Asalam o Alikum, I have been doing a little research on crypto investment and although I have listened to the opinions of all mufties terming it as halal my question is that profit made through investing in xyz crypto is quick and easy, it is made without any effort or hard work, it involves speculation of some degree and you can lose money as well, my question is that is not all these traits similar to gambling? Then what particular element makes earning profit through crypto investment halal? Also I have seen friends who have invested and it has become an addiction for them all the time they keep on checking their app to see how much they have made and this is just human nature and this element too makes it something to avoid. Looking forward for an answer that can satisfy my objections. Jazakallah.
I also have the same question and it’s been a month not getting an answer properly.
crypto is same as stocks… having a asset… due to say that it doesn’t require hard work… .that’s false. if you are serious about investing/trading you would know it requires very hard word. i developed my trading plan after 2 years of hard study to trade consistently. studied it for 8 hours every day … still backtesting every day 1 year of data of stocks… when it comes to risk… you need to understand risk management. low risk… high reward… so does it come close to gambling… not at all
Is this in relation to forex trading? In crypto investing where is the hard work? There is no way of knowing whether it’s going up or down no balance sheets to study it’s all speculative and in a bubble?
ofcourse it is… it’s all related to quantitives… and patterns… you have to create a plan to take the high probabilitys setups… the most amatures don’t take those setups… and blaming the makret and the guess work… if you trade without knowledge… you are gambling.
Forex is a CFD … if you buy a CFD you don’t own anything… .that the diffrence… you don’t have an asset
So how can you work out over time bitcoin or any of the cryptocurrency are gonna go up no matter how much effort you put in you can’t really work that out it’s just thin air based on supply and demand and also it’s not the first. time something like this had existed if you remember Dutch tulips that was pretty much the same thing! Infact Dutch tulips still are a real commodity bitcoin and other cryptocurrency are nothing
Biggest misconception is comparing crypto with stock trading when its more like forex trading. Even with stock trading islamically it only makes sense when you buy stock of a company you believe in and you see it is doing actual business benefitting others and so you buy shares and become partner in that you receive profit as dividends and if theres a loss your bear a loss too you hold that asset for long term and not short term benefits.
But then comes speculating in the stock market over share prices or in forex over the value of currencies for short term gains, only through guessing you are trying to bet on a stock or currency and you put your stake in it and then have chance of earning a 100% 200% or 300% return just by small investment and by doing nothing and at the same time theres a chance you may lose some. This particular type of speculation is just like how you speculate in gambling.
Point being whether its stock market, forex or crypto market, you can’t play in the market as speculators betting on certain commodity and when its price goes up you buy it and sell it when u have enough profit.
If you keep an asset for long term without being part of market speculation or guessing then its another story.
when it comes to gambling…
- you dont own asset.
- based on no reason.
- the mistakes you make… you can’t find out why.
that why i discourage people to invest/trade without a plan… long term and short term…
With a plan you can indicate the high probabilities… i think it’s risky to buy something for longterm/short term based of something you support without having a plan or investigating something.
100% to 300% a month ? can you show me someone who does that… i dont believe that… that’s so unrealistic even for short term… i still agree with most scholars that you can sell after t2 days. so i will go with majority which makes sence…
once again longterm and shortterm i encourage everyone to trade with a plan… you have to take this serious…