Bitcoin is a cryptocurrency, which can be spent, stored or invested and can also be stolen. Trading with Bitcoin was considered risky, but the current trend shows that it has become a big hit in the binary options sector. This decentralized currency is not controlled by any government or any central authority.
What determines the price of Bitcoin?
The price of Bitcoin is determined by the ratio of supply and demand. When the demand increases, the price goes up, when the demand decreases, the price goes down. Bitcoins in circulation are limited, and new ones are created very slowly. Since it does not have sufficient cash reserves to move its market value, its price can be highly volatile.
Bitcoin trading is popular because –
- Low Inflation Risk – Inflation is the biggest problem for traders, because all currencies lose some of their purchasing power when the Reserve Banks keep printing more currency. As the bitcoin minting system is limited to only 21 million bitcoins, it is hardly affected by inflation.
- Low fall risk – Currency fluctuations depend on government trade policies, which sometimes lead to high inflation and even currency depreciation. Bitcoin is a virtual universal currency, not controlled by any government.
- Simple, safe and cheap – Bitcoin payments take place peer-to-peer with no intermediaries, so it’s easy and cheap.
- Easy to carry – Millions of dollars worth of bitcoins can be carried in your pocket, on a memory stick. It cannot be done with gold or cash.
- undiscovered – Bitcoin issuance is not regulated by any government, so there is zero risk of confiscation.
Binary Options Bitcoin Trading Platform
Binary options brokers are getting familiar with the popularity of these bitcoins and its constantly fluctuating values. So they are using this opportunity to offer merchants with the latest volatile crypto-currency as an additional payment method. Bitcoin brokers offer crypto-currencies as trading options –
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One Touch Option – Bitcoin trading can be done with any option or one-touch option. For example the current popular currency pair is BTC/USD.
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SetOption – The latest option available for asset trading is BITCOIN/USD.
Bitcoin brokers provide an easy trading online platform. All you have to do is visit their website, enter your details and create an account. You can start with demo account to understand the market action.
The trading screen is simple.
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Select price direction (up/down)
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Select the timeframe
Is Bitcoin Trading Safe?
The Bitcoin network is perhaps the world’s largest distributed computing project. The most common vulnerability here is user error. Bitcoin wallet files can be lost, stolen or accidentally deleted just like any other file in digital form.
However, users can use safe security techniques to protect their cash. Alternatively, you can choose service providers that offer high-level security, as well as insurance against loss or theft.