Best Halal Crypto in 2024

Investors will learn more about the best halal cryptocurrencies, including Polkadot, Ethereum, Tether, and Bitcoin. Each cryptocurrency was chosen for its compliance with Islamic law and relevance in the digital economy.

This article also clarifies frequent questions and concerns about halal cryptocurrency investing, including earning techniques, Shariah law compliance, and ethical factors in the cryptocurrency arena.

What are the best halal cryptos?

Bitcoin

Bitcoin, the first member of the crypto halal list, continues to be one of the best halal options. With a high trading volume and market capitalization, Bitcoin stands as a robust digital asset. Its decentralised nature and finite supply make it a real asset, distinct from fiat currencies susceptible to inflationary pressures.

Bitcoin's compliance with Shariah principles stems from its transparent and decentralised blockchain technology, which ensures accountability and prevents fraudulent practices. Moreover, Bitcoin's widespread acceptance as a medium of exchange enables it to be used for standard (non-speculative) purchasing goods and services globally, further solidifying its halal status.

A 7-day evaluation of price and market cap for Bitcoin

Ethereum

Another strong contender on the halal crypto list is Ethereum, which is known as the industry leader in the development of smart contracts and decentralised apps (DApps). Its popularity within the blockchain ecosystem is attested to by its significant volume and market value.

Ethereum's practical use and real-world applications, which conform to Islamic norms of morality and legitimacy, set it apart as halal. Ethereum's ability to support transactions for approved goods and services further strengthens its adherence to Shariah, making it ideal for Muslim investors in addition to its decentralised structure and open governance.

A 7-day evaluation of price and market cap for Ethereum

Tether

Tether is undoubtedly one of the best halal cryptocurrencies for investors seeking stability and liquidity in the digital market. Tether, a stablecoin linked to fiat currencies like the US dollar, keeps its value steady and provides a dependable store of value and medium of exchange in an erratic market.

Its one-to-one backing with conventional currency reserves ensures transparency and adherence to Islamic financial norms, especially in avoiding speculative trading and risky transactions. Tether is a halal option for cryptocurrency investors wishing to reduce risk and uphold moral principles due to its consistent value and usefulness for carrying out transactions.

A 7-day evaluation of price and market cap for Tether

BNB

BNB is a prominent halal cryptocurrency with a large market cap and significant trading volume. Being Binance's native token is one of its main benefits. BNB offers fee savings, token sales, and ecosystem services, increasing its value.

From a halal perspective, BNB meets the criteria for being a halal cryptocurrency due to its transparent utility in an authentic ecosystem. This coin has real-world uses like trading fee discounts and token sales, not just speculation. As a utility token without interest or forbidden activities, BNB complies with Shariah principles.

A 7-day evaluation of price and market cap for BNB

Solana

With outstanding throughput and low transaction costs, Solana stands out as one of the best halal cryptocurrencies. Solana's scalable blockchain system is capable of supporting decentralised apps (DApps) and smart contracts.

The fact that Solana is a legitimate decentralised platform that enables efficient and transparent transactions without utilising risky or noncompliant procedures further supports its halal credentials. Furthermore, Solana's ability to enable digital asset exchanges and decentralised finance ( DeFi) protocols strengthens its halal credentials.

For investors looking for morally sound and environmentally friendly digital asset alternatives, Solana is among the best halal cryptocurrencies due to its scalability and adherence to Shariah rules.

A 7-day evaluation of price and market cap for Solana

USDC

USD Coin (USDC) makes it to the top halal crypto list for investors seeking stability and trustworthiness. USDC, a stablecoin tied to the US dollar, reduces cryptocurrency volatility. Investors could rely on its stability and liquidity since its transparent reserve backing provides one-to-one parity with fiat currency. USDC is Shariah-compliant since it can be used to perform transactions and settlements.

USD Coin's stability, openness, and reliability as a medium of trade make it one of the best halal cryptocurrencies for ethical and compliant cryptocurrency investors.

A 7-day evaluation of price and market cap for USDC

XRP

XRP, among the top of the halal crypto list, is a digital asset that is native to the Ripple network. With a substantial market capitalization and volume, XRP provides effective cross-border payment solutions and speeds up inexpensive transactions. Its use to support financial interoperability and international remittances is consistent with Islamic finance principles.

XRP's Shariah compliance and real-world use support its halal certification. Unlike other cryptocurrencies, XRP is distributed through a network of validators, minimising the danger of speculative mining and improving environmental sustainability.

