A review of binary options trading with bitcoins
The popularity, and notoriety, of the currency also makes it a prime target of potential scams and the like, so be aware and only trade with trusted brokers such as the ones we list here on binaryoptions.
To begin trading Bitcoin binary options you should have at least a marginal understanding of what they are. Basically, Bitcoins are digitally created currency units that can be spent anywhere Bitcoins are accepted. They are meant to be a free and easy system for international trade that is not reliant on central banks or charges outrageous fees. As coins are mined they become available for sale, trade or exchange. Bitcoins are now used to exchange currencies around the world and for international trade but have yet to be embraced by the world powers.
A few years ago, the number of brokers offering Bitcoin as an asset to trade was very low. Now, the opposite is true. So traders now have a range of choices when it comes to finding a broker that offers cryptocurrency trading.
If your current broker does not offer it, consider moving. Sensing a new opportunity with Bitcoin and binary options, some innovative brokers have come up with ways to trade binary options and Bitcoin together.
There are essentially 2 ways to trade Bitcoin binary options. The first method is by using Bitcoin as a medium of Exchange. The second method is by using Bitcoin as an underlying asset.
When it comes to using Bitcoin as a medium of exchange, traders will be trading the various underlying assets in financial markets with Bitcoin. So if their trade is successful, they will be paid in Bitcoin instead of fiat currencies like the U. S dollar or Euro. You might be wondering why anyone would just want to accept Bitcoin when getting paid in U. S dollar as always been fine before.
The first benefit of transacting in Bitcoin is the fact that the cost of transaction is the lowest among all forms of online payment. This is the very reason why Bitcoin was created in the first place, to lower the cost of online transaction.
This virtual currency is a hot item right now, and many people have begun speculating in them, trying to make a profit off of their ever-growing usage throughout the web.
However, these can be hard to obtain for usage, so actively trading them has proven to be quite difficult for the average person. However, some binary options brokers are beginning to offer the asset within their brokerage website, usually as part of a Forex pair. This has lowered the bar when it comes to trading this exclusive currency, allowing more people to trade with fewer hindrances.
Bitcoins offer a sense of security that other currencies cannot duplicate. There is a limited number of them in existence—21 million—so they will be safe from inflation. This will help long term traders out since the everyday ups and downs that other currencies face will not be as severe with bitcoins. The fluctuations that this currency will see will be based solely on demand since the supply will remain static. Multiple expiration dates are given , as are a variety of different prices that the Bitcoin might reach.
This variety of option is typically available over the weekends; this creates a perfect opportunity for busy traders to supplement their preexisting trading routines with Bitcoins without interfering with what they already are doing. Unlike other popular binary option assets, the Bitcoin is geared more toward long term trading—the average option stays open for a week, one of the big reasons why their rate of return is so high.
If you want to trade longer timeframes, these are available, too. Even though some of these one touch choices are far away, they promise to be attractive to binary options traders. Bitcoins are still going through their growing pains on the worldwide market. There is a very good chance that this volatility will continue on into the near future. The binary option marketplace, especially one touch options, is currently the perfect setting for bitcoins.
They might eventually reach traditional Forex brokerages , but right now there are just too many question marks associated with them. But this is the beauty of binary options. They do not assume ownership or the responsibility that comes with this. Instead, a binary option is just a hypothesis about which direction the asset in question is going to go.