NAVI is the first native one-stop liquidity protocol on Sui. NAVI users can provide liquidity to earn passive income or borrow assets using collateral.

 (DeFi) has grown from a niche concept into a thriving multibillion-dollar industry, offering users unprecedented control over their financial assets. However, this rapid industry growth has highlighted the need for more efficient, secure and user-friendly solutions.

NAVI (NAVX) meets these demands with a comprehensive DeFi platform for lending, borrowing and earning passive income. This article explores NAVI's features, its role in the 

 ecosystem and NAVI’s empowerment of users through innovative tools like automatic leverage vaults and shared liquidity pools.

 is the first native one-stop liquidity protocol on the Sui blockchain. NAVI users can provide liquidity to 

 or borrow assets using collateral. The protocol leverages shared 

 and advanced features such as automatic leverage vaults to enhance capital efficiency and reduce risk.

NAVI Protocol was founded by Charles and Elliscope, technology veterans with experience at Apple and LinkedIn. They envisioned NAVI as a "web3 bank for Web 2.0 users," with kindness and open-mindedness at the heart of the company’s culture. The word 

, derived from Hindi, means "Be Kind to People," reflecting this ethos.

Drawing on their Silicon Valley expertise, the founders collaborated with top engineers to build a protocol prioritizing user-friendliness and security. Their mission was to create a DeFi protocol that could deliver the benefits of 

After evaluating various platforms, they chose the Sui blockchain for its enterprise-scale capabilities and innovative design. Sui’s object-focused programming model offers developers more flexibility than traditional account-based blockchains, making it an ideal foundation for the NAVI Protocol.

NAVI aims to democratize DeFi by offering a simple platform for lending, borrowing and managing digital assets. Its primary goal is to reduce barriers to entry, allowing users of all experience levels to engage in DeFi without needing technical expertise.

The protocol enhances capital efficiency with features like automatic leverage vaults and yield-bearing tokens, helping users maximize the potential of their assets. NAVI also prioritizes security by using advanced risk management tools, such as isolation mode and debt ceilings, to safeguard user funds.

Decentralized governance is another crucial aspect of NAVI's mission. Its 

, NAVX, allows token holders to vote on decisions and proposals, enabling them to help shape the protocol’s development. This ensures that NAVI remains a community-driven platform and supports a truly decentralized ecosystem.

NAVI operates through a shared liquidity pool system. For each supported asset, NAVI creates a pool where users can deposit assets and become liquidity providers (

), earning passive income in return for NAVI receipt tokens (e.g., 

). Lenders supply assets to the pools, while borrowers take loans by providing collateral. Borrowing limits are determined by a dynamic collateralization ratio, which adjusts based on pool supply and demand. Interest rates for lending and borrowing fluctuate according to market conditions.

A "health factor" continuously monitors the safety of each borrower’s position. If their health factor drops below 1, it signals that their collateral is insufficient to cover the loan, triggering a liquidation process. During liquidation, up to 35% of the borrower’s debt is repaid using their collateral, along with a liquidation fee.

To manage risk, NAVI implements advanced features such as isolation mode for introducing new assets, debt ceilings to limit borrowing and supply/borrow Limits. The protocol integrates 

 services to provide accurate price data for collateral, loan amounts and liquidation triggers, ensuring the system remains secure and reliable.

The NAVX token powers NAVI’s governance, allowing token holders to vote on proposals affecting interest rates, new assets and risk management parameters. Together, these mechanisms create a self-regulating DeFi ecosystem that supports efficient lending and borrowing while maintaining protocol safety.

NAVI offers a range of innovative features, described below, that are designed to enhance user experience and maximize capital efficiency.

NAVI offers a straightforward way for users to supply digital assets and earn passive income. By depositing assets into NAVI's liquidity pools, users can earn interest that fluctuates based on supply and demand. There are no minimum or maximum deposit limits. allowing users to manage their funds flexibly.

The protocol’s borrowing feature allows users to borrow cryptocurrency assets and obtain loans using their deposited assets as collateral. The 

 is dynamically adjusted to ensure borrowers don’t exceed their capacity and experience liquidation.

 mechanism to protect the protocol from default risks. If a borrower's health factor drops below a safe threshold (as mentioned above), their collateral is subject to liquidation. The liquidation process is managed through secure oracles that aggregate price data from multiple sources to ensure accurate pricing.

NAVI’s flash loan feature allows users to borrow assets without collateral, provided the borrowed amount is repaid within a single transaction. Flash loans create opportunities for 

, collateral swaps and other advanced trading strategies without requiring significant capital investment.

 is a liquidity management system designed for professional traders seeking enhanced features and tools. It offers deeper integration with trading strategies and access to leverage, making it suitable for users who require advanced financial tools within the DeFi space.

