Halal Cryptocurrency Guide

Cryptocurrency, Bitcoin, Ethereum and Ripple are now established investment products. But as these assets are so new, Muslims have a whole series of questions around them both from an Islamic perspective but also a commercial perspective.

In this detailed guide (which we will add to live) we will cover off all the big question on this topic. Each of the links below refers to a detailed article that we have done to address that question.

Zakat on Crypto is a topical question. You can calculate your zakat on crypto here plus you get a free portfolio health check too.

Halal Crypto List

We have also screened the top 50 cryptocurrencies (by market cap) here. We provide our sharia screening analysis for them as well.

If you have a question that hasn’t been covered below, you can ask our Muftis on the IFG Fatwa Forum.

By the way – we’re launching an IFG Crypto Course with a mufti.

Sign up to the waitlist below.

Introduction to Cryptocurrency & Key Definitions

  1. What is blockchain and what are its uses?
  2. How does blockchain work?
  3. What is a cryptocurrency?
  4. What is bitcoin?
  5. What is an initial coin offering (ICO)?
  6. Major cryptocurrencies
  7. A list of sharia-certified cryptocurrencies

Islamic Issues with Bitcoin and Cryptocurrency

  1. Is bitcoin halal?
  2. Are cryptocurrencies halal?
  3. Is bitcoin or other cryptocurrencies really currency?
  4. Scholars who say crypto is haram or halal
  5. A fatwa comparison on bitcoin
  6. Are ICOs halal?
  7. Is bitcoin mining halal?
  8. Is Crypto Staking Halal?
  9. How can I make halal yield on crypto?

Commercial & Investing Issues with Bitcoin and Cryptocurrency

We will be doing detailed articles on each of these topics, but for now we share our high level thoughts below under each heading.

  1. How can I invest in blockchain?
    – Cryptocurrencies (obviously)
    – Stocks of companies that are investing properly in blockchain
    How to Invest in Cryptocurrencies in an Islamic Way
    How to get Exposure to Crypto through the Stock Market
    How to earn yield/stake on crypto
  2. How can I invest in cryptocurrencies?
    Coinbase and Binance are the two most reputable brokers out there. And you want to use a reputable broker for this stuff. We have created a halal crypto list of the top 50 coins here. See also How to Invest in Cryptocurrencies in an Islamic Way
    and How to get Exposure to Crypto through the Stock Market
  3. How can I invest in bitcoin? 
    Coinbase and Binance are the two most reputable brokers out there. And you want to use a reputable broker for this stuff. We have created a halal crypto list of the top 50 coins here. See also How to Invest in Cryptocurrencies in an Islamic Way
    and How to get Exposure to Crypto through the Stock Market
  4. What is the halal way to invest in bitcoin and other cryptocurrencies?
    Make sure that the cryptocurrency or token you are investing in is halal. You can do that by consulting with our muftis on the IFG Forum, or by consulting our halal crypto list of the top 50 coins here.See also How to Invest in Cryptocurrencies in an Islamic Way
    and How to get Exposure to Crypto through the Stock Market
  5. Is bitcoin a bubble?
    We think that is incredibly hard to say right now as two competing trends are colliding: (1) there is insane bubbly ordinary-investor-piling in shenanigans going on which suggest a bubble; and (2) Bitcoin and crypto is going mainstream and it is very clear it is hear to stay and will likely form an integral part of the technological future that lies before us.(2) suggests that (1) is rational, but, well, (1) is pretty crazy right now. Long term we are bullish on bitcoin, but we do not think it should form a massive part of your overall portfolio for three reasons:
    a. it is high risk and high reward
    b. it is fundamentally not a very “impactful” or “useful” asset. It is not like a company or a property that actually does something productive for the world.
    c. you should have a diversified portfolio. Not financial advice, but perhaps a 5-15% allocation of your overall portfolio is sensible.
  6. Is it a good idea to invest in cryptocurrencies?
    A small amount in crypto is not going to hurt anyone. We think its a nice additional diversification to a portfolio and hedge against the future too. If you do invest, we’d suggest investing in a basket of cryptocurrencies as right now it is unclear which the clearly dominant currency is.
  7. Alternatives to bitcoin and crypto
    Bitcoin/crypto is a high-risk high-reward investment. See this guide to these kind of investments and what other options are available out there.In particular, we do recommend you check out venture capital investing in early-stage technology startups. You can learn about this investment class for free on our Ultimate Startup Course and you can hear about cool investment opportunities in this space when you join our angel investor syndicate: IFG.VC.
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