Man spoke facts in the beginning. It’s always good to know the reasoning of why something is okay or not. Love your videos and your guidance to halal investing🙏
Well put. Proof of Stake is principally involved with ensuring the transaction history is accurate, secure, and consistent. You are being compensated by using your ownership of a cryptocurrency to verify transactions not for lending it to someone else.
@@فُلان-ه4ث Staking and interest are separate. The label interest is used very liberally in some contexts because both staking and interest rate calculate using percent. But the easiest way to tell is if you know what your currency is being used for. If your currency is used to support verifying transactions in a defined protocol (like Proof of Stake), then it is NOT interest- like Algorand for instance. On the other hand, cryptocurrencies like Dai compensate you for lending your cryptocurrency to others (whether its to finance someone or provide liquidity), in that case, it IS interest because you're always expecting the repayment of the principal you lent out. I'm not familiar with blockfi (I use coinbase), but if your getting a percentage rate for lending your crypto to blockfi or to other wallets, that seems like interest to me (in my own opinion).
@@nicCleansing I don't think staking AAVE is halal since that protocol involves borrowing and lending (Riba). Why would you help maintain the network of something that does haram activities? Staking is not haram itself. It just depends which coins you are staking.
JzakAllah my dear brother for entertaining this request and question. When scholars in my country Pakistan are still debating whether bitcoin is halal or not, you are the need of time so our Ummah is not left behind, financial matters being one of them. They had declared the microphone to be haram too. Muslims of old were synonymous with progress and innovation but now we are plagued with sectarianism and short sightedness. May Allah help us rectify our affairs, attain the inevitable status and lost glory of the Ummah and grant us abundant halal rizq and may He shower you and your parents your family and loved ones with blessings in this world and the next. Ameen.
Subhanallah, I thought it was haram becajse we are getting rich just because u have money... Thx for explanation brother... May allah reward you nd bless you with bitcoins
Hi Rakaan. I suggest in the same vein you study and tell us about DeFi, smart contracts, and maybe if youre interested in other cryptos as an investment because of that :)
Makes a lot of sense, thank you, but I would rather hear from someone who has studied Islamic finance in an established Islamic institute. Jazak'Allah Khayran
In English they call APY an interest, but it's not really interest. You earn APY from the transactions, which is pure business not interest. Earning APY by staking can not be haram, cuz these staking currency is not lend to other to generate interest.
I was confused for a while but after learning for myself, I realised that, contrary to other brothers feeling it is haram because, imho, they misunderstood it as interest, which it is not. Although it is very easy to think of it as the same. Most of the time i think its simply a lack of understanding of the nature of blockchain, cryptocurrency technology and the difference between Proof of Work and Proof of Staking, between miners and validators. Thank you for your content because it is very similar to my own lines of thought and understanding, which is humbly very minimal. Wallahu'alam!
تبارك الله عليك، ما شاء الله! بعد مشاهدتي لهذا المقطع تبين لي أنه لا يمكن إطلاق الأحكام الشرعية إلا بعد التمكن من المجال المعني بشكل عمييييق، للأسف هذا ما يحدث في منطقتنا العربية، الشيوخ سرعان ما يطلقون أحكام الحرام بدون فهم للمجال.
Thanks, yes this is very accurate description. Staking is more closer to investment. There is No harm being done to anyone and it got a purpose. Think of it like adding improvements to your house by spending money, by doing so you increase the value of your house. When you stake you are investing in improving the ecosystem of the cryptocurrency. So the act of staking itself seems permissible. The cryptocurrency itself, that's a different discussion altogether.
@@practicalislamicfinanceIf im not mistaken there is 20 million bitcoins in total and if you stake bitcoin for example, where would the bitcoin reward come from? is it created out of thin air, if so then how is there only 20 millions in circulation, i mean the rewards has to come from somewhere
Yes you are right! Staking is basically a solution to mining which is costly and especially energy hungry activity. It is a much more efficient alternative to transacting, securing and validating blockchains in the network.
In some Proof of Stake protocols like Cardano, a pool that has a large number of coins will get saturated and the rewards of that pool will diminish. This was designed I think to address the possibility of large players controlling the network, and further incentivizes the creation of more smaller staking pools.
Just something to note that some Staking facilitators, like Exchanges, do pay out interest and not only the staking rewards because they use the staked amount in lending etc.. it's better to investigate the APY source before delegating coins for staking
Crypto may cause harm to someone else's life when the price of crypto goes up because of staking and the person who is purchasing with such crypto is affected
Maa Shaa Allah, Before I watched this, I really think staking crypto is riba, my friends always advise me to stake my crypto but I didn't do that thinking that I might fall to riba, but now I can finally stake my Crypto without thinking that I might fall into riba. Jazakallahu khairan jaza for this useful information brother!
Its not a one size fits all. You have to look at the specifics of each case. PoS is not implemented identically on all cryptos. I agree that most staking is probably halal, but some platforms are blatantly riba as they are just using the term staking instead of interest (some even use the term interchangeably). The way it is setup on some platforms (like crypto.com), you are actually giving them a loan in return of a guranteed/fixed interest rate. They are free to do with the money/crypto what they want and not actually use it to stake on a paticular network. In my opinion one should stand clear of any lending platform - if you can take a loan on their platform, your crypto is probably being used to lend out to others at an even higher interest rate.