Volo is a feature that focuses on maximizing asset utility within the NAVI ecosystem. It enables users to leverage their digital assets to access additional yield opportunities, allowing them to engage in more sophisticated trading strategies with reduced risk.

Several key milestones have marked NAVI Protocol’s journey:

NAVI’s journey continues with several exciting milestones planned for the remainder of 2024:

NAVX, the native token of NAVI Protocol, is primarily used for governance. Token holders can vote on essential protocol decisions, such as interest rates, new assets and other vital changes that will shape the platform’s future.

NAVX also incentivizes liquidity providers, and offers staking rewards to encourage active participation. Users can provide liquidity to NAVX/SUI and NAVX/vSUI pairs on 

 (DEXs), and receive LP tokens. These tokens can then be locked for a certain period, making users eligible for rewards in NAVI's money market.

NAVX’s price outlook is closely tied to the growing adoption of NAVI Protocol within the Sui ecosystem. Initially launched at 0.021 $SUI, NAVX has the potential to see significant growth as DeFi continues to expand. As of Oct 15, 2024, the NAVI token is priced at $0.146.

While cryptocurrency price predictions are speculative, several price analysts have provided forecasts for NAVX:

These forecasts suggest a positive long-term outlook for NAVI, driven by its innovative features and growing role in decentralized finance. Ultimately, NAVX’s future value will depend upon the continued success of the NAVI Protocol, its integration within the Sui ecosystem and broader market conditions.

Looking to trade NAVI tokens? Bybit now offers the NAVX/USDT Spot trading pair for trading. To get started, you’ll first need to create a Bybit account, then fund with cryptocurrency and navigate to the 

To celebrate this listing, Bybit is holding 

 where you can earn a share of the 200,000 NAVX prize pool. 

Simply complete deposit or trading tasks listed on the Token Splash page to earn 100 NAVX. Please note that rewards are limited to the first 2,000 new users.

Evaluating NAVX as an investment involves considering both its strengths and potential risks.

In summary, NAVX offers promising potential, but its future success hinges on the growth of NAVI Protocol and the evolving DeFi ecosystem. Investors should weigh the risks and 

NAVI is a promising DeFi protocol that aims to revolutionize the lending and borrowing market. With its unique features, such as algorithmic-based interest rates and liquidity incentives, NAVI is poised to significantly expand DeFi accessibility and functionality within the growing Sui ecosystem. 

Whether you’re a user looking to earn passive income through staking or a trader seeking high-yield opportunities, NAVI offers versatile solutions for everyone in the rapidly growing world of decentralized finance.

Intermediate

navi protocol, navx.png

NAVI (NAVX): Understanding Sui's One-Stop Liquidity Protocol

Some of the top halal coins include Solana (SOL), Polygon (POL), Avalanche (AVAX), Chainlink (LINK) and Uniswap (UNI). Find out more here.

Bybit has taken a major step toward promoting financial inclusivity with the launch of its Shariah-compliant Islamic Account. This innovative offering allows Muslims to participate in the cryptocurrency market while adhering to Islamic principles. In this article, we'll explore what halal coins are and how 

 works, and list the top 18 halal coins you can trade using the Bybit Islamic Account. 

Whether you're a Muslim trader looking for 

 or simply curious about Islamic finance, this guide has you covered.

Halal coins are cryptocurrencies that comply with Islamic finance principles, excluding activities like charging interest (riba), gambling (maysir) and excessive speculation (gharar). Such digital assets provide Muslim investors with blockchain-based investment opportunities that can align with their religious and ethical values.

Halal crypto eliminates elements that are prohibited in Islamic finance, such as riba (interest), gharar (excessive uncertainty), and maysir (gambling). Instead, these cryptocurrencies focus on creating value through legitimate business activities, tangible asset backing and/or clear utility within the 

Determining whether a cryptocurrency is halal involves rigorous scrutiny by Islamic scholars and financial experts. These specialists meticulously examine a specific coin's white paper, operational model and use cases to ensure compliance with principles of Shariah law.

Transparency plays a crucial role in halal crypto operations. Projects must provide clear and comprehensive information about their teams, funding sources and intended use of funds. This level of transparency aligns with Islamic principles and fosters trust among investors.

 carefully separates halal assets from noncompliant ones, ensuring all trading activities align with Shariah principles. This gives Muslim traders confidence that their investments will fully align with their religious values and Islamic principles.

Best Halal Coins to Trade With the Bybit Islamic Account

Below is a list of the top 18 halal cryptocurrencies available on Bybit’s Islamic Account, along with their project details, current market data and the reasons they’re considered to be compliant with Shariah law.

 is one of the world’s most-used blockchains, processing more daily transactions than all other chains combined. Known for its exceptional scalability and speed, Solana supports thousands of transactions per second, making it ideal for nearly all decentralized applications.

