Cryptocurrency

The Temptation of Quick Gains vs. The Guidance of Faith

In today’s fast-paced financial world, many Muslims ask an important question: Can we earn from market declines without disobeying Allah? The idea of making money when prices fall sounds clever, but in Islam, not every clever trick is pure or permissible. We live in an era where trading, cryptocurrency, and digital markets attract millions. Yet, for believers, the real challenge is not about profit alone but about earning halal income that pleases Allah and avoids harm.

At Islamic Donate Charity, we meet people daily who wish to invest ethically while staying faithful. They want clarity about what is halal, what is haram, and how to align financial actions with Islamic values. This article explains how short position trading works, why it is not halal, and how you can choose a halal alternative that builds both wealth and spiritual growth.

What Is a Short Position Trade and How Does It Work?

Imagine you believe the price of an asset will drop. In the conventional market, a trader can profit from that fall through what is called a short position. Here’s how it typically works:

  • You borrow an asset, such as a stock or cryptocurrency, from a broker.
  • You sell it immediately at the current market price.
  • You wait, hoping the price will go down.
  • When it drops, you buy it back at the lower price.
  • You return the borrowed asset and keep the difference as profit.

At first glance, this looks like a smart move. You are gaining from a market decline without owning the asset. However, that’s exactly where the problem begins.

In Islam, a person cannot sell what they do not own. The Prophet Muhammad ﷺ clearly prohibited such transactions.

Prophet Muhammad ﷺ said: “Do not sell what you do not possess.” (Abu Dawood, Tirmidhi)

In short selling, ownership never transfers to the trader. You borrow, sell, and repay but never truly possess. The profit may look real on paper, but spiritually, it comes from an impermissible structure.

Why Short Selling Is Haram: A Closer Look at the Islamic Ruling

The Islamic ruling on short selling is clear: in its conventional form, it is haram. The reasons are both legal and ethical, based on the principles of Sharia.

  1. Selling Without Ownership: In a short sale, the trader does not actually own the asset being sold. Islam forbids selling something that does not belong to you. Ownership is a sacred condition in trade. You can only sell what you possess and control.
  2.  Riba (Interest): Short selling usually involves borrowing the asset or using a margin account, which leads to interest (riba) because you do not ownership it and you have borrowed it. Any transaction tied to interest is forbidden. Allah says in the Qur’an, “Allah will deprive usury of all blessing, but will give increase for deeds of charity.” This verse reminds us that even if interest seems profitable, it brings no true blessing.

💡Some people may wonder if short trading is similar to buying and selling currencies or tokens. After all, we buy a cryptocurrency and sell it later at a higher price. So, what makes shorting different? This is exactly where the distinction lies. When you own a cryptocurrency, it truly belongs to you, and you have full control over it. However, in a short position, you do not own the asset. You have borrowed it and are obligated to return it, which forces you into the transaction. In contrast, ownership gives you freedom. You are not compelled to sell your asset unless you choose to, because it is genuinely yours.

Islam’s financial system promotes fairness, honesty, growth and not harm. Short selling often reflects betting against others’ success, while Islam encourages productive, cooperative trade.

Is There a Halal Way to Trade Short Positions?

Quick Answer: No. But you can use the alternative: swing trading.

Many modern scholars have explored whether a structure could exist that allows Muslims to “benefit from falling markets” without violating Islamic principles. While some advanced institutional solutions use special Sharia-compliant contracts such as Wa’d or Salam, these are complex and mainly available to Islamic banks or large investors, not ordinary traders.

For most Muslims, the simplest and most ethical path is to avoid short selling altogether and instead focus on halal trading strategies that promote real ownership and fair risk-sharing.

So, if you’re wondering how to protect your capital or benefit from price movements without falling into haram territory, we have a practical suggestion: swing trading.

The Halal Alternative: Swing Trading in Spot Markets

Swing trading is a Sharia-compliant alternative that allows you to profit from market fluctuations while maintaining ownership and integrity. It means buying an asset at a lower price and selling it at a higher price after a few days or weeks.

Here’s why swing trading aligns with Islamic values:

  • You Own What You Trade: You buy the asset outright in spot mode, so you truly possess it before selling.
  • No Borrowing or Interest: You use your own capital, avoiding margin accounts or interest-based borrowing.
  • Halal Intent and Risk: You engage in genuine business risk, not gambling or deceit.
  • Encourages Patience: You wait for market trends, cultivating discipline and trust in Allah’s plan.

The more you focus on halal ownership and ethical decision-making, the more barakah (blessing) enters your wealth. Swing trading may not bring instant fortune, but it brings peace of mind and lawful growth.

