Crypto Staking: Halal or Haram?

[@ramezalabed361]

Man spoke facts in the beginning. It’s always good to know the reasoning of why something is okay or not. Love your videos and your guidance to halal investing🙏

[@yoyo-gv8zs]

Thank you brother, i was waiting for this

[@mohamedbenyamine9534]

Well put. Proof of Stake is principally involved with ensuring the transaction history is accurate, secure, and consistent. You are being compensated by using your ownership of a cryptocurrency to verify transactions not for lending it to someone else.

[@mohamedbenyamine9534]

@@فُلان-ه4ث Staking and interest are separate. The label interest is used very liberally in some contexts because both staking and interest rate calculate using percent. But the easiest way to tell is if you know what your currency is being used for. If your currency is used to support verifying transactions in a defined protocol (like Proof of Stake), then it is NOT interest- like Algorand for instance. On the other hand, cryptocurrencies like Dai compensate you for lending your cryptocurrency to others (whether its to finance someone or provide liquidity), in that case, it IS interest because you're always expecting the repayment of the principal you lent out. I'm not familiar with blockfi (I use coinbase), but if your getting a percentage rate for lending your crypto to blockfi or to other wallets, that seems like interest to me (in my own opinion).

[@HishamPM]

@@nicCleansing I don't think staking AAVE is halal since that protocol involves borrowing and lending (Riba). Why would you help maintain the network of something that does haram activities? Staking is not haram itself. It just depends which coins you are staking.

[@abushah1]

@@HishamPM which coin can we stake and on what platforms .if possible please suggest me any three coins for staking and also the platform to stake

[@moideenabdulla4369]

@@HishamPM Brother how about nominex token staking halal or haram ?

[@TNBTheNinjaBoss]

Is the anchor protocol 20%apy halal or no

[@GhulamMustafa11111]

JzakAllah my dear brother for entertaining this request and question. When scholars in my country Pakistan are still debating whether bitcoin is halal or not, you are the need of time so our Ummah is not left behind, financial matters being one of them. They had declared the microphone to be haram too. Muslims of old were synonymous with progress and innovation but now we are plagued with sectarianism and short sightedness. May Allah help us rectify our affairs, attain the inevitable status and lost glory of the Ummah and grant us abundant halal rizq and may He shower you and your parents your family and loved ones with blessings in this world and the next. Ameen.

[@gogifootball5022]

May Allah bless you brother. I was worried about this.

[@Koulouu]

Thank you brother may Allah bless you and your family I was waiting for that video so much

[@KA-pk6wt]

Alhamdulillah, Allahu Akbar. May Allah bless our sustenance.

[@afzalsiraj826]

Subhanallah, I thought it was haram becajse we are getting rich just because u have money... Thx for explanation brother... May allah reward you nd bless you with bitcoins

[@musi9040]

Masha Allah. Well-explained. May Allah bless you for your knowledge ameen

[@ibnthaleb5853]

Masha Allah Jazzakallah Khairan brother, i was confused at first but your explanations make it clear.

[@asadneo]

Thanks

[@rewielol]

Hi Rakaan. I suggest in the same vein you study and tell us about DeFi, smart contracts, and maybe if youre interested in other cryptos as an investment because of that :)

[@MisterSolitude]

Zilliqa, polkadot etc

[@zakariachana]

Seconding this comment.

[@exploringthetrending695]

Amazing . very properly elaborative. started staking after watching your reasonable opinion. God bless you..

[@raisurrahman7519]

So its just like participating in mining but passively. Jazakallah hu khairan for the video!

[@muneirovalibas6194]

Yes you are right! Staking is basically a solution to mining which is costly and especially energy hungry activity. It is a much more efficient alternative to transacting, securing and validating blockchains in the network.

[@zico352]

Maa shaa Allah... you've cleared my mind

[@eliase.7973]

BarakAllah fik Brother i was going to ask you about it again :) but you come with a good explanation. JazakAllah khair.

[@GameFinisher]

I liek and shared the vide can u make next video on liquidity providing on uniswap exchange u can earn by trading fee their for giving liquidity

[@mthamzat8004]

Please make that your next video Insha-Allah.

