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Is Investing in Cryptocurrency Haram or Halal?

We hear a lot about different Cryptocurrencies such as Bitcoin, Ethereum, and Dogecoin. This has many Muslims who are eager to invest in Crypto wondering whether investing in cryptocurrency is Halal or Haram?

Islamic Scholars Opinion on Cryptocurrency

Since cryptocurrency is relatively new, some scholars are still hesitant to give a direct fatwa as to it being Halal or Haram. On the other hand, some scholars were quick to jump on the bandwagon of labeling it as Haram.

The main reasoning these scholars consider Cryptocurrency Haram is as follows: Islamic laws and principles encourage dealing with actual physical assets and real economic activity instead of monetary speculation.

Why Cryptocurrency Has Not Been Officially Declared as Halal

The main reason early scholars labeled cryptocurrency as “not halal” is its risk and vulnerability to manipulation.

There are over 7,000 different cryptocurrencies available today and the number keeps growing. Unlike investing in stocks, the prices of cryptocurrencies are dependent on many factors like Volume and Circulation, but much of it is based on speculation.

Some cryptocurrency companies are looking for ways around the issue of speculation and a more compatible method for Muslims to enter the market, such as OneGram.

­­Is Cryptocurrency Halal in Muslim Countries?

Saudi Arabia does not consider cryptocurrencies as not halal but warns its citizens about the risks of investing in them.

Other countries, such as the UAE and Malaysia have issued their own cryptocurrencies which are backed by physical gold. An example is the OneGram cryptocurrency by the UAE which is available here on Binance.

Is Dogecoin Halal?

While there isn’t anything Haram behind Dogecoin, investing your money may not be permissible. Dogecoin was started as a joke or meme coin and its value was mainly speculative.

However, with its growing popularity and celebrity status, the team at Dogecoin has started developing an actual purpose for the coin. Most recently, Dogecoin has been accepted as payment for fees and as a bridge for ETH. This may change the opinion of many scholars to consider Doge to be halal.

Where Can You Buy Dogecoin?

You can buy DOGE with a Binance account. If use my referral link, you will be eligible for 10% off fees whenever you trade on Binance.