Cryptocurrency

Is Donating in Crypto Secure for Islamic Charities?

Donate to Muslim Community Using Cryptocurrency

In the digital age, the world of charitable giving has evolved dramatically, offering us new ways to contribute to causes we care about. For many Muslims, donating through cryptocurrency offers a way to support Islamic charities while aligning with values like privacy, transparency, and financial security. However, one question often arises: Is crypto a secure method to donate to Islamic charities?

How Crypto Donations Offer Security and Privacy

When you donate to an Islamic charity using cryptocurrency, you benefit from a high level of privacy and security. Blockchain technology underpins cryptocurrencies, creating a decentralized, tamper-proof ledger that ensures your donation reaches its intended purpose without interference. Furthermore, by donating in crypto, you protect your privacy because there’s no need to disclose personal information. Our Islamic Charity allows for anonymous donations, meaning no questions about your wallet or personal information. You choose the level of anonymity and only provide an email if you want confirmation of your donation or updates on significant events like Ramadan. You can read the Donor Privacy Policy here.

Transparency and Trust: Why Crypto Is Ideal for Islamic Donations

One of the standout features of cryptocurrency is its transparency. Every transaction is recorded on a public ledger, accessible for anyone to verify. This transparency is especially valuable for donors who want to ensure that their contributions go directly to the causes they support. For Islamic charities, this aligns with core values of honesty and integrity. Using crypto to give Zakat, Sadaqah, or other charitable contributions reinforces trust in the donation process, making sure every Satoshi or USDT serves its intended purpose.You can see the programs and ways of helping the Muslim community here.

Ease and Flexibility for Muslim Donors Worldwide

Crypto donations transcend borders, enabling Muslims from anywhere to support Islamic causes in countries where banking systems may be limited. This flexibility also ensures that your donations are processed quickly and securely, without delays common in traditional banking. As we approach important seasons like Ramadan, the ability to donate instantly becomes crucial for those aiming to fulfill Zakat or Sadaqah commitments promptly.

Securing Your Faith and Privacy Together

At Our Islamic Charity, we value your trust and strive to provide a safe, flexible donation platform. With no requirement for additional details, we respect your privacy as much as your generosity. Donating anonymously with cryptocurrency empowers you to fulfill your religious obligations while maintaining confidentiality.

Cryptocurrency Ibadah / Acts of Worship Report What We Do

Investing Cryptocurrency Assets in Islam BTC ETH BNB USDT USDC

Concept of Investing and Increasing Cryptocurrency Assets in Islam

Is Crypto Investing Halal? A Guide for Muslims Navigating the World of Cryptocurrency

In today’s fast-evolving financial landscape, many Muslims wonder whether they can invest in cryptocurrencies like Bitcoin while staying true to Islamic principles. The answer can seem complicated, but understanding the core concepts of halal investments in Islam will simplify the matter. Here, we’ll guide you through how halal investments work, how cryptocurrency can fit within this framework, and the importance of paying zakat on crypto assets.

Understanding Halal Investments: Gold as a Traditional Example

To grasp how cryptocurrency might be halal, we can start with a simple example: investing in gold. When you buy gold with the intention of investment, you’re purchasing it at full price in a straightforward transaction. From that moment, the gold becomes part of your assets, and its market value may rise or fall over time. Should the gold’s value increase, the profit you gain is entirely yours and is considered halal because the transaction was complete and ownership was clear.

In Islamic finance, the transaction’s structure is key. Halal investments rely on clear ownership, risk-sharing, and transparency, avoiding elements like speculation and excessive uncertainty (gharar). The profits from a halal investment are gained responsibly, ensuring that the increase in value aligns with Sharia law.

Applying Halal Principles to Cryptocurrency

Cryptocurrencies like Bitcoin and Ethereum present new opportunities, but they share similarities with traditional assets like gold. For instance, imagine you purchased Bitcoin as an investment in November 2023, and one year later, the value of Bitcoin has appreciated significantly. Since you purchased Bitcoin outright, you own it fully, just like owning a piece of gold. If the value increases, this gain is considered halal as long as the initial transaction was lawful and did not involve prohibited activities like gambling or excessive speculation.

While Islamic finance typically advises caution against high-risk investments, owning a cryptocurrency as an asset doesn’t inherently contradict Islamic principles. As with any asset, your crypto can increase or decrease in value over time, but you have not engaged in gambling or uncertainty if you follow a structured investment approach. This holds true for long-term investments, where you hold cryptocurrency as part of your wealth.

Zakat on Crypto: Fulfilling an Essential Obligation

One essential part of Islamic investment is zakat, the obligatory charitable contribution that every Muslim must pay annually. In the case of cryptocurrency assets, zakat applies to the total value of your holdings. The required zakat is 2.5% of your total assets if they exceed the nisab threshold (the minimum amount of wealth required to be eligible for zakat). Calculating zakat on crypto follows the same principles as with any other asset.

