The cryptocurrency market in the MENA region is constantly evolving, with new coins and tokens entering the market every day and a growing number of traders jumping on board to take advantage of the market’s volatility. As a trader, it’s important to stay up to date with the latest developments and identify the cryptocurrencies that offer the most potential for profit.
In this article, we will look at some of the top cryptocurrencies to watch in the local region. If you are interested in opening an account to start trading, you can visit Saxo Bank UAE. Without further ado, let’s get started.
Bitcoin (BTC)
Bitcoin is the world’s first and most well-known cryptocurrency, and it comes as no surprise to the financial world that it is one of the top currencies traders should keep an eye on in the MENA region. It has a market cap of over $1 trillion and has been steadily gaining mainstream acceptance since its conception over a decade ago.
In the MENA region, Bitcoin is widely accepted as a form of payment and is supported by a number of exchanges and wallets. This is due to the coin’s nature of there not being any intermediaries in its exchange, meaning traders and Bitcoin holders can use the digital currency to purchase goods and services directly and anonymously, on a public ledger called the blockchain.
Ether (ETH)
Ether is the second-largest cryptocurrency by market cap and is widely regarded as the backbone of the decentralised finance (DeFi) movement. Therefore, it also comes as no surprise that Ether is one of the most popular cryptocurrencies in the MENA region.
Ether has a flexible design, and some traders consider it more versatile than Bitcoin because the former allows developers to create their own tokens and build their own decentralised applications on top of the Ethereum blockchain. In the MENA region, Ethereum is seeing increasing adoption as more businesses look to build decentralised applications on its blockchain.
Ripple (XRP)
Ripple is a cryptocurrency that aims to facilitate cross-border payments and it has a real-time gross settlement system, currency exchange, and remittance network created by Ripple Labs in 2012. The Ripple protocol enables secure, fast, and low-cost international money transfers, and it has partnerships with a number of banks and financial institutions in the MENA region. Therefore, traders widely regard it as a reliable and fast payment option, and it is quickly gaining popularity in the region.
Cardano (ADA)
Cardano is a blockchain platform that aims to provide a more secure and scalable environment for decentralised applications. It uses the Proof of Stake (PoS) consensus mechanism to validate transactions on its network. Charles Hoskinson, co-founder of Ethereum, launched the platform in 2017, and its use of peer-reviewed development processes ensures its security and reliability. It has a strong following in the MENA region and many traders view it as a promising investment opportunity.
Tether (USDT)
Tether is a cryptocurrency that was launched in 2014 with the goal of creating a digital token that was pegged to the value of the US dollar. It was created as a solution to the volatility of other cryptocurrencies like Bitcoin, which can experience large price swings in short periods of time. Tether’s value is intended to remain stable at one US dollar per token.
Tether operates on the blockchain, which is a decentralised ledger that records all transactions and is maintained by a network of computers around the world. The tether tokens are created when users deposit US dollars with Tether Limited, the company behind the cryptocurrency. The company then issues the equivalent amount of tether tokens, which can be traded and transferred like any other cryptocurrency.
Chainlink (LINK)
Chainlink is a decentralised oracle network that aims to provide reliable and secure data inputs and outputs for smart contracts on a blockchain. Built on top of the Ethereum blockchain, it uses a decentralised network of nodes to fetch and verify data from off-chain sources, such as APIs, data feeds, and traditional financial systems.
The Chainlink network operates on the LINK cryptocurrency, used to compensate node operators for their services. As a decentralised oracle solution, Chainlink has uses in a variety of industries, including finance, insurance, and supply chain management, to enable secure and reliable smart contract automation. It has seen increasing adoption in the MENA region and can be viewed as a promising investment opportunity.
How to start trading cryptocurrencies
If you are interested in trading cryptocurrencies, it is important to know where to start and what steps to take. In this article, we will provide you with some valuable tips on how to start trading.
Choose a cryptocurrency exchange
The first step in trading cryptocurrencies is to choose a reliable and secure cryptocurrency exchange. There are many exchanges available in the MENA region, so it is important to do your research and choose one that meets your needs.
Factors to consider when choosing an exchange include security, fees, user-friendliness, and available trading pairs. If you are a trader who also has other investments in different securities, it may be worth looking at your current brokerage account and seeing if they offer crypto trading so you can keep track of all your investments in one place.
Set up your account
Once you have chosen an exchange, the next step is to set up your account. This usually involves providing your personal information and completing the required verification steps. Some exchanges may require additional verification for higher account limits.
Fund your account
After your account has been set up and verified, you will need to fund it with fiat currency or cryptocurrency. This can usually be done through bank transfer, credit card, or other payment methods supported by the exchange. It is important to note that fees and processing times may vary depending on the payment method used.
Choose your cryptocurrencies
Once your account has been funded, you can start trading cryptocurrencies. You will need to choose the cryptocurrencies you want to trade, based on your investment goals and risk tolerance. Bitcoin, Ethereum, and Litecoin are some of the most popular cryptocurrencies to trade, but there are many others available as well.
Develop a trading strategy
It is important to develop a trading strategy before you start trading cryptocurrencies. This involves setting your investment goals, determining your risk tolerance, and deciding on the trading techniques you will use. You may want to use technical analysis, fundamental analysis, or a combination of both to make trading decisions.
Start trading
Once you have developed your trading strategy, you can start trading cryptocurrencies. It is important to monitor the market closely and make informed trading decisions based on your strategy. You may want to start with small trades and gradually increase your position as you gain more experience and confidence in your trading skills.
The bottom line
The MENA region offers a diverse and growing cryptocurrency market. By keeping an eye on the top cryptocurrencies mentioned above, you can stay ahead of the curve and position yourself for potential profits. However, it is important to take the time to research and understand the market before jumping in. Remember to always be mindful of your risk tolerance and to trade responsibly.
