Egypt's Bitcoin Investment Guide: Getting Started

Bitcoin usage is growing in Egypt, and there are several ways to invest in the cryptocurrency. There are several online exchanges available in the country, including Binance, Kraken, and Gemini, which are considered the most popular. These platforms allow users to buy, sell, and trade Bitcoin and other cryptocurrencies. Additionally, peer-to-peer marketplaces like Paxful and LocalBitcoins are also available in Egypt, offering diverse payment methods and connecting buyers and sellers directly. It is important to note that while investing in Bitcoin is becoming popular in Egypt, individuals should carefully research the exchanges, understand the risks, and stay informed about the latest trends and security measures in the cryptocurrency space.

Best exchanges to buy bitcoin in Egypt

Egypt is quickly establishing itself as a hub for cryptocurrency in the Middle East, with multiple exchanges catering to the growing local demand. The Central Bank of Egypt (CBE) oversees the operations of digital asset platforms, ensuring they adhere to national financial regulations.

Binance

Binance is the most popular Bitcoin exchange in Egypt with 170,000,000 users. It is one of the biggest and most innovative crypto exchanges, offering an impressive number of cryptocurrencies that you can buy, sell, and trade with low trading fees. Binance provides 2-factor authentication and offers both multi-signature wallets and cold storage options. It is considered one of the safest cryptocurrency exchanges on the market.

Kraken

Kraken is considered one of the safest bitcoin exchanges around. It provides cryptography-verified proof of reserve audits, which verify the total amount of cryptocurrency held by Kraken. The company appears to be well-capitalized and very safe to use. It has a vast global footprint, covering a majority of countries, and offers a wide array of payment options.

Gemini

Gemini is a digital asset exchange and custodian, founded in 2014 by brothers Cameron and Tyler Winklevoss, that allows customers to buy, sell, and store digital assets such as bitcoin and ether. It is regulated by the New York State Department of Financial Services (NYSDFS) and was also the first exchange to launch bitcoin futures contracts in December 2017.

BitOasis

BitOasis is the Middle East & North Africa’s (MENA) largest digital asset trading exchange, platform, and wallet service. The BitOasis platform allows you to buy, sell and trade your digital assets easily and securely. However, BitOasis is not transparent with their withdrawal fees, deposit fees, and BTC/fiat conversion rate.

Changelly

Changelly is a decentralized exchange (DEX) that empowers users to trade directly from their personal wallets, eliminating the need for any intermediaries. It offers a wide range of cryptocurrencies, low crypto-to-crypto exchange fees, and an intuitive user interface.

Cex.io

Cex.io is a time-tested British exchange with over 3 million users. It is a cryptocurrency exchange platform that allows users to buy and sell various digital assets and store them in their accounts. It offers a range of trading tools and features for both beginner and experienced traders, including a margin trading platform called CEX.IO Broker where users can trade commission-free.

Bybit

Bybit is Egypt's top cryptocurrency platform due to its comprehensive range of over 1,100 digital assets, a user-friendly interface, and alignment with local regulatory standards. It offers a diverse portfolio of over 1,100 digital assets to buy and trade on spot, futures, and options markets, providing its users with deep liquidity and up to 100x leverage on derivatives trading.

OKX

OKX is a top choice for institutional investors, equipped with advanced trading tools and a broad selection of over 300 cryptocurrencies. It supports multiple order types, including spot and futures markets with leverage options of up to 100x. The platform also offers an over-the-counter (OTC) desk service, strengthening its appeal to those with high-end investment strategies.

Other notable mentions include Paxful, LocalBitcoins, OKCoin, and Coinmama.

How to buy bitcoin anonymously in Egypt

Step 1: Register with a Platform or Exchange

To buy bitcoin anonymously in Egypt, you can use a decentralised platform or a peer-to-peer (P2P) exchange that does not require ID verification or Know Your Customer (KYC) processes. Pursa Exchange is one option that allows you to buy and sell bitcoin without registration or KYC. Other P2P exchanges available in Egypt include Bisq, Paxful, and LocalSwap.

Step 2: Choose a Payment Method

When buying bitcoin anonymously, you can use various payment methods that do not require ID verification. For example, Pursa Exchange allows you to trade bitcoin with Banque Misr, Payeer, or various other payment methods without ID verification. You can also use bitcoin ATMs, which often have minimal or no KYC requirements.

Step 3: Make the Purchase

Once you have chosen a platform and payment method, you can proceed with the bitcoin purchase. Keep in mind that different platforms and exchanges may have varying user interfaces and processes, so make sure to follow their specific instructions.

Step 4: Secure Your Bitcoin

After purchasing bitcoin, it is essential to withdraw it to your own secure personal wallet. Leaving your bitcoin on an exchange can pose a security risk as exchanges are often targeted by hackers. By storing your bitcoin in your personal hardware wallet, you can mitigate this risk and maintain control over your private keys.

Additional Considerations:

While buying bitcoin anonymously can provide privacy, it is important to be aware of the legal and regulatory landscape in Egypt. Egypt’s Dar al-Ifta, the primary Islamic legislator in the country, has issued a religious decree classifying commercial transactions in bitcoin as prohibited under Islamic law. Therefore, ensure you understand the legal implications and risks associated with buying and holding bitcoin in Egypt.