[@zahertaha5569]

same here

[@rachidtaibi9203]

ضج

[@tothemoon1956]

Check he did a video on that

[@chelseyummali]

Asalamu alaikum, jazakAllah keir. We just got into crypto and we are trying our best to have baraka in it. Very helpful. May Allah bless your efforts.

[@mdidris4414]

Makes a lot of sense, thank you, but I would rather hear from someone who has studied Islamic finance in an established Islamic institute. Jazak'Allah Khayran

[@BigDuck786]

if only people cared where they took their knowledge from

[@cahwaozman7610]

MashaAllah... Thank you for explanation... That is all questions I have about staking crypto..

[@SyedrifaqataliShah-lu8gb]

پلی بتاؤ حلل ہے کہ حرام

[@Consulting-yy7id]

Wow! Massive eye opener (JazakaAllahu khairan)

[@sarahshah3172]

In English they call APY an interest, but it's not really interest. You earn APY from the transactions, which is pure business not interest. Earning APY by staking can not be haram, cuz these staking currency is not lend to other to generate interest.

[@uakca]

Thanks, yes this is very accurate description. Staking is more closer to investment. There is No harm being done to anyone and it got a purpose. Think of it like adding improvements to your house by spending money, by doing so you increase the value of your house. When you stake you are investing in improving the ecosystem of the cryptocurrency. So the act of staking itself seems permissible. The cryptocurrency itself, that's a different discussion altogether.

[@muneirovalibas6194]

I was confused for a while but after learning for myself, I realised that, contrary to other brothers feeling it is haram because, imho, they misunderstood it as interest, which it is not. Although it is very easy to think of it as the same. Most of the time i think its simply a lack of understanding of the nature of blockchain, cryptocurrency technology and the difference between Proof of Work and Proof of Staking, between miners and validators. Thank you for your content because it is very similar to my own lines of thought and understanding, which is humbly very minimal. Wallahu'alam!

[@onymous5719]

Thank you so much brother I’m looking for that answer for a long time شكراً🙏🏼

[@practicalislamicfinance]

Happy to help

[@hasansenel6680]

​@@practicalislamicfinanceIf im not mistaken there is 20 million bitcoins in total and if you stake bitcoin for example, where would the bitcoin reward come from? is it created out of thin air, if so then how is there only 20 millions in circulation, i mean the rewards has to come from somewhere

[@ahmedb768]

Jazaka’Allahu Khira !! Look forward for Defi projects as well.

[@AmirKhan-ey9sz]

What a great vedio and amazing explanation,really appreciated, jazak Allah

[@youtubeworld3606]

Well done my brother. You cleared all my doubts.

[@tuncaysimsek8210]

Nicest explanation ever. Thank you very much and May Allah Bless and put you in heaven.

[@Efendi1403]

Barakallahu fik. Very detailed and sufficient explanation.

[@AnasELKHARROUBI]

تبارك الله عليك، ما شاء الله! بعد مشاهدتي لهذا المقطع تبين لي أنه لا يمكن إطلاق الأحكام الشرعية إلا بعد التمكن من المجال المعني بشكل عمييييق، للأسف هذا ما يحدث في منطقتنا العربية، الشيوخ سرعان ما يطلقون أحكام الحرام بدون فهم للمجال.

[@Yahya_Zi]

لكن لا يزال لدي شك في الموضوع صراحة رغم أن كلامه على حق

[@basharlabadi1790]

Just something to note that some Staking facilitators, like Exchanges, do pay out interest and not only the staking rewards because they use the staked amount in lending etc.. it's better to investigate the APY source before delegating coins for staking

[@FaizShaikh-vd9rm]

@practical islamic finance pls reply to this comment

[@maxsteel1947]

Assalam - how to investigate the source of ApY brother?

[@nabeelyousuf3361]

Eagerly waiting for the farming explanation like this as well.

[@haythamhakla]

In some Proof of Stake protocols like Cardano, a pool that has a large number of coins will get saturated and the rewards of that pool will diminish. This was designed I think to address the possibility of large players controlling the network, and further incentivizes the creation of more smaller staking pools.

[@2soos2]

And more pools means more decentralization. Cardano all the way!

