The world of cryptocurrencies is expanding larger, and it’s offering compelling opportunities for those seeking alternative channels to invest, save, and build wealth. In Saudi Arabia, the use of digital money is more and more on the increase, specifically among young entrepreneurs, tech enthusiasts, and farsighted investors. If you’ve ever been curious about crypto trading but didn’t know where to begin, this book will walk you through the basics step by step without technical jargon or complicated strategies.
Table of Contents
What Is Cryptocurrency Trading?
In its simplest explanation, cryptocurrency trading is buying and selling digital currency (also known as cryptocurrencies) to make a profit. Cryptocurrencies such as Bitcoin, Ethereum, and others have decentralized platforms made using blockchain technology, which has given them transparency, security, and peer-to-peer transactions without the need to use banks.
Crypto can be exchanged in various ways:
- Spot Trading: Selecting a coin and hoping for its price to go up.
- Day Trading: Trading a few times a day, profiting from price changes.
- Swing Trading: Keeping coins for a week or days based on trends.
- Long-Term Investing: Keeping coins for months or years hoping for higher returns.
For new Saudi Arabian investors, long-term investment or spot trading is generally the easiest and most convenient way to begin.
Read more: How to Read a Crypto Chart Like a Pro Even If You’re New
Is Crypto Legal in Saudi Arabia?
Saudi Arabia has been cautious but not negative about cryptocurrencies. While crypto is not recognized as legal tender, the government has not prohibited trading. Instead, regulatory bodies like the Saudi Central Bank (SAMA) and the Capital Market Authority (CMA) have emitted warnings about the risks of investing in uncontrolled markets.
Despite this, nationals are legally allowed to use and access international crypto platforms, and the country is keen to leverage blockchain technology via such projects as the “Aber Project,” a collaborative digital currency venture with the UAE.
The bottom line: Cryptocurrency can be traded in Saudi Arabia, but one should select platforms that are compliant with local compliance protocols and are very secure.
Step 1: Learn the Basics Before You Invest
Before diving in, take the time to learn the fundamentals:
- What is blockchain?
- How do different coins work?
- Why do prices go up or down?
- What are wallets, and how do they work?
There are many beginner-friendly resources online in the form of articles, YouTube channels, and podcasts. Attempt to begin with well-known coins like Bitcoin (BTC) and Ethereum (ETH) before venturing into unknown coins.
Remember: As with all investments, risks exist. The better informed you are, the more confident your decisions will be.
Step 2: Choose a Reliable Crypto Exchange
A cryptocurrency exchange is a site where you can buy, sell, and store cryptocurrencies. Some of the most user-friendly and popular exchanges available to Saudi Arabia are:
- Binance: Huge selection of coins, advanced tools, and low fees.
- Crypto.com: User-friendly app with built-in wallet and Visa card functionality.
- OKX: Feature-packed on trading with a simplified interface for beginners.
- BitOasis: UAE-based exchange aimed for the MENA region and accepts AED and SAR.
- Bybit and KuCoin: Middle-level trader friendly, yet still accessible for beginners.
When choosing an exchange, look for:
- Security measures such as 2FA and cold storage.
- User friendly interface on mobile and desktop.
- Well-stated fees that are not concealed within a trading fee.
- Customer support is good and multilingual.
Be sure to register only on official websites and not via social media or suspicious emails.
Step 3: Set Up a Secure Crypto Wallet
After buying crypto, you’ll need a wallet to store your digital assets. While exchanges offer built-in wallets, it’s recommended to also have a personal wallet for better security.
There are two main types of wallets:
- Hot Wallets (Online) – MetaMask or Trust Wallet applications are easy to use but connected to the internet.
- Cold Wallets (Offline) – Devices like Ledger or Trezor offer the highest type of security by keeping your money offline.
Hot wallets will do for starters, but when your portfolio expands, try converting to a cold wallet.
