Is Cryptocurrency and Cryptocurrency Trading Halal or Haram?
Is Cryptocurrency and Cryptocurrency Trading Considered Halal or Haram in Islam?
While the holly Quran was giving by the gracious Allah to the holly prophet Muhammad many years before the invention of cryptocurrencies, we can still seek inside the wisdom of the holly book to better understand if the essence of cryptocurrency, and the actions of buying and trading cryptocurrencies is considered halal or haram. While we want to make money and profit, as a religous Islamic devotees we want to make sure that we always act according to Allah laws. Cryptocurrency can be also treated as Forex in Islam so there are ways to own and trade cryptocurrencies in a Halal way. We have done a research and can now clear all questions regarding it.
As the world is moving towards digitization, payment, and investment options are also changing rapidly. The biggest debate that is going on is whether cryptocurrency is Halal or Haram? As the world’s 25% of the population is Muslims, it becomes important to know this fact. If you are also planning to buy cryptocurrency, don’t worry, we have done the complete research for you.
If cryptocurrency and other altcoins are leveraged as a digital form of cash that will fulfill the job of a transaction is permitted in Islam. Just like cash, when you own the cryptocurrencies and use it to fulfill your requirement of the transaction is Halal in Islam and allowed as per the Sharia laws. According to pious Sharia laws, anything that is similar to cash and is being acknowledged by the public and government is perceived in Islam.
It is also very important that a follower of Islam should only purchase cryptocurrency and other altcoins from a Halal broker. At Halal Trading Brokers, we help you connect with only Halal cryptocurrency brokers that make sure you never fail in any pious Islamic and Sharia laws.
Coming back to Is Cryptocurrency Halal or Haram completely depends on how you use it — According to Islam, cryptocurrency is Sharia-compliant but you need to keep in mind the purpose behind using it.
Clearing the confusion for you — If you are leveraging cryptos just like normal cash, you are following a Halal way. And, on the other side, if you are using these cryptocurrencies to earn interest or riba then it’s considered as a Haram activity in Islam.
Riba is an unjustified profit or interest in borrowing or lending money as a condition imposed by the lender or itself done by the borrower. Riba is considered as a Haram and strictly prohibited in Islam.
If you are not spending your cryptocurrencies in gambling, alcohol or any unlawful activity stated by Sharia laws, it’s Halal for you. Let’s dig deeper into the concept of Halal cryptocurrency and Haram cryptocurrency to have a better understanding of it. You can get in touch with us using the contact form and we would be more than happy to help you out in getting started with these digital currencies.
What Is The Difference Between Halal Cryptocurrency and Haram Cryptocurrency
Cryptocurrencies are Halal as long as you are owning them with the intent of using it as a medium of transaction and fulfilling your daily purchasing needs. It is advisable and permitted as per the Sharia laws that you are utilizing the crypto networks as a standard payment system as it offers you benefits over using the traditional medium i.e fiat currencies.
Many Muslims in countries like Germany and Australia are taking their salary in the form of cryptocurrency and it’s completely in compliance with Sharia laws. As they will spend cryptocurrency as a replacement of cash, it’s not falling under any kind of riba. As long as you are not hoarding cryptocurrency to gain unjustifiable profits, dealing with cryptocurrency is permitted in Islam.
According to Islamic financial experts, it is suggested to use these cryptocurrency networks as a payment eco-system where the user will get specific advantages over conventional systems. As the traditional fiat currency’s rotation system is already violating Islamic laws of riba, it’s safe to use cryptos as a transaction medium and it’s Halal.
Coming to Haram cryptocurrency, there is a lot of difference from the Halal one in the context of how you are using it. If anyone is leveraging the cryptocurrencies as an investment platform for earning an unjustifiable interest is prohibited in Islam. It violates the Sharia laws that clearly state that taking riba is a sinful act.
Apart from this, if someone is hoarding cryptocurrency for earning interest from it is Haram in Islam. The Quran has warned us of hoarding money (also cryptocurrencies). It defines that “The Day when it will be heated in the fire of Hell and seared therewith will be their foreheads, their flanks, and their backs, [it will be said], “This is what you hoarded for yourselves, so taste what you used to hoard.”
Cryptocurrencies are Haram if you are using it for unlawful activities like gambling and other similar practices. Even if someone is using cryptocurrency for purchasing Haram products like alcohol, accessing pornography, or anything that violates Sharia laws are Haram and a Muslim should not practice it.
The Difference Between Halal Cryptocurrency Trading and Haram Cryptocurrency Trading
Cryptocurrency is Halal if you are adhering to pious sharia laws for spending and using it in your daily life. Halal cryptocurrency is like gold and silver as it fulfills the core requirement of the traditional monetary cycle. Islam considers Gold (dinar) and Silver (dirham) as the purest form of currency circulation.
As the paper currency is infinite and the government can print as much paper currency as they want, it doesn’t fit perfectly as per the Sharia laws. On the other hand, cryptocurrency like bitcoin are finite and only 21 million bitcoins will ever be produced, it complies with Islamic laws as long as they are used legitimately.
Many people confuse cryptocurrencies with gambling but it’s not. Bitcoins and other altcoins are only the replacement of the fiat currency and it’s not gambling unless it’s leveraged for gaining interest (Riba). When you own cryptocurrencies and have purchased from a verified Halal broker, you are abiding by the Islamic principles and Sharia laws. It’s strictly not allowed to purchase cryptocurrencies from an unverified broker who might trick you.
On the other side, the cryptocurrency is Haram if someone doesn’t own it and just practice trading on it. There is a lot of difference in owning cryptos and trading on it. Many unverified brokers trick a user by investing their money into such cryptos that are being traded in the market for gaining unjustified interest (Riba).
Cryptocurrency is considered haram if someone is used for investment or trading. You should be careful with what you are doing with your digital currencies. If you are leveraging them for gambling or investing in the stock market for earning profits is a sin and Sharia laws have defined it as haram.
Cryptocurrencies should not be treated as a platform for earning interests. Don’t fall in the trap of online brokers that trick you by offering a welcome bonus for registering on their platform and owning their cryptos. At Halal Trading Brokers, we review online cryptocurrency platforms and Hala brokers to make sure that Muslims only deal with Halal brokers all around the world. If you have any queries regarding cryptocurrencies or Halal brokers, fill the contact form and we would be very happy to help.
We Help You Connect With Halal Cryptocurrency Brokers
At Halal Trading Brokers, our team reviews every online cryptocurrency broker around the world to filter it for you. We are a team of religious people just like you and abide by the Sharia laws are of high importance to us. If you are new to cryptocurrencies and thinking to own them for your use, we are here to help you out.
As a customer, it’s obvious to feel overwhelmed by the online available cryptocurrency options. It becomes important to review the broker before you buy crypto from that platform. But don’t worry, we are on a constant search for the best Halal platforms for you. Fill the contact form and we will connect you with only Halal cryptocurrency brokers that let you own and use cryptos like any other fiat currency.
It’s vital to improvise with the ongoing trends and cryptocurrencies are one of them. If you are planning to use these digital currencies like the other fiat paper currencies, it’s Halal and you are not violating any Islamic money principle. In many contexts, cryptos are considered superior to traditional paper money because of their nature.
We have done our in-depth research on finding the best Halal cryptocurrency brokers all around the world and we would be more than happy to connect you with them. Fill the contact form and our professional team will guide you through.
Is crypto Halal or Haram completely depends on how you use it. If you are not hoarding it or leveraging it for any unlawful activities like gambling, it’s Halal. It’s safe to buy cryptocurrencies but from only verified Halal brokers. Contact us now and we will help you with Halal cryptocurrencies.