[@civilservant4843]

Essentially meaning it that those staking will move their tokens around different pools interesting idea to be honest which is a win win for everyone

[@omararizona]

Alhamdulillah for this video , I was afraid of sticking anything even though I knew staking could support the blockchain and also I can throw it in a pool as well. Unfortunately I am still nervous but I'm now totally a little bit confident because of this video alhamdulillah

[@pasa128]

Selam brother - may Allah bless you. I Think you explain it in a very easy but detailed Way so Thank you 🤲🏽

[@eyuporgel5446]

I had some questions and doubts about staking ofcryptocurrencies but now I am convinced

[@muza9335]

Maa Shaa Allah, Before I watched this, I really think staking crypto is riba, my friends always advise me to stake my crypto but I didn't do that thinking that I might fall to riba, but now I can finally stake my Crypto without thinking that I might fall into riba. Jazakallahu khairan jaza for this useful information brother!

[@certifiedalchemist]

Its not a one size fits all. You have to look at the specifics of each case. PoS is not implemented identically on all cryptos. I agree that most staking is probably halal, but some platforms are blatantly riba as they are just using the term staking instead of interest (some even use the term interchangeably). The way it is setup on some platforms (like crypto.com), you are actually giving them a loan in return of a guranteed/fixed interest rate. They are free to do with the money/crypto what they want and not actually use it to stake on a paticular network. In my opinion one should stand clear of any lending platform - if you can take a loan on their platform, your crypto is probably being used to lend out to others at an even higher interest rate.

[@islamicstories942]

@@certifiedalchemist woww you explained well

[@hollandali92]

Thanks a lot brother for clearing up , i feel better now..

[@pierre-edouardouazzani95]

جزاك الله خيرا Mashaa ALLAH your way to explain make things easier to understand 😌👍🏻🤝

[@syedbehroz9392]

love you bro, your concept cleared my mind. Much love from Pakistan

[@bashirbadmus9314]

Masha Allah jazakallah kairan brother

[@iamvmsulthan]

Exactly what i was looking for, for months Loves the video brother, thanks a lot 🙌

[@ashleyeidein4923]

Yes, I was thinking about this since all the fuss of the fluctuation and volatility of these cryptocurrencies, glad for these explanation, tq

[@irgc7915]

allah bin kere razı olsun. God bless you a thousand times. ı found no information about this topic. thank you. very very thank you.

[@practicalislamicfinance]

You are most welcome

[@irgc7915]

@@batuhanyuksel5579 dinledim. Stakenin haram olmasını sağlayacak bir durum yok. Caizdir diyor.

[@irgc7915]

@@batuhanyuksel5579 demiyor. Ben caiz diye biliyorum.

[@doghun4416]

Ama bu şahsa bir sorun bakalım vadeli hesap ile bankanın her ay hesabınıza attığı paraya "faiz" diyor mu ? Websitesinde buna benzer bir yazısı var. Bence dikkatli olun. Selametle.

[@rizaldisatrio5039]

I like your reasoning brother. I would like to know your opinion in other Crypto terms like DeFi, Token, NFT, and its derivative product.

[@kidsnipz]

Yeah like for example SNX synthetix.

[@kidsnipz]

Dash, ZCash please if you could do a cryptos breakdown.

[@ameeroman1]

Thanks brother. Please we would like to know your opinion in the Defi

[@mdkhaleeluddin3672]

Thanks for answering Jzk. May Allah bless you.

[@ironmoe77]

Masha’Allah beautifully explained.

[@ishaqojibara1671]

Jzk for the simplified explanation, I will just like to add that in addition to been rewarded for securing the blockchain network, users of such secured network pay fees which gets shared to the stalkers... This way its value chain established in sha Allah. Allah knows best.

[@sofarahmad5603]

Tq bro. Now I really got idea what is staking. Your explanation very good. Jzk

[@MuhammadShoaibOfficial]

Ma Sha Allah good job. Well explained brother.

[@noorhina1043]

Jazak Allah khair brother ...

[@scrapstation6823]

Love your explanation.

[@zabiullahMONTAGES]

I do not know whether you are going to keep making videos answering these burning questions from muslims. But know that this has been of immense help. I searched for months to get this info, and could almost not find it anywhere. You can for example make a video about "are utility tokens halal?" Like Eth, chainlink, icx, these fall under the utility tokens. I mean just look at the like and dislike ratio on this video. Proof that there is demand for such videos. Jazakallahu gairan.

