Crypto trading is probably popular in all developed countries in the world; however, some states impose restrictions on crypto mining and the work of crypto exchanges. In countries with Islam religion, you should be especially careful when it comes to trading because some actions that are similar to speculations, you should know are forbidden.
In this article, we will talk about crypto futures trading and its acceptance in Islam.
One of the best crypto futures exchange platforms is WhiteBIT. It operates in over 150 countries in the world.
What Are Futures?
Futures trading crypto allows one to speculate on the future value of assets. This method implies that the trader predicts the future value of a coin and “bets” on it. For that purpose, the trader concludes an agreement. It may be the long or short position. Long means that the trader expects the value to rise and plans to sell coins at a higher rate. Short means the trader sells his assets and then buys them back at a lower value. Futures crypto does not imply the trader pays for coins and receives them right away, as it happens in the spot market. Instead, traders buy contracts with obligations to purchase or sell assets in the future.
Is Crypto Halal?
In Islam, halal means permitted, and haram means forbidden. In general, cryptocurrency halal, but some tools are not allowed:
- futures mean that the parties purchase financial obligations, and it does not comply with Islam laws.
- Speculations are equal to gambling for Islam.
If you want to try futures trading, welcome to the WhiteBIT exchange. However, be careful when practicing this financial tool in Muslim countries. Always keep in mind that speculative actions are prohibited there. Before starting trading, read the country's legislation and ensure you work with an official crypto futures exchange.