Binary options are becoming more popular in the last 2 years. This type of trading has been desired among new traders as they do not need to buy anything, they only predict whether the asset will move up or down in a specified period of time. These trades occur in short periods of time (30 seconds, 1 minute, and 5 minutes), but can also take months. If the trader predicted badly, he will obviously lose his money. If the trader was right in his prediction, he will receive 80-85% payment, depending on the broker.
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Binary options are sometimes known as “all or nothing options,” “digital options,” or “fixed return options” (FROs), which are listed on the American Stock Exchange.
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Bitcoin (BTC) it is a digital currency that is created and maintained electronically and that no one controls. “Bitcoin is an online payment system invented by Satoshi Nakamoto, who published his invention in 2008 and launched it as open source software in 2009. The system is peer-to-peer; users can make transactions directly without the need for an intermediary.Transactions are verified by network nodes and recorded in a public distributed ledger called blockchain.The ledger uses its own unit of account, also called bitcoin.The system works without a central deposit or a sole administrator, which has led the U.S. Treasury to classify it as a decentralized virtual currency. Bitcoin is often called the first cryptocurrency … ”
Bitcoin as a currency in binary options trading
Currently, Bitcoin is a widely used currency and many trading platforms accept it as a method of paying their clients ’trading deposits. There are many advantages to using Bitcoin as a currency. The first advantage is “the fact that the cost of the transaction is the lowest of all forms of online payment. This is the reason why Bitcoin was created in the first place, to reduce the cost of the online transaction Since there is no central authority administering 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 negotiable and this way they can earn extra bitcoins.
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“By denoting all commercial transactions in Bitcoin, a trader can protect himself from the fluctuation of this cryptocurrency and at the same time get more out of it thanks to the profits made in trading.”
Bitcoin as a commodity in binary options trading
With a recent popularity of Bitcoin and its acceptance as a currency, many binary options platforms began using Bitcoin as one of the currencies to trade. as well as an asset. Stockbrokers see the value in BTC trading against flat currencies, mainly against the US dollar.
Today there are two main types of Bitcoin binary options platforms:
- First Generation Brokers: Binary options platforms that allow you to trade in Bitcoin
- Second Generation Brokers: Platforms that offer Bitcoin financing and Bitcoin trading
First generation runners – brokers that offer Bitcoin trading:
- Coinut: only Bitcoin options trading platform; programmed as robust and distributed on the Linux operating system coinut.com
- BTClevels: Bitcoin binary options trading platform; with or without registration, btclevels.com for free
- 24 Options: One of the first brokers to start offering BTC as an asset 24option.com
Second generation runners – brokers that offer Bitcoin financing and trading:
- Traderush Binary Platform: accepts BTC deposits traderush.com
- The Nadex trading platform accepts BTC financing and allows BTC trading; offers limited risk, short-term trading, transparency and a fully regulated nadex.com market
- Satoshi Option trading platform: accepts BTC financing and allows BTC trading; does not require account registration or personal data. Payments are almost instantaneous and the service is accessible from anywhere in the world satoshioption.com
- BTCOracle platform: Bitcoin only platform: allows BTC financing and trading offering few portfolio options and full transparency btcoracle.com
- Bitstamp Platform – As above, only the BTC platform – allows trading and financing of BTC, but requires bitstamp.net login
- Bitcoin Wisdom: allows you to trade 3 digital currencies, bitcoins, litecoins, altcoins and other flat currencies and requires bitcoinwisdom.com login
- Beast Option: allows BTC financing and trading of bitcoins and litecoins; guarantees fairness in prices regardless of market fluctuations beastoptions.com
When choosing a Bitcoin broker, it is important to check its terms and conditions, paying special attention to the information about whether your Bitcoin assets are stored in “Deep Cold Storage”. It means that bitcoins are secured and stored offline, where they are not susceptible to hackers.