[@howariforlyf]

thanks for the video brother, it helped clarify some things and i did some extra research into what riba/usury/interest concepts are in islam =)

[@sadinkc4714]

Does this mean staking on crypto.comor binance is halal?

[@hameeduddin9780]

Crypto may cause harm to someone else's life when the price of crypto goes up because of staking and the person who is purchasing with such crypto is affected

[@AlexanderGent]

Mashaallah great explanation, jazakaallah. Please can you explain in layman terms what zakat is paid on crypto and how is it calculated? For example would you pay it on staked tokens? Is it based on the value it was bought, sold or the value at the time zakat is paid? As it fluctuates quite a bit, its hard to know which to do! Thanks again for this you have just got yourself another subscriber!

[@atifhussain5881]

🤔😱😱😱. Even crypto has zakat?

[@shiverseeker4630]

I would argue it's just like gold : its value is equal to how much you get for it if you sold it on that zakat day.

[@AlexanderGent]

@@shiverseeker4630 would that include crypto that is staked as that cannot be solid at that time?

[@shiverseeker4630]

@@AlexanderGent I think yes of course because it's still your wealth thanks to Allah : if you wanted, you could choose to take it out and use it elsewhere, that money's bot lost. It's your choice to have put it there, but it's still part of your wealth. The principle of zakat is that Allah has Blessed us with more money than many people, so that He will Bless us further if we obey Him and share 2,5% of that wealth with the needy. Zakat also purifies all the rest of your wealth inshaAllah.

[@AlexanderGent]

@@shiverseeker4630 wouldn't the same apply for property then? Hypothetically you could sell that?

[@astroboom8049]

thank you, great value in this video, of course not all cryptos are equals

[@practicalislamicfinance]

Very true!

[@talessotrue]

Jazak Allah my brother

[@Codehood]

Thank you for your explanation, brother. God bless you 💚

[@muaazster]

Valid reasons , Solid ..

[@Kriptosavdo_kanali]

May Allah bless you!

[@hassanjaved396]

its very similar to saving account in bank you deposit crypto here while in bank you deposit money and get interest in return

[@johnadm3479]

What's about staking of USDT or USDC is it's hala?

[@kazimkoc7695]

great video thank you very much. i am looking forward to the video on yield farming insallah. 😄

[@ulukbeksharshenov9864]

It was a very good point! Thank you brother!

[@rafikhoceini298]

i like smart scholars like yourself, really appreciate the knowledge, i agree very much with your arguments really helpful thx

[@DarkChinese]

Perfect explanation 👍 👏

[@eagle.the.6ix430]

Thank you for this beneficial knowledge. We're blessed to have you.

[@mos4695]

Staking with cardano doesn’t include lockup periods or slashing, far more superior than other protocols. ❤️❤️

[@mhmdpeace]

Guys, I'm totally confused. Sometimes I say It's not haram because It's not me who initiated the haram contract I'm just receiving PoS rewards + fees of the system or blockchain which acts as a transaction ground which I am contributing in its stability so I deserve the reward and sometimes I say it's clearly haram because a percentage of the revenue is earned by haram processes and I'm receiving a portion of it! , If anyone has reached a decision please share it with me but with a clear justification.

[@karimgeniokarim-genio5086]

great video my friend ! logical, i wanted to stake SOL on BINANCE yet was not sure of haram/halal thing...many say staking via VALIDATOR is haram, and halal if done via POOL,....anyways thanks

[@hussainkhan2513]

Jazakallah for the great work. I have one additional question regarding staking. When we stake we lock up our tokens on the network to assist with transaction validation and in return, are rewarded with additional tokens. How do we know that the transactions which are being validated are shariah compliant transactions? In most, if not all, PoS blockchains transactions are bundled into blocks so each block could contain a number of non-shariah compliant transactions which are then validated and rewards are earned. Almost all PoS blockchains have several haraam protocols so there is a high likelihood that each block contains haraam transactions. Since we don't know if the transactions we are validating are shariah compliant or not, can we still say that staking rewards are halaal? Would love your opinion on this.

