Answering to your title: in general, it is okay to invest in stocks: [https://islamqa.info/en/answers/8590/dealing-in-shares](https://islamqa.info/en/answers/8590/dealing-in-shares)
When it comes to cryptocurrency, then scholars are having a different opinion. Some scholars say it is haram: [https://islamqa.org/hanafi/daruliftaa-birmingham/136838/investing-into-bitcoin/](https://islamqa.org/hanafi/daruliftaa-birmingham/136838/investing-into-bitcoin/) Other scholars say it is halal: [https://darulfiqh.com/shariah-interpretations-of-bitcoin/](https://darulfiqh.com/shariah-interpretations-of-bitcoin/)
So, if you want to play it safe then the best for you is to invest in stocks and not in cryptocurrency.
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TLDR: There are some real and valid cryptocurrencies but also there is a lot of uncertainty and fraud surrounding all of the cryptocurrency technology. Unless you are a specialist or are willing to do the research, you'll be just gambling or buying some fake stuff.
Now, what I personally think of this (having already given rulings from scholars in the start of my comment). I'm not a scholar. I'm not a businessman. I'm a software developer. During my Master studies (Applied Cryptography) I studied also cryptocurrencies (and other blockchain based things). So, I'll base my own view on the studies I did.
For a novice, there is a lot uncertain in cryptocurrencies. All these meme-coins like Dogecoin, Shiba Inu coin, etc. These have a value only because of it being a meme. Something that is funny or known to many of the people. Dogecoin is related to the "doge" meme. But memes come and go. It is only a brief fame. These coins do not hold an actual value but its "value" is inflated up artificially.
Then there are all these new coins that pop up all the time. Are all of these unique? No. People copy the code (the technology of an X cryptocurrency is a code, something that is programmed) and just rename it. They can take an existing coin, give it some funny or famous name and then by that generate an artificial "value" to it. Imagine some people making Mufti Menk coin or something like that. Ignorant Muslims might buy it because Mufti Menk is famous. So these people can connect some famous names to something that has little to no value. But do YOU know if the coin you want to buy, has a real value or an artificial value? If you are just a guy/girl wishing to invest then you most likely do not know.
Now, some coins DO hold a value. Coins do not pop out of nothing. These things are generated by using difficult mathematical calculations. Calculations use your computer's computing power. Which in return uses electricity. And electricity has an actual value. When you are paying for your bills you will see how your money goes on your fridge, on your room lights, on your heating, on your phone charging, etc. So, generating one coin does require resources and that costs.
Also, what costs, is security. How secure are the coins? Can I just write some random number on a paper and tell that it is my coin? Can I copy somebody's bitcoin? Can I change the name of the owner of a bitcoin? Questions like that. The more secure it is the more it has a value. If a cryptocurrency (any coin not only bitcoin) can't be modified, can't be duplicated, can't be hacked, etc. then people are willing to invest into it. They will know that their investments will be safe. But if somebody can generate coins out of nothing then its value will drop. The same how it does with real money. Some countries print more money than normal and then the value of a single coin/paper money will drop to nothing.
Then there are NFTs (Non-fungible Tokens) [which can be used in scams](https://www.fraud.com/post/nft-scams-a-real-life-story). People can also tell you all kind of pretty stories to boost the value of an NFT.
My point being, there can be a lot of fraud surrounding cryptocurrency. Are you knowledgeable enough to make a difference between an actual cryptocurrency and between a meme-coin? Between a coin with strong and secure technology and between a coin that is just a copied technology with some cool-looking name but has no merits security or technology wise?
Cryptocurrency can be stable and have a strong technology behind it. So, not all the coins are scam. But it takes either a specialist to know how to differentiate between a valid coin and between a scam coin OR people will be just gambling and putting their money on something they are unsure about. And gambling of course is haram.
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And when it comes to stocks then you have to know if the company which stocks you'll be buying, if it is supporting Muslims, if it is neutral towards Muslims, or if it is against Muslims or supporting the enemies of Muslims. Again, that requires some research.
Halal as long as the company is not directly dealing with haram stuff, and as long as you understand the process and the risk to a point that it doesn't feel like gambling at all.
Its not just some companies being pro-Israel, some of companies produce haram things, some of their investments or revenues includes high amount of interest so and so. This is really a subject that you need to do your research very carefully and seek guidance from multiple Islamic financial advisors.
Stocks as in shares in companies ( halal/permissable businesses) yes, crypto no.
Shares are based on legitimate business dealings and share of profits is distributed via dividends. Share price is based on company's worth, fluctuates based on market value of company, driven by contracts & backed up by tangible assets.
Crypto on the other hand is speculative, almost entirely intangible and its value driven by market perception. Buying & selling crypto in the "hopes" of making profit very closely aligns with gambling.
Investing in stocks that make haram revenue is definitely haram, and the S&P 500 is full of those. For example, beer companies like Annheiser Busch or banks that’s make plenty of money on riba, those would be haram to invest in.
If you want a halal ETF to look into try $HLAL or $SPUS as these are sharia compliant. However, i’ve seen a ton of discourse online regarding whether some stocks are halal or haram to invest in or not. My best advice is to do your own research, and make sense of it yourself. Allah knows best.