At Islamic Donate Charity, we remind our brothers and sisters that success is not only about numbers, it is about purity. Our mission goes beyond financial education; it embraces the call to earn and spend wealth in ways that bring benefit to the Ummah.

How do I make the haram money I earned from short trading halal?

If you, as a Muslim, have participated in this type of transaction without knowing it was haram, Islamic Shariah provides clear guidance on what to do.

You must donate the profits from such transactions to charity, with the intention of give Sadaqah for the sake of Allah. Many Muslims who have unknowingly earned haram income reach out to us for help. We discuss their situation and provide them with proper Islamic guidance. You can be assured that our Islamic scholars possess deep knowledge of Shariah laws related to cryptocurrency.

Now that you are aware of the ruling, you can purify your wealth by giving the money gained from haram crypto transactions as Sadaqah to help the poor and needy:

Cleaning Haram Money

Ethical Reflection: The Purpose of Islamic Finance

The heart of Islamic finance is not just technical compliance; it is ethical alignment. Short selling often reflects betting against others’ success. Islam encourages believers to build wealth through cooperation, fairness, and productive trade.

From the farmer who plants a seed to the trader who sells with honesty, every halal effort builds a bridge between the dunya and the akhirah. The goal is not only to avoid sin but to earn Allah’s blessing through ethical action.

When we engage in halal trade, we don’t just protect ourselves, we strengthen the community. When we give from halal wealth, we multiply the blessings of charity. That’s why Allah says in the Qur’an:

“Allah will deprive usury of all blessing, but will give increase for deeds of charity.” (Surah Al-Baqarah 2:276)

This verse reminds us that sustainable wealth comes not from manipulation, but from honesty and charity.

Choosing Faith Over Speculation

The modern world offers countless ways to make money, but not every opportunity is a blessing. As Muslims, we must remember that halal income is not measured by speed, but by sincerity. Short selling may look profitable, but it crosses ethical lines that Islam forbids.

By choosing swing trading and other halal investment methods, you honor your faith, protect your soul, and support a system rooted in fairness and compassion. You not only earn money, You earn barakah.

At Islamic Donate Charity, we believe every Muslim deserves to build wealth with dignity, free from riba and deceit. Together, we can help one another walk the path of halal trade, strengthen our Ummah, and turn honest income into powerful acts of charity.

Because in the end, the more we trade with integrity, the more Allah blesses our efforts.

Cryptocurrency

Fraud Prevention & Scam Alert Policy

Islamic Donate Charity

1. Purpose

The purpose of this policy is to protect our donors, beneficiaries, and supporters from fraud, scams, and misinformation related to cryptocurrency and digital donations. At Islamic Donate Charity, we are committed to operating with transparency, accountability, and full compliance with Islamic principles.

2. Scope

This policy applies to all:

  • Donations made to Islamic Donate Charity.

  • Official communications on our website, social media, and other platforms.

  • All staff, volunteers, partners, and representatives acting on behalf of Islamic Donate Charity.

3. Our Position on Cryptocurrency

In line with our 100% donation policy and Islamic guidelines:

  • No Coins or Tokens: Islamic Donate Charity has never created, does not create, and will never create any cryptocurrency coins or tokens on any blockchain network.

  • No Endorsements: We do not endorse, promote, or support any blockchain network, cryptocurrency token, or digital asset.

  • No Monetization: We do not engage in trading, monetizing, or profiting from cryptocurrencies. All accepted crypto donations are directly converted into charitable aid, with no speculative activity.

  • 100% Donation Integrity: All donations, whether in fiat or crypto, are applied fully to charitable causes in accordance with Islamic law.

4. Fraud & Scam Risks in Cryptocurrency

Unfortunately, scammers and profiteers often misuse the name of charities to deceive donors. Common tactics include:

  • Creating fake tokens or coins claiming to represent Islamic Donate Charity.

  • Promoting fraudulent “investment opportunities” in the name of our charity.

  • Fake social media accounts or websites impersonating our official presence.

This is one of the examples that scammers have created, and we have reported it as a scam and a violation: (We prevent providing names and addresses because this, unfortunately, can be considered advertising for these scammers.)

Scam Alert Policy Creating a Scam Token for Fraud Beware of scammers

Islamic Donate Charity categorically denies any involvement in such schemes.

5. Our Islamic & Ethical Commitment

  • Shariah Compliance: All our financial practices are in strict alignment with Islamic laws, ensuring transparency, honesty, and amanah (trust).

  • No Riba or Speculation: We reject any form of riba (interest), gambling, or speculative activity in our operations.