Step 4: Fund Your Account Safely
Most platforms have multiple funding options:
- Bank Transfers (SAR or USD)
- Debit/Credit Cards
- Peer to Peer (P2P) Trading
P2P trading platforms like Binance P2P allow you to buy crypto directly from other users through local bank transfers. Always make sure you investigate the rating and transaction history of the seller first before proceeding.
Avoid paying strangers on WhatsApp or Telegram, even if they pose as “crypto experts.” Stick to verified platforms so your money is safe.
Step 5: Make Your First Trade
Once your account is funded, you can place your first trade. Let’s say you want to buy Bitcoin:
1. Go to the “Buy” menu of your exchange.
2. Enter the amount in SAR or USD.
3. Place the transaction.
And there you go. You now own a fraction of Bitcoin.
You don’t need to buy a whole Bitcoin, as that’s quite expensive. Most exchanges allow you to buy even a small fraction, such as 0.0001 BTC.
Keep in mind that crypto markets are open 24/7, unlike the conventional stock markets.
Step 6: Track Your Investments
Monitor your assets with portfolio trackers or on your exchange platform. Most apps have real-time charts, historical, and alert features. It enables you to make intelligent choices on when to buy more, sell, or just hold on.
Some software to use:
- CoinMarketCap: Price monitoring and market data.
- CoinGecko: Great for monitoring coin performance and market ranking.
- TradingView: Charting platform used by most traders for technical analysis.
Even if you’re not actively trading every day, it’s good to stay updated on market movements and global news.
Step 7: Keep Learning and Avoid Scams
Crypto trading is a process, not a one-time thing. Trends change, and new coins are emerging constantly. Knowledge is your friend.
How to stay current with your education:
• Educational YouTube channels.
• Subscribe to credible newsletters like CoinDesk or The Block.
• Join forums and communities; just be careful of whose advice you follow.
Also, be careful of:
• Schemes for guaranteed profit
• People who have secret strategies
• Random messages on social platforms
Always do your research before investing in any project.
Step 8: Understand Taxes and Reporting
Saudi Arabia does not presently have special crypto taxes on private traders but will consider this as the world’s regulations evolve. It is always safest to have a personal record of your trades, such as:
• Amounts bought or sold
• Amounts and dates
• Platform used
This can come in handy if future legislation requires reporting or if you need to provide evidence of any transaction.
Consult a local financial advisor if you are investing in large sums or employing crypto as a business strategy.
Step 9: Build a Simple Trading Strategy
For beginners, here are three easy strategies to remember:
- Buy and Hold (HODL)
Purchase a coin and hold it in the long term, irrespective of short-term price fluctuations. - Dollar-Cost Averaging (DCA)
Invest a constant amount at periodic intervals (e.g. weekly or monthly), which removes the effect of volatility. - Trend Following
Watch the market trend (increasing or decreasing) and sell or buy accordingly but only after gaining some experience.
Avoid emotional decisions. Stick to your plan and do not invest money you cannot afford to lose.
Step 10: Protect Your Assets
Security comes first in crypto. This is how to keep your money safe:
• Use strong, unique passwords on each platform.
• Enable two-factor authentication.
• Keep not too much on exchanges.
• Never share your wallet’s seed phrase or private keys.
• Make sure your apps and devices are up to date.
If you ever have a breach or get scammed, report it immediately to the exchange’s support staff and move your money into a secure wallet.
Read More: How to Build a Trading Routine That Actually Works
Final Thoughts
Entering into crypto trading in Saudi Arabia can appear overwhelming to start with, but by seeking the right direction and cautious approach, it could be a worthwhile experience. The key is staying informed, starting small, and avoiding falling prey to shady schemes or hype investments.
As the Kingdom seeks to increasingly embrace digital transformation, remaining in harmony with crypto places you at the leading edge of a powerful financial revolution. With the passage of time, patience, and continued research, you’ll be better positioned to make informed decisions and step into opportunities available in this space with confidence.
Remember: The journey is more valuable than the destination. Go into it with wisdom and let wisdom lead you.