If you cannot find a reliable market quote for converting your crypto value into gold, you can take the market price for gold in your local currency, and then convert your crypto value into your local currency to find out how much you should give.
If you cannot find a reliable market quote for converting your crypto value into gold, you can take the market price for gold in your local currency, and then convert your crypto value into your local currency to find out how much you should give.
Bitcoin is a crypto currency or decentralized digital currency that has gained traction in recent years. Although the real-world value of the coins can be volatile, an increasing number of Muslims have acquired Bitcoins and other crypto currencies, prompting a discussion on how to calculate Zakat on them.
Cryptocurrencies and payment tokens fall under the ruling of currency and so are always 100% Zakatable.
Here are a few rules of thumb:
- Zakat is due on the market value of your crypto currency.
- Regardless of whether your crypto currency holdings are tokens (utility or work) or exchangeable coins, both are liable for Zakat.
Steps for calculating your Zakat on Crypto:
- Find the value of 85 grams of gold in your crypto currency.
- If you’ve had a consistent value greater than 85 grams of gold in your wallet on the month’s end for an entire 12 months, then you will pay Zakat on the total value of your wallet.
- Pay 2.5% of your wallet’s value either in the same crypto currency or in its value of fiat currency or precious metals.
If you cannot find a reliable market quote for converting your crypto value into gold, you can take the market price for gold in your local currency, and then convert your crypto value into your local currency to find out how much you should give.
To make it easy for you to calculate your Zakat, please check out LaunchGood’s Zakat calculator which allows you to input your crypto currencies, if any.
You can then easily pay your Zakat on LaunchGood, which has thousands of Zakat-eligible fundraising campaigns from around the world verified by Zakat experts.