As of Oct 16, 2024, Solana’s SOL token is valued at $154.24, with Solana’smarket cap at over $72 billion, and a 24-hour trading volume of $4.2 billion. Solana’s real-world utility, from 

 pilots with Visa to payment on-ramps with 

, makes it a promising addition to any halal crypto portfolio.

, launched as Matic Network in 2017, is designed to make Ethereum more efficient through 

 scaling solutions that reduce transaction fees and speed up processing times, making it an attractive option for developers building 

As of Oct 16, 2024, Polygon (POL) has a price of $0.3713, a market cap of over $995 million and a 24-hour trading volume of $7.4 million. Its role in enhancing the functionality of 

 aligns with Shariah principles, since it offers tangible value and infrastructure improvements, rather than merely focusing on price speculation.

 is a blockchain platform that combines a tri-chain architecture (C-Chain, P-Chain and X-Chain) with customizable Layer 1 networks. This structure enables diverse applications and sovereign blockchains within its ecosystem, making it ideal for decentralized financial services, enterprise solutions and game development.

As of Oct 16, 2024, Avalanche (AVAX) boasts a price of $27.78, a market cap of over $11 billion and a 24-hour trading volume of $597 million. Its focus on utility and real-world applications helps position it as a suitable halal investment for traders or investors seeking ethical opportunities in the crypto space.

 to real-world data through APIs and feeds. Its Cross-Chain Interoperability Protocol (CCIP) enables secure transfers of tokens and data across blockchains, ensuring seamless functionality for DApps.

As of Oct 16, 2024, Chainlink (LINK) is priced at $11.28, with a market cap of over $7 billion and a 24-hour trading volume of $561 million. With its reliable oracle networks facilitating over $14 trillion in on-chain value, Chainlink offers high utility and strong potential for growth in line with Shariah principles.

 tokens directly without relying on a centralized intermediary. As of Oct 16, 2024, Uniswap (UNI) is priced at $7.89, with a market cap of $5.9 billion and a 24-hour trading volume of $370 million.

 (DeFi) provides a transparent and efficient way for users to trade digital assets. This functionality aligns with Shariah principles, making it a suitable halal investment option that supports ethical trading practices in the crypto market.

Compound’s DeFi protocol is built on Ethereum, and allows users to lend and borrow cryptocurrencies without intermediaries. Through its algorithmic money market model, users earn interest on deposits or borrow assets using collateral, with interest rates that dynamically adjust based on supply and demand. The system incentivizes both lenders and borrowers with COMP tokens, which can also be used in governance decisions to influence platform updates and asset support, enhancing community engagement and decentralization.

As of Oct 16, 2024, Compound’s (COMP) price is $44.93, with a market cap of nearly $394 million and a 24-hour trading volume of approximately $44 million. Its governance model and trustless functionality position it as a key player in the DeFi ecosystem, providing unique, Shariah-compliant options for ethical investment aligned with DeFi principles.

 is a decentralized network focused on solving blockchain interoperability through its Inter-Blockchain Communication Protocol (IBC), which allows blockchains to seamlessly exchange data and assets. The Cosmos Hub acts as the platform’s economic center that connects these blockchains in an "Internet of Blockchains," enabling them to grow together.

As of Oct 16, 2024, Cosmos (ATOM) is priced at $4.46, with a market cap of over $1.7 billion and a 24-hour trading volume of $181 million. Cosmos’s emphasis on interoperability and practical utility aligns with halal principles, making it a valuable choice for ethical investors.

, launched in 2015, continues as the original version of the Ethereum blockchain. It follows the principle of"Code is Law,"meaning that the network's operations are governed solely by its underlying code, with no external intervention allowed.

As of Oct 16, 2024, Ethereum Classic (ETC) has a price of $19.40, with a market cap of over $2.8 billion and a 24-hour trading volume of $173 million. Its commitment to providing a secure and programmable digital asset network positions it as a halal investment in the crypto space.

 cryptocurrency that facilitates fast, secure and low-cost transactions. Often referred to as the “silver to Bitcoin's gold,” Litecoin aims to improve Bitcoin's transaction speeds and efficiency. As of Oct 16, 2024, the price of Litecoin (LTC) stands at $71.49, with a $5 billion market cap and a 24-hour trading volume of $954 million.

Litecoin’s focus on being a reliable digital currency for everyday transactions qualifies it as a halal asset because it doesn’t rely on speculative gains, but rather on genuine use as a medium of exchange. Muslim traders and investors looking to store wealth and carry out transactions in a halal manner may consider Litecoin (LTC) as an option.

 is a blockchain platform specifically designed to facilitate cross-border payments and remittances, making it easier for financial institutions and individuals to transfer money across borders. As of Oct 16, 2024, Stellar (XLM) has a price of $0.09323, a market cap of $2.7 billion and a 24-hour trading volume of $76 million.

