Is Margin Trading With Leveraged Crypto Halal?

Here at Bitstacker.com, we aim to provide top trading guides that will help traders from all walks of life. Next on our agenda, we aim to answer the question: is crypto margin trading halal?

For readers of the Islamic faith, or those simply interested in finding out more about margin trading, the below guide will prove to be a useful tool when trading with leverage. We cover the basics of margin trading, highlight how to find a top platform, and answer that all-important question next.

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Who should make use of our latest comparison? – Those wanting the answers!

Those wondering, is crypto leverage trading halal? You’ve come to the right place. In our latest comparison guide, our experts shed light on the all-important question that is circulating around the Muslim trading community.

As you work your way through the below, traders of all backgrounds will soon uncover the truth behind margin trading, whether it is considered halal or haram, where they can find a top trading platform, and what to consider before diving into the wonderful world of leveraged crypto trading.

If all of the above sounds quite overwhelming, please do not abandon ship just yet! Our experts have plenty of experience trading online and our specialist crypto gurus have ensured that this guide is as easy to understand for newbies as it is for trading professionals. While we ensure that we do not dip out on any of the key facts, we also make sure that we do not overcomplicate things. Any jargon will be quickly rephrased and any complex terms will be explained, all in an attempt to keep things flowing and easily readable.

Those of you who trade crypto for a living, don’t think for a second that our dedicated comparison guide isn’t for you. We know you’ve arrived here with the intention of finding out the answer to: is crypto leverage trading halal? And that is exactly what you will do! Not to mention finding out how to find the best halal crypto leverage trading sites today!

What is margin trading? – Back to basics

Bitcoin and Ethereum trading with leverage has grown in popularity over recent years, mimicking the growth of those trading cryptos as a whole. The reason behind such a surge in popularity will become evident, as you make your way through this brief overview of what margin trading really is.

In its essence, margin trading gifts traders a larger sum of money to trade with. Often, the leveraged amounts can begin from 1:2 and rise upwards of 1:200, especially when searching through DeFi trading platforms. The initial deposit made, also known as the collateral, will play a huge role in determining just how much leverage will be offered to each trader, although it is also very much down to the crypto platform and their stand on leverage as a whole. The larger number, shown on the right of the ratios above, expresses the multiplied value of leverage offered. For example, those looking to leverage $500 at 1:2 would have $1000 to trade with.

As you can see from the above example, traders have essentially doubled their pot by placing a $500 collateral, meaning that they can make leveraged market trades of higher value. The additional finances can contribute significantly to the overall profits gained; however, as you’d expect, it isn’t all sunshine and rainbows.

What goes up can also come down, meaning that the losses are also at double the rate of any profits. Taking this into account, you can quickly see that trading with leverage is not best-suited to all types of traders. Instead, we suggest those with sufficient backing, knowledge, and nerve!

Is crypto leverage trading halal? – A closer look at Sharia Law

So, now you know what is meant by crypto margin trading, it’s time to answer the initial question: Is crypto leverage trading halal? The word halal most commonly references meat prepared as prescribed by Sharia Law. However, halal can be translated to simply meaning permissible. So, in theory, when we are asking is leveraged crypto trading halal? What we really want to know is whether leveraged crypto trading is permissible based on the five decisions. In contrast, haram refers to anything that is forbidden under Sharia Law.

If we cast our minds back some years, the debate around forex trading was also under the microscope of those following Sharia Law. In turn, this led to Islamic trading accounts being offered, allowing Muslim traders the chance to trade forex without usury, something that would otherwise be considered haram.

Unsurprisingly, cryptocurrency has sparked a similar debate and has left many scholars suggesting that trading cryptocurrency is mostly halal. However, when it comes to leverage crypto trading, the same concerns around usury have been raised. As crypto is still a relatively new market, the amount of halal crypto leverage trading platforms is fewer than those relating to forex. Despite this, we have tasked our experts with curating reviews on the top halal crypto leverage trading platforms and hope to see this number increase in the future.

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Key attributes of a top trading platform – what we look out for when searching for a halal crypto leverage trading platform

Hopefully, by this point of our guide, you’ll be able to answer what is leverage in crypto trading? As you make your way towards the end, you’ll then be able to answer: is crypto leverage trading halal? Before that, we want to run you through the top attributes that help us determine whether a crypto trading platform is worth joining. Naturally, our experts could go on and on about what makes the perfect trading platform; however, we’ve managed to whittle it down to a top-five list.

Security features

Coming in at number one is security. Unsurprisingly, this was something that all of our experts could agree on when creating our list of top features to consider when Bitcoin trading with leverage. The security of your account is paramount for any future successes you may be fortunate enough to have. Leverage in itself is a fairly risky business, so to find yourself a platform that eradicates security and safety concerns will allow you to tick one stressor off of your list! When focusing on security, we look at all sorts of features, including those that are related to personal information, site security, withdrawals, and more. These can come in the shape of KYC, 2FA, firewalls, encryption technology, and so on.

Functionality

Often overlooked, functionality comes in at number two in our list. Quite simply, finding a crypto leverage trading site that functions well could turn your online experience from a good one into a great one. By functionality, we are referring to the usability, design, and accessibility of your chosen platform. For many serious traders, the chance to review account details, place leveraged trades, deposit, withdraw, and make use of charting tools on the go have helped to take their trading careers up a notch. An efficient and well-functioning app could save traders plenty of time loading up their laptops and missing out on opportunities, too. Efficiency and accessibility aside, the speed at which trades are executed is also incredibly important, alongside a solid design. Being able to locate important facets of the platform at ease will streamline the whole trading process.

