Ibadah / Acts of Worship

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.

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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

Lebanon: Baalbek Crisis and Emergency Help 2024

Baalbek, Lebanon: Crisis and Displacement Amid Conflict in 2024

As our team at Our Islamic Charity responds to ongoing crises, our hearts and efforts are drawn to Baalbek, Lebanon—a city under severe strain due to recent conflict. Families have been torn from their homes, and the war’s toll is visible across this ancient, once-vibrant city. Many of the displaced are vulnerable women and children, struggling to find safety and basic resources as they’re forced to the Lebanese-Syrian border in search of refuge.

With the approaching winter, our work is only becoming more urgent. Together, let’s delve into the current crisis facing Baalbek and how we, as a united ummah, can provide meaningful, impactful support to those affected.

The Crisis in Baalbek: Conflict and Displacement

The city of Baalbek, a historic landmark and cultural center, has recently been thrust into turmoil. Bombings and ongoing skirmishes have led to significant destruction of infrastructure, leaving many homes and essential buildings in ruins. As a result, families are fleeing northward toward Lebanon’s border with Syria, where they face grueling conditions and inadequate shelter.

For many, the journey is filled with hardship. Women and children, the most vulnerable, are bearing the heaviest burdens. The cold autumn nights are fast turning into harsh winter conditions, and those who have managed to escape face chilling temperatures with little to no access to heating equipment, warm clothing, or sufficient shelter. Tents are few, and the limited heating sources like oil and diesel are nearly impossible to acquire due to the danger and complexity of transport.

The Urgent Needs: Food, Water, and Shelter

Securing basic resources has proven difficult under these circumstances. Our brothers and sisters lack the simplest yet most essential items: clean drinking water, dry food, and other necessities to make their temporary shelter survivable. Providing even the basics for cooking—such as potatoes, onions, and tomatoes—is hindered by long and often restrictive inspections along transport routes. Our charity is working to deliver durable food items like beans and dry grains that can withstand the journey, insha’Allah, but we must be prepared for long wait times and limited quantities.

Without sufficient clean water, health risks rise, especially among children and the elderly. The harsh weather, combined with a lack of sanitation, increases the risk of illness. Our aim is to ensure that every family has at least the bare essentials to cook, stay warm, and remain safe from preventable diseases.

How You Can Help: Crypto Donations for Baalbek

We at Our Islamic Charity believe that every bit of help makes a profound difference, and your support can directly impact these lives. For those who wish to contribute, we are accepting crypto donations, a secure and efficient way to deliver aid amidst these complex circumstances. Crypto donations allow us to quickly convert funds into vital supplies and distribute them where they’re needed most. By donating, you become part of a resilient network of support for our brothers and sisters in Baalbek in Lebanon.

Every donation, whether large or small, fuels our mission to bring relief to those enduring unimaginable hardship. Your contributions help us stand beside the people of Baalbek, provide warmth and nourishment, and, ultimately, affirm our collective humanity and commitment to charity as guided by our deen.

Standing Together as an Ummah

The plight of Baalbek’s people is a reminder of our duty to support each other through trials. The Quran and Hadith encourage us to give charity, especially to those suffering from war and displacement.

The Prophet Muhammad (peace be upon him) taught that we are like one body; if one part suffers, all parts feel the pain.

Together, as an ummah, we can help our brothers and sisters overcome this difficult period. Let us remain steadfast in our commitment to provide relief and comfort to those in need, demonstrating our shared faith and compassion.

In these times of hardship, may Allah bless our efforts and grant ease to the people of Baalbek. We pray for their protection and strength and remain committed to standing by them. Join us in this mission, and let’s work together to bring light and hope to those in darkness.

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Sudanese Women and Girls Amidst Conflict: A Mission to Build Safe Spaces and Protect Futures

Supporting Women and Childrens in Sudan

In Sudan, where turmoil and insecurity loom heavily, women and girls face incredible challenges. For those of us in Our Islamic Charity, this crisis is a call to action. We understand that every woman and girl deserves safety, dignity, and the chance to thrive, even amid hardship. As instability rises due to armed groups and a lack of secure infrastructure, our mission is to bring critical aid to women and children, ensuring they can find refuge, hope, and a safe pathway forward. This article delves into our two-pronged strategy to support Sudanese women and girls in need, focusing on strengthening facilities in larger camps and creating safer, more secure communities.

The Plight of Sudanese Women and Girls: Seeking Safety and Security

Life in Sudan today is far from ordinary. With autonomous militias and ongoing insecurity, Sudanese women and girls face an elevated risk of violence and deprivation. Many are left vulnerable, especially in remote villages, which are often isolated from critical resources and secure locations. The safety challenges are stark, and we’re committed to taking action.

