Binary options are becoming more and more popular in the last 2 years. This type of trading is desirable among new traders because they don’t need to actually buy anything, just predict that the asset will go up or down in a certain timeframe. These trades occur in short time frames (30 seconds, 1 minute, 5 minutes) but can also be months. If the trader predicts wrongly, they will definitely lose their money. If the trader is correct in his prediction, they will get 80-85% payout depending on the broker.
Binary options, sometimes referred to as ‘all-or-nothing options’, ‘digital options’ or ‘fixed return options’ (FROs), are traded on American stock exchanges.
Bitcoin (BTC) A digital currency that is created and held electronically and no one controls it. “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 transact directly without the need for an intermediary. Transactions are network is verified by 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 single administrator, which has led the US Treasury to classify 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 payment method for their clients’ trading deposits. There are many advantages to using Bitcoin as a currency. The first advantage is “The transaction cost is the lowest among all forms of online payment. This is why Bitcoin was created, to reduce the cost of online transactions. As there is no central authority. No service fees are paid when handling, receiving or sending Bitcoin payments. ” Another reason why traders use Bitcoin as a currency is that Bitcoin itself is tradable and they can earn extra Bitcoin that way.
“By identifying all trading transactions in Bitcoin, a trader is able to protect himself from the fluctuations of this crypto currency and at the same time earn more from it through the 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 started using Bitcoin as one of the trading currencies. So as a resource. Stockbrokers are looking at the value of trading BTC against flat currencies, mainly against the American dollar.
There are 2 main types of Bitcoin binary options platforms today:
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First generation broker – binary options platform that allows trading in Bitcoin
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Second Generation Broker – Platform that offers both Bitcoin Funding and Bitcoin Trading
First generation broker – Brokers that offer Bitcoin trading:
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Coinut – Bitcoin-only alternative exchange platform; Programmed as a powerful and Linux operating system distributed on coinut.com
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BTClevels – Bitcoin Binary Options Trading Platform; With or without registration, hassle free btclevels.com
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24Option – One of the first brokers to start offering BTC as an asset 24option.com
Second generation broker – Brokers that offer Bitcoin funding and trading:
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Traderush Binary Platform – BTC Deposit Accepts traderush.com
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Nadex trading platform – accepts BTC funds and allows BTC trading; Limited risk, short term trading, transparency and fully regulated market offer nadex.com
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Satoshi Options Trading Platform – accepts BTC funding and allows BTC trading; No account registration or personal details required. Payouts are near instant and the service is accessible from anywhere in the world satoshioption.com
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BTCOracle Platform – Bitcoin Only Platform – Allows BTC Funding and Trading Some Wallet Options and Full Transparency btcoracle.com
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Bitstamp Platform – As above, BTC only platform – allows BTC trading and financing but requires login to bitstamp.net
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Bitcoin Wisdom – Allows trading of 3 digital currencies, Bitcoin, Litecoin, Altcoins vs other flat currencies and requires login to bitcoinwisdom.com
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Beast Options – allows BTC funds and trading of Bitcoin and Litecoin; beastoptions.com guarantees fairness in pricing regardless of 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”. This means that bitcoins are insured and stored offline, where they are not susceptible to hackers.