  • Donation Purity: Donors’ contributions are amanah (a trust), and we are accountable before Allah (SWT) to ensure every donation reaches the Fuqara (needy) without dilution.

6. Authentic Channels

To safeguard against fraud, please note:

  • Our official donation addresses are only published on our verified website and official social media pages.

  • We do not send private investment invitations(Email, SMS or any Message) or promote external platforms.

  • Any communication outside these channels should be treated as fraudulent.

7. Donor Guidance

We strongly advise all donors and supporters to:

  • Always verify our official donation addresses before sending funds.

  • Never trust individuals or platforms claiming to represent us without confirmation from our verified channels.

  • Report any suspicious activity immediately to our official support team.

8. Zero-Tolerance Statement

Islamic Donate Charity maintains a zero-tolerance policy toward fraud and impersonation. Any attempt to misuse our name, logo, or reputation for financial gain will be reported to relevant authorities and pursued with full legal action.

9. Policy Review

This policy will be reviewed regularly to ensure it remains aligned with:

  • International charity best practices.

  • Islamic legal principles.

  • Evolving risks in cryptocurrency and digital fraud.

Cryptocurrency

Why Hunger Action Month Matters: How Your Crypto Donation Can End Silent Suffering

September is more than just the start of autumn. It is Hunger Action Month, a powerful reminder that millions of families still struggle to put food on the table. Imagine the heartbreak of choosing between buying medicine for a sick child or preparing a simple meal. No family should ever face such a choice. Together, we can change this.

At Islamic Donate Charity, we dedicate ourselves to feeding the hungry and serving those who cannot meet their most basic needs. This September, we invite you to take action with us. Your support, whether visible or through an anonymous donation, can make the difference between hunger and hope.

What Hunger Action Month Stands For

Hunger Action Month is not just a campaign; it is a movement. The orange color that represents this month is more than a shade. It is a symbol of courage, unity, and community strength. When you see orange, you see resilience, compassion, and the will to fight food insecurity.

We wear orange and encourage others to Go Orange because it sparks conversations. It pushes us to reflect on the silent suffering around us. Hunger often hides in plain sight. Many hardworking families look fine on the outside, but behind closed doors, cupboards are empty and children go to bed without a meal.

When you participate, you are not only wearing a color. You are declaring: I stand against hunger. I refuse to let poverty steal dignity from families.

Why Crypto Donations Are a Game-Changer in Fighting Hunger

Today, technology gives us new opportunities to help. By donating through cryptocurrency, you can support hunger relief in a fast, secure, and borderless way. You do not need to worry about banking restrictions or international barriers. With one transaction, your gift can cross continents and reach someone who needs it most.

Even more, crypto donations allow you to stay private. If you want to be a silent donor who gives in secret, crypto makes that possible. You can donate anonymously, with no names or faces attached, while still saving lives. Islam teaches us the beauty of giving quietly, where only Allah knows your intention. Cryptocurrency empowers you to embody that principle.

Join Hunger Action Month

At Islamic Donate Charity, we provide a clear donation wallet address so that you can give with ease. Every coin, every token, every contribution brings food, medicine, and essential services closer to families in crisis.

The Power of Anonymous Giving

Some of the most impactful donors in history have been those who chose silence. They gave without seeking praise, recognition, or reward. They gave simply because they wanted to ease suffering.

By becoming a hidden helper, your crypto donation carries the essence of true charity. It transforms into hot meals for families who have not eaten in days. It becomes clean water in refugee camps. It becomes medicine for children too weak to walk.

Anonymous donations are not just transactions. They are acts of faith, compassion, and humanity. When you give in secret, you let your charity speak louder than words.

How You Can Take Action This September

Hunger Action Month is your opportunity to step forward. You can:

  • Wear Orange to raise awareness and show solidarity.
  • Share the message with your family, friends, and community.
  • Give through cryptocurrency, whether openly or anonymously, to provide direct relief to those in need.

Together, we can make September the month when hunger loses its grip on countless families. Every single act of kindness adds up to a brighter, stronger, and more compassionate world.

Final Call to Action

This Hunger Action Month, let us not only wear orange but also live its meaning. Let us be the hands that serve, the hearts that give, and the voices that refuse to remain silent.

Your crypto donation whether anonymous, secret, or open, can fill empty plates, light up dark homes, and bring comfort to those who have been forgotten.

Join us today at Islamic Donate Charity. Give from your heart. Give with faith. Give with the power to end hunger.