A 7-day evaluation of price and market cap for XRP

Avalanche

Avalanche is a premier halal cryptocurrency that solves blockchain networks' scalability issues with its high throughput and capacity. Its impressive volume and market value show its rising popularity as a cryptocurrency. Avalanche is halal since it is a blockchain system with robust technology and transparent consensus procedures.

Avalanche's real-world applications and halal transaction potential demonstrate its Shariah compliance. Avalanche allows developers to construct DApps and smart contracts on a decentralised platform, promoting innovation and Islamic financial compliance.

A 7-day evaluation of price and market cap for Avalanch

Dogecoin

Initially established as a humorous cryptocurrency, Dogecoin has become an unexpected kosher cryptocurrency competitor. Despite its lower volume and market cap, Dogecoin has a large community and trading activity. Its character as a digital asset with utility and transaction acceptance supports its halal classification. Dogecoin's use for charity and social causes coincides with Islamic philanthropy and communal welfare.

Dogecoin's unique blend of community interaction, functionality, and charity endeavours makes it one of the best halal cryptocurrencies for ethical and socially responsible investors.

A 7-day evaluation of price and market cap for Dogecoin

Polkadot

The innovative blockchain network Polkadot is one of the best halal cryptocurrencies for investors in 2024. Polkadot has a large volume and market cap, indicating crypto community adoption.

Polkadot promotes transparency, decentralisation, and inclusivity to prevent haram and follow Shariah. DOT, Polkadot's native token, also handles governance, staking, and transaction fees.

Polkadot provides Muslim investors with a halal digital asset choice by enabling decentralised innovation and a robust foundation for constructing scalable blockchain applications.

A 7-day evaluation of price and market cap for Polkadot

Where can I buy halal crypto?

1

9.4/10

Go to broker

Your capital is at risk.

Minimum deposit:

$2

Review

Coinbase is a popular cryptocurrency exchange, especially sought-after among novice traders. It allows you to trade all cryptocurrencies including Bitcoin, Ethereum, Litecoin, Ripple, BitcoinCash, and others. You will find a web version and an application for a smartphone based on iOS or Android. The crypto exchange provides services to users from 100 countries with more than 43 million active traders registered on the exchange. The total assets on the platform are equivalent to over USD 90 billion. The exchange brings to the table one-of-a-kind training programs that allow you to earn money during the learning process by improving your expertise in the crypto market. Learn what Coinbase is and how the exchange works.

Pros/Cons

•you can trade a vast array of cryptocurrencies on the exchange;

•hassle-free registration and verification;

•all assets are in offline storage;

•the exchange ensures the security of users’ assets;

•available are a free e-wallet and a virtual card;

•complex solutions for individuals, businesses, and developers;

•powerful analytical base and unique training guides.

•there are no passive earning options;

•some of the information is available in English only.

Study Review

2

9.2/10

Go to broker

Your capital is at risk.

Minimum deposit:

$1

Review

Cryptohopper is a multi-purpose platform that combines its hub functions, copying service, social trading, and an investment portfolio management service. The Cryptohopper terminal trades in Bitcoin, Ethereum, Litecoin, and dozens of other cryptocurrencies and tokens, which are presented on partner exchanges. The one-of-a-kind system stands out for the presence of free-of-charge (the first 7 days) trading bots where you can create and test your bots. The platform also provides an emulator of exchange strategies. There is also an in-depth training system.

Pros/Cons

•cryptocurrencies can be traded on any of the partner exchanges from Cryptohopper’s terminal;

•no fees or fixed payments for using the service;

•profitable partnership and investment program;

•service for copying transactions and auto-trading bots;

•a vast selection of instruments;

•synchronization of accounts on diverse exchanges;

•large trading volumes.

•free mode is extremely limited in functionality.

Study Review

What makes a crypto halal or haram?

A thorough framework for assessing if a cryptocurrency is halal is provided by the Sharlife Methodology. To guarantee that a cryptocurrency project complies with Islamic principles, it comprises five essential screening criteria that each cover a distinct component of the project:

Screening for Legitimacy

Screening for legitimacy means determining if a cryptocurrency project satisfies legal and regulatory standards. This covers confirming that the project is registered, adhering to KYC and anti-money laundering (AML) rules, and following pertinent financial legislation. Investors lower their chance of participating in illegal activity or endorsing non-compliant businesses by making sure the project runs within legal bounds.

Project Screening

Project screening assesses a cryptocurrency project's objectives, transparency, and conformity to Islamic principles. Examining the project's governance structure, roadmap, and whitepaper closely is necessary in order to evaluate its morality and validity.

