Binary options have become increasingly popular in the last 2 years. This type of trading has been desired among new traders as they don’t actually need to buy anything, they just need to predict whether the asset will move up or down in a specified time frame. These operations are done in short periods of time (30 seconds, 1 min, 5 min), but can also be months. If the trader predicted wrongly, they will obviously lose their 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 is 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 make transactions directly without the need for an intermediary. Transactions are verified by network nodes and recorded in a distributed public ledger called blockchain. The ledger uses its own unit of account, also called bitcoin. The system works without a central repository or single administrator, which has led the US Treasury to classify 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 their customers’ trading deposits. There are many advantages to using Bitcoin as a currency. The first benefit is “the fact that the transaction cost is the lowest among all forms of online payment. This is the same reason why Bitcoin was created in the first place, to reduce the transaction cost by line. Because there is no central authority managing Bitcoin, no service fee is paid when receiving or transmitting payment.” Another reason for traders to use Bitcoin as a currency is that Bitcoin itself is tradable and they can earn additional Bitcoins this way.
“By having all business transactions denominated in Bitcoin, a trader can protect against the fluctuation of this cryptocurrency and at the same time get more from the profits made in the trade.”
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. so as an asset. Stock brokers are seeing the value of trading BTC against flat currencies, mainly against the US dollar.
There are 2 main types of Bitcoin binary options platforms today:
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First Generation Brokers: Binary options platforms that allow you to trade with Bitcoin
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Second Generation Brokers – Platforms that offer Bitcoin financing and Bitcoin trading
First generation brokers – brokers offering Bitcoin trading:
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Coinut: Unique Bitcoin Options Exchange Platform; programmed as a robust and distributed Linux operating system coinut.com
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BTClevels – Bitcoin Binary Options Trading Platform; with or without registration, no problems btclevels.com
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24 Options – One of the first brokers to start offering BTC as an asset 24option.com
Second generation brokers – Brokers offering Bitcoin financing and trading:
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Traderush Binary Platform – Accepts BTC deposits traderush.com
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Nadex Trading Platform: Accepts BTC funding and allows BTC trading; offers limited risk, short-term trading, transparency and a fully regulated nadex.com market
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Satoshi Option Trading Platform: Accepts BTC funding and allows BTC trading; does not require account registration or personal data. Payments are almost instant and the service is accessible from anywhere in the satoshioption.com world
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BTCOracle Platform – Bitcoin only platform – enables BTC funding and trading by offering few wallet options and full transparency btcoracle.com
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Bitstamp Platform – As above, BTC only platform – allows BTC trading and funding, but requires bitstamp.net login
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Bitcoin Wisdom – Allows you to trade 3 digital currencies, Bitcoins, Litecoins, Altcoins vs. other flat currencies and requires login bitcoinwisdom.com
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Beast Option – Enables BTC funding and Bitcoin and Litecoin trading; ensures fair pricing regardless of beastoptions.com market fluctuations
When choosing a Bitcoin broker, it is important to check their terms and conditions, paying particular attention to whether their Bitcoin assets are stored in “Deep Cold Storage”. It means that bitcoins are secured and stored offline, where they are not susceptible to hackers.