How to buy bitcoin with a credit/debit card in Egypt

To buy bitcoin with a credit or debit card in Egypt, you can use one of several well-known exchanges, including:

• Binance: The most popular Bitcoin exchange in Egypt with 170,000,000 users. It offers low trading fees, a wide range of cryptocurrencies, and is considered safe and beginner-friendly.
• Kraken: One of the "big three" cryptocurrency exchanges in the global market, alongside Coinbase and Binance. It is considered one of the safest bitcoin exchanges and offers three forms of payment.
• Gemini: Accepts users and payments from 64 countries and is considered one of the most secure cryptocurrency exchanges on the market. It is regulated by the New York State Department of Financial Services (NYSDFS).
• Paxful: One of the biggest peer-to-peer Bitcoin marketplaces globally, with zero buyer fees and over 450 payment options.
• Changelly: A user-friendly platform with two-factor authentication and an HTTPS security protocol. It has no geographical restrictions and allows users to exchange one cryptocurrency for another or buy using a bank card.
• LOBSTR: A trusted place to buy Bitcoin and other cryptocurrencies with no registration required. It offers low fees and is available in Egypt and 100+ countries.

When using these platforms to purchase Bitcoin with a credit or debit card, you will typically need to register and complete a Know Your Customer (KYC) verification process, which includes providing a photo ID. You may also need to provide a bank account or credit card to make fiat currency deposits. Keep in mind that buying crypto with debit and credit cards usually results in higher fees.

How to store bitcoin safely

Storing your Bitcoin safely is crucial to prevent theft or loss. Here are some detailed instructions on how to do so:

Understand the Different Types of Wallets:

• Hardware Wallets: These are physical devices that store your private keys offline, making them secure from hackers. Examples include Ledger, Trezor, and SafePal.
• Software Wallets: These are browser extensions or apps that can be convenient but are vulnerable to cyberattacks.
• Custodial Wallets: Crypto exchanges control these, and you don't have access to the private keys. They are convenient and often used by new crypto traders.
• Hot Wallets: These are connected to the internet and can be either custodial or non-custodial. They provide easy access to your crypto but are more susceptible to hacking.
• Cold Wallets: Offline wallets that keep your crypto secure but may be less convenient for frequent trading. Paper wallets were once a popular form of cold storage, but they are fragile and less user-friendly.

Choose the Right Wallet for Your Needs:

• Small Amounts of Crypto: An exchange wallet or mobile wallet may be sufficient for easy transactions, even though they are less secure.
• Large Amounts of Crypto: Consider storing the majority of your funds in a secure, offline hardware wallet (cold storage). Keep a small balance in a hot wallet for quick transactions.
• Diversification: Diversifying your storage methods can reduce the risk of losing everything. You can use a combination of hot and cold wallets or multiple hot and cold wallets for different purposes.

Best Practices for Storing Your Crypto:

• Security: Choose platforms or devices with robust security features like two-factor authentication.
• Costs and Limits: Consider the fees, withdrawal limits, and the cost of the wallet itself.
• Recovery and Insurance: Understand the wallet's recovery options, such as seed phrases or backup methods. Some wallets offer insurance against hacking or robbery.
• Usability: Opt for a platform or device with a user-friendly interface that is easy to navigate and understand.

Additional Security Measures:

• Never Share Your Private Keys: Keep your private keys and seed phrases secure and don't store them on devices connected to the internet.
• Beware of Scams: Be cautious of phishing emails, social media scams, and fraudulent investment opportunities.
• Backup Your Wallet: Create backups of your wallets and educate yourself on the mechanics of your chosen wallet to minimise the chance of user error.
• Multi-Signature Wallets: Consider using multi-signature wallets, which require multiple keys from different geographical regions, making it harder for attackers to access funds.

Remember, there is no one-size-fits-all solution, and your storage method should align with your risk tolerance and investment goals. Always do your research and stay informed about the latest security measures and threats in the crypto space.

Is bitcoin legal in Egypt?

In 2018, Egypt's primary Islamic legislator, Dar al-Ifta, issued a religious decree classifying commercial transactions in Bitcoin as haram (prohibited under Islamic law). This decree stated that cryptocurrencies could damage national security, central financial systems, and could be used to fund terrorism. However, it is important to note that this declaration is a non-binding legal opinion.

Following this, in January 2018, the Central Bank of Egypt (CBE) issued a warning against the trading of cryptocurrencies due to the extremely high risk associated with them. The Bank asserted that only official paper currencies approved by the Bank are permitted for commerce within the country.

However, the landscape started to shift in 2019. That year, the CBE announced it was working on a draft law that would ban the creation, trading, or promotion of cryptocurrencies without a license. This statement marked a change in the CBE's outlook on digital currencies.

In 2020, the Egyptian Parliament enacted the Central Bank and Banking Sector Law No. 194 of 2020, which introduced several technological and digital means to support the digital transformation of the banking and financial sector. This law gave the CBE extensive control over digital currencies and directly affected the legitimacy and operations of cryptocurrency mining and trading.

While there have been some legal hurdles and complexities surrounding cryptocurrency in Egypt, it appears that the country is moving towards a more regulated approach rather than a complete ban. As of 2019, cryptocurrencies are legal in Egypt, and Bitcoin is growing in popularity.

Frequently asked questions