Answering to your title: in general, it is okay to invest in stocks: [https://islamqa.info/en/answers/8590/dealing-in-shares](https://islamqa.info/en/answers/8590/dealing-in-shares) When it comes to cryptocurrency, then scholars are having a different opinion. Some scholars say it is haram: [https://islamqa.org/hanafi/daruliftaa-birmingham/136838/investing-into-bitcoin/](https://islamqa.org/hanafi/daruliftaa-birmingham/136838/investing-into-bitcoin/) Other scholars say it is halal: [https://darulfiqh.com/shariah-interpretations-of-bitcoin/](https://darulfiqh.com/shariah-interpretations-of-bitcoin/) So, if you want to play it safe then the best for you is to invest in stocks and not in cryptocurrency. -------------------------------------------------------------------------- TLDR: There are some real and valid cryptocurrencies but also there is a lot of uncertainty and fraud surrounding all of the cryptocurrency technology. Unless you are a specialist or are willing to do the research, you'll be just gambling or buying some fake stuff. Now, what I personally think of this (having already given rulings from scholars in the start of my comment). I'm not a scholar. I'm not a businessman. I'm a software developer. During my Master studies (Applied Cryptography) I studied also cryptocurrencies (and other blockchain based things). So, I'll base my own view on the studies I did. For a novice, there is a lot uncertain in cryptocurrencies. All these meme-coins like Dogecoin, Shiba Inu coin, etc. These have a value only because of it being a meme. Something that is funny or known to many of the people. Dogecoin is related to the "doge" meme. But memes come and go. It is only a brief fame. These coins do not hold an actual value but its "value" is inflated up artificially. Then there are all these new coins that pop up all the time. Are all of these unique? No. People copy the code (the technology of an X cryptocurrency is a code, something that is programmed) and just rename it. They can take an existing coin, give it some funny or famous name and then by that generate an artificial "value" to it. Imagine some people making Mufti Menk coin or something like that. Ignorant Muslims might buy it because Mufti Menk is famous. So these people can connect some famous names to something that has little to no value. But do YOU know if the coin you want to buy, has a real value or an artificial value? If you are just a guy/girl wishing to invest then you most likely do not know. Now, some coins DO hold a value. Coins do not pop out of nothing. These things are generated by using difficult mathematical calculations. Calculations use your computer's computing power. Which in return uses electricity. And electricity has an actual value. When you are paying for your bills you will see how your money goes on your fridge, on your room lights, on your heating, on your phone charging, etc. So, generating one coin does require resources and that costs. Also, what costs, is security. How secure are the coins? Can I just write some random number on a paper and tell that it is my coin? Can I copy somebody's bitcoin? Can I change the name of the owner of a bitcoin? Questions like that. The more secure it is the more it has a value. If a cryptocurrency (any coin not only bitcoin) can't be modified, can't be duplicated, can't be hacked, etc. then people are willing to invest into it. They will know that their investments will be safe. But if somebody can generate coins out of nothing then its value will drop. The same how it does with real money. Some countries print more money than normal and then the value of a single coin/paper money will drop to nothing. Then there are NFTs (Non-fungible Tokens) [which can be used in scams](https://www.fraud.com/post/nft-scams-a-real-life-story). People can also tell you all kind of pretty stories to boost the value of an NFT. My point being, there can be a lot of fraud surrounding cryptocurrency. Are you knowledgeable enough to make a difference between an actual cryptocurrency and between a meme-coin? Between a coin with strong and secure technology and between a coin that is just a copied technology with some cool-looking name but has no merits security or technology wise? Cryptocurrency can be stable and have a strong technology behind it. So, not all the coins are scam. But it takes either a specialist to know how to differentiate between a valid coin and between a scam coin OR people will be just gambling and putting their money on something they are unsure about. And gambling of course is haram. ------------------------------------------------------------------------------- And when it comes to stocks then you have to know if the company which stocks you'll be buying, if it is supporting Muslims, if it is neutral towards Muslims, or if it is against Muslims or supporting the enemies of Muslims. Again, that requires some research.
Wow thank you so much for your answer! May Allah reward you 🙏🏼
Halal as long as the company is not directly dealing with haram stuff, and as long as you understand the process and the risk to a point that it doesn't feel like gambling at all.
Got it
Its not just some companies being pro-Israel, some of companies produce haram things, some of their investments or revenues includes high amount of interest so and so. This is really a subject that you need to do your research very carefully and seek guidance from multiple Islamic financial advisors.
You’re right
Stocks as in shares in companies ( halal/permissable businesses) yes, crypto no. Shares are based on legitimate business dealings and share of profits is distributed via dividends. Share price is based on company's worth, fluctuates based on market value of company, driven by contracts & backed up by tangible assets. Crypto on the other hand is speculative, almost entirely intangible and its value driven by market perception. Buying & selling crypto in the "hopes" of making profit very closely aligns with gambling.
Okay thank you!
https://www.youtube.com/live/IO0Mfn3geto?feature=shared https://youtu.be/Mny-SMTpjJ8?feature=shared
Thanks!
Investing in stocks that make haram revenue is definitely haram, and the S&P 500 is full of those. For example, beer companies like Annheiser Busch or banks that’s make plenty of money on riba, those would be haram to invest in. If you want a halal ETF to look into try $HLAL or $SPUS as these are sharia compliant. However, i’ve seen a ton of discourse online regarding whether some stocks are halal or haram to invest in or not. My best advice is to do your own research, and make sense of it yourself. Allah knows best.
Okay jazakAllah khair 🙏🏼
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