NEW DELHI (CoinChapter.com) — As the holy month of Ramadan approaches, Muslims around the world prepare for a period of fasting, prayer, and reflection.
But what about cryptocurrency trading? Is it permissible during this sacred time? So we turned to Islamic scholars to get their perspective on how Ramadan intersects with the fast-paced world of digital currencies.
In this blog post, we’ll explore what they have to say and provide insights into navigating this tricky terrain that aligns with your spiritual beliefs. So grab a cup of tea (or coffee if you’re not observing), and let’s dive in!
Introduction to Ramadan and its Significance in Islam
Ramadan is the ninth month of the Islamic calendar and is observed by Muslims worldwide as a month of fasting to celebrate the first revelation of the Quran to the Prophet Muhammad.
This annual observance is one of the Five Pillars of Islam. The month lasts 29–30 days based on the visual sightings of the crescent moon.
During Ramadan, Muslims refrain from eating, drinking, smoking, and engaging in sexual activity from dawn to dusk. Fasting is intended to teach Muslims about patience, humility, and spirituality.
It also allows them to focus on their relationship with God and develop self-control. Muslims are also encouraged to read the Quran during this time.
The fast (sawm) begins at dawn and ends at sunset. In addition to abstaining from food and drink, Muslims also refrain from smoking and sexual activity.
The word ” Ramadan ” comes from the Arabic root ramiḍa or ar-ramaḍ, which means scorching heat or dryness.
What is Cryptocurrency Trading?
Cryptocurrency trading is buying and selling digital currencies on decentralized exchanges. Cryptocurrencies are often traded against other cryptocurrencies or fiat currencies.
Cryptocurrency trading has become increasingly popular in recent years as more people have become interested in the potential profits that can be made from trading these digital assets. However, there is still much debate among Islamic scholars about whether or not cryptocurrency trading is permissible under Islamic law.
Some scholars argue that cryptocurrency trading is similar to gambling and is not permitted. However, others argue that it is permissible if the trader believes that the prices of the cryptocurrencies will increase.
Ultimately, it is up to each Muslim to decide whether or not they want to trade cryptocurrencies.
What Do Islamic Scholars Say About Cryptocurrency Trading During Ramadan?
Islamic scholars are divided on the issue of cryptocurrency trading during Ramadan. Some believe it is permissible as long as the trader does not violate any other Islamic laws, such as gambling or Riba (usury). Others believe that it is not permissible, as it is a form of speculation akin to gambling.
Some Islamic scholars have issued fatwas (religious edicts) stating that cryptocurrency trading is permissible during Ramadan.
For example, in 2018, the Malaysian National Fatwa Council issued a fatwa declaring that cryptocurrency trading is haram (forbidden) because it is a form of gambling and speculative activity. However, this fatwa was later retracted after widespread criticism from the Muslim community.
Other Islamic scholars take a more permissive view towards cryptocurrency trading during Ramadan.
They argue that as long as the trader does not violate any other Islamic laws, such as those concerning gambling or Riba, then there is no reason why they cannot trade cryptocurrencies during the holy month.
This view is supported by the fact that many Muslim countries, such as Malaysia and Indonesia, have large numbers of Muslims who trade cryptocurrencies without any problems.
How to Trade Cryptocurrencies in a Sharia-Compliant Way During Ramadan?
In Islam, the holy month of Ramadan is a time for spiritual reflection, prayer, and fasting. For Muslims who trade cryptocurrencies, it can also be a time to re-evaluate how they approach the market.
During Ramadan, many Muslims abstain from all food and drink from dawn to dusk. This can make trading cryptocurrencies during the day difficult, requiring access to screens and markets worldwide.
Tips for Successful Trading During Ramadan
- Plan your trading:
Ramadan is a month of fasting, so you must be prepared in advance to trade during this period. Make sure you have a solid plan and know the best times to trade.
- Take advantage of early bird trading:
During Ramadan, many Muslims wake up early to eat before sunrise and then begin their fast. This means there is often less activity in the markets during the early morning hours. If you’re able to trade during this time, you may be able to take advantage of less competition and get better prices for your trades.
- Be mindful of market hours:
The Muslim world is a global community, so there is always somebody trading, no matter what time it is. However, market activity tends to slow down during Ramadan, so make sure you consider this when planning your trades. There may be less liquidity and higher spreads during this period.
- Use limit orders:
When trading during Ramadan, it’s important to use limit orders rather than market orders. This will help you avoid getting caught up in the volatile conditions that sometimes occur during this period. Market orders should only be used if you’re sure about the price you’re willing to pay or sell.
We hope this article has provided valuable insight into how Islamic scholars view the practice of cryptocurrency trading during Ramadan.
It is clear that some forms of trading are permissible, while others may be considered too speculative or unethical for observant Muslims to engage in. Ultimately, one must weigh their beliefs and opinions when deciding what activities to partake in during this sacred month and beyond.