why is crypto trading haram

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The question of whether crypto trading is considered "haram" (forbidden) in Islam is a matter of religious interpretation and has generated various opinions among Islamic scholars and financial experts.

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Islamic finance principles emphasize the avoidance of excessive uncertainty or ambiguity (gharar) in financial transactions.

Uncertainty (Gharar):

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Another key prohibition in Islamic finance is the concept of riba, which is commonly understood as the prohibition of earning money from money with no value-added work.

Interest (Riba):

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Critics argue that some forms of crypto trading, especially those that rely on short-term price fluctuations, can resemble gambling more than legitimate investment, making them haram.

Gambling (Maisir):

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Traditional Islamic finance encourages investments in tangible assets or businesses with real economic activity.

Lack of Tangibility:

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Since cryptocurrencies are digital and lack physical presence or inherent value, some scholars argue that they don't meet the criteria for halal (permissible) investments.

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It's important to note that not all Islamic scholars agree on these interpretations, and there is ongoing debate within the Muslim community regarding the permissibility of cryptocurrency trading.