The project's mission to create a more inclusive financial system aligns with Shariah principles by promoting transparency and reducing transaction costs. XLM’s utility-driven role as a bridge currency for fiat and cryptocurrencies makes Stellar a favorable choice for halal investors.

 is a Layer 1 blockchain focused on creating a decentralized and borderless economy by providing high-speed and scalable solutions. With its 

 designed for rapid transaction processing, Algorand is used in various financial services and DeFi applications.

As of Oct 16, 2024, Algorand (ALGO) has a price of$0.1248, a market cap of $1 billion and a 24-hour trading volume of $59 million. Its role in powering real-world applications and supporting innovation in the digital economy makes it a compliant asset under Islamic financial principles.

 is a blockchain platform known for its on-chain governance and self-amending protocol, allowing it to evolve and improve without disrupting the network. It supports smart contracts and DApps, promoting innovation in the blockchain space.

As of Oct 16, 2024, Tezos (XTZ) has a price of $0.6998, a market cap of $704 million and a 24-hour trading volume of $25 million. Its focus on sustainable growth and technological advancements rather than speculative gains makes Tezos a halal coin worth considering.

 is a digital payment protocol and cryptocurrency that facilitates real-time, cross-border payments with minimal fees. Financial institutions use the XRP coin to provide liquidity and execute instant transfers over the network.

As of Oct 16, 2024, XRP (XRP) has a price of $0.5427, a market cap of $30 billion and a 24-hour trading volume of $1.2 billion. XRP’s emphasis on utility in the financial sector aligns with Shariah-compliant guidelines, making it a trustworthy choice for ethical crypto investments.

 is the world’s first successful (and most widely recognized) cryptocurrency. It operates as a decentralized medium of exchange that offers financial sovereignty and transparency. A 

 coins, Bitcoin has become a store of value, much like gold, for those seeking protection against inflation.

As of Oct 16, 2024, Bitcoin (BTC) has a price of $67,146.23, a market cap of close to $1.3 trillion and a 24-hour trading volume of $51 billion. BTC's role as a peer-to-peer digital currency that doesn’t involve intermediaries makes it a halal option for investors seeking long-term, sustainable growth in the crypto market.

’s versatile blockchain platform is known for its ability to support smart contracts and DApps. Its network is the backbone of many DeFi projects, providing a solid infrastructure for developing innovative financial solutions.

As of Oct 16, 2024, Ethereum (ETH) has a price of $2,622.93, with a market cap of $315 billion and a 24-hour trading volume of $21 billion. Ethereum’s widespread use in creating programmable and transparent digital assets makes it a valuable investment choice for Shariah-compliant traders.

’s Layer 1 blockchain is designed to offer a secure, scalable foundation for developing smart contracts and DApps. Known for its peer-reviewed scientific approach, Cardano delivers innovative solutions across the finance, governance and identity management sectors.

As of Oct 16, 2024, Cardano's (ADA) price is $0.3569, with a market cap of $12 billion and a 24-hour trading volume of $509 million. Cardano’s transparent, research-driven development aligns with Shariah principles, since it promotes ethical practices and sustainable technology.

 is a stablecoin that’s pegged to the U.S. dollar, providing stability and reducing the risks associated with crypto market volatility. It serves as a reliable digital alternative to fiat currencies, and is widely used for transactions and as a store of value.

As of Oct 16, 2024, Tether’s (USDT) market cap is $119 billion, with a trading volume of $49 billion. It can be considered compliant with Shariah law due to its role as a digital representation of real-world value, thus making it a trusted asset for ethical and stable investments in the crypto market.

 is another prominent stablecoin backed by the U.S. dollar. It’s designed to provide a seamless bridge between digital and traditional finance. USDC offers transparency through audited reserves, and is widely used in trading, lending and other financial applications.

As of Oct 16, 2024, USDC has a market cap of $34 billion and a 24-hour trading volume of $6 billion. USDC’s backing by real-world assets makes it ideal for those seeking a halal stablecoin to use for temporary fund storage or to facilitate transactions.

Halal crypto trading bridges traditional Islamic finance and the flourishing digital economy. For Muslim traders or investors looking to diversify their portfolios or participate in the blockchain revolution, halal crypto trading presents an ethically aligned option worth trying.

With Bybit offering over 18 Shariah-compliant coins, investors have a broad range of halal assets to explore. Whether storing value in BTC, facilitating cross-border payments with XRP or trading with stablecoins such as USDC, halal crypto trading on Bybit provides a seamless way for the Muslim community to participate in the growing digital economy.