For instance, if your crypto portfolio reaches a significant value over the lunar year, you would calculate 2.5% of its total worth and pay this amount as zakat. By fulfilling this duty, you purify your wealth and ensure your crypto investments remain within the framework of Islamic law. You can see the crypto zakat calculator from here or pay your zakat with various cryptocurrencies from here.

Halal Investing in the BTC, ETH, BNB and more

Investing in cryptocurrency, like Bitcoin, can align with Islamic principles as long as it follows halal conditions—transparency, clear ownership, and absence of prohibited activities. By treating crypto investments like traditional assets and understanding their value changes as part of the investment risk, Muslims can explore the crypto market confidently. And, by regularly calculating and paying zakat, you can ensure that your investment grows ethically and remains compliant with Islamic law.

As we navigate the digital age, it’s empowering to know that with careful choices, cryptocurrency can be a halal investment—one that supports our faith, secures our future, and fulfills our religious obligations. Let’s embrace this modern opportunity thoughtfully and responsibly.

Cryptocurrency Ibadah / Acts of Worship Religion What We Do Zakat

How Frequently Should I Pay Zakat on My Crypto Profits?

How to Pay Zakat on Crypto Trading Profits: A Guide for Muslim Investors

As a Muslim active in the crypto market, you may wonder how best to fulfill your zakat obligation on trading profits. Crypto markets can be volatile and fast-paced, making it challenging to determine when and how much zakat to pay on your crypto holdings and trading gains. In this article, we’ll guide you through an effective, clear process to calculate and pay your crypto zakat, ensuring your investments align with Islamic values.

Understanding Zakat in the Crypto Market

Zakat is one of Islam’s essential pillars, a form of charity that purifies wealth. It applies to various types of assets, including gold, silver, business profits, and now, even cryptocurrencies. As Muslims in the modern digital age, we must ensure that even our crypto assets reflect our faith and commitment to charity. But unlike traditional assets, crypto presents unique challenges. For instance, how do you measure your holdings’ value amidst constant market fluctuations? When exactly do you pay zakat on crypto that’s actively traded?

To navigate these questions, let’s first clarify what makes your crypto assets zakat-eligible. Then, we’ll explore strategies to simplify your zakat calculation.

When is Crypto Eligible for Zakat?

For crypto zakat, think of your holdings in two ways: long-term investments and active trading profits. This distinction can make your zakat calculation easier:

Long-Term Crypto Investments: If you hold crypto assets with the intention of long-term growth, these holdings will be zakat-eligible if their value meets or exceeds the nisab threshold—either 85 grams of gold or 595 grams of silver.
Trading Profits: For those actively buying and selling crypto, each profit transaction may feel like a gain. While zakat is traditionally due once a year, paying on each profit as you go can be an added form of generosity or sadaqah (voluntary charity). We’ll explore how to incorporate this approach into your annual zakat.

Step-by-Step Guide to Calculating Zakat on Crypto

Let’s break down how to determine zakat on crypto investments:

Determine the Nisab Threshold: Use either the gold or silver value to find the minimum zakat-eligible amount. For most, silver is the preferred standard since it has a lower value, making zakat more accessible and inclusive.
Calculate Your Total Holdings: Add up the market value of all zakat-eligible crypto assets in your wallet, including both long-term holdings and trading profits, if applicable. Remember, fluctuations in crypto prices can impact the final amount. Pick a stable time in the year, based on the lunar calendar, to assess your assets.
Apply the Zakat Rate: Once your holdings exceed the nisab, calculate 2.5% of the total value to determine your zakat obligation. This is the standard rate for zakat on assets like crypto and gold.
Crypto Zakat Calculator: We have simplified all these steps and Zakat calculator takes into account your assets plus crypto assets and you can calculate from here.

Example Calculation

Imagine you’ve held Bitcoin and Ethereum in your wallet over the past year, with combined holdings valued at $10,000. As long as this amount exceeds the nisab, you would owe $250 in zakat (2.5% of $10,000). If you’ve also gained an additional $1,000 from trading profits, you could add this amount to your total holdings or pay 2.5% of the $1,000 as extra zakat.

Paying Zakat on Each Profit: Optional but Rewarding

While paying zakat once a year is obligatory, some investors choose to pay on each profit transaction as a way to maintain regular charity. This approach can be especially fulfilling if you aim to purify each gain right away.

