Zakat on Cryptocurrency: A Modern Way to Fulfill a Timeless Duty

As technology continues to evolve, so do the ways we engage with the world, including how we fulfill our religious obligations. One of the most fascinating developments in recent years is the rise of cryptocurrency—digital currencies like Bitcoin, Ethereum, and others that have gained immense popularity across the globe. But as more people invest in cryptocurrency, a question arises: How do we calculate and give zakat on these assets?

This is a timely and important topic, especially as more Muslims engage with cryptocurrency. Zakat, the third pillar of Islam, is an essential part of purifying our wealth and ensuring that a portion of it goes to help those in need. Traditionally, zakat has been calculated on savings, investments, and tangible assets. Now, with cryptocurrency becoming a significant asset for many, it’s vital to understand how to give zakat on it.

How to Calculate Zakat on Cryptocurrency

Zakat is typically 2.5% of your wealth, given annually to eligible causes. When it comes to cryptocurrency, the process is similar to calculating zakat on cash or investments. The value of your cryptocurrency holdings should be assessed at the end of the lunar year, using the market value of your cryptocurrency at that time. Once you have determined the value, 2.5% of that total should be given as zakat.

It’s important to note that zakat is due on any cryptocurrency that you’ve held for a full lunar year. If you bought or received cryptocurrency less than a year ago, zakat on those holdings can wait until the one-year mark. However, any gains or interest derived from holding or trading cryptocurrency are also subject to zakat, just like any other form of wealth.

Why You Should Give Your Zakat to Embrace Relief

Now that you understand how to calculate zakat on cryptocurrency, the next question is where to give it. At Embrace Relief, we offer a trusted and impactful platform to distribute your zakat in ways that make a tangible difference in the lives of those who need it most. By giving your zakat to Embrace Relief, you’re contributing to a variety of life-changing causes that directly align with the essence of zakat—helping the less fortunate and addressing urgent needs in communities around the world.

Here are just a few of the impactful programs your zakat can support:

1. Clean Water Projects

Water is the source of life, yet millions of people around the world still lack access to safe, clean water. Your zakat can help fund clean water initiatives that provide wells, filtration systems, and water infrastructure to communities in need. This not only improves health outcomes but also empowers communities by freeing them from the daily struggle of searching for clean water.

2. Health Initiatives – Cataract Surgeries

Preventable blindness, particularly due to cataracts, is a significant issue in many developing countries. For a small cost, we can restore someone’s sight and improve their quality of life. Your zakat can fund life-changing cataract surgeries, bringing light back to those who would otherwise live in darkness.

3. Hunger Relief

Millions of people face food insecurity, struggling to find their next meal. Through our hunger relief programs, your zakat helps provide essential food packages to families in crisis. By supporting hunger relief efforts, you are ensuring that no one goes to bed hungry, fulfilling the true spirit of zakat.

4. Orphan Care – Supporting Orphans and Vulnerable Youth

Zakat is a lifeline for children who have lost their parents or come from vulnerable backgrounds. Through Embrace Relief’s Orphan Care program, we provide education, shelter, and emotional support to orphans and at-risk youth. By directing your zakat to this cause, you’re giving these children the chance at a brighter future.

The Impact of Your Zakat on Cryptocurrency

By giving zakat on your cryptocurrency holdings, you’re not just fulfilling a religious obligation—you’re creating real, lasting change. Cryptocurrency represents a new frontier in the financial world, and it’s exciting to see how it can be used for good. When you donate through Embrace Relief, your zakat reaches the most vulnerable, supporting initiatives that bring clean water, health, food security, and education to those who need it most.

In a time when the world is facing so many challenges, your zakat—whether it comes from traditional sources or from cryptocurrency—has the power to uplift communities, heal wounds, and restore hope.

We invite you to give your zakat with Embrace Relief today, knowing that every cryptocurrency donation, like any other, has a profound impact. Join us in making a difference, and let’s continue the tradition of compassion and generosity in this modern age.

To learn more about giving your zakat through cryptocurrency, and to see how your contributions are changing lives, visit Embrace Relief’s zakat donation page today.