Through Our Islamic Charity, we’re taking steps to address these urgent needs in Sudan, beginning by focusing on locations like Darfur, where many women and children have been displaced. Our goal is to bring these women into safe, protective spaces where they can access essentials such as clean water, healthcare, and food. We also aim to offer them an environment where they feel valued and empowered, fostering resilience amidst adversity.

Strategy 1: Strengthening and Expanding Refugee Camps in Darfur

One of our primary objectives is to enhance the facilities within established camps, particularly in Darfur. Many camps in this region, like Kalma Camp in South Darfur and El Fasher Camp in North Darfur, are home to thousands of displaced women and children. By increasing resources here, we can ensure that these women and girls have access to necessities—food, water, healthcare, and security.

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The existing camps are often stretched thin. Expanding these facilities not only provides immediate relief but also improves the long-term infrastructure to handle new arrivals. By reinforcing these camps, we give women and girls an opportunity to live in a safer environment, receive care, and access resources for a more hopeful future. As we bring in resources like self-care stations, community kitchens, and healthcare tents, we empower these communities to begin rebuilding. You can now donate crypto to women and children in Sudan from here.

In this environment, where every new addition can transform lives, we want these camps to be centers of strength and resilience. Our dream is to create spaces where women and girls can thrive, receive training, and even begin generating income to support themselves.

Strategy 2: Uniting Villages and Relocating to Safer Zones

Beyond the camps, many Sudanese women and children live in small, remote villages scattered across the countryside. In these isolated communities, insecurity is even more pronounced, and resources are almost non-existent. Our second strategy is to unify these smaller villages, bringing people together into larger, safer areas closer to urban centers. By creating these bigger communities, we can offer enhanced protection measures and a greater level of social and healthcare services.

This approach isn’t just about relocating people; it’s about building a supportive environment. For many women, leaving their village can be emotionally and culturally challenging. We work with local leaders to create a smooth transition, ensuring that these larger communities retain the values and customs that are central to the lives of these women. By building community within these new areas, we’re not just providing protection but also fostering a sense of identity and belonging.

The move to these more secure zones also allows us to set up essential facilities faster. In these bigger communities, women and girls can access healthcare services, schooling, vocational training, and food supplies without needing to travel long distances. These are all among our various programs to support women, which you can donate under the name of special programs for women.

Empowering Sudanese Women and Girls: A Collaborative Effort for Lasting Change

Building safe spaces and a sense of community is just the beginning. We know that to truly empower Sudanese women, we must focus on long-term sustainability. This means not only protecting them from immediate threats but also equipping them with skills and knowledge to become self-sufficient. Through Our Islamic Charity, we offer training programs in healthcare, education, and small business skills, encouraging women to find ways to support themselves and their families.

Each woman who gains confidence, each girl who finds her voice, strengthens the entire community. Our mission goes beyond emergency aid; it’s about giving these women and girls the tools to live resiliently and independently.

Our work in Sudan isn’t easy, but it’s a calling that binds us together in Our Islamic Charity. By reinforcing shelters and creating safe communities, we stand side by side with Sudanese women and girls, championing their right to live with dignity, security, and hope. Through every challenge, we remain committed, building a future where these women and girls are not only safe but are also empowered to shape their own destinies.

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How Crypto Donations are Helping Us Plant Olive Trees for Needy Families

Donate Olive Tree as Sadaqah Jariyah: Planted 200 Olive Trees in 2024

Planting trees is one of the most beautiful and lasting forms of charity. In Islam, this act is highly recommended as a form of Sadaqah Jariyah—an ongoing charity that continues to benefit others long after it is done. Read more about Sadaqah Jariyah… At Our Islamic Charity, we’ve taken this concept to heart, especially with our latest initiative to plant 200 olive trees for needy families in Syria and Pakistan. And with your support through crypto donations, we’ve been able to make this possible.

As we move forward into the tree-planting season of 2024, we’re excited to see how this project is already making a difference. But our work doesn’t end here. With your help, we’re committed to planting even more trees across various regions, ensuring that the poor and needy benefit from the economic and environmental value that these trees provide.

Why Olive Trees? The Perfect Sadaqah Jariyah

Olive trees hold a special place in both our religion and our hearts. Mentioned multiple times in the Quran, they are symbolic of peace, prosperity, and blessings. Read the names of trees mentioned in the Quran here. The olive tree is also a source of sustenance, providing fruit and oil that can be used by families for both consumption and sale. For needy families in places like Syria and Pakistan, owning olive trees can be life-changing.

