Cryptocurrency Trading and Binary Options

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Best Binary Options Broker 2020!
    Good Choice for Beginners!
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  • Binomo
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Bitcoin Trading and Brokers

Buying or trading bitcoins has quickly become one of the most popular and potentially profitable investing methods. The value of bitcoin in relation to other currencies (typically USD) varies wildly almost from minute to minute, making it very interesting from a binary options point-of-view. Buying actual currency or using CFDs on longer time spans should also be considered highly interesting options.

There are now also brokers that accept bitcoin, and other cryptocurrencies, as deposit methods. So traders can fund their account, and be paid out, in Bitcoin or Ethereum etc. Find Out More

Top Bitcoin Brokers

BinaryCent $100 85% 100% Bonus on ANY 1st Deposit » Visit

BTC/USD Chart

Basics

Bitcoins are a worldwide phenomena and a growing interest in binary options. The digital currency has a wickedly volatile exchange rate making it perfect for binary trading of all expiries. The popularity, and notoriety, of the currency also makes it a prime target of potential scams and the like, so be aware and only trade with trusted brokers such as the ones we list here on binaryoptions.net.

To begin trading Bitcoin binary options you should have at least a marginal understanding of what they are. Basically, Bitcoins are digitally created currency units that can be spent anywhere Bitcoins are accepted. They are meant to be a free and easy system for international trade that is not reliant on central banks or charges outrageous fees. The coins are based on a very complex cryptographic algorithm that produces value in a process referred to as “mining”. Miners, usually tech savvy computer operators, create the coins by running the program, which strictly limits the number and pace of coins that are “mined” ensuring they are not devalued. As coins are mined they become available for sale, trade or exchange. Bitcoins are now used to exchange currencies around the world and for international trade but have yet to be embraced by the world powers.

A few years ago, the number of brokers offering Bitcoin as an asset to trade was very low. Now, the opposite is true. Several brokers now offer trading on Bitcoin and also some of the lesser-known crypto currencies such as Ethereum or LiteCoin. So traders now have a range of choices when it comes to finding a broker that offers cryptocurrency trading. If your current broker does not offer it, consider moving.

Bitcoin Wallet

To buy and sell bitcoin (rather than simply speculate on the price), you need a cryptocurrency ‘wallet’. This is where security and transparency are crucial – these wallets hold your virtual currency, so you are absolutely reliant on them. We recommend a service called Hodly, which sets high levels of security and has the backing of major finances to ensure their robustness:

How Bitcoin Trading Works

Sensing a new opportunity with Bitcoin and binary options, some innovative brokers have come up with ways to trade binary options and Bitcoin together. There are essentially 2 ways to trade Bitcoin binary options. The first method is by using Bitcoin as a medium of Exchange. The second method is by using Bitcoin as an underlying asset.

Bitcoin as a Medium of Exchange

When it comes to using Bitcoin as a medium of exchange, traders will be trading the various underlying assets in financial markets with Bitcoin. For example, they may be trading the EUR/USD currency pair and call upon a rise or fall upon the expiry of the binary option. So if their trade is successful, they will be paid in Bitcoin instead of fiat currencies like the U.S dollar or Euro.

You might be wondering why anyone would just want to accept Bitcoin when getting paid in U.S dollar as always been fine before. The first benefit of transacting in Bitcoin is the fact that the cost of transaction is the lowest among all forms of online payment. This is the very reason why Bitcoin was created in the first place, to lower the cost of online transaction. Since there is no central authority managing Bitcoin, no service fee is paid when receiving or transmitting payment.

Bitcoin Trading

Another key reason for traders to use Bitcoin in Binary options trading is to earn extra Bitcoin. Bitcoin by itself is traded and its value to the U.S dollar varies according to the demand for it. By having all the trading transactions denoted in Bitcoin, a trader is able to shield himself from the fluctuation of this crypto currency while at the same time earn more of it through profits earned in trading.

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Best Binary Options Broker 2020!
    Good Choice for Beginners!
    Free Trading Education, Free Demo Account!
    Get a Sign-Up Bonus Now!

  • Binomo
    Binomo

    2nd in our ranking!

Nevertheless, it should be noted that this form of trading is however confined to binary brokers who will accept Bitcoin as a medium of exchange. In other words, there are only a limited number of binary options brokers which fall into this category.

