There is a lot of controversy among muslims regarding Bitcoin being halal or haram in Islam (and so for many other cryptocurrencies). In this post, we’ll try to discuss and uncover this topic as much as we can.
Cryptocurrency vs Bitcoin
Ya I know it’s quite obvious. But most people are too naive and don’t know the difference.
Before jumping to conclusions that is bitcoin haram or halal, we first need to understand the difference between cryptocurrency and bitcoins.
Cryptocurrency is an umbrealla concept which includes many currencies like bitcoin, etherum, ripple, etc.
So if you find any specific crypto currency or coin to be haram or halal, doesn’t mean that all other currencies are haram or halal too.
So cryptocurrency itself is just a currency which is based on a blockchain.
Understanding blockchain will help you understand if it’s halal or haram to use it.
Cryptocurrency vs Trading
Some people who believe trading to be haram consider cryptocurrency to be haram too. Which is inappropriate. Currency is different from it being traded. So we shouldn’t confuse the both.
What’s your opinion and logic about bitcoin being haram or halal? Please let us know via comments.
Cryptocurrency is not backed by any physical value or comodity
Many people give a logic that bitcoin and other crypto currencies are not backed by any physical value like gold, oil or anything else.
Well this is absolutely wrong statement. People who say that have no idea about blockchain or cryptocurrency at all.
Cryptocurrencies are backed by chosen comodities mostly.
E.g. Venezuela launched a government level cryptocurrency backed by oil, calling it petro.
Bitcoin e.g. is backed by service based ledger and various other concepts.
This is a debatable topic.
A page to discuss further on this topic can be found in link below:
Make sure that you’re entering at the right time, not before a dip, or you’ll be highly disappointed and worried.
Learn chart analysis and trading if you want to be a trader.
Ask for an advice from an expert who is into crypto for long.
Now these were some obvious tips and sequence. However things need much more detailed explanation. I’ll try to explain them in different headings below.
How much money to invest in bitcoins?
The amount of money that one should invest in bitcoin, any other cryptocurrency or anything else should be chosen careful.
I know that one feels that if they sell their car, property and everything to go into crypto or any other investment that they consider to be going up, they will benefit a lot.
However, there are risks involved in every type of investment.
So when moving into something new at least, always invest only the amount that you can afford to lose.
Another best way to calculate is that you invest the amount that you can earn from regular income through job or business in 3 months, so that it doesn’t seem like a big burden.
What is blockchain and cryptocurrencies?
Understanding blockchain and cryptocurrencies as a concept is not necessary for someone to use or keep crypto currency or bitcoin. However it’s beneficial.
You can handle and manage the investment easily and in a better way if you know what you’re investing in.
Don’t just follow the herd and crowd and invest in something without knowing its details.
Best way is to youtube for videos related to introduction to blockchain and also for cryptocurrency and you’ll be able to learn a lot. We’ll add our own videos too, but till then check others!
Understand the currency you’re investing in
Once you know about cryptocurrencies. Learn about the famous and best crypto currencies. Once you’ve picked 1 or 2 (3 at max i would suggest), then learn about them. Keep learning and then you can even change you choice if you don’t find it good enough once you’ve read about it.
Never invest in the currency if you don’t know it in detail.
Make sure that the currency you choose is useful and reliable
That’s the most important step before investing in anything. If you’re investing in bitcoin or anything else, make sure that you understand that this thing is useful and needed by the world. If it’s not, then it will fall as soon as the bubble pops. However if it’s genuinely good and useful, it will last!
World’s requirements keep changing. So keep an eye on the usefulness of your invested crypto currency.
Crypto currency Wallets & their types
Cryptocurrency is stored in wallets. Thus read about wallets and types of wallets. So that you can choose the best way and wallet to store and secure your cryptocurrency.
For long term investment, it’s always best to have hardware wallets.
When to enter into crypto world
This is the key for success. Crypto currency keeps fluctuating, sometimes up to 30% or so in price. So if you’ll enter when it’s at peak and about to correct, then you’ll be depressed or confused for a long time, before it reaches back the level you entered.