Alhamdulillah for this video , I was afraid of sticking anything even though I knew staking could support the blockchain and also I can throw it in a pool as well. Unfortunately I am still nervous but I'm now totally a little bit confident because of this video alhamdulillah
Mashaallah great explanation, jazakaallah. Please can you explain in layman terms what zakat is paid on crypto and how is it calculated? For example would you pay it on staked tokens? Is it based on the value it was bought, sold or the value at the time zakat is paid? As it fluctuates quite a bit, its hard to know which to do! Thanks again for this you have just got yourself another subscriber!
@@AlexanderGent I think yes of course because it's still your wealth thanks to Allah : if you wanted, you could choose to take it out and use it elsewhere, that money's bot lost. It's your choice to have put it there, but it's still part of your wealth. The principle of zakat is that Allah has Blessed us with more money than many people, so that He will Bless us further if we obey Him and share 2,5% of that wealth with the needy. Zakat also purifies all the rest of your wealth inshaAllah.
Jazakallah for the great work. I have one additional question regarding staking. When we stake we lock up our tokens on the network to assist with transaction validation and in return, are rewarded with additional tokens. How do we know that the transactions which are being validated are shariah compliant transactions? In most, if not all, PoS blockchains transactions are bundled into blocks so each block could contain a number of non-shariah compliant transactions which are then validated and rewards are earned. Almost all PoS blockchains have several haraam protocols so there is a high likelihood that each block contains haraam transactions. Since we don't know if the transactions we are validating are shariah compliant or not, can we still say that staking rewards are halaal? Would love your opinion on this.
@@kerem44443 Could not find a satisfactory answer so I stopped staking my tokens. I'm not a scholar but in my opinion if we don't know exactly what we are validating then we shouldn't stake tokens. There are some DePIN networks that don't have any DeFi protocols built on them so perhaps it's halaal to stake on those networks but check this for yourself.
@@hussainkhan2513 hey man i was thinking about this for a few days and heres what i think so if staking is haram because we may be validating gambling transactions etc is flying in a plane haram? cuz when you are flying in the plane you help the plane company earn profit and other passangers may be carrrying alcohol in their luggages and so you are helping the plane company carry alcohol? or lets say you are just buying and selling solana coin there is a gambling platform on the solana chain and when you buy and sell solana you increase the daily volume of solana and therefore you help it become more popular and there is a gambling platfrm on solana so are you helping the gambling platform also become more popular? i think that we are kind of reaching here about this whole staking thing id llike to hear your reply on this these are just my thoughts though
Jzk for the simplified explanation, I will just like to add that in addition to been rewarded for securing the blockchain network, users of such secured network pay fees which gets shared to the stalkers... This way its value chain established in sha Allah. Allah knows best.
I do not know whether you are going to keep making videos answering these burning questions from muslims. But know that this has been of immense help. I searched for months to get this info, and could almost not find it anywhere. You can for example make a video about "are utility tokens halal?" Like Eth, chainlink, icx, these fall under the utility tokens. I mean just look at the like and dislike ratio on this video. Proof that there is demand for such videos. Jazakallahu gairan.
great video my friend ! logical, i wanted to stake SOL on BINANCE yet was not sure of haram/halal thing...many say staking via VALIDATOR is haram, and halal if done via POOL,....anyways thanks
Thanks for sharing, Jazak allah khair. Its clear as you described that staking Layer 1 blockchain currencies would help secure the the blockchain network itself. but what about the layer 2 tokens which are built on top of layer 1 network, those tokens when staked they provide mainly liquidity not security as the security is part of the layer 1 I believe, so in this case do we also consider staking layer 2 tokens Halal as well by just providing liquidity ?
Thanks for such an amazing video. I want to stake all my coins as well. Which platforms do you recommend to stake? I previously staked my coins with Binance, but later I unstaked them. Because they said that they give 'interests' inside that 'reward'. I had to chat with them for hours just to make sure that they are not giving me any interests. When they made sure, I immediate unstaked every coins. Binance's response was: ‘About your main concern was, you just want to make sure that you'll get a reward on staking instead of interest? The answer is No, if there are other coin airdrops for the coin he is staking he will get reward+interest, but if there are none, he will only get interest.’ I would appreciate if your could share with us a list of websites who we can stake with and who would guarantee that my coins will NOT be used to give borrow to someone. I wanted to make sure that I get rewards, not interests. Thank you for your kind cooperation.
thank God i found your channel, i can not stop watching your videos and learning from your knowledge, May Allah increase you in that. ameen just a small question comes to my mind, doesnt it the same for saving accounts in bank, which is not a loan to anyone but you get interest every month or year according to the amount you have put it. would love you to shed some light on that. jzk khair
Ama bu şahsa bir sorun bakalım vadeli hesap ile bankanın her ay hesabınıza attığı paraya "faiz" diyor mu ? Websitesinde buna benzer bir yazısı var. Bence dikkatli olun. Selametle.
