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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

Quran Islam law Muslim Khnows BTC ZAKAT Sharia Payment

How to Know More About Islam?

How Do I Ask Questions About Islam in a Language Other Than Arabic?

As-salamu alaikum, dear brothers and sisters.

At Our Islamic Charity, we are dedicated to not only helping the needy through acts of charity but also assisting those on their journey to better understand Islam. Whether you’re a revert to Islam or a Muslim who doesn’t speak Arabic, we know that deepening your knowledge about Islam can sometimes feel challenging. But don’t worry, we’re here to guide you every step of the way.

In this article, we will explore various approaches to help you understand Islam better, no matter where you are in your spiritual journey.

Understanding Islam Without Knowing Arabic

Many new Muslims or those whose native language is not Arabic may find it difficult to access the vast knowledge Islam has to offer. But you don’t have to feel overwhelmed or stuck. With the right approach and tools, you can gain a deeper understanding of Islam and come closer to Allah.

Let’s break it down step by step:

1. Begin with Basic Definitions

One of the first hurdles for new Muslims is understanding Islamic terminology. It’s normal to feel lost when you come across unfamiliar words like “Salah,” “Zakat,” or “Fard“. But here’s a simple solution: leverage platforms like Wikipedia and YouTube to familiarize yourself with these terms.

There are official channels that explain Islamic concepts in simple, easy-to-understand ways, available in many languages. For instance, searching for “What is Salah in Islam?” on YouTube will yield countless videos explaining the practice in detail. This can be a powerful starting point for anyone trying to build a solid foundation in their understanding of the religion. You can visit the YouTube channel of Islamic charity, which is about Islamic laws and Sharia payments.

2. Ask Questions in Your Own Language

Don’t be afraid to ask questions in your native language. Whether it’s English, French, Urdu, or any other language, start by asking questions in the language you’re most comfortable with. Use translators to convert your questions into Arabic or other languages, and search for answers across various platforms. Many Islamic scholars and online communities are available to answer in multiple languages.

By doing this, you can make sure you’re understanding Islam through a lens that makes sense to you, rather than struggling through a language barrier.

3. Study the Quran in Translation

The Quran is the ultimate source of knowledge in Islam. While learning Arabic is a beautiful goal, you don’t have to wait to read the Quran until you’re fluent. There are translations of the Quran in almost every major language, and reading these will help you understand its teachings more clearly.

Start by reading a translation in your language. Then, if you’re eager to dive deeper, you can compare different translations to grasp subtle meanings. This will significantly improve your understanding of Islam’s core values.

4. Learn Through Practice

Once you’ve developed some understanding of Islamic terminology and teachings, you’ll find that your knowledge and vocabulary will improve naturally through practice. By consistently asking questions, reading the Quran, and engaging with Islamic content, you will become more confident in your ability to understand the faith. The more you practice, the more familiar you’ll become with the nuances of Islamic thought.

5. Seek Guidance and Avoid Misguidance

It’s important to be mindful that not all sources of information are reliable. In today’s digital age, misinformation is widespread, and sometimes people—knowingly or unknowingly—mislead others about Islam. Always cross-check the information with trusted scholars or reliable Islamic institutions.

At Our Islamic Charity, we have access to many scholars who can help answer your religious questions. Never hesitate to reach out to us if you need guidance. The road to knowledge can be challenging, but it’s important to stay grounded and always seek the truth.

The Spiritual and Charitable Duty of Muslims

At Our Islamic Charity, we believe that our duty as Muslims extends beyond just financial support. Our mission is rooted in spiritual care as well. As Muslims, we not only care about the worldly needs of our brothers and sisters but also about their spiritual growth.

Allah commands us to help each other, not only with money or food but with knowledge that leads us closer to Him. When we help others understand the Quran and the teachings of our beloved Prophet Muhammad (peace be upon him), we are fulfilling a higher purpose. The knowledge we spread today can guide someone on the straight path and help them achieve eternal happiness in the hereafter.

A Path of Continuous Growth

In conclusion, understanding Islam without knowing Arabic is entirely possible and rewarding. Whether you are a new Muslim or simply someone looking to deepen their knowledge, know that your journey is part of your connection to Allah. With patience, sincerity, and the right resources, you can grow in both your worldly understanding and spiritual connection.

We, as a team at Our Islamic Charity, are committed to helping you along this journey. Whether you need help understanding the Quran, clarifying Islamic rulings, or navigating life as a Muslim, we are here for you. Together, with the help of Allah, we can continue to strengthen our faith and help those in need, spiritually and financially.

May Allah bless you and guide you on your path of learning and charity. Let’s continue our work together, helping not only the Fuqara but also every soul seeking to know Allah better.

This is just the beginning of how you can expand your understanding of Islam. Remember, it’s a journey of constant learning. If you ever feel lost, reach out. We are in this together. May Allah be pleased with all of us.

Ibadah / Acts of Worship Religion

Tahajjud Salah: Importance of Patience in Islam

Tahajjud Salah: A Path to Closeness with Allah, Not a Guarantee for Worldly Desires

As Muslims, we seek to build a strong connection with Allah through our prayers, salah, and acts of worship. One of the most beloved and profound practices is the Tahajjud prayer, a nightly prayer that holds immense spiritual significance. It’s during the quiet moments of the night, when the world is asleep, that we find a unique opportunity to communicate directly with our Creator. However, it’s essential to approach Tahajjud with the right mindset, understanding its true purpose and impact on our lives. Read the definition of Tahjud prayer from Wikipedia here.

