Is Cryptocurrency Halal or Haram in Islam?

Investing money in cryptocurrency is not permissible (haram).

 Bitcoin is merely an imaginary or virtual currency. It does not possess the essential characteristics and conditions of a real, legitimate currency. Therefore, in the present time, the business conducted on the internet and electronic markets under the name of “coins” or “digital currency” is not halal or permissible.

This trade is based on deception, as there is no real, physical asset involved. There is also no actual possession (qabdh); instead, only numbers appear in an account. In reality, nothing tangible is owned.

Such trading closely resembles forex trading, which involves interest (riba) and gambling (maysir). For this reason, investing money in Bitcoin or any so-called digital currency, and participating in its buying and selling, is not permissible in Islam.

Only Allah knows best.