Binary options have become increasingly popular in the last 2 years. This type of trading is desirable among new traders because they do not have to actually buy anything, they only predict whether the assets will move up or down within a certain time frame. These trades take place in short time frames (30 seconds, 1 min, 5 min), but can last for months. If the trader misjudges, he will obviously lose his money. If the trader was right in his prediction, he will receive a payout of 80-85%, depending on the broker.
Binary options are sometimes referred to as ‘all or nothing options’, ‘digital options’ or ‘fixed return options’ (FROs), which are traded on the US stock market.
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 released it as open source software in 2009. The system is peer-to-peer; users can make direct transactions without the need for an intermediary The transactions are verified by network nodes and recorded in a public distributed ledger called the blockchain.The ledger uses its own unit of account, also called bitcoin.The system operates without a central repository or a single administrator, prompting the U.S. 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 a widespread currency today and many trading platforms accept it as a way to pay their clients’ trading deposits. There are many benefits to using Bitcoin as a currency. The first advantage is “the fact that the cost of the transaction is the lowest among all forms of online payment. This is exactly why Bitcoin was created in the first place to reduce the cost of online transactions. pay on receipt or transfer of payment. ” Another reason why traders use Bitcoin as a currency is that Bitcoin itself can be traded and thus can earn extra Bitcoins.
“Since all trading transactions are marked in Bitcoin, the trader is able to protect himself from the fluctuation of this cryptocurrency, while at the same time earning more than that through profits earned in 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 have begun to use Bitcoin as one of the currencies to trade. hence as property. Stock brokers see value in trading BTC against fixed currencies, mostly against the U.S. dollar.
Today there are 2 main types of Bitcoin binary options platforms:
- First generation brokers – binary options platforms that enable Bitcoin trading
- Second generation brokers – platforms that offer both Bitcoin financing and Bitcoin trading
First generation brokers – brokers offering bitcoin trading:
- Coinut – a platform for exchanging only Bitcoin options; programmed as robust and distributed on the Linux operating system coinut.com
- BTClevels – Bitcoin platform for binary options trading; with or without registration, btclevels.com effortlessly
- 24 Options – one of the first brokers to start offering BTC as a property of 24option.com
Second generation brokers – brokers offering Bitcoin financing and trading:
- Traderush binary platform – accepts BTC deposits traderush.com
- Nadex trading platform – accepts BTC financing and allows BTC trading; offers limited risk, short-term trading, transparency and a fully regulated market nadex.com
- Satoshi Option trading platform – accepts BTC financing and allows BTC trading; does not require account registration or personal information. Payments are almost instantaneous, and the service is available from anywhere in the world satoshioption.com
- The BTCOracle platform – a Bitcoin-only platform – enables BTC financing and trading by offering several wallet options and full transparency btcoracle.com
- Bitstamp platform – As mentioned above, only BTC platform – allows trading and financing of BTC, but requires registration on bitstamp.net
- Bitcoin Wisdom – allows trading with 3 digital currencies, Bitcoins, Litecoins, Altcoins in relation to other fixed currencies and requires login to bitcoinwisdom.com
- Beast Option – enables BTC financing and trading of Bitcoins and Litecoins; guarantees fairness of prices 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 on whether their Bitcoin assets are stored in “Deep Cold Storage”. This means that bitcoins are secured and stored offline, where they are not susceptible to hackers.