I'm sorry to throw myself in, But I've been actually researching about ethereum myself regarding it being halal or haram and tbh I think there is a big difference between investing in just the coin and investing in the blockchain.
Maasha Allah, again a good video. Staking was a biggest question I had too, you broke it down so well brother. Jazkallahukhairan. I think, what is Harram is Lending your Crypto currency to earn an Interest?
My understanding is that when u stake a coin it produces a block chain for that coin similar like mining then that reward is given to u in terms of other coin or that same coin so staking is halal it doesnt lends money to someone then there is no riba involved int it
Salam Rakaan, Please can you enlighten us on investing in DeFi projects in your next video, especially staking involving liquidity and yield farming. Thank you
Staking gives us sure rewards. Doesn't matter if that is crypto or real money. We are holding our money or asset (Crypto) for a sure rewards which doesn't have any risk. Simply you can hold your asset (crypto - virtual asset) and might get profit or loss. On the other hand we are not allowed to hold it for a sure return, this works same as bank. This is just my opinion. Thanks.
I love your videos brother. Thank you for taking an analytical and objective view of financial instruments. On BlockFi, it says "earn interest" but do you know if it is a reward for staking as mentioned in this video or is it, in fact, riba? I've been keeping a record of the interest earned so far because I wasnt sure if i should be donating it at the end of financial year or if i can keep it as a reward. Thank you
Following this question for an answer. I am also wondering does this include holding Bitcoin with BlockFi and getting reward. Your exact point the terminology on BlockFi says “interest earned”. Brother please see if you can help on this. Jzk
@@suvadaarnautovic8977 I have looked into this - and it is SPECIFIC to BlockFi and not your usual staking with Ethereum/Cardano etc. With BlockFi, your returns come directly as a result of BlockFi lending to borrowers at a higher rate than you are receiving. So, I believe that returns of BlockFi is riba hence we are not allowed to keep it and should be flushed to a charity with the good deeds not counting to us.
Yield farming actually DOES involve the lending of cryptocurrency....so therefore...based on this particular stance...it is of a different nature and would most likely not be halal. I've read that it is not before...but now that I have seen this video...I understand that there is a real difference between staking and yield farming. And Allah knows best.
Salam, I would like to thank you for all the content you do on finance in Islam, we do not have such analyzes in other countries. I have a question about a crypto I would like to invest in. It works with "rewards" which work this way: Every time you or someone buy / sell these crypto tokens, there is a 5% fee applied to the transaction which is redistributed to all holders. Is it halal in your opinion?
Im not an expert however from what i have read and heard this would be haram as it is making money off money which is basically interest. but of course like i said i am not an expert and you should get more opinions.
Thank you for another fabulous video, brother. I always enjoy your content and get so much out of it. I've learned a tremendous amount just from your free content, and it makes me want to purchase the additional content you have available soon. I'll look forward to that.
Assalaamu wa-alaykum, i have some questions that I believe a lot of us viewers may have in common; 1) is it halal to invest in other crypto-currencies ? - ( such as Ethereum, dodgecoin, litecoin, ripple , dash Etc). 2) How do we know if investing in a certain crypto is halal or not ? - what's the procedure to go through? 3) can we trade crypto-currencies? Jazakullah, i look forward to your points of view.
Your question has gone on for a week and presumably our dear brother here is very busy. heres my very limited understanding, hopefully it'll be of some help in some way. 1) Yes, in my humble opinion investing is halal. You basically are buying a real item of intrinsic value (a crypto coin) with the hope of profiting when the demand of it goes higher=rising prices. This is spot trading and this is halal, from what i know. This is no difference if you buy 5 baskets of apples, with the intention of selling it off for profit when the prices goes higher expecting an increasing market demand. BUT a very important criteria is that did you make that investment through the study of the market, analysing and finally make a concious business strategy or did you just guess out of thin air? The second one is arguably gambling in a sense. I cannot for certain say it is gambling and thus haram but its worthy of your consideration! 2) There are thousands of crypto and what differentiates them is *what they are designed and used for*. Certain things like Bitcoin and Eth are meant to provide new solutions in financing without the need of a centralised control but some cryptos are designed purely to aid gambling activities. It is important that you research the technology and the company activity behind any token that you wish to purchase and invest. You need to go to the official website of the crypto and learn about it, read it white paper or simply google it for as much information as you can regarding what it is being used for. 3) Yes you can, as mentioned above you can certainly commit to spot trading, that is trading that is done, finalised and concluded instantly or at least within 3 days. to avoid incurring interests. With todays online technology, those things are possible and easily done. An example is you accessing an online exchange, analysing the market charts, making a purchase of crypto coins based on your understanding of the current supply and demand, finally when the prices of those coins go up, you market sell them for profit. That is fine. I am no expert but i am simply sharing what I have learnt so you may consider them for your own judgment and final decision. It is best that you take what i've said and balance it with what others are also saying because i could be mistaken. But i speak sincerely based on my limited knowledge and i am not willing to take responsibility of your own decisions. I reiterate that I am only sharing what i understand and came to know.