Halal crypto trading means investing in digital assets that comply with Islamic finance principles; avoid interest (riba), excessive speculation (gharar) and gambling (maysir); and eschew unethical industries. With 18 halal coins to trade on Bybit, users can confidently invest within a Shariah-compliant environment that ensures their investment choices align with their values.

Disclaimer: Due to varying opinions on Shariah compliance of crypto trading, we recommend you to conduct your own further research. Please note that the posts on Bybit Learn should not be considered as fatwa. Our aim is to present information on different topics to empower readers to make informed decisions.

halal crypto list, halal coins.png

Top 18 Halal Coins to Trade With the Bybit Islamic Account

Discover whether crypto day trading is halal or haram according to Islamic finance principles, as we explore key considerations for Muslim traders in the evolving cryptocurrency market.

 has been a popular way of making a profit in financial markets for centuries, and has become particularly common since the growth of computer-assisted trading platforms in the 1990s. Day traders try to capitalize on asset price movements during a single trading day. Commonly used in 

 markets, day trading has also been enthusiastically embraced by the cryptocurrency trading community over the past few years.

However, the acceptability of crypto day trading from an Islamic law perspective remains a gray area, with many Muslim investors uncertain whether it's a halal (permitted) or haram (prohibited) activity. This article covers the basic concepts related to cryptocurrency day trading and its alignment with core Islamic principles.

Day trading is a form of market activity in which a trader buys and sells assets during the same trading day, with the purpose of making profit from price fluctuations. The key goal of a crypto trader is to buy an asset during a price dip, and then sell on the same day when the price rebounds to higher levels. Using computerized trading solutions, day traders might place anything from a few to many hundreds of trades. Highly popular in the stock and forex markets, day trading has also been increasingly used for trading crypto as well.

Crypto day traders take advantage of cryptocurrencies' price volatility and the crypto market's 24/7 availability to try to make a profit. Most crypto day trading activity involves high-cap crypto assets, such as 

 (SOL). Some traders might adopt a high-risk strategy and trade low-cap, sometimes obscure crypto assets in the hopes of making large profits that may not be easily derived using high-cap coins.

The vast majority of crypto day trading takes place on 

 (CEXs), although a smaller share also occurs on blockchain-based 

Understanding Islamic Finance and Crypto Trading

Islamic finance is part of Shariah, or the set of laws and regulations that guides Muslims' personal, communal, ethical and financial activities. Fundamental principles of Islamic finance define what is permissible (halal) for Muslim investors and what is not allowed (haram). Islamic finance principles explicitly forbid Muslims to use financial products and assets linked to interest (riba), excessive uncertainty (gharar) and gambling/speculation (maysir).

Under certain circumstances and conditions, trading cryptocurrency may be a legitimate activity for Muslim investors. Many crypto trading operations involve no riba, gharar or maysir. For instance, the simple act of buying Bitcoin and holding it as a store of value involves no interest payments, nor is it associated with market speculation or uncertainty. In this scenario, the investor simply assumes possession of the asset and stores it in their exchange 

 or at their blockchain address, without worrying about its price volatility or the uncertainty or speculation that might be linked to that volatility.

However, for Muslim investors, the acceptability of crypto day trading — which involves frequent buy-and-sell operations in an attempt to capitalize on short-term price movements — is a topic that is less clear.

Is Crypto Day Trading Halal — or Haram?

The lack of certainty about the halal status of crypto day-trading activities is largely due to the absence of a unified opinion of Islamic scholars and institutions on this matter. Those Islamic scholars and advisories that issue notes and opinions on the Shariah-compliant status of cryptocurrencies have rarely addressed the specific case of crypto day trading, in most cases expressing their views on crypto in general. 

Notable scholars or institutions that consider cryptocurrencies to be haram include the former Grand Mufti of Egypt, Dr. Shawki Allam; the prominent UK-based Islamic scholar Sheikh Dr. Haitham al-Haddad; and Turkey's General Directorate of Religious Affairs (or Diyanet). Scholars who normally consider crypto to be haram cite the lack of regulation for these assets, which creates the risk of using them for illegal activities; their ambiguous real-world value, due to their completely digital format; and the speculative nature of many crypto trading operations.

However, many other Islamic scholars and institutions consider crypto to be halal in general, provided it's not used in activities connected to riba, gharar or maysir, and isn't linked to haram products or industries. Many of these scholars advise Muslims to take a selective approach and look at the specific details of each cryptocurrency or crypto product. Among notable scholars who advocate for a generally halal view on crypto are Dr. Ziyaad Mahomed, Chairman of the HSBC Amanah Shariah Board in Malaysia; Mufti Muhammad Abu Bakar from Minhaj Advisory, Dubai; and Mufti Faraz Adam, head of Amanah Advisors, a global Shariah advisory firm.

