Cryptocurrencies are one of the most volatile financial markets, exposing investors to high risks. To protect yourself, it is essential to adhere to principles that minimize risks and respect the teachings of Islam, such as avoiding leverage, which is forbidden in Sharia because it involves interest-based loans.
1. Deep learning and understanding of the market
Before investing, you should understand what cryptocurrencies are and how they work.
Follow global news that affects prices, such as new laws or technical updates to projects.
2. Manage money wisely
Invest money that you can afford to lose without it affecting your daily life.
Avoid taking out debt or using loans to invest, as this may increase the risks and lead to significant losses.
3. Avoid leverage
Leverage is a tool that increases the size of your trade using money borrowed from the platform, which includes paying forbidden interest.
Instead, rely on spot trading or direct investment without borrowing.
4. Diversify the investment portfolio
Spread your investments across more than one cryptocurrency to reduce the risk of relying on one currency.
Focus on coins with strong projects and real value.
5. Develop a clear plan
Set your goals in advance: when will you sell? and when will you stop trading?
Stick to your plan no matter how volatile the market is, and avoid making emotional decisions.
6. Halal trading
Look for projects that comply with Islamic law and stay away from currencies associated with illegal activities.
Focus on currencies that support the real digital economy and are not just based on speculation.
7. Technical and fundamental analysis
Use technical analysis to find ideal entry and exit points.
Follow fundamental news and analysis to assess the project's strength and future goals.
8. Risk management and determining acceptable losses
Set a specific percentage of your capital as your maximum loss (e.g. 5% per trade).
Use Stop Loss and Take Profit orders without giving in to emotions.
9. Use secure wallets
Store your assets in cold wallets to protect them from hacking and theft.
10. Continuity and follow-up
Review your investments periodically to evaluate performance and adjust your strategy.
Seek the help of experts or consultants if you need additional support.
To avoid risks in the cryptocurrency market, it is important to adhere to halal trading and avoid leverage. Rely on learning, planning, and rational money management to ensure a safe and stable investment.
