Binary options have become increasingly popular in the last 2 years. This type of trading is desirable among new traders, as they do not need to actually buy anything, just predict whether the asset will move up or down over a period of time. These trades happen in a short time (30 sec, 1 min, 5 min), but can be months. If the trader has made a wrong prediction, they will obviously lose their money. If the trader was right in his forecast, he will receive 80-85% payout, depending on the broker.
Binary options are sometimes called “all-or-nothing”, “digital options” or “fixed return options” (FROs), which are traded on the US Stock Exchange.
Bitcoin (BTC) is a digital currency that is created and held electronically and is not controlled by anyone. “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 checked by network nodes and recorded in a public distributed book called a blockchain. The book uses its own unit of account, also called bitcoin. The system operates without a central repository or an administrator, which led the US Treasury Department 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 currently a widely used currency and many trading platforms accept it as a method of paying their customers’ trade deposits. There are many benefits to using bitcoin as a currency. The first advantage is “the fact that the transaction price is the lowest among all forms of online payment. This is the reason why Bitcoin was created in the first place to reduce the price of the online transaction. Because there is no central authority managing Bitcoin Another reason for traders to use bitcoin as a currency is that the bitcoin itself can be traded and they can earn extra bitcoins this way.
“Having all the trading transactions denoted in bitcoin, the trader can protect himself from the fluctuations of this cryptocurrency, while at the same time earning more from it through profits earned from trading.
Bitcoin as a commodity in binary options trading
With the recent popularity of Bitcoin and its adoption as a currency, many binary options platforms have begun to use Bitcoin as one of the trading currencies. so as an asset. Stockbrokers see value in trading BTC against flat currencies, mainly against the US dollar.
Today there are 2 main types of bitcoin platforms for binary options:
First generation brokers – binary options platforms that allow bitcoin trading
Second generation brokers – platforms that offer both bitcoin financing and bitcoin trading
First generation brokers – brokers offering bitcoin trading:
Coinut – only a platform for exchanging bitcoin options; programmed as reliable and distributed in the Linux operating system coinut.com
BTClevels – a platform for trading binary options for bitcoin; with or without registration, seamlessly btclevels.com
24 Options – one of the first brokers to offer BTC as an asset to 24option.com
Second generation brokers – brokers offering bitcoin financing and trading:
Traderush Binary Platform – accepts BTC traderush.com deposits
The Nadex trading platform – accepts financing from BTC and allows trading with BTC; offers limited risk, short-term trading, transparency and a fully regulated market nadex.com
Satoshi Option trading platform – accepts financing from BTC and allows trading with BTC; does not require account registration or personal data. Payments are almost instantaneous and the service is available from anywhere in the world satoshioption.com
The BTCOracle platform – a bitcoin-only platform – allows BTC financing and trading, offering multiple portfolio options and full transparency
Bitstamp platform – As above, only BTC platform – allows BTC trading and financing, but requires bitstamp.net entry
Bitcoin Wisdom – allows trading in 3 digital currencies, Bitcoins, Litecoins, Altcoins against other flat currencies and requires login bitcoinwisdom.com
Beast Option – allows BTC financing and trading of bitcoins and lightcoins; guarantees fairness in pricing regardless of market fluctuations beastoptions.com
When choosing a bitcoin broker, it is important to check their terms, paying special attention to the information whether their bitcoin assets are stored in “Deep Cold Storage”. This means that bitcoins are insured and stored offline where they are not susceptible to hackers.