Steps for Paying Zakat on Each Profit

Set a Percentage: You may opt to set aside 2.5% of each profit from spot trading. This percentage can go directly towards charitable causes or be added to your annual zakat.
Track Your Profits Consistently: Since crypto markets fluctuate rapidly, keep a log of each trading profit and calculate zakat accordingly. At the end of the lunar year, compare your total holdings with what you’ve already donated to ensure you meet the annual zakat requirement.
Benefit to Recipients: This approach provides a continuous stream of support to recipients, which can be especially impactful for those in need, such as the fuqara (poor) and other eligible groups. This point is very important, we can save the poor and needy with continuous payments and help them throughout the year.

You can pay your crypto zakat from this link, or if you want to pay anonymously, you can pay wallet to wallet from this link.

Fulfilling Your Obligation and Strengthening Your Faith

At “Our Islamic Charity,” we believe in making zakat as straightforward and impactful as possible. Whether you choose to pay annually or on each profit, the key is sincerity and commitment to the principle of charity. By dedicating a portion of your crypto earnings, you can purify your wealth and foster compassion within the broader Muslim community.

Crypto zakat may seem complex at first, but with the right tools and intentions, it becomes a powerful way to align your investments with faith. Whether you hold crypto or trade actively, your zakat can transform lives—yours and those of the people you help.

Cryptocurrency Ibadah / Acts of Worship Religion Sadaqah Zakat

Is Gambling and Betting with Cryptocurrency Haram? How to Make Haram Money Halal

Sharia Law on Crypto Betting and Gambling

In today’s fast-evolving financial world, the question arises for many: is gambling or betting with cryptocurrency haram (forbidden)? To help you understand the Islamic perspective, let’s dive into what Islam says about gambling and betting, no matter the currency, and how we can purify any haram wealth we may have gained.

Is Gambling with Cryptocurrency Different from Traditional Gambling in Islam?

In Islam, any form of gambling, whether it’s with cash, cryptocurrency, or other assets, is considered haram. Gambling and betting, known as “Maisir” in Arabic, have long been deemed Haram (forbidden) in Islam. This prohibition is rooted in Shariah, as gambling relies on chance, not on fair trade or productive work. Engaging in these activities, regardless of the currency, leads to uncertainty (gharar), promotes dependency on luck rather than skill, and carries a risk of addiction—all elements that go against Islamic principles. This holds for all Muslims, regardless of the type of asset involved, including cryptocurrency.

What Should You Do If You’ve Earned Money Through Gambling or Betting?

If you find yourself with money earned through gambling or betting and want to make it halal, there are steps you can take to cleanse this wealth and seek Allah’s forgiveness. By making sincere efforts to remove haram income from our lives, we aim to align our intentions with the teachings of Islam. Here’s how:

1. Repent to Allah (SWT) with a Sincere Heart

The first step toward purification is sincere Tawbah(repentance). Repent to Allah (SWT) for having engaged in haram activities, and resolve never to return to these actions again. When we turn to Allah with genuine regret, He is always ready to forgive, as long as we intend to stay away from haram means of earning in the future.

2. Dispose of Haram Money in Charity

The money earned through gambling or betting should not be used for personal gain, as it does not carry barakah (blessing). Instead, give this money to charitable causes or the poor to cleanse your wealth. Remember, this donation is not considered zakat since zakat requires pure income. Donating to causes that benefit society, such as feeding the needy, building community resources, or supporting Islamic institutions, is a way to rid yourself of haram funds and replace them with halal earnings.

Can’t Separate the Haram Money from Your Wealth? Try These Solutions

If gambling earnings are mixed with your entire wealth and it’s hard to separate them, there are three ways to approach this situation:

Option 1: Estimate and Donate the Same Amount as Sadaqah

If you have a rough idea of how much money was gained from gambling or betting, then calculate this amount and give it in sadaqah. This charity should be directed toward people in need or charitable projects, without expecting any personal gain or reward. Here you can pay Sadaqah in various cryptocurrencies such as Bitcoin, Ethereum and more…

Option 2: Give Khums if Haram Earnings Are Minor

If you’re uncertain about the exact amount but know that it’s a small part of your wealth, you can purify it by giving khums. This involves giving one-fifth of your wealth to charity, which is a portion that, in Islamic tradition, serves to purify earnings. Here you can pay Khums in various cryptocurrencies such as Bitcoin, Ethereum and more…

Option 3: Donate a Larger Amount if Haram Earnings Are Substantial

If a large part of your wealth is believed to contain haram earnings from gambling or betting, consider giving more than khums in charity. The amount depends on what brings you peace and what you feel is sufficient to purify your wealth. Some Muslims, in pursuit of full peace of mind, donate a major portion or even all of their wealth if they feel it’s heavily mixed with haram income. Allah knows our intentions best, and in striving for a pure heart, we seek His acceptance of our actions.