So get guidance from pros and also do your own assessment and analysis before entering the market.
Learning chart analysis and trading
If you’re into trading and want to learn chart analysis and trade cryptocurrencies then it’s great too. It will help you benefit more from your investment.
However make sure that you don’t lose more money instead of making more. Make it trading, not gambling.
Ask an expert for advice
We can guide you with best of our knowledge. So that you can be part of the successful crypto investors and benefit from our experience and organized strategy.
Please let me know if you have any query or correction for this topic. If you need any help please let me know that too.
A lot of people are concerned about one very important question: What’s the best BitCoin wallet. Well, before finding out the best and the most secure bitcoin wallet, we need to first understand what are the different types of wallets available and how one is better than other.
What is a BitCoin Wallet
A BitCoin wallet (or any cryptocurrency wallet) is just like your bank account or a place where you store your money.
What are public and private keys?
A public key is used to send or receive cryptocurrency to your wallet. Private key is the one which gives you actual access to your cryptocurrency account.
Two main categories of BitCoin wallets
We can classify all bitcoin wallets into two main categories:
Hot wallet (online wallets)
Cold storate wallet (offline wallets)
Ok so now lets see four types of cryptocurrency wallets
1. Online Wallets
Online wallets are also called web wallets. They come under the category of hot wallets. They’re easies to use as they can be accessed from any device that’s connected to the internet. However this type of wallet have their own problems, being least secure is one of them.
Pros of Online Wallets
Ease of use
Accessible from any devide with internet connection
Easy to setup
Online wallets are usually linked with cryptocurrency exchanges or bitcoin exchanges online
Cons of Online Wallets
Private keys are saved on someone elses server
More prone to hackers
Prone to technical glitches
Website management can limit or suspend your account anytime for any reason
Website has the control over your cryptocurrency
2. Software Wallets
Software wallets are also hot wallets. They require the user to download a software on their laptop mobile or any other device. Usually software clients are available for multiple devices, especially for both mobile and desktop versions.
Desktop wallets like Bitcoin Core requires the users to download the complete blockchain, which is almost 100GB in size. However not all wallets require the blockchain to be downloaded. They are relatively easy to use too and safer than online wallets.
Mobile apps based software wallets are quite easy to use too.
However they have their own down sides. Such as they can be hacked if someone gains access to the computer or mobile device they’re stored in. Also, if the data or device itself is lost, the wallet and thus all cryptocurrency you have is gone too. Some wallets provide an option for backup too to fix the issue of data loss or device loss.
Pros of Software Wallets
More secure than online wallets
Data is available at the users own computer or mobile device
Easier to backup yourself
You have control over your cryptocurrency
Cons of Software Wallets
Wallet is lost if device is lost
Hackers can hack the computer or mobile and gain access to wallet via malware
Requires some technical know how
3. Paper Wallets
Yes you heard it right. It’s possible to print out your public and private keys and storing them on a paper. Paper wallets are a type of Cold Storage method, as it’s an offline method of storing your cryptocurrency.
As it’s obvious, paper wallets are more secure than online or software wallets, as you have the the private and public keys printed with you physically on a piece of paper.
How to generate paper wallet?
Most of the online or software wallets available allow the users to print their existing keys for their wallet. However if they don’t, they can still be generated using various services like BitAddress or BitCoinPaperWallet.
Once you have the paper wallet printed keys, you can simply use them wherever you want just by adding public-private key combination into your existing wallet service.
Apparently, paperwallet is more secure than the online and software wallets. However they’re harder to keep damageproof. One way is to generate multiple physical copies of your paper wallet and then place them in a secure place, to avoid getting hacked or robbed!
Pros of Paper wallet
More control on your wallet
More secure than online and software wallets
Can be stored and taken care of without internet connection or holding on to a computer or mobile device
Cons of Paper wallet
Can get damaged with time
Get get stolen physically
Multiple copies to prevent damage make it more prone to being stolen
Need more technical knowledge to generate and then use the paper wallet
4. Hardware Wallets
Hardware wallets are a type of cold storage. These are the devices which are usb shaped devices. They need to be plugged into the computer while making a transaction and can be pulled out and stored safely when done.