CryptocurrencyFood and NutritionIbadah / Acts of WorshipWhat We Do

A New Chapter in Anonymous Charity Giving: Embracing True Decentralization and Private Charity

As part of our ongoing mission at Islamic Donate Charity, we are thrilled to announce that we now accept donations through the Monero (XMR) network. This decision wasn’t random–it came at the heartfelt request of our crypto donors who value privacy, freedom, and direct impact. In a world increasingly dominated by surveillance and red tape, XMR shines as a beacon of decentralization and anonymous giving.
But why does this matter? Why did so many of our generous supporters ask for Monero specifically? And what makes decentralized and anonymous donations so important for an Islamic charity like ours?

Let’s dive deep together and answer these questions.

What Is Decentralization–and Why Should You Care?

Decentralization means that there’s no single authority or intermediary controlling your transactions. It’s the opposite of centralized systems–like traditional banks or government-regulated charities–where your identity, your funds, and even your intentions can be monitored, blocked, or restricted.

Monero (XMR), like Dai (DAI), is built for freedom. It offers a private and decentralized environment where your donation goes directly to us–without KYC requirements, without linking your wallet, and without exposing your identity.

When you donate using decentralized cryptocurrencies, you take control. No gatekeepers. No permissions needed. Just your intention and your sadaqah, reaching the people who need it most.

For us as an Islamic charity, this aligns beautifully with the values of sincerity and discretion in giving. As the Qur’an reminds us, charity done in secret purifies the soul. Through decentralized networks, we enable that purity–especially when helping the poor, the displaced, and those suffering in conflict zones.

Why Monero (XMR) Is the Best Tool for Anonymous Donations

Monero isn’t just another coin–it’s designed for privacy from the ground up. Unlike Bitcoin or Ethereum, where transactions can be traced and identities inferred, XMR shields every part of the transaction: sender, receiver, and amount.

This makes Monero a powerful tool for those who want their giving to remain between themselves and Allah. It’s perfect for donors who:

  • Do not want to connect a wallet
  • Do not want to go through centralized platforms
  • Want full privacy and control
  • Believe that charity should not require personal disclosure

Your zakat, sadaqah, or qurban with Monero can be entirely anonymous, yet just as impactful. That’s what we call “private charity”–and it’s something we are proud to offer now.

Other Powerful Decentralized Networks: More Than Just Monero

While Monero is our newest addition, we’ve long supported other decentralized networks. For example:

  • DAI Stablecoin: A dollar-pegged currency that is governed by a decentralized system. Unlike USDT or USDC, which are controlled by centralized institutions, DAI gives you freedom from traditional finance while keeping value stable.
  • Bitcoin (BTC) and Ethereum (ETH): While not entirely private, these two giants remain the most widely used for decentralized transactions.
  • Solana (SOL) and Polygon (MATIC): Known for their speed and low fees, these networks also support efficient, trustless giving.

Every time you use a decentralized coin or token, you bypass intermediaries and bring relief straight to the hands of the needy. We’ve seen crypto food packages reach Gaza, zakat delivered to families in Yemen, and aid sent to Syrian orphans–all without any bank, border, or bureaucrat involved.

Why Anonymous Giving Matters in 2025–and Always Has

We live in an era of digital IDs, surveillance, and restricted movement. Many good-hearted people hesitate to give because they don’t want their data mined, their accounts flagged, or their actions monitored.

We understand this concern deeply. That’s why we’ve built our system to support:

  • No KYC charity
  • Crypto donations without wallet connection
  • Anonymous transactions that still get the job done

In Islam, the highest level of charity is when the left hand doesn’t know what the right hand gave. Through Monero and similar tools, we’re returning to that beautiful sunnah–modernized for the blockchain era.

Your Trust, Our Responsibility: Charity Built on Freedom and Faith

At Islamic Donate Charity, we believe that crypto is not just a tool–it’s a trust. It allows us to move fast, reach remote regions, and serve without delay. But it also allows you to give sincerely, without pressure, without exposure, and without compromise.

Whether you donate one Satoshi, one Monero, or one DAI, know that:

  • It’s between you and Allah
  • It’s secure and private
  • It’s going directly to those in need, not through multiple layers of bureaucracy

That’s the future of Islamic giving–and you’re helping build it with us.

Final Thoughts: Join the Movement of Anonymous Goodness

If you’ve ever felt hesitant to give because of identity concerns, privacy, or financial transparency issues–you’re not alone. That’s why we’ve expanded our crypto donation options to include Monero and other decentralized currencies.

You don’t have to sign up. You don’t need a connected wallet. Just good intentions, a little crypto, and a big heart.

A deal between yourself and Allah

Let’s continue this journey together. Let’s make giving private, powerful, and purely for Allah.

And remember–the best charity is the one given in silence, with sincerity.

CryptocurrencyWhat We Do