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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.

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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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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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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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Who Are the Fuqara? Based on the Quran

Who Are the Fuqara(The Poor)? Understanding the Beneficiaries of Crypto Zakat

As believers, we are constantly seeking ways to fulfill our religious obligations while making a tangible difference in the lives of others. One of the key obligations for Muslims is zakat, a form of almsgiving that is considered a pillar of Islam. But have you ever wondered who the real beneficiaries of zakat are, specifically the “Fuqara”? In this article, we dive deep into understanding who the Fuqara are, how they are different from other categories like the Masakin, and why it’s so crucial for us to direct our charity—whether through traditional means or crypto donations—towards them.

The Quran’s Definition of Fuqara

The term “Fuqara” has its roots in the Arabic word “Faqr,” meaning poverty or need. In the context of Islamic jurisprudence, the Fuqara are the poor who are in need of financial support to fulfill their basic necessities but cannot meet them through their own efforts. According to Islamic law, these are individuals whose income or resources are insufficient to cover their needs. As Muslims, it’s our duty to ensure they are supported through zakat and charity, especially when we have the means to do so.

In the Quran, Allah specifically outlines eight categories of people eligible for zakat, one of which is the Fuqara. The verse states:

“Zakah expenditures are only for the poor (Fuqara) and for the needy (Masakin) and for those employed to collect [zakah] and for bringing hearts together [for Islam] and for freeing captives [or slaves] and for those in debt and for the cause of Allah and for the [stranded] traveler – an obligation [imposed] by Allah. And Allah is Knowing and Wise.” (Quran 9:60)

This clear directive from Allah provides a framework for us as Muslims, ensuring that zakat is distributed justly and reaches those who need it the most.

The Difference Between Fuqara and Masakin

While the terms Fuqara and Masakin are often used interchangeably, there is a subtle but important distinction between them. The Fuqara are those who have nothing or very little to meet their basic needs. They are entirely reliant on external help, like zakat, to survive.

On the other hand, the Masakin are slightly better off but still fall below the threshold of financial sufficiency. They might have some income, but it is not enough to fulfill all their needs. Essentially, the Masakin have something, but not enough.

This differentiation is essential for us to understand because it helps us distribute zakat appropriately, ensuring that both groups receive the support they need while acknowledging the degrees of poverty they experience.

Why Crypto Zakat for Fuqara Matters

In today’s digital age, cryptocurrency has emerged as a new and powerful tool for giving charity. By donating crypto zakat, we have the potential to revolutionize how we assist the Fuqara, reaching them faster and more efficiently than ever before. Crypto donations allow for direct, transparent, and borderless transactions, ensuring that zakat reaches those who need it the most, especially in regions where traditional banking systems may not function optimally.

At Our Islamic Charity, a significant portion of our crypto zakat is directed towards helping the Fuqara. Whether it’s in the form of food distribution, medical aid, or financial assistance, we are committed to ensuring that your zakat is spent exactly as outlined in the Quran. We work closely with religious scholars and imams, who supervise the proper allocation of funds according to Islamic teachings. This allows us to maintain the integrity and trustworthiness of our charity, ensuring that your zakat is used in the most effective way possible.

How We Help the Fuqara

Our Islamic Charity has established a variety of programs aimed at alleviating the suffering of the Fuqara. One of our primary initiatives is the daily distribution of hot meals to the poor and needy in the Middle East, Mediterranean region, and Central Africa. These meals provide not just sustenance but also a sense of dignity to those who receive them.

In addition to food distribution, we support the Fuqara by providing access to clean water, medical supplies, and education. Through our zakat initiatives, we empower individuals to improve their situations and break the cycle of poverty. For those who wish to donate, crypto zakat offers a seamless and innovative way to contribute to these causes, ensuring your zakat reaches the Fuqara efficiently and effectively.

Fulfill Your Zakat Obligation with Us

If you’re looking to fulfill your zakat obligation, especially through crypto donations, we invite you to partner with Our Islamic Charity. Our mission is to follow the guidance of Allah and His Messenger (PBUH) by helping the most vulnerable members of society, including the Fuqara. By trusting us with your zakat, you can rest assured that it will be distributed according to the Quranic guidelines and Islamic laws.

If you have calculated your Zakat amount, you can pay Crypto Zakat from here.

If you want to calculate your zakat including your cryptocurrency assets, click here.

Together, we can make a lasting impact. Whether through traditional means or by embracing the future with crypto zakat, let us join hands in serving those who need it the most, for the sake of Allah.

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