What is Spot Trading? 🤔 Can it be a halal way to earn from crypto?
If you are new to the crypto market or want to trade safely, it is important to understand Spot Trading first.
📌 What is Spot Trading?
Spot trading means: 👉 You directly buy or sell the coin
👉 The real asset is immediately transferred to your wallet
👉 No leverage
👉 No loan
👉 No interest (riba) involved
Example: If you buy $BTC at 60,000, that BTC becomes yours. If later the price goes to 65,000, you can sell and take profit.
In Islam, business (tijarat) is permissible when: ✔️ The asset is real
✔️ Ownership is clear
✔️ There is no interest (riba)
✔️ There is no gambling-like element
In spot trading:
You own real assets
Do not use borrowed funds
Can avoid interest-based systems
Therefore, according to many scholars, simple spot trading without leverage is considered a safer option (but everyone should consult their scholar).
There is also risk in spot trading. The market keeps going up/down.
Therefore: ✔️ Conduct proper research
✔️ Avoid emotional trading
✔️ Only invest what you can afford
Which coin do you prefer in spot? BTC, ETH, or any other altcoin? 👇
Let us know in the comments and if you want to learn crypto basics, be sure to follow 🔔