Trading on the Binance platform in a Halal way? 🌙
The Muslim trading community on the Binance platform constitutes a significant part of the cryptocurrency trading world. However, some beginner traders may not be aware of the types of trading that are religiously prohibited. Therefore, in this post, we will learn about the main types of trading to avoid to ensure that our investments are compliant with Islamic law.
❌ Types of prohibited trading to avoid
* Margin Trading 🚫:
* This means using borrowed funds from the platform to increase your trading volume. These funds come with interest (Riba).
* Why is it forbidden? Because it relies on interest-bearing loans, which is unanimously prohibited in Islamic law.
* Futures Trading 🚫:
* These are contracts to buy or sell an asset at a specified price on a future date. You do not actually own the asset.
* Why is it forbidden? Because it involves significant uncertainty and ignorance. You are trading on the value of an asset you do not own, and the risks involved are unclear.
* Trading of suspicious currencies 🚫:
A currency is considered "suspicious" if its underlying project is linked to a religiously prohibited activity such as gambling 🎲, interest (Riba) 💸, alcohol 🍷, or others.
✅ Halal trading method on Binance
So, what is the correct way to trade? It’s very simple!
* Spot Trading ✔️:
* Here you buy the digital currency directly and own it in your wallet.