[@mujahidabdulrazak2977]

Well put 🤝🤝 deep thought

[@kerem44443]

wow did you find the answer to this? if you did please tell me

[@hussainkhan2513]

@@kerem44443 Could not find a satisfactory answer so I stopped staking my tokens. I'm not a scholar but in my opinion if we don't know exactly what we are validating then we shouldn't stake tokens. There are some DePIN networks that don't have any DeFi protocols built on them so perhaps it's halaal to stake on those networks but check this for yourself.

[@kerem44443]

@@hussainkhan2513 thank you

[@kerem44443]

@@hussainkhan2513 hey man i was thinking about this for a few days and heres what i think so if staking is haram because we may be validating gambling transactions etc is flying in a plane haram? cuz when you are flying in the plane you help the plane company earn profit and other passangers may be carrrying alcohol in their luggages and so you are helping the plane company carry alcohol? or lets say you are just buying and selling solana coin there is a gambling platform on the solana chain and when you buy and sell solana you increase the daily volume of solana and therefore you help it become more popular and there is a gambling platfrm on solana so are you helping the gambling platform also become more popular? i think that we are kind of reaching here about this whole staking thing id llike to hear your reply on this these are just my thoughts though

[@mohammadumerhingoro4718]

thank you sir

[@Onlyyt-gm3zb]

thank you so much bro may allah bless you

[@JAYX-]

Can I ask what instrument is halal? As far as I'm aware short,future leverage is haraam so what method way is halal?

[@theXcursionist]

JazakAllah. Explained perfectly and crystal clear

[@muhammaduzair6558]

Brother staking is halal or haram...?

[@nimahhamza8623]

Thanks brother - you’re doing a great job 👏

[@Laughzone014]

I am going to stake ADA at Yoroi Wallet is that Halal. Please let me know . Appreciate

[@HarisAhsan]

Great video bro. Keep it up.

[@QuesterCT]

Sometimes staking doesn't rewards you as well which in contrast to loans based on interest always reward you

[@FarazKhan-df3nc]

Thanks, may Allah bless you :)

[@Mrqaswara1990]

Jazak Allah Janna brother you ma shaa Allah made clear

[@ahmad113m5]

thank God i found your channel, i can not stop watching your videos and learning from your knowledge, May Allah increase you in that. ameen just a small question comes to my mind, doesnt it the same for saving accounts in bank, which is not a loan to anyone but you get interest every month or year according to the amount you have put it. would love you to shed some light on that. jzk khair

[@rohaanzuberi5601]

Higuain providing tips 😁. Thank you brother.

[@muslim_CEO]

Wallahi this issue has disturbed me for a while! But Alhamdulillah

[@badr22327]

What about Stable-coins i.e USDT staking, thank you forehand

[@daarit4069]

Well explained 👌

[@MSJ..]

My understanding is that when u stake a coin it produces a block chain for that coin similar like mining then that reward is given to u in terms of other coin or that same coin so staking is halal it doesnt lends money to someone then there is no riba involved int it

[@DriveforLaser]

My Allah rewarded you for Educating orders well done well said if ever come to Bosnia inshallah Lunch is on me I’m the man of my word thank you

[@practicalislamicfinance]

That would be awesome :)

[@jjcraft4481]

masha ALLAH brother thank you so much !!!!

[@gamingzone5662]

God bless you brother

[@FulaniTribesman]

Masha Allah. Thanks so much for this clarification.

[@zunayedmostafa9283]

Love your videos bro Mash Allah

[@yasmine98h]

Can you answer this please? If there is tax on staking. And that tax goes to the staking liquidity pool, the place where rewards are coming from to everyone staking… is that still halal?

[@aidilfaizi1096]

Amazing understanding and explanation brother thank you

[@tothemoon1956]

Good 👍 work 👏

[@kpacitto]

Thank you for another fabulous video, brother. I always enjoy your content and get so much out of it. I've learned a tremendous amount just from your free content, and it makes me want to purchase the additional content you have available soon. I'll look forward to that.

[@hodoydhllud411]

Thank you,100%appreciated

[@Boss429p]

جزاك الله خيرا أخي الكريم

[@9omi]

Well explained. Thanks brother.