@@alhambra792 Then you can also argue that anything digital is also not "physical", such as websites, digital arts, sounds, videos, all of those things that can have monetary value and can bring its owner profits. But gold is also a poor comparison to crypto token because gold is only valuable due to it being a rare metal but a crypto token hold not just "intrinsic value" but it also forms and supports new forms of networking and technology, its not just a mere "digital token" of a currency coin.
@@muneirovalibas6194 i am not arguing. I've made a point before in some other videos that there is a similarity of concept between investing in crypto n gold. And there are some brothers who wanted to argue over my point by saying gold is physical and crypto is not.
@@alhambra792 understood, sorry if i sound combative or confrontative. May what i said however be in support of your point for the benefit of other brothers and sisters who may be reading.
Thanks for the informative vid, as you described staking it sounds very similar to being rewarded with *interest* when you hold your money in a bank account and the reward is from the bank who dictate the level of interest payed...is that the same as staking?
I think think it's not d same. In d case of Bank, u put Ur money in fixed deposit which gives d bank d assurance that u would not need d money for d said period of time, as such they use d money in business and shares d (profit & not loss) with u. In short, they promise an interest amount that they are not sure to make & if they make that interest, it'd because they lend the money to someone else and ask the person to give back the money with interest or forfeit there collateral or there guarantor losses his/her asset.
Man spoke facts in the beginning. It’s always good to know the reasoning of why something is okay or not. Love your videos and your guidance to halal investing🙏
Well put. Proof of Stake is principally involved with ensuring the transaction history is accurate, secure, and consistent. You are being compensated by using your ownership of a cryptocurrency to verify transactions not for lending it to someone else.
@@فُلان-ه4ث Staking and interest are separate. The label interest is used very liberally in some contexts because both staking and interest rate calculate using percent. But the easiest way to tell is if you know what your currency is being used for. If your currency is used to support verifying transactions in a defined protocol (like Proof of Stake), then it is NOT interest- like Algorand for instance. On the other hand, cryptocurrencies like Dai compensate you for lending your cryptocurrency to others (whether its to finance someone or provide liquidity), in that case, it IS interest because you're always expecting the repayment of the principal you lent out. I'm not familiar with blockfi (I use coinbase), but if your getting a percentage rate for lending your crypto to blockfi or to other wallets, that seems like interest to me (in my own opinion).
@@nicCleansing I don't think staking AAVE is halal since that protocol involves borrowing and lending (Riba). Why would you help maintain the network of something that does haram activities? Staking is not haram itself. It just depends which coins you are staking.
@@HishamPM which coin can we stake and on what platforms .if possible please suggest me any three coins for staking and also the platform to stake
@@HishamPM Brother how about nominex token staking halal or haram ?
Is the anchor protocol 20%apy halal or no
Alhamdulillah, Allahu Akbar. May Allah bless our sustenance.
Thank you brother, i was waiting for this
JzakAllah my dear brother for entertaining this request and question. When scholars in my country Pakistan are still debating whether bitcoin is halal or not, you are the need of time so our Ummah is not left behind, financial matters being one of them. They had declared the microphone to be haram too. Muslims of old were synonymous with progress and innovation but now we are plagued with sectarianism and short sightedness. May Allah help us rectify our affairs, attain the inevitable status and lost glory of the Ummah and grant us abundant halal rizq and may He shower you and your parents your family and loved ones with blessings in this world and the next. Ameen.
Subhanallah, I thought it was haram becajse we are getting rich just because u have money... Thx for explanation brother... May allah reward you nd bless you with bitcoins
Thank you brother may Allah bless you and your family I was waiting for that video so much
Masha Allah. Well-explained. May Allah bless you for your knowledge ameen
May Allah bless you brother. I was worried about this.
Masha Allah Jazzakallah Khairan brother, i was confused at first but your explanations make it clear.
Hi Rakaan. I suggest in the same vein you study and tell us about DeFi, smart contracts, and maybe if youre interested in other cryptos as an investment because of that :)
Zilliqa, polkadot etc
Seconding this comment.
Makes a lot of sense, thank you, but I would rather hear from someone who has studied Islamic finance in an established Islamic institute. Jazak'Allah Khayran
if only people cared where they took their knowledge from
In English they call APY an interest, but it's not really interest. You earn APY from the transactions, which is pure business not interest.
Earning APY by staking can not be haram, cuz these staking currency is not lend to other to generate interest.
I was confused for a while but after learning for myself, I realised that, contrary to other brothers feeling it is haram because, imho, they misunderstood it as interest, which it is not. Although it is very easy to think of it as the same.
Most of the time i think its simply a lack of understanding of the nature of blockchain, cryptocurrency technology and the difference between Proof of Work and Proof of Staking, between miners and validators.
Thank you for your content because it is very similar to my own lines of thought and understanding, which is humbly very minimal.
Wallahu'alam!
Amazing . very properly elaborative. started staking after watching your reasonable opinion. God bless you..