The Beauty and Power of Tahajjud

The Tahajjud prayer is a gift from Allah that allows us to seek His guidance, forgiveness, and blessings. It is a time when the veil between the servant and the Creator feels the thinnest, and Duas (supplications) made during this period hold special merit. Waking up for Tahajjud requires dedication, self-discipline, and sincerity, as it is an act of devotion that goes beyond the obligatory prayers.

It’s a time when we can pour our hearts out to Allah, ask for His mercy, and seek solutions to our problems. Many of us have heard stories of how people’s Duas were answered during Tahajjud. These stories inspire hope and drive us to seek similar outcomes. While it’s true that Duas made during Tahajjud can be powerful, we must remember that Tahajjud is not a guarantee to receive exactly what we want in life. Nowhere in the Quran or Hadith does it say that Tahajjud will automatically lead to the fulfillment of our specific desires.

Allah Answers in the Best Way

One of the most important lessons we need to learn as Muslims is that Allah’s wisdom is beyond our comprehension. He knows what is best for us, and sometimes, what we ask for may not align with what is best for our well-being, both in this life and the hereafter. This understanding is crucial when we make Duas during Tahajjud.

Approaching Tahajjud with the mindset that “Allah will answer my Dua in the way that is best for me” helps to cultivate patience and contentment in the hearts of the believers. It is a sign of trust in Allah’s plan and His infinite knowledge. Sometimes, we might not get what we ask for, and it’s easy to feel discouraged. But we must remember that Allah always answers, even if it’s not in the way we expect.

If Allah, in His wisdom, decides that what we are asking for is not beneficial for us, He might delay the response, grant us something better, or keep us protected from something harmful. Our limited perspective might not allow us to see this, but Allah’s knowledge encompasses everything.

Embrace Patience and Trust in Allah

When we approach Tahajjud with the belief that it is a means to get what we desire in this world, it sets us up for potential disappointment. It’s not uncommon to feel frustration or discouragement when our Duas are not answered in the way we hope. Some may even feel a sense of detachment or frustration towards Allah, questioning why their prayers weren’t granted.

To prevent this, we need to shift our mindset. Instead of viewing Tahajjud as a transactional act where we ask and immediately receive, we should focus on the spiritual closeness we develop with Allah during these sacred moments. Tahajjud is not about guaranteeing outcomes but about surrendering to Allah’s will and trusting that He knows what’s best.

This mindset will, InshaAllah, help us to remain steadfast in our worship, even if our prayers aren’t answered in the way we expected. It will foster a deep sense of peace, patience, and reliance on Allah, knowing that His plan is perfect, even when it doesn’t align with our immediate desires.

Never Stop Making Dua

Just because Allah may not answer your Dua exactly as you wanted doesn’t mean you should stop asking. In fact, the act of making Dua itself is an acknowledgment of your faith and trust in Allah. Keep asking, and never lose hope. We should continue to ask Allah for what we desire, but with the understanding that His response might come in different forms.

If your Dua is answered exactly how you wanted, say Alhamdulillah. It is a beautiful gift, and we should be grateful for it. But if it’s not, don’t feel disheartened. Know that Allah is protecting you from something that may not be good for you or that He has something better planned for you.

We often don’t realize how what we ask for could negatively impact our lives. Perhaps fulfilling a specific Dua might lead to unforeseen harm or distract us from our faith. Allah knows this, and that’s why He might choose not to grant that particular request.

Trusting Allah’s Plan: A Path to Inner Peace

At “Our Islamic Charity,” we encourage everyone to trust in Allah’s wisdom. When we embrace the mindset that Allah’s plan is better than our own, it brings a deep sense of peace and satisfaction into our lives. It allows us to remain hopeful, patient, and positive, even when things don’t go as planned.

As Muslims, we are encouraged to be persistent in our Duas and to never give up hope in Allah’s mercy. However, we must always keep in mind that the answers to our prayers come in the form that Allah sees best, not necessarily in the form we expect.

This shift in perspective can help us avoid the frustration and negativity that often arise when we don’t get what we ask for. Instead, it can lead us to a deeper connection with Allah, rooted in trust, faith, and patience. So, continue to wake up for Tahajjud, make your Duas, and place your trust in Allah, knowing that He will answer in the best possible way.

Conclusion: A Heart Aligned with Divine Will

Tahajjud Salah is a profound act of worship that brings us closer to Allah. It’s an opportunity to seek His forgiveness, make Duas, and strengthen our connection with Him. However, we must approach this beautiful prayer with the right mindset. It’s not about receiving exactly what we want but about submitting to Allah’s will and trusting in His divine wisdom.

At “Our Islamic Charity,” we encourage everyone to continue making Duas during Tahajjud, but with a heart full of patience, faith, and trust. If you have any questions about Islamic and Sharia laws or Sharia payments, you can ask us.

Know that Allah hears every supplication, and He will respond in the way that is best for you.

Ibadah / Acts of Worship Religion