Gauging the Permissibility of Crypto Assets

Given the difference of opinions on crypto and the lack of direct rulings specifically concerning crypto day trading, Muslim investors are often left uncertain concerning the legitimacy of this activity. In general, crypto day trading might be viewed as halal if it doesn’t involve:

 crypto day trading might be permissible if it involves relatively stable, established crypto assets whose price movements are more defined and follow market logic, rather than hype or speculation. Spot trading also allows traders to directly own an asset. Moreover, in cryptocurrency markets, day trading operations 

 are settled nearly instantly or within seconds, so that traders aren’t left in a scenario in which they’ve placed a trade but haven't assumed ownership of the asset. 

In contrast, in traditional financial markets — e.g., stocks, bonds, commodities and forex — a day or two can elapse between a trade’s placement and settlement. This delay in assuming ownership of an asset is often cited by Islamic scholars as a violation of Shariah principles.

Practical Considerations for Muslim Crypto Traders

Some astute Muslim crypto day traders may be able to assess each situation and make a confident decision about the halal status of each of their financial transactions. However, for many others, the decision is far from straightforward. For such traders, the safest approach is to use 

 at established crypto trading platforms. Naturally, each account still needs to be scrutinized with regard to the absence of riba, gharar and maysir.

Bybit offers Muslim crypto investors (including day traders) a specifically designed and endorsed 

 that satisfies the requirements of Shariah law. The 

 lets you trade crypto with peace of mind by ensuring that all your trading activity remains compliant with Shariah law.

So, is crypto trading halal? And specifically, can crypto day trading be viewed as a halal activity? In an atmosphere of conflicting advice and uncertainty, it can be challenging for Muslim traders to confidently answer this question. 

In closing, it’s likely that your crypto day trading activities will qualify as halal if you: 

is crypto day trading halal.png

Is Crypto Day Trading Halal? Everything You Need to Know

Is Crypto Halal, or Haram? Learn the key factors Islamic scholars consider when determining whether cryptocurrencies like Bitcoin are permissible (halal) or forbidden (haram) for Muslim investors.

Cryptocurrencies have emerged as a popular trading and value storage asset over the past decade, with interested investors across the globe, including in the Muslim world. Many predominantly Muslim countries, as well as those with significant Muslim minorities, now feature high rates of cryptocurrency ownership, with the United Arab Emirates (UAE) being the absolute 

 as of 2024. According to the same data, Turkey boasts the third-highest ownership rate, while Singapore, which has a sizable Muslim minority representing around 15% of its population, is in the second position. The UAE and Singapore have also emerged as leading cryptocurrency and 

Despite considerable interest in crypto in the Islamic world, there's still a large degree of uncertainty over its halal status, a key consideration for many Muslim investors. Some countries — for example, the UAE and Saudi Arabia — have issued warnings about the Shariah-compliant status of cryptocurrency and/or crypto trade. However, no country has banned crypto outright on these grounds. 

Adding to the confusion, many Islamic scholars have arrived at varying interpretations of the nature of cryptocurrency. Some scholars have opined that crypto is haram (not permissible for Muslims), while others have issued advisory notes broadly endorsing the majority of cryptocurrencies, including 

 (BTC). Due to this difference of opinions, and the absence of any single centralized ruling, many investors are uncertain whether crypto is halal — i.e., permissible for Muslims.

This article covers key points in the ongoing discussion to help you decide whether any cryptocurrencies can be considered halal assets.

 are digital assets issued and used on blockchains, decentralized networks on which the issuance, transfers and storage of these assets are protected through a cryptographic security mechanism. In a typical blockchain, many independent user nodes protect the operations and integrity of the network through a decentralized 

. This decentralized consensus, as well as independence from a central controlling entity, makes these networks and their cryptocurrencies a viable alternative to traditional banking systems.

The world's first (and still largest) cryptocurrency is Bitcoin, the native digital asset of the Bitcoin blockchain that was launched in 2009. A few years after its introduction, Bitcoin was being traded on platforms beyond its native network, such as 

 (DEXs) based on other blockchains. By now, thousands of cryptocurrencies are in existence, and these digital assets form an important asset class within the broader finance ecosystem.

On their native blockchain platforms, cryptocurrencies serve as assets for value transfer and storage, and also contribute to keeping their respective blockchains secure and functional so that these networks can operate in a decentralized way. All crypto operations on blockchains are publicly viewable, upholding the transparency ethos of blockchain technology. On CEXs and DEXs, cryptocurrencies can be used for value transfers and storage, as well as for trading to generate profit.

To define whether cryptocurrency is halal for Muslim investors, a firm understanding of Shariah and its specific subset, Islamic finance, are imperative. Shariah defines the overarching set of principles, regulations and laws that guide Muslims' personal, moral, ethical, legal and economic behavioral standards and obligations. Among the fundamental tenets of Shariah law are justice and fairness in all dealings, correct worship practices, good morals and behaviors that Muslims must follow, public and personal health and cleanliness standards, cooperation and solidarity among members of the society, and worship and societal transaction standards.

