Complete guide to Crypto for Muslims

Investing in crypto - halal or haram?

Is crypto investing halal?

Many people do not look at crypto as currencies. Instead, they are interested in investing for the long term in certain crypto projects for the technology and use case of that particular project.

Our view is that investing in crypto is halal as long as the project itself is halal.

There is some nuance when it comes to analysing which cryptos are halal and the different opinions that are held. You can check out a more detailed article here on the permissibility of crypto. We also have an article covering the differing views of the permissibility of crypto.

We have also compiled a table of the major coins, including altcoins, and whether or not they are halal which you can find at the bottom of the page.

How much should you invest in crypto?

Whenever you invest, you should ask yourself about the risk levels associated with that investment. Crypto sits in the high risk column of investments. 

As with anything which is high risk, you need to be comfortable with the fact that your investment may significantly underperform and you could be sat on losses of 70% or more. On the flip side, if your investment pays off, crypto has shown that you can make lucrative returns of 10x or more.

The key thing when decided how much to invest in crypto is to only put an amount that you would be comfortable losing. That way, even if you come up against a turbulent time in crypto, you can ride it out over time or simply sell and accept your reduced capital.

Where to get started investing in crypto

If you've decided that you want to invest in crypto, you will need to open an account with a crypto exchange. These work in a similar way to online stocks and shares platforms but instead of buying and selling shares, you buy and sell crypto. 

There are platforms such as Revolut or Paypal which will allow you to transact certain crypto coins. There are also other specialists brokers, such as Coinbase and Binance, that will allow you to trade a wider variety of coins.

Here's our crypto broker comparison article.

Is crypto trading halal?

Unlike investing, trading involves the short-term buying and selling of crypto. As long as you are taking ownership of the digital asset itself, short-term trading is perfectly halal.