تبارك الله عليك، ما شاء الله!
بعد مشاهدتي لهذا المقطع تبين لي أنه لا يمكن إطلاق الأحكام الشرعية إلا بعد التمكن من المجال المعني بشكل عمييييق، للأسف هذا ما يحدث في منطقتنا العربية، الشيوخ سرعان ما يطلقون أحكام الحرام بدون فهم للمجال.
لكن لا يزال لدي شك في الموضوع صراحة رغم أن كلامه على حق
BarakAllah fik Brother i was going to ask you about it again :) but you come with a good explanation. JazakAllah khair.
Thanks, yes this is very accurate description. Staking is more closer to investment. There is No harm being done to anyone and it got a purpose. Think of it like adding improvements to your house by spending money, by doing so you increase the value of your house. When you stake you are investing in improving the ecosystem of the cryptocurrency. So the act of staking itself seems permissible. The cryptocurrency itself, that's a different discussion altogether.
MashaAllah... Thank you for explanation... That is all questions I have about staking crypto..
پلی بتاؤ حلل ہے کہ حرام
Wow! Massive eye opener (JazakaAllahu khairan)
Maa shaa Allah... you've cleared my mind
جزاك الله خيرا
Mashaa ALLAH your way to explain make things easier to understand 😌👍🏻🤝
Thank you so much brother I’m looking for that answer for a long time شكراً🙏🏼
Happy to help
@@practicalislamicfinanceIf im not mistaken there is 20 million bitcoins in total and if you stake bitcoin for example, where would the bitcoin reward come from? is it created out of thin air, if so then how is there only 20 millions in circulation, i mean the rewards has to come from somewhere
I like your reasoning brother. I would like to know your opinion in other Crypto terms like DeFi, Token, NFT, and its derivative product.
Yeah like for example SNX synthetix.
Dash, ZCash please if you could do a cryptos breakdown.
Thanks brother. Please we would like to know your opinion in the Defi
So its just like participating in mining but passively. Jazakallah hu khairan for the video!
Yes you are right! Staking is basically a solution to mining which is costly and especially energy hungry activity.
It is a much more efficient alternative to transacting, securing and validating blockchains in the network.
In some Proof of Stake protocols like Cardano, a pool that has a large number of coins will get saturated and the rewards of that pool will diminish. This was designed I think to address the possibility of large players controlling the network, and further incentivizes the creation of more smaller staking pools.
And more pools means more decentralization. Cardano all the way!
Essentially meaning it that those staking will move their tokens around different pools interesting idea to be honest which is a win win for everyone
Just something to note that some Staking facilitators, like Exchanges, do pay out interest and not only the staking rewards because they use the staked amount in lending etc.. it's better to investigate the APY source before delegating coins for staking
@practical islamic finance pls reply to this comment
Assalam - how to investigate the source of ApY brother?
Jazaka’Allahu Khira !! Look forward for Defi projects as well.
Asalamu alaikum, jazakAllah keir. We just got into crypto and we are trying our best to have baraka in it. Very helpful. May Allah bless your efforts.
I liek and shared the vide can u make next video on liquidity providing on uniswap exchange u can earn by trading fee their for giving liquidity
Please make that your next video Insha-Allah.
same here
ضج
Check he did a video on that
Crypto may cause harm to someone else's life when the price of crypto goes up because of staking and the person who is purchasing with such crypto is affected
Well done my brother. You cleared all my doubts.
Maa Shaa Allah, Before I watched this, I really think staking crypto is riba, my friends always advise me to stake my crypto but I didn't do that thinking that I might fall to riba, but now I can finally stake my Crypto without thinking that I might fall into riba.
Jazakallahu khairan jaza for this useful information brother!
Its not a one size fits all. You have to look at the specifics of each case. PoS is not implemented identically on all cryptos. I agree that most staking is probably halal, but some platforms are blatantly riba as they are just using the term staking instead of interest (some even use the term interchangeably). The way it is setup on some platforms (like crypto.com), you are actually giving them a loan in return of a guranteed/fixed interest rate. They are free to do with the money/crypto what they want and not actually use it to stake on a paticular network. In my opinion one should stand clear of any lending platform - if you can take a loan on their platform, your crypto is probably being used to lend out to others at an even higher interest rate.
@@certifiedalchemist woww you explained well
Nicest explanation ever. Thank you very much and May Allah Bless and put you in heaven.
What a great vedio and amazing explanation,really appreciated, jazak Allah
Alhamdulillah for this video , I was afraid of sticking anything even though I knew staking could support the blockchain and also I can throw it in a pool as well. Unfortunately I am still nervous but I'm now totally a little bit confident because of this video alhamdulillah
I had some questions and doubts about staking ofcryptocurrencies but now I am convinced
Masha Allah jazakallah kairan brother
Eagerly waiting for the farming explanation like this as well.
Mashaallah great explanation, jazakaallah. Please can you explain in layman terms what zakat is paid on crypto and how is it calculated? For example would you pay it on staked tokens? Is it based on the value it was bought, sold or the value at the time zakat is paid? As it fluctuates quite a bit, its hard to know which to do!