The last mentioned element of Shariah law — worship and transaction standards — includes a subset of rules and regulations dealing with financial transactions, practices and ethos. These laws and regulations form the body of the Islamic finance principles that Muslims must follow. Some of the fundamental principles of Islamic finance include the prohibition of interest (riba); excessive uncertainty (gharar); and gambling/speculation (maysir). In addition, there’s a proscription against activities that don't result in tangible value for the individual and society. Key principles also include transparency in dealings, and maintaining fairness and ethical standards in all transactions.

Many of the key characteristics of cryptocurrency align with the major principles of Islamic finance. This includes the absence of interest in crypto transactions, the use of cryptocurrency for secure value storage without speculation or excessive uncertainty, and the transparent nature of blockchain-based crypto operations.

Islamic Scholars’ Views on Cryptocurrency

Islamic scholars have not formed a unified view on whether cryptocurrency is either halal or haram. Some scholars or institutions consider it haram. For instance, Turkey's 

 that crypto is haram, due to its potential for speculative use (i.e., maysir). Another high-profile opinion on this matter came from the former Grand Mufti of Egypt, Dr. Shawki Allam, 

 crypto trading may be haram due to its unregulated nature and potential to be used for funding illicit activities.

However, many other Islamic scholars and institutions assessing the Shariah compliance of financial products take a more nuanced approach. For example, the Shariyah Review Bureau, a popular Shariah compliance consultancy that operates the 

 portal, assesses the halal status of each cryptocurrency individually based on its use cases and functions.

In general, the Bureau assigns the haram classification for lending and borrowing 

 (AXS) and meme coins with zero utility, such as Dogecoin (DOGE). For most other cryptocurrencies, including Bitcoin, it typically endorses the halal classification. The advantage of the Bureau's approach is in its detailed and selective nature of assessment. Instead of treating all crypto assets and platforms as one and the same, the Bureau examines the details of each asset.

Some scholars and institutions have largely endorsed crypto in general as halal. One of the U.K.'s leading Islamic law scholars, Mufti Abdul Qadir Barkatullah, has maintained that cryptocurrency is halal because it’s evolved into a widely accepted form of value exchange. This aligns with an earlier ruling specifying that if an asset has been widely accepted as a legitimate form of payment in society, it should be treated as halal.

Another leading Islamic scholar, Mufti Muhammad Abu Bakar, takes an in-depth look into cryptocurrency, Bitcoin and blockchain in general in his 

, concluding on the basis of his extensive review that cryptocurrency is halal.

So, Is Cryptocurrency Halal — or Haram?

How can Muslim investors make confident investment decisions concerning these digital assets in an environment of varying opinions on crypto's halal status? In general, it's recommended that prospective traders or investors take a selective approach and look at the features and functionality of each crypto asset and product they might consider. Cryptocurrencies and blockchains differ substantially in terms of their properties. Some, like the crypto tokens of DeFi platforms on which interest features prominently, aren't likely to be viewed as halal by anyone.

Many other crypto coins, however, aren't related to interest-generating solutions, and their transfers and storage involve no interest (riba), uncertainty (gharar) or speculation (maysir).

Some cryptocurrencies represent tokenized versions of 

 (RWAs). These are directly based on tangible assets that may exist beyond the crypto world, such as real estate, stocks and bonds. Depending upon their origin, these assets may align well with the principle of tangibility in Islamic finance, which stipulates that any economic activity should be based on real assets and the generation of real-world value.

When it comes to crypto trading — as opposed to the basic operations of transferring and storing funds — the halal status of cryptocurrencies might be less certain, depending upon the actual trading product used. The same asset (e.g., Bitcoin) might be used in crypto trading and investment products that involve no riba, and feature low probability of uncertainty or speculation. These products might qualify as halal. On the other hand, if the same crypto asset is used in an interest-bearing or highly volatile trading product, it's unlikely to be aligned with Islamic principles. As such, a decision often depends upon the precise product features, rather than the underlying cryptocurrency itself.

Bitcoin is by far the largest cryptocurrency by market capitalization, and typically features volatility levels that are significantly lower than those of most other crypto assets. Its high trading volumes and reputation as a secure value storage asset contribute to its lower volatility and, therefore, lower uncertainty than that of lower-cap cryptocurrencies.

Bitcoin also features the valuable utility of being used as a secure and private 

 (P2P) exchange asset. Moreover, Bitcoin is a 

 cryptocurrency, with a maximum supply limit of 21 million tokens. This characteristic is designed to avoid excessive supply inflation, and to reduce the likelihood of its devaluation. Such a deflationary feature arguably adds stability to Bitcoin, further enhancing its potential acceptance as a halal asset.