Bitcoin as an Underlying Asset

Another method of trading Bitcoin with binary options is to regard Bitcoin as an underlying asset. As mentioned earlier, Bitcoin itself is traded on specialized Bitcoin Exchanges. Its exchange rate in relation to the U.S dollar rises and falls in accordance to the demand for it.

For example, during the Cyprus banking crisis in 2020, loss of confidence in Euro led to investors switching their safe haven of wealth from the Euro to Bitcoin. This sudden surge in demand for Bitcoin helped to push its value up to almost on par with the value of gold prices. Because of this volatility, some binary brokers began introducing binary options contracts which tied to the value of Bitcoin. In other words, Bitcoin is traded just like any underlying assets that we find listed on most binary brokers’ platforms.

Deposit And Trade Using Cryptocurrency

Some brokers will now accept bitcoin as an account funding method. This allows traders to deposit, trade with, and be paid out in Bitcoin. The leading broker offering such a service is BinaryCent. They will accept 15 different cryptocurrencies as deposit methods, including Bitcoin, Ethereum and DASH.

Binary Options Trading: How are Crypto Traders & Exchanges reaping profits?

Cryptocurrencies are the term that has imprinted in every single industry. Be it Banking, Finance, Agriculture or any other, cryptos are becoming the most popular modes of payment in the world.

With this rise, the trading platforms are also becoming increasingly prevalent to assist the traders. There have been a huge set of features in White label services such as IEO Module, Security Token listing, Margin Trading, Liquidity API, Atomic Swaps, etc.

Yet another futuristic feature in the current Bitcoin exchanges is the Binary trading platform. This guide provides you with a clear perception of Binary Trading Options in the exchanges.

Binary Trading Options: What are they?

Binary Trading Options is a form of trading in which you predict if the price of Bitcoin will rise or fall in a certain amount of time. If your prediction is right, you will get a high amount of payoff. If in case you are incorrect, you will lose your investment.

Each option will have an expiry date within which you need to decide. If your prediction comes right, you can find “In the money”. Else, you will find “Out of the money”. It also has a specific payoff when you win.

Since the trader needs to choose between these two options, it is rightly termed as “Binary Options Trading”. This feature is more common in Cryptocurrency exchanges.

An Example of Binary Trading Options:

For instance, let us consider the price of Bitcoin to be $6500 at 10 AM. To perform this, you predict the price to be higher on January 6, 2020, at 5 PM. Hence, you make a “Call” option. If in case the Bitcoin price is higher than $6500 at 4 PM, you will receive a payout of around 73% of the investment. Else, you will lose.

In the same way, if you predict the price to go down, you can opt for a “Put” option. Similarly, if the price gets lower at 4 PM, you will earn Payout for your investment.

I’m a newbie. How can I make use of Binary Trading Options?

Most of the newbies have started using Binary Trading Options. However, it has both Advantages and Disadvantages:

The Binary Trading Options allows the traders to bid the price of cryptocurrencies that lack huge capital. You don’t need an extended and well-researched knowledge about the price and the domain. A little awareness can help you with perfect prediction. The payout can reach up to 88% of ROI.

On the flip side, the invested amount can also be lost if the prediction goes wrong. It has been said that a trader needs to win at least around 50% to gain payout. Since there is volatility associated with Cryptocurrencies.

Moreover, Binary Trading Options are becoming addictive with industries like Gambling. Regardless of how knowledgeable you are, it is impossible to predict the price within a short time frame.

Popular crypto exchanges like Nadex have already introduced Binary trading options on their platform.

Growth of Binary Trading Options:

This feature has become open to the traders right after the SEC approval in the year 2008. Earlier, only banks, institutional investors or high worthy individuals were making use of this. Following the SEC was the American Stock Exchange and CBOE offered Binary option feature for their traders.

Once the traditional markets have started accepting them, cryptocurrency exchanges too adopted them. Slowly and steadily the frequency of Binary Options Trading and the improvement in the Bitcoin Exchange Script that now allows online and mobile app trading.

How to do Binary Trading Options work?

Binary Options Trading exchanges are no longer used for trading of digital assets or virtual currencies. But are profited based on forecast and predictions in the crypto market.

The major task for the traders is to close the trading during a specified amount of time. If the prediction gets right, the trader can get up to 90% of the