Binary options have become increasingly popular in the last 2 years. This type of trading is desirable among new traders because they don’t actually need to buy anything, just predict whether the asset 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 maybe months. If the trader misjudged, he would obviously lose money. If the trader was right in his prediction, he will receive 80-85% of the payout, depending on the broker.
bitcoin price live
Binary options are sometimes referred to as “all or nothing options,” “digital options,” or “fixed return options” (FROs), which are traded on the U.S. stock market.
Bitcoin (BTC) is a digital currency that is created and held electronically and is not controlled by anyone. “Bitcoin is a network 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 perform transactions directly without the need for an intermediary. Transactions are verified by network nodes and recorded in a publicly distributed book called a blockchain.The book uses its own unit of account, also called bitcoin.The system operates without a central repository or a single administrator, which has led to the US Treasury classifying it as 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 method of payment for their clients ’trading deposits. There are many benefits to using Bitcoin as a currency. The first advantage is “the fact that the transaction cost is the lowest among all forms of online payment. This is exactly why Bitcoin was created at all, to reduce the cost of online transactions. Because there is no central government managing Bitcoin, when receiving or transferring payments no fee is charged for the service. ”Another reason traders use Bitcoin as a currency is that Bitcoin itself is interchangeable and thus can earn extra Bitcoin.
“Having all the trading transactions marked in Bitcoin, the trader can protect himself from the fluctuation of this cryptocurrency, and at the same time earn more than that through the profit realized on 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 have begun to use Bitcoin as one of the currencies to trade. hence as a means. Brokers see the value of trading BTC against flat currencies, mostly against the US dollar.
Today there are 2 main types of Bitcoin binary options platforms:
- First generation brokers – binary options platforms that enable trading on Bitcoin
- 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 binary options trading platform; with or without registration, hassle-free btclevels.com
- 24 Options – one of the first brokers to start offering BTC as a 24option.com tool
Second generation brokers – brokers offering Bitcoin financing and trading:
- Traderush binary platform – accepts BTC deposits from traderush.com
- Nadex trading platform – accepts BTC financing and enables BTC trading; offers limited risk, short-term trading, transparency and a fully regulated market nadex.com
- Satoshi Option Trading Platform – accepts BTC financing and enables 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 above, BTC only platform – allows BTC trading and financing, but requires bitstamp.net login
- Bitcoin Wisdom – allows trading with 3 digital currencies, Bitcoins, Litecoins, Altcoins in relation to other flat currencies and requires logging in bitcoinwisdom.com
- Beast Option – enables BTC financing and trading of Bitcoins and Litecoins; guarantees price fairness regardless of market fluctuations beastoptions.com
When choosing a Bitcoin broker, it is important to check their terms and conditions, paying special attention to whether their Bitcoin funds are stored in a “deep cooler”. This means that Bitcoins are secured and stored offline, where they are not susceptible to hackers.