Understanding
**halal and haram financial practices** is crucial in crypto. Here’s a breakdown of
**forbidden transactions in Islam** and why they matter:
*5 Key Reasons Certain Transactions Are Haram**
1️⃣ **Riba (Interest)** – Earning or paying interest on loans.
2️⃣ **Gharar (Uncertainty/Excessive Risk)** – Deals with unclear terms or extreme speculation.
3️⃣ **Maysir (Gambling)** – Profit based purely on chance, not real value.
4️⃣ **Ghash (Deception/Fraud)** – Manipulation, scams, or misleading practices.
5️⃣ **Selling What You Don’t Own** – Trading assets without ownership or control.
### **Common Haram Crypto Activities (Avoid These!)**
🚫 **Leverage Trading (50x, 100x, etc.)**
- Why? Extreme risk (Gharar), resembles gambling, and may involve interest.
🚫 **Futures & Perpetual Contracts**
- Why? Trading unowned assets with high uncertainty and delayed settlement.
🚫 **Binary Options & Price Prediction Markets**
- Why? Pure speculation—like betting, not investing.
🚫 **Short Selling**
- Why? Selling assets you don’t own, with speculative risk.
🚫 **Interest-Based Crypto Lending (e.g., Binance Earn)**
- Why? Fixed returns from interest (Riba) are prohibited.
As Muslims, we must seek **halal income** and avoid doubtful transactions. Always research before investing!
**Share to educate others!** ⬇️