Thanks again for this you have just got yourself another subscriber!
🤔😱😱😱. Even crypto has zakat?
I would argue it's just like gold : its value is equal to how much you get for it if you sold it on that zakat day.
@@shiverseeker4630 would that include crypto that is staked as that cannot be solid at that time?
@@AlexanderGent I think yes of course because it's still your wealth thanks to Allah : if you wanted, you could choose to take it out and use it elsewhere, that money's bot lost. It's your choice to have put it there, but it's still part of your wealth. The principle of zakat is that Allah has Blessed us with more money than many people, so that He will Bless us further if we obey Him and share 2,5% of that wealth with the needy.
Zakat also purifies all the rest of your wealth inshaAllah.
@@shiverseeker4630 wouldn't the same apply for property then? Hypothetically you could sell that?
Staking with cardano doesn’t include lockup periods or slashing, far more superior than other protocols. ❤️❤️
Yes, I was thinking about this since all the fuss of the fluctuation and volatility of these cryptocurrencies, glad for these explanation, tq
Exactly what i was looking for, for months
Loves the video brother, thanks a lot 🙌
Selam brother - may Allah bless you. I Think you explain it in a very easy but detailed Way so Thank you 🤲🏽
Jazakallah for the great work. I have one additional question regarding staking.
When we stake we lock up our tokens on the network to assist with transaction validation and in return, are rewarded with additional tokens. How do we know that the transactions which are being validated are shariah compliant transactions? In most, if not all, PoS blockchains transactions are bundled into blocks so each block could contain a number of non-shariah compliant transactions which are then validated and rewards are earned. Almost all PoS blockchains have several haraam protocols so there is a high likelihood that each block contains haraam transactions. Since we don't know if the transactions we are validating are shariah compliant or not, can we still say that staking rewards are halaal?
Would love your opinion on this.
Well put 🤝🤝 deep thought
wow did you find the answer to this? if you did please tell me
@@kerem44443 Could not find a satisfactory answer so I stopped staking my tokens. I'm not a scholar but in my opinion if we don't know exactly what we are validating then we shouldn't stake tokens. There are some DePIN networks that don't have any DeFi protocols built on them so perhaps it's halaal to stake on those networks but check this for yourself.
@@hussainkhan2513 thank you
@@hussainkhan2513 hey man i was thinking about this for a few days and heres what i think so if staking is haram because we may be validating gambling transactions etc is flying in a plane haram? cuz when you are flying in the plane you help the plane company earn profit and other passangers may be carrrying alcohol in their luggages and so you are helping the plane company carry alcohol? or lets say you are just buying and selling solana coin there is a gambling platform on the solana chain and when you buy and sell solana you increase the daily volume of solana and therefore you help it become more popular and there is a gambling platfrm on solana so are you helping the gambling platform also become more popular? i think that we are kind of reaching here about this whole staking thing id llike to hear your reply on this these are just my thoughts though
Salam brother
You have explained very well
Can you explain in another video
Future trading
Long (call)
Short (put)
It's halal or haram?
Masha’Allah beautifully explained.
love you bro, your concept cleared my mind. Much love from Pakistan
Jzk for the simplified explanation, I will just like to add that in addition to been rewarded for securing the blockchain network, users of such secured network pay fees which gets shared to the stalkers... This way its value chain established in sha Allah. Allah knows best.
thank you, great value in this video, of course not all cryptos are equals
Very true!
I do not know whether you are going to keep making videos answering these burning questions from muslims. But know that this has been of immense help. I searched for months to get this info, and could almost not find it anywhere. You can for example make a video about "are utility tokens halal?" Like Eth, chainlink, icx, these fall under the utility tokens. I mean just look at the like and dislike ratio on this video. Proof that there is demand for such videos. Jazakallahu gairan.
Jazak Allah khair brother ...
Well explained, can you give us your opinion on yield farming or crypto farming in general? Thanks 👍
great video my friend ! logical, i wanted to stake SOL on BINANCE yet was not sure of haram/halal thing...many say staking via VALIDATOR is haram, and halal if done via POOL,....anyways thanks
Thanks a lot brother for clearing up , i feel better now..
Thanks for answering
Jzk.
May Allah bless you.
Thanks for sharing, Jazak allah khair. Its clear as you described that staking Layer 1 blockchain currencies would help secure the the blockchain network itself. but what about the layer 2 tokens which are built on top of layer 1 network, those tokens when staked they provide mainly liquidity not security as the security is part of the layer 1 I believe, so in this case do we also consider staking layer 2 tokens Halal as well by just providing liquidity ?
Thanks for such an amazing video.
I want to stake all my coins as well.
Which platforms do you recommend to stake?
I previously staked my coins with Binance, but later I unstaked them. Because they said that they give 'interests' inside that 'reward'. I had to chat with them for hours just to make sure that they are not giving me any interests. When they made sure, I immediate unstaked every coins.
Binance's response was:
‘About your main concern was, you just want to make sure that you'll get a reward on staking instead of interest? The answer is No, if there are other coin airdrops for the coin he is staking he will get reward+interest, but if there are none, he will only get interest.’