When we think about the long-term impact of planting trees, it’s easy to see why this form of Sadaqah Jariyah is so highly encouraged in Islam. Trees continue to provide benefits for decades, offering shade, oxygen, and food, and even contributing to the local economy. By planting an olive tree, you are not just giving a family a temporary solution—you’re giving them a future filled with potential.

At Our Islamic Charity, we’ve taken this Islamic principle and modernized it by accepting crypto donations to fund these projects. With Bitcoin, Ethereum, and other cryptocurrencies, we can bypass traditional barriers and deliver immediate resources where they’re needed most. Through your crypto donations, we’ve already been able to plant 200 olive trees in 2024, and this is just the beginning.

The Process: How We Plant and Care for the Trees

We don’t just plant a tree and walk away. The process of planting and caring for these olive trees is carefully planned and executed with the families’ long-term well-being in mind. When you contribute through a Crypto Donate, here’s how we ensure your donation is put to good use:

Planting: With the start of the 2024 tree planting season, we prepared the land, selected high-quality olive saplings, and got to work. Each tree was planted with expert supervision to ensure that it would thrive in the local environment.
Irrigation and Care: Olive trees need water to grow, and in regions where droughts are common, this can be a challenge. That’s why we equip each planting site with efficient irrigation systems. These systems are vital in helping the trees grow strong and healthy, especially in the early stages.
Future Maintenance: Fertilizers, pesticides, and ongoing care are crucial for the longevity of these trees. We provide all the necessary supplies and training to the families receiving the trees, so they can take over the care of the trees themselves.
Sustainable Income: Once the trees begin to bear fruit, families can either consume the olives or sell them in local markets. This provides them with a sustainable income, allowing them to improve their living conditions and become more self-sufficient.

Your donation isn’t just a one-time gift—it’s a contribution to an ongoing, sustainable project that continues to benefit needy families for years to come. With each tree, you are helping to uplift communities, improve the environment, and fulfill the obligations of zakat.

Why Crypto Donations Make a Difference

We’ve entered a new era of charity, where donating doesn’t have to be slowed down by bank transfers, red tape, or geographical limitations. By using cryptocurrency to fund these projects, we can make sure that your donation reaches us faster and more securely. Crypto donations provide a modern, efficient way to give, and they’ve been instrumental in making this tree planting project a reality.

If you’ve ever wondered how to use your cryptocurrency for a worthy cause, look no further. By donating Bitcoin, Ethereum, USDT, or other digital currencies, you’re contributing to something that will have a lasting impact. You’re helping us plant trees, provide sustainable income to families, and improve the overall quality of life in regions that have suffered greatly from poverty and conflict. From here you can donate crypto for tree planting projects.

The Economic Impact of Tree Planting

While the environmental benefits of planting olive trees are clear, the economic impact is just as important. For families who are struggling to make ends meet, owning a tree that produces fruit is an invaluable asset. Each olive tree we plant has the potential to produce olives that can be harvested, sold, or processed into olive oil. At the beginning of 2024, we revived an olive oil workshop, which you can read here.

Over time, as the trees continue to grow, the families who receive them will see their financial situations improve. They’ll have a steady source of income that can help them pay for necessities like food, education, and healthcare. The long-term impact is significant—not just for individual families, but for entire communities.

When you donate through Our Islamic Charity, you’re contributing to this cycle of economic growth. Your donation is directly improving the lives of those who need it most, while also helping the environment through the planting of trees. It’s a win-win for everyone involved.

Our Future Projects: Expanding Tree Planting Efforts

We’re not stopping at 200 olive trees. Our goal is to expand our tree planting projects into more regions, with the next phase focusing on Africa. By 2025, we hope to have planted thousands of olive trees across countries that desperately need both environmental and economic support.

A Call to Action for Our Ummah

In Islam, giving is an act of worship and a means to create lasting change. At Our Islamic Charity, we are dedicated to uplifting the lives of the needy through projects that benefit both their immediate and long-term well-being. The olive tree planting initiative is just one example of how we can fulfill our duty to the Ummah by helping those in need.

Now, it’s time for all of us to take part. Whether through your crypto donations, sharing our cause, or volunteering, you have the opportunity to contribute to meaningful change. Your involvement is crucial to planting more trees and helping more families build better lives. By donating Bitcoin, Ethereum, or other cryptocurrencies, you are directly impacting lives in Syria, Pakistan, and beyond.

Together, as one Ummah, we can continue planting hope, providing relief, and making the world a better place—one olive tree at a time.

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