These devices generate the keys for your bitcoin wallet on the fly while you’re making the transaction.
Hardware wallets are relatively safe from computer virusus, malware and hackers as they generate they private keys on the device iteself. So as the private keys are generated offline, they’re harder to be hacked.
They are also easy to use and provide backup options too. The hardware wallets come with builtin security features like password protection too to avoid theft.
Hardware wallets are a very good option if you have plenty of bitcoins and regular deal with them and carry them with you from place to place.
Pros of Hardware wallets
Minimum risk of malware based hack attempts
Cons of Hardware Wallets
They’re not free
Have to take care of them physically
Can be lost due to small size, if not cared for properly
Which type of BitCoin wallet is best and should be used?
Now, as we understand different types of wallets and their pros and cons. We can now discuss and see which wallet suits whom and in which conditions.
Small and frequent transactions: Online wallets or Software wallets
Cryptocurrency exchange: Online wallet (but only the amount that you play with)
Occassional big transactions: Hardware wallet
Storage only: Hardware wallet or paper wallet
Actually we shouldn’t keep all our bitcoins in only one wallet. Divide it into more than one and be safe.
Also, keep your money in online or software based wallets only when you need to frequently send or receive it. Keep only the amount that you usually need and keep the rest of the amount in a better wallet like hardware wallet.
Which wallet do you use? What are the pros and cons of it?
Last year a friend of mine was insisting me on buying OneCoin (yes I know it’s not crypto currency, keep reading). However I had to debate with him for long to explain to him how I don’t feel comfortable with it being controlled centrally and not having any open market value as such.
I explained to him that bitcoin is a better opportunity than onecoin and he should invest in it. Alas! I didn’t follow my own advice and didn’t purchase bitcoin at that time!
It was only until this year when I seriously looked into bitcoin and purchased some of it. To be honest, I truly felt that I was late in the market and might have missed the train. I hope I’m wrong!
Is Bitcoin and other CryptoCurrency market at its peak?
No! not even near that! I would say that not even 1%. How can you be sure? Ask the people around you. How many of them own bitcoin or any other crypto currency? I’m sure not even 1% do that. Take that to Africa and other backward areas and not even 0.01% owns them!
So apparently, at least 100 to 1000% jump is still waiting. But we can’t be sure how long it may take. As acquiring cryptocurrency also means that you acquire a digital device to store and manage it, apparently. However we can see it being fixed in future in one of the two ways, or more:
Introduction of regionally central bitcoin or crypto hubs or banks, which provide normal tenders to the local population, hence they don’t need to learn how to manage or use crypto
Spread of smart phones like a plaque
It’s a paradigm shift in the making. We were expecting the paradigm shift for long and today it’s beginning.
Should we just buy bitcoins and wait?
No. I wouldn’t suggest that. And this is what this website is all about. We need to learn about currencies, world, crypto, technology, market and exchange.
The goal is to tripple the fiat investment and then take out 1 third, leaving us with our original investment back in fiat and then watching the crypto fly high. I know it feels more interesting to let all remain and not pull out initial investment, but it’s always best to take 2 steps forward, 1 step back.
Corporations are acquiring crypto
Microsoft and many other corporations are investing in crypto and thus it will expand the market. I know they’re not investing like most of us believe they do. They might not be buying the coins that we have in our wallet. However they’re investing in the technology, hence pushing it forward for sure.
Governments are panicing
Anything that confuses and panics the governments is something important for sure.
Many governments and banking systems have legalized bitcoin and crypto and have launched ATM’s even that let you withdraw from your bitcoin account directly.
However some countries are also banning them as they’re confused. Most of them run on the invisible slavery network and are threatened by anything that sets people free.
Don’t just buy crypto. Learn about it, and the future is yours.