regime will confiscate assets – whether by fiat money inflation or by outright seizure – during an individual’s lifetime.
If that probability were 5% on average globally, bitcoin’s market capitalization, or network value, could vault more than 10-fold from $200 billion to $2.5 trillion.”
This is further complemented by bitcoin being better than gold in the view of Ark Invest, stating:
“Supporters often refer to bitcoin as digital gold because it improves upon many of physical gold’s characteristics.
Not only is bitcoin scarce and durable, but it also is divisible, verifiable, portable, and transferable, all of which protect from the threat of centralization.
According to our research, if it were to take 10% share of the physical gold market, bitcoin’s network value could increase nearly $1 trillion, 5 times its $200 billion base today.”
This somewhat overlaps with the inflation related potential market, especially in medium to under developed countries:
“While Bitcoin has not evolved enough to service an entire economy, we believe demand for bitcoin in emerging markets should increase as its infrastructure reaches critical mass.
If bitcoin were to capture 5% of the global monetary base outside of the four largest fiat currencies – US dollar, yen, yuan, euro – its market cap could increase by $1 trillion, as shown below, a 6-fold increase from $200 billion today to roughly $1.2 trillion.”
Then we get to the most interesting part of the analysis which is worth reading in full because our highlights can’t do justice to that thorough analysis of bitcoin as a strategic investment.
“Untethered from traditional rules and regulations and, generally uncorrelated to the behavior of other asset classes, bitcoin could serve as a strategic allocation in well-diversified portfolios, despite its volatility.
We believe the low correlations among traditional asset classes and bitcoin should minimize idiosyncratic risks and lower overall volatility, resulting in higher risk-adjusted returns.
To illustrate bitcoin’s low correlation relative to other asset classes, we calculated the 90-day rolling correlation between bitcoin and nine other assets over the 10 years from May 2010 through June 2020, [pictured, featured image]. As suggested by this sample, for the most part bitcoin has been uncorrelated to traditional asset classes and various stocks.”
This quality of bitcoin as an uncorrelated asset class has long been established now with this report also concluding “the correlations for each asset tend to center around zero, indicating little to no correlation.”
But then they look at other factors which an interested institutional investor might consider, like trading volumes. They say:
“Aggregated in different ways, bitcoin’s trading volume ranges from $200 million to $12.4 billion per day.
For a buy-side institution deploying fresh capital, U.S Dollar Markets on major exchanges is perhaps the most relevant. Given $200 million in daily trading, a buy-side institution limited to 10% of the volume could deploy roughly $20 million per day.
Including the major fiat currencies, however, bitcoin’s daily trading volume triples to $600 million, the U.S. dollar accounting for roughly half of the total.
Stablecoins more than triple bitcoin’s daily trading volume once again to $1.9 billion, thanks primarily to Tether. Adding cryptocurrencies to the mix increases trading volume by $700 million.
Finally, accounting for nearly 80% of the total, derivatives expand bitcoin’s daily volume more than five-fold to $12.4 billion, giving institutions limited to 10% of the volume an opportunity to deploy $1.2 billion per day.”
Bitcoin trading volumes are however small compared to an entire asset class like equities which handle about half a trillion a day with bitcoin’s trading volumes being more like that of a stock, higher than Google for example but lower than Facebook.
In addition, “bitcoin often is more liquid than the average publicly traded equity,” they say.
Then they analyze what all this means in their view regarding capital allocation in line with the modern portfolio theory.
“With hindsight, to construct a portfolio with bitcoin while maximizing the Sharpe Ratio or minimizing volatility at the efficient frontier, an investor would allocate between 0.27% and 6.55% to bitcoin,” they say. Looking forward:
“According to three 5-year simulations, each a function of bitcoin’s total addressable market (TAM) opportunities,
- 1% of TAM, or $1.1 trillion
- 5% of TAM, or $5.5 trillion
- 10% of TAM, or $11 trillion
…the suggested bitcoin allocations range from 0.03% to 26%.
Based on this analysis, investors seeking to minimize volatility would allocate between 0.03% and 1.28% to bitcoin.
Investors seeking to maximize Sharpe Ratio would allocate between 4.8% and 25.78% to bitcoin.”
A quarter of the portfolio is at the low end for many cryptonians, but for investment managers dealing with billions or even trillions, it sounds like the low end for the braver ones is 5%.
So general advice now perhaps should evolve to allocating between 1% to 5% of investable capital for maximum potential reward while minimizing potential risk.
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