مفتي سلمان سعيد

Answer:

In the Name of Allah, the Most Gracious, the Most Merciful.

The ruling on cryptocurrencies is a matter of ongoing discussion among contemporary scholars. However, based on the fundamental principles of Islamic finance, we can outline the following conditions for a transaction to be considered permissible:

Regarding Cryptocurrencies

For any currency or asset to be valid in Islam (Mal Mutaqawwam), it must have intrinsic utility or be universally accepted by a society as a medium of exchange. Bitcoin and similar cryptocurrencies lack intrinsic value and are highly volatile. Furthermore, they are often associated with excessive uncertainty (Gharar) and speculative behavior (Qimar).

Therefore, a large body of prominent scholars advises against investing in cryptocurrencies due to the high risk of Gharar and the lack of regulatory oversight which protects the wealth of individuals (Hifz al-Mal).

Regarding Day Trading

Day trading, which involves buying and selling financial instruments within the same trading day, often resembles gambling (Maysir) due to its highly speculative nature. In Islam, a transaction must involve the genuine exchange of value. Buying a stock just to sell it minutes later based on chart speculation without intending to invest in the underlying business is highly discouraged, and many scholars deem it impermissible.

And Allah (SWT) knows best.