I would appreciate if your could share with us a list of websites who we can stake with and who would guarantee that my coins will NOT be used to give borrow to someone.
I wanted to make sure that I get rewards, not interests.
Thank you for your kind cooperation.
thank God i found your channel, i can not stop watching your videos and learning from your knowledge, May Allah increase you in that. ameen
just a small question comes to my mind, doesnt it the same for saving accounts in bank, which is not a loan to anyone but you get interest every month or year according to the amount you have put it. would love you to shed some light on that.
jzk khair
allah bin kere razı olsun. God bless you a thousand times. ı found no information about this topic. thank you. very very thank you.
You are most welcome
@@batuhanyuksel5579 dinledim. Stakenin haram olmasını sağlayacak bir durum yok. Caizdir diyor.
@@batuhanyuksel5579 demiyor. Ben caiz diye biliyorum.
Ama bu şahsa bir sorun bakalım vadeli hesap ile bankanın her ay hesabınıza attığı paraya "faiz" diyor mu ? Websitesinde buna benzer bir yazısı var. Bence dikkatli olun. Selametle.
thanks for the video brother, it helped clarify some things and i did some extra research into what riba/usury/interest concepts are in islam =)
Does this mean staking on crypto.comor binance is halal?
all is it's halal , thanks for your views brother
its very similar to saving account in bank you deposit crypto here while in bank you deposit money and get interest in return
Thank you for your explanation, brother. God bless you 💚
Ma Sha Allah good job. Well explained brother.
Sometimes staking doesn't rewards you as well which in contrast to loans based on interest always reward you
Tq bro. Now I really got idea what is staking. Your explanation very good. Jzk
Wallahi this issue has disturbed me for a while! But Alhamdulillah
It was a very good point! Thank you brother!
✌🏽
Still waiting for you to drop a video on ethereum.
I'm sorry to throw myself in, But I've been actually researching about ethereum myself regarding it being halal or haram and tbh I think there is a big difference between investing in just the coin and investing in the blockchain.
"what does $100 ether mean by vinya gupta" is a great read written in 2017
Maasha Allah, again a good video. Staking was a biggest question I had too, you broke it down so well brother. Jazkallahukhairan.
I think, what is Harram is Lending your Crypto currency to earn an Interest?
My understanding is that when u stake a coin it produces a block chain for that coin similar like mining then that reward is given to u in terms of other coin or that same coin so staking is halal it doesnt lends money to someone then there is no riba involved int it
Thank you for this beneficial knowledge. We're blessed to have you.
Thanks for the explanation. Does the same thing apply to binance launchpad staking or is it any different from POS?
great video thank you very much. i am looking forward to the video on yield farming insallah. 😄
Salam Rakaan,
Please can you enlighten us on investing in DeFi projects in your next video, especially staking involving liquidity and yield farming.
Thank you
Staking with cardano doesn’t include lockup periods or slashing, far more superior than other protocols :❤️
What about Stable-coins i.e USDT staking, thank you forehand
Can I ask what instrument is halal? As far as I'm aware short,future leverage is haraam so what method way is halal?
The balance is simple. Banks are the beast. Defi help to leave banks. Defi is better. Thank you :)
i like smart scholars like yourself, really appreciate the knowledge, i agree very much with your arguments really helpful thx
Staking gives us sure rewards. Doesn't matter if that is crypto or real money. We are holding our money or asset (Crypto) for a sure rewards which doesn't have any risk.
Simply you can hold your asset (crypto - virtual asset) and might get profit or loss. On the other hand we are not allowed to hold it for a sure return, this works same as bank.
This is just my opinion. Thanks.
I love your videos brother. Thank you for taking an analytical and objective view of financial instruments.
On BlockFi, it says "earn interest" but do you know if it is a reward for staking as mentioned in this video or is it, in fact, riba?
I've been keeping a record of the interest earned so far because I wasnt sure if i should be donating it at the end of financial year or if i can keep it as a reward.
Thank you
Following this question for an answer. I am also wondering does this include holding Bitcoin with BlockFi and getting reward. Your exact point the terminology on BlockFi says “interest earned”. Brother please see if you can help on this. Jzk
@@suvadaarnautovic8977 I have looked into this - and it is SPECIFIC to BlockFi and not your usual staking with Ethereum/Cardano etc.
With BlockFi, your returns come directly as a result of BlockFi lending to borrowers at a higher rate than you are receiving. So, I believe that returns of BlockFi is riba hence we are not allowed to keep it and should be flushed to a charity with the good deeds not counting to us.
Jazak Allah my brother
Jadi crypto staking bukanlah riba selama tidak ada aktivitas pinjam meminjamkan
What is your take on Fintoch? They're also involved in staking?
Alhamdulillah.Allah first!
What's about staking of USDT or USDC is it's hala?
can you do yield farming and Liquidity mining next?
Is this halal?
Yield farming actually DOES involve the lending of cryptocurrency....so therefore...based on this particular stance...it is of a different nature and would most likely not be halal. I've read that it is not before...but now that I have seen this video...I understand that there is a real difference between staking and yield farming. And Allah knows best.
