How to Start Saving in Bitcoin

June 16, 2022

So you’re a Muslim and you want to start saving in #Bitcoin and don’t know where to start. What’s this Bitcoin thing about? Is it even halal? Where and how do I start buying Bitcoin?

Before making the decision to buy bitcoin, you should learn about it first. It doesn’t make sense to buy something and you have no idea what it is. Going to recommend quite a bit of material because Bitcoin is a very new thing. It takes a while to grasp. Take it slow.

  1. So first, read The Bullish Case for Bitcoin by @real_vijay. This will give you a foundation to understand Bitcoin through its properties and functions as money.
  2. Next, you really really should read the book “The Bitcoin Standard” by @saifedean. It’s so worth it. If you don’t want to purchase it, the author even recommends you pirate it.
  3. You should listen to these 2 podcast episodes that discuss Bitcoin from the Islamic perspective:
    Bitcoin: The Most Islamic Form of Money? with Harris Irfan
    Islamic Finance and Bitcoin with Safdar Alam
  4. Listen to this video with sheikh Mu’aawiyah Tucker (@c_hashreview) that explains the decentralized nature of the Bitcoin network in how it’s similar to the memorization of the Quran. He also talks about fiat, inflation, and supply+demand.
  5. Lastly, read this essay by @allenf32 titled “Bitcoin is Venice”. There’s a section called “Bitcoin is Halal” that talks about how Bitcoin drastically reduces the need for debt and how it promotes risk-sharing rather than risk-transfer.

So while you’re reading/listening to the above material and you feel like you’re ready to buy some bitcoin, it’s time to sign up for an exchange. But which exchange should you use? It depends where you’re located.

Where to buy Bitcoin

If you’re in the US, I recommend going with a “bitcoin only” exchange like:

You can find a list of reputable exchanges by country here: https://bitcoin.org/en/exchanges

How much and how often should you buy?

It depends on what you’re comfortable with. I recommend Dollar Cost Averaging (DCA). Just set a recurring buy for once a month, week, or day, and just stick with it. Don’t “time the market”. Your DCA strategy stays the same.

Where to Store your Bitcoins

Once you’ve accumulated a significant amount of bitcoin after a few weeks or months, you should seriously consider getting it off the exchange and moving into cold storage. What does that mean and how do you do that? Read this about cold storage: What Is Bitcoin Cold Storage?

So typically what you want (should get) is what’s called a hardware wallet. @parman_the has an excellent guide about hardware wallets how to safely manage them: Bitcoin Hardware Wallets Guide

Conclusion

That’s enough material to get you started on your journey. But I want to highlight 3 things:

  1. DO NOT BUY OTHER CRYPTOCURRENCIES. These cryptos are just centralized financial instruments that are designed to steal your money. They no have no real use cases. Bitcoin only.
  2. There is no special halal crypto. Don’t fall for Muslims that are selling a “shariah compliant” coin. There’s already a halal crypto asset, and it’s called #Bitcoin.
  3. Take your time learning about this. Do not rush into it.

Not financial advice.

You may also like

The Fiat Muslim Mentality

The Fiat Muslim Mentality

The fiat Muslim cannot allow himself to think of any viable alternative to the fiat system that he's subjected to. He...

Zionism and Fiat Money

Zionism and Fiat Money

The following posts are taken from the Twitter user @zabakbar, where he talks about the link between fiat money and...

0 Comments

Submit a Comment

Your email address will not be published. Required fields are marked *