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Cryptocurrency Jul 13, 2026

Zakat for an Active Crypto Trader?

Question

I trade actively — swapping coins frequently with gains and losses. What exactly do I pay zakat on?

Ruling (Fatwa)

Short answer: A trading portfolio takes the ruling of trade goods (ʿurūḍ at-tijārah) — on your zakat day, pay 2.5% of the whole portfolio's market value plus accumulated trading cash. You do not account for every mid-year trade separately. Details: Trading profit follows the hawl of the capital — once the capital's year completes, zakat covers capital plus profit; no separate hawl for the profit. If you are in loss, you pay on the actual value standing on your zakat day. Evidence: Quran 2:267 ('spend from the good of what you have earned' — understood by the early exegetes to include trade); Sahih al-Bukhari 1454 (2.5% on money); the Permanent Committee and Shaykh Ibn Baz on valuing trade goods at the annual date; Shaykh al-Uthaymin (ash-Sharh al-Mumtiʿ, Zakat) that profit follows the principal's hawl. Caution: Leverage/margin and futures involve riba and excessive gharar and were ruled impermissible by evidence-based scholars; earnings need repentance — but zakat on wealth in hand is still due. For complex individual cases, consult a qualified scholar.

References

Quran Quran 2:267
Hadith Sahih al-Bukhari 1454
Fiqh Permanent Committee; Ibn Baz; al-Uthaymin