@@TheeMalikPeterson barakAllahu feek habib
@@healthcamp1236 wa feek barak Allah.🙂
Leverage halal or haram?
May Allah bless you!
Salam, I would like to thank you for all the content you do on finance in Islam, we do not have such analyzes in other countries.
I have a question about a crypto I would like to invest in.
It works with "rewards" which work this way: Every time you or someone buy / sell these crypto tokens, there is a 5% fee applied to the transaction which is redistributed to all holders.
Is it halal in your opinion?
great question
Im not an expert however from what i have read and heard this would be haram as it is making money off money which is basically interest. but of course like i said i am not an expert and you should get more opinions.
Thank you for another fabulous video, brother. I always enjoy your content and get so much out of it. I've learned a tremendous amount just from your free content, and it makes me want to purchase the additional content you have available soon. I'll look forward to that.
Love your explanation.
JazakAllah. Explained perfectly and crystal clear
Brother staking is halal or haram...?
As per the terms of binance savings 2.Binance Savings assets will be used in cryptocurrency leveraged borrowing and other businesses.
Thanks brother - you’re doing a great job 👏
I am going to stake ADA at Yoroi Wallet is that Halal. Please let me know . Appreciate
Assalaamu wa-alaykum, i have some questions that I believe a lot of us viewers may have in common;
1) is it halal to invest in other crypto-currencies ? - ( such as Ethereum, dodgecoin, litecoin, ripple , dash Etc).
2) How do we know if investing in a certain crypto is halal or not ? - what's the procedure to go through?
3) can we trade crypto-currencies?
Jazakullah, i look forward to your points of view.
Your question has gone on for a week and presumably our dear brother here is very busy.
heres my very limited understanding, hopefully it'll be of some help in some way.
1) Yes, in my humble opinion investing is halal. You basically are buying a real item of intrinsic value (a crypto coin) with the hope of profiting when the demand of it goes higher=rising prices. This is spot trading and this is halal, from what i know. This is no difference if you buy 5 baskets of apples, with the intention of selling it off for profit when the prices goes higher expecting an increasing market demand. BUT a very important criteria is that did you make that investment through the study of the market, analysing and finally make a concious business strategy or did you just guess out of thin air? The second one is arguably gambling in a sense. I cannot for certain say it is gambling and thus haram but its worthy of your consideration!
2) There are thousands of crypto and what differentiates them is *what they are designed and used for*. Certain things like Bitcoin and Eth are meant to provide new solutions in financing without the need of a centralised control but some cryptos are designed purely to aid gambling activities. It is important that you research the technology and the company activity behind any token that you wish to purchase and invest. You need to go to the official website of the crypto and learn about it, read it white paper or simply google it for as much information as you can regarding what it is being used for.
3) Yes you can, as mentioned above you can certainly commit to spot trading, that is trading that is done, finalised and concluded instantly or at least within 3 days. to avoid incurring interests. With todays online technology, those things are possible and easily done. An example is you accessing an online exchange, analysing the market charts, making a purchase of crypto coins based on your understanding of the current supply and demand, finally when the prices of those coins go up, you market sell them for profit. That is fine.
I am no expert but i am simply sharing what I have learnt so you may consider them for your own judgment and final decision. It is best that you take what i've said and balance it with what others are also saying because i could be mistaken. But i speak sincerely based on my limited knowledge and i am not willing to take responsibility of your own decisions. I reiterate that I am only sharing what i understand and came to know.
I think investing in crypto has the same concept with investing in gold. But there are some who will argue gold is physical but crypto is not.
@@alhambra792 Then you can also argue that anything digital is also not "physical", such as websites, digital arts, sounds, videos, all of those things that can have monetary value and can bring its owner profits.
But gold is also a poor comparison to crypto token because gold is only valuable due to it being a rare metal but a crypto token hold not just "intrinsic value" but it also forms and supports new forms of networking and technology, its not just a mere "digital token" of a currency coin.
@@muneirovalibas6194 i am not arguing. I've made a point before in some other videos that there is a similarity of concept between investing in crypto n gold. And there are some brothers who wanted to argue over my point by saying gold is physical and crypto is not.
@@alhambra792 understood, sorry if i sound combative or confrontative. May what i said however be in support of your point for the benefit of other brothers and sisters who may be reading.
Agreed . Who do you recommend for staking?
Jazak Allah Janna brother you ma shaa Allah made clear
Thanks for the informative vid, as you described staking it sounds very similar to being rewarded with *interest* when you hold your money in a bank account and the reward is from the bank who dictate the level of interest payed...is that the same as staking?
I think think it's not d same. In d case of Bank, u put Ur money in fixed deposit which gives d bank d assurance that u would not need d money for d said period of time, as such they use d money in business and shares d (profit & not loss) with u. In short, they promise an interest amount that they are not sure to make & if they make that interest, it'd because they lend the money to someone else and ask the person to give back the money with interest or forfeit there collateral or there guarantor losses his/her asset.