Additionally, project screening scrutinises how well the project adheres to Islamic values, including social justice, fair trade, and moral corporate conduct.

Example halal crypto project

OneGram, a true cryptocurrency project that adheres to Islamic law, provides a digital currency that is backed by gold and compliant with Sharia law. Investors that prioritise Islamic values will find it compliant with ethical standards due to its adherence to Islamic financial rules, which include refraining from interest-based transactions and guaranteeing asset backing. By choosing projects that share Islamic principles, investors help to promote ethical growth and good societal effects in the cryptocurrency ecosystem.

Financial Screening:

Financial screening focuses on analysing the financial structure, revenue sources, and avoidance of interest-based transactions within a cryptocurrency project. It entails evaluating the financing strategy, sources of income, and adherence to Islamic finance norms like the ban on riba (interest) and gharar (uncertainty). Let’s take SukukChain, for example SukukChain is an excellent initiative that meets Islamic finance's financial screening standards.

SukukChain uses blockchain technology to issue sukuk, Islamic financial instruments similar to bonds that follow Sharia standards. By providing transparent revenue streams and avoiding interest-based transactions, SukukChain provides a halal investment option for Islamic finance devotees looking for ethical financial opportunities in the cryptocurrency industry.

Token Screening:

Token screening verifies the use cases, distribution models, and tokenomics of a cryptocurrency token to guarantee moral ramifications and adherence to Islamic values. Token screening also takes into account the moral ramifications of token use situations, staying out of sectors like gambling, alcohol, and weaponry manufacturing that are deemed haram (forbidden) in Islam.

Staking Screening:

Staking screening examines the staking mechanisms and rewards associated with a cryptocurrency project to avoid participation in prohibited activities. It involves assessing stake interest-based returns, speculative trading, and engagement in non-compliant activities. Staking screening also considers the environmental impact of staking activities, ensuring they align with principles of sustainability and ethical stewardship of resources.

Investors can choose halal cryptocurrency that conforms to Islamic values and moral norms by using the Sharlife Methodology. With the use of this all-encompassing screening system, investors can avoid engaging in illegal activities or non-compliant businesses while nevertheless supporting initiatives that advance social justice, moral corporate conduct, and beneficial societal effects.

Are all cryptocurrencies halal?

Not all cryptocurrencies are regarded as halal (permissible) in Islam, despite the fact that they provide creative solutions and economic opportunities. If you're wondering if all cryptocurrencies are halal, the quick answer is no, and here are two reasons why.

• Riba (interest): Many cryptocurrencies involve elements of riba, which is considered haram (forbidden) in Islam. Riba refers to the charging or paying of interest, which is prohibited in Islamic finance.

• Gharar (uncertainty): Cryptocurrencies with speculative or uncertain features may fall under the category of gharar, which is another concept prohibited in Islam. Gharar refers to uncertainty or ambiguity in transactions, which can lead to unfair outcomes or exploitation.

• Haram Activities: Some cryptocurrencies are linked to haram sectors, including gambling, alcohol, tobacco, and weapons production. Islamic beliefs forbid investing in cryptocurrency linked to such activities since it supports immoral businesses.

• Non-Compliant Practices: Cryptocurrency projects or platforms that engage in fraudulent schemes, money laundering, or Ponzi schemes are non-halal. Investment in such ventures violates Islamic honesty, openness, and ethics.

Expert opinion

Anastasiia Chabaniuk Author, Financial Expert at Traders Union

As a seasoned financial specialist, I support ethical and educated halal cryptocurrency investing. Through the utilisation of research, screening techniques, and cautious risk management, investors may ensure that their choices are in line with Islamic values and also have a beneficial social and financial impact.

Summary

Investing in halal cryptocurrencies means adhering to Shariah laws, carefully examining transparency, and placing a higher priority on the well-being of society. Investors can create a path of ethical riches by adhering to religious principles and tackling the fluid digital asset world with integrity and purpose, all with the help of professional counsel and rigorous screening processes.

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Victor Olisaemeka

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Victor has contributed insightful articles to reputable platforms like DecodeFX and FXScouts, showcasing his expertise in the field of finance, Forex and investing. Currently pursuing a masters program in business administration, Victor combines academic rigor with practical industry insights.

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Mirjan Hipolito is a journalist and news editor at Traders Union. She is an expert crypto writer with five years of experience in the financial markets. Her specialties are daily market news, price predictions, and Initial Coin Offerings (ICO).