Has anyone recently invested in crypto? Is it all just a scam?

Guys - I’ve been looking recently into crypto a lot more but I just can’t get comfortable with it. There seems to be so many grey areas/unregulated issues.

Are there any genuinely effective investment strategies using crypto out there?

Salaams

Try reading https://coinconfidential.com as it seems to be a balanced source of information on cryptocurrency.

I also read SouthBank Investment Research reports (free versions sent by email) on crypto as well as other areas of finance

Warning: the editors here have an unconventional and somewhat controversial view of finance that is different from the mainstream. Their crypto editor is in favour of cryptocurrency and offers a subscription service where he researches and recommends crypto to invest in. I have not tried it as I found the cost of subscribing to be expensive. They also offer ‘discounts’ on the subscription fee if you sign up to the free newsletter emails (still too expensive for me).

I have been investing for quite awhile, whilst the space if full of scams and projects which are going nowhere; there are some decent investment strategies which can provide reasonably (for the industry) consistent income.

Even as an experienced investor you still have to budget for being scammed, diversification is key so that you can recover when it does inevitably happen.

Asalamo’alaikum akhi,

Please see a fatwa on Cryptocurrency on the link below;

Salaam Ibrahim,

I think crypto is still in its infancy and there a lot of hurdles yet to be overcome, but I do think the future looks bright. As time passes more people will come around to the technology and see its benefits. It is also important to look at the utility aspects of the crypto too. Does it solve a real world problem. For example Ethereum has smart contracts and XRP/XLM are used to exchange currency in a more efficient way. I think utility is good indicator of long term viability. There is also the issue of regulation but there is progress on that too, XRP is working with banks and governments. It is an extremely volatile market, but if you have a cool head and can be patient, there can be a very high return on investment, particularly long term.

The main factor to consider is “Is it solving a real world problem?”, if the answer is yes then I don’t think it is a scam and second it will be a good investment.

I would also like to add, it would be extremely beneficial if IFG would be able to provide an updated list of Halal tokens, this would help many people out immensely.

And finally, I just want to thank you for all the brilliant work you are doing and wish you the best on this journey.

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I would really like if IFG is able to provide an update list of Halal tokens.

Indeed that would help plenty for Muslim brothers and sisters looking to invest in cryptocurrency.

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IFG seem to have started a list here but only 3 are listed so far: https://www.islamicfinanceguru.com/personal-finance/sharia-certified-halal-cryptocurrencies/

I have scoured all the threads i can see and the muftis on here have said in different places that the following are ok BUT PLS DO NOT take my word for it I’m just going off what i have read in the chats and tried to collate them as they’re all in different questions, things may have changed in some cases which may change the ruling etc. If @admins can start to add these to their list to begin with because some have already been mentioned as halal in other threads on here:
Btc, xrp, ltc, eth, xlm, tez, ada, X8, ogc, atom, trx.

IFG top 50 review: https://www.islamicfinanceguru.com/crypto/

I was skeptical for a while and then started to get more interested in the ‘larger’ coins (and the ones that have been deemed Sharīʿah compliant). However, I recently came across Discord servers such as https://cryptofamilypumps.site/ (The link sends you to the home page of the website, don’t worry it won’t add you straight to the server) who openly schedule pumps for the smaller, more maniputable coins.

I’ve now had a rethink lol and I’m back on the fence. There’s just something wrong about openly conducting pump and dump schemes. I don’t think it’s illegal as the SEC hasn’t deemed it a security yet (please correct me if I’m wrong) but I’m just not comfortable with it. The majority of these trades are executed on Binance and as far as I know, they haven’t really confronted the issue (again, please correct me if I’m wrong). Logically, it would be more profitable for them as they charge a 0.1% fee on each trade so the more people who trade with these schemes, the more money Binance gets.

This article from Yahoo gives some more information:

While pump and dump scams are illegal in the stock market, the world of cryptocurrencies is largely unregulated and those behind the schemes are not technically breaking any laws.

This artcle from Humphreys Law talks a bit more about the applicable laws (written in May 2019).

I haven’t really answered your question at all :sweat_smile: (unless you want to join one of these schemes lol) but I thought I’d throw my opinion of crypto in general into the mix.