Seeking Allah’s Satisfaction and Inner Peace

In our journey as Muslims, we aim to preserve our religion and keep our earnings and hearts pure. By repenting sincerely, donating haram funds to charitable causes, and taking actions that align with Islamic principles, we show our dedication to living in a way that pleases Allah.

Remember, Allah sees every action and knows our intentions. He understands when we strive to cleanse our lives and make our wealth pure, and He rewards the effort to keep haram out of our lives. May Allah grant us success in our intentions, accept our efforts, and guide us on the path of purity, honesty, and peace.

Cryptocurrency Ibadah / Acts of Worship Khums Religion Sadaqah

UAE Dirham Stablecoin Charity Donations Muslim USDT Tether

How the UAE’s Dirham Stablecoin Could Transform Charity Donations for the Muslim Community

The United Arab Emirates Dirham Stablecoin: A New Era for Charity Donations in the Muslim World

In today’s rapidly advancing digital world, the United Arab Emirates has made a groundbreaking move that could shape the future of donations in the Muslim community. By partnering with Tether, the UAE is set to launch a stablecoin pegged to its national currency, the United Arab Emirates Dirham (AED). This news brings immense potential for charities like ours, as it paves the way for a more secure, transparent, and efficient way of giving.

At Our Islamic Charity, we’re always striving to make it easier for our generous supporters to donate, especially as technology provides us with new tools. The UAE Dirham stablecoin stands as a promising solution that could make crypto donations not only more accessible but also safer for all. Let’s delve into the potential of this currency, its benefits for our charitable mission, and how it aligns with the principles of Islamic giving.

Why a Dirham Stablecoin Matters to Charities

The launch of a dirham stablecoin is not just a financial development—it represents a powerful opportunity to reshape how we give. At present, traditional donation channels often involve high transaction fees, lengthy processing times, and currency conversion challenges. A stablecoin, however, is designed to provide price stability by linking to a reserve asset, which in this case is the AED.

Imagine being able to send a donation with a simple click, using a secure digital currency that mirrors the dirham’s value without the complications of traditional banking. This stablecoin would empower our friends and supporters in the UAE to make contributions in their own currency, boosting their connection to our cause and reducing the complexities we typically face in cross-border donations. With the dirham stablecoin, we could channel donations into real impact faster, helping us reach more people in need while maximizing every dirham given.

Benefits for the Muslim Community

The stability and transparency offered by the AED stablecoin align well with the values that Muslims hold dear. While cryptocurrency offers the allure of fast, global transactions, many of our brothers and sisters have hesitated due to concerns around volatility and unpredictability. However, the dirham stablecoin provides a dependable option by maintaining a 1:1 ratio with the AED, alleviating fears of value loss and encouraging greater confidence in digital donations.

Through this initiative, Muslims around the world can participate more easily in charitable giving. For those unfamiliar with crypto, stablecoins like the AED introduce a middle ground between traditional currency and the potential of blockchain technology. This innovation not only fosters financial inclusivity but also respects the trust that’s so vital to Islamic principles. By offering a stable, transparent, and user-friendly way to donate, we’re creating more inclusive channels that honor the Islamic tradition of helping those in need.

How the AED Stablecoin Can Simplify Zakat and Sadaqah

With the AED stablecoin, we envision a future where giving your zakat or making a sadaqah contribution can be as easy as sending a message. Blockchain technology adds a layer of security by recording each transaction on a public ledger, which makes it transparent and traceable. This transparency gives our donors peace of mind, knowing that their contributions are reaching their intended purpose without unnecessary fees or delays.

Stablecoins, like the AED, can facilitate the payment of zakat in real-time, allowing our community to fulfill this essential obligation effortlessly. By donating through the dirham stablecoin, supporters can make an immediate impact, whether it’s to provide food for the needy, education for children, or financial aid for struggling families. This efficiency in distributing funds not only amplifies the charity’s reach but also ensures that we uphold the responsibility of zakat and sadaqah with dignity and respect for those who receive them.

Embracing a New Era in Islamic Giving

As we step into this new era of digital finance, we’re excited about the role that the UAE’s dirham stablecoin can play in transforming charitable giving for the better. This initiative opens up a world of possibilities, from simplifying international donations to creating a stronger, safer connection with donors. The AED stablecoin is more than just a currency; it’s a bridge that brings us closer to our donors, creating a community that’s bound by compassion and driven by shared values.

Inshallah, this development will not only bring more convenience to our supporters but also strengthen the impact we can achieve together. By embracing these advancements, we aim to uphold the Islamic principles of transparency, honesty, and care for those in need. May this new chapter in charity serve as a testament to the power of faith, unity, and innovation in the pursuit of goodness. Together, we can make a lasting difference, honoring the beauty of giving in Islam, and inspiring hope across the world.

Cryptocurrency What We Do