Bitcoin and Binary Options Trading
Binary options have become more and more popular in the last 2 years. This type of trading has long been desired among new traders as they don’t actually need to buy anything, just predict whether the asset will move up or down in a specific time period. Those trades are made in short time frames (30 seconds, 1 minute, 5 minutes), but they can also be months. If the trader predicted incorrectly, he will obviously lose his money. If the trader was correct in his prediction, he will receive a payout of 80-85%, depending on the broker.
Binary options are sometimes called “all or nothing options”, “digital options” or “fixed return options” (FROs), which are traded on the American Stock Exchange.
Bitcoin (BTC) it is a digital currency that is created and maintained electronically and controlled by no one. “Bitcoin is an online payment system invented by Satoshi Nakamoto, who published his invention in 2008 and released it as open source software in 2009. The system is peer-to-peer; users can transact directly without the need for a intermediary Transactions are verified by network nodes and recorded on a distributed public ledger called a blockchain The ledger uses its own unit of account, also called bitcoin The system works without a central repository or single administrator, which which has led the US Treasury to categorize it as a decentralized virtual currency. Bitcoin is often called the first cryptocurrency…”
Bitcoin as a currency in binary options trading
Bitcoin is now a widely used currency and many trading platforms accept it as a payment method for trading deposits from their clients. There are many benefits to using Bitcoin as a currency. The first benefit is “the fact that the transaction cost is the lowest among all online payment methods. This is why Bitcoin was created in the first place, to reduce the cost of online transaction Since there is no central authority when managing Bitcoin, no service fee is paid when receiving or transmitting the payment.” Another reason why traders use Bitcoin as a currency is that Bitcoin itself is tradable and they can earn additional Bitcoins that way.
“By having all trading transactions listed in Bitcoin, a trader can protect themselves from the fluctuation of this crypto currency while earning more through the profits made on trading.”
Bitcoin as a commodity in binary options trading
With the recent popularity of Bitcoin and its acceptance as a currency, many binary options platforms started using Bitcoin as one of the currencies to trade. as well as an asset. Stockbrokers are seeing the value in trading BTC against flat currencies, primarily against the US dollar.
Today there are 2 main types of Bitcoin binary options platforms:
First generation brokers: binary options platforms that allow you to trade with Bitcoin
Second Generation Brokers: Platforms that offer Bitcoin financing and trading
first generation runners – brokers offering Bitcoin trading:
Coinut – only Bitcoin options exchange platform; programmed as a robust operating system and distributed on Linux coinut.com
BTClevels – Bitcoin binary options trading platform; with or without registration, without complications btclevels.com
24 Options – One of the first brokers to start offering BTC as an asset 24option.com
second generation brokers – brokers that offer Bitcoin financing and trading:
Traderush binary platform – accepts BTC deposits traderush.com
Nadex trading platform: accepts BTC funding and enables BTC trading; offers limited risk, short term trading, transparency and fully regulated market nadex.com
Satoshi Option trading platform: accepts BTC funding and allows BTC trading; does not require account registration or personal data. Payments are almost instantaneous and the service can be accessed from anywhere in the world satoshioption.com
BTCOracle Platform – Bitcoin Only Platform – enables BTC funding and trading by offering few wallet options and full transparency btcoracle.com
Bitstamp Platform – As above, BTC platform only – Allows for BTC trading and funding, but requires bitstamp.net login
Bitcoin Wisdom – Allows you to trade 3 digital currencies, Bitcoins, Litecoins, Altcoins against other flat currencies and requires a login to bitcoinwisdom.com
Beast Option – Allows for BTC funding and trading of Bitcoins and Litecoins; guarantees fairness in pricing regardless of market fluctuations beastoptions.com
When choosing a Bitcoin broker, it is important to check their terms and conditions, paying special attention to information about whether your Bitcoin assets are stored in “Deep Cold Storage”. It means that the Bitcoins are secured and stored offline, where they are not susceptible to hackers.