As a vehicle of value exchange and wealth storage with deflationary characteristics, Bitcoin itself — unless used in specific interest-bearing or highly volatile crypto products — might be deemed halal, a view that is shared by the assessment of the 

Other Notable Shariah-Compliant Cryptocurrencies

Ether (ETH) is the second-largest crypto by market cap behind Bitcoin. It's used to secure the operations of the 

 blockchain, and may be used for digital value transfers and storage, similar to the way the BTC coin is used on the Bitcoin blockchain. ETH provides tangible value as a secure wealth exchange and storage asset in a decentralized environment. As such, unless it's used in specific interest-bearing or highly volatile crypto trading products, ETH might qualify as a halal asset.

It should be noted that the Ethereum blockchain hosts a variety of 

 (DApps), many in the DeFi niche. Certain DeFi apps on Ethereum are actively involved in interest-bearing lending, borrowing and yield management operations. However, these DApps normally use their own crypto tokens — e.g., AAVE or COMP — for these operations, rather than the ETH token.

 cryptocurrency that maintains a tight peg to the U.S. dollar. While it ranks behind BTC and ETH, taking the third position in market cap rankings, USDT is the world's most traded crypto asset. Its stable peg to the greenback has largely been successfully maintained since Tether’s launch in 2014, which makes it a highly popular asset for crypto-to-fiat operations. The coin's near-perfect stability and backing by the world's most popular fiat asset makes it an RWA that is likely to be considered halal.

 blockchain, Ethereum's major competitor in the niche of DApp-capable blockchains. Solana aims to provide a platform for DApps that’s cheaper and faster than Ethereum. In general, SOL performs exactly the same functions on Solana as ETH does on Ethereum: digital value transfers, value storage and securing the network via its 

 (PoS) block validation mechanism. Similarly to BTC and ETH, SOL is likely to be considered a halal asset unless it’s used in specific interest-generating or highly speculative crypto products.

 is the native cryptocurrency of the decentralized public XRP Ledger. The token is used primarily to support B2B payments and settlements. As a cryptocurrency that enables efficient and secure digital currency payments in the business world, XRP provides real utility, arguably bolstering its viability as a halal asset.

 (POL) is an ecosystem of decentralized platforms and solutions that primarily provides cost-efficient and scalable ways to conduct crypto operations on the Ethereum blockchain. The ecosystem's native crypto asset, POL, is used to secure the functioning of these platforms through a decentralized consensus mechanism. It can also be used for secure digital asset transfers and storage. POL’s functions are largely similar to those of ETH and SOL within their respective environments, increasing the likelihood that POL is to be considered a halal asset.

The use of cryptocurrencies raises specific concerns from the perspective of Islamic finance. Many crypto trading activities involve excessive volatility, which may lead to uncertainty (gharar). There are also instances of crypto products supporting speculative activities that may qualify as being maysir.

Additionally, while most blockchains are publicly viewable (which contributes to better transparency), the actual identities of address holders remain anonymous. This might raise ethical concerns with regard to the legality and ethics of funds circulating on the blockchain. Some might also argue that the digital nature of cryptocurrencies could contradict the Islamic finance principle of all economic activity being based on tangible assets.

Despite these concerns, it's important to remember that cryptocurrency is designed simply for the secure storage and exchange of value while promoting the independence and decentralization of blockchain platforms. This in itself provides tangible value to the concept of cryptocurrency. Importantly, by default, crypto transactions involve no interest (riba), and they operate away from traditional banking systems in which riba is a heavily utilized mechanism.

As such, depending upon the actual trading or investment product involved, cryptocurrencies may selectively be considered to be assets aligned with core Islamic finance principles.

Since there's no central governing body that provides a definitive and all-inclusive fatwa (ruling) on cryptocurrencies' halal status, Muslim investors need to look into the specifics of each product and crypto asset they might consider. If the cryptocurrency or the product it's based on is free from riba, involves no excessive risk and isn't based on speculation, it might comply with Shariah principles. Additionally, Muslim investors might further consider specifically designed Shariah-compliant cryptocurrency products, such as 

, to ensure that they take advantage of crypto opportunities without violating the principles of Shariah.

is crypto haram.png

Is Crypto Halal, or Haram? What Muslim Investors Need to Know

Bybit Learn

Daily Bits

Ethena Labs proposes adding SOL as a backing asset for USDe, leveraging the same hedging mechanics used with BTC and ETH.

Ethena Labs Proposes Adding SOL as USDe Backing Asset to Boost Revenue and Scalability

Grab Up to 5,000 USDT in Rewards

Grab Up to 5,000 USDT in Rewards