Fees

Leveraged crypto trading can substantially affect your bankroll – unfortunately, whether that is positively or negatively relies on you! The strategies, tools, research, and eventual trades that you place will all dictate the outcome of your wallet. One aspect of your trades that you do not have full control over is the fees. These will be set out by crypto leverage trading platforms as a means to capitalize on your market movements, profits, losses, overnight holds, withdrawals, and more. While creating our reviews, we pay particular attention to the types of fees associated with your account, the value of each fee, and if we feel that it is just. The Islamic faith dictates that usury is not halal, meaning that any platform we review must offer its users an Islamic trading account that caters to this. A good example of this can be found in our latest ByBit review.

Resources

In comparison to many other instruments, crypto is new. Bearing this in mind, traders should be researching, reviewing, and educating themselves on the latest breaking news surrounding digital currencies that appeal to them. Online crypto leverage trading platforms may not always offer expert guides, news, demo accounts, or educational material; however, based on our extensive research, the best ones usually do. Within our comparisons, we’ll talk about what unique attributes help to set your chosen platform aside and what tools are offered to further traders’ knowledge.

Cryptocurrencies

No shocks here! Yes, when judging the best crypto leverage trading platforms we focus on the available cryptocurrencies across the site. When all is said and done, all who are making their way onto a halal crypto trading platform will be hoping to trade specific cryptocurrencies. If the name of the crypto asset you are hoping to trade is not available, then you can safely stop what you are doing and begin reviewing another platform. Aside from reviewing the quantity and quality of cryptocurrencies available to traders, we also review how trades can be made. In other words, we review whether traders can purchase using fiat or if an asset must be forwarded from an external wallet first.

Things to consider when leverage trading crypto – keeping your experience safe, halal, and profitable

Make use of the stop-loss feature

Any long-standing trader will be quick to point out the importance of a stop-loss. This particular feature adds a note to your trades that will kick you out when a certain value is reached. In forex, traders will choose a select number of pips before being kicked out; however, due to the volatility of crypto, it is much more common to see specific monetary values or percentages used. Either way, it is critical that these are utilized, especially for any of our readers who plan to make use of leverage.

Find a crypto platform that offers an Islamic trading account

In order to confirm that your online crypto leverage activity is permissible under Sharia Law, it is always worth finding a platform that offers an Islamic trading account. While many crypto platforms offer zero-fee options, terms and conditions are subject to change. We would hate for any of our readers to start trading under the premise of zero-fee leveraged trades, only to find that this has changed later down the line.

Continually develop your skill set

It may seem like an obvious tip; however, once a few trades have been completed, research often falls by the wayside. It is important to remember that the crypto world is extremely new with many exciting projects yet to come to fruition. Taking this into account, we would suggest making use of the bitstacker.com platform and keeping up-to-date on the latest strategies, top halal platforms, and any other resources that you feel could be crucial in furthering your leveraged crypto trading career.

Final thoughts – is crypto margin trading halal?

To conclude, halal leverage crypto trading platforms are available; however, due to the infancy of the market, there is certainly room for this number to grow. We at bitstacker.com aim to lead the way in finding the safest halal leverage crypto markets around and promise to keep our reviews and comparisons fair, authentic, and honest along the way, too.

The most notable attributes to consider when finding a halal crypto leveraged trading platform are security, fees, and functionality. As comes as standard, the security provided will help keep your funds and information safe, functionality will help to keep the process as streamlined as possible, and fees will help determine whether your leveraged platform falls under the haram header of usury. Of course, the easiest way to find all three of these attributes, and many more, is by taking advantage of our expert reviews and comparisons.

Here, we will even take time to note whether an Islamic trading account is available to traders. In turn, this confirms that your chosen platform is halal straight from the off!

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Is crypto margin trading halal FAQs

🚀Is it haram to profit from margin trading?

It is fair to say that crypto trading with leverage has increased in popularity over recent years. Unsurprisingly, this occurred soon after the meteoric rise of Bitcoin. Nowadays, traders can look to use leverage on all sorts of cryptocurrencies. However, for many, the question is crypto margin trading halal? still remains unanswered. That is, until now – check out our latest guide on margin trading today.

💯 Is crypto margin trading halal?

Traders of the Muslim faith who are new to crypto margin trading will no doubt have various questions they wish to be answered. None more important than is crypto margin trading halal? Thankfully, our experts have been busy curating reviews on the top crypto leverage trading platforms around. In our latest Phemex review, you can see whether an Islamic trading account is provided, what fees are to be expected, available cryptocurrencies, security features, and much more. 

🔓︎Is crypto margin trading safe?

Online crypto trading with leverage is considered too risky for novice traders to attempt. However, thanks to the many great perks of the top crypto trading platforms, it is now easier than ever to learn to trade. The top crypto trading platforms with leverage now offer plenty of educational resources, tools, and features that can help keep you on your way to a successful trading career. 

📱Can I margin trade using my phone ?

In our latest Prime XBT review, you’ll quickly discover the many perks that this top leverage crypto trading platform has to offer. All of our reviews and comparisons focus heavily on the security of a platform, trading accounts offered, fees, additional resources, and cryptocurrencies. Nowadays, we have had to focus our reviews on accessibility, too, due to the demand for on the go trading. 

💲How do I deposit into my margin trading account?

Most of the highest leverage crypto trading platforms offer varied and suitable ways for traders to fund their accounts. Many will provide a crypto address for you to directly deposit into, some will offer the chance to purchase crypto directly on site, and others will have a combination of the two approaches. However, whichever type of deposit you choose, it always pays to double-check the fees. We discuss fees in most of our online reviews and comparisons, so once you’ve found a platform that ticks your boxes, be sure to make the most of our expert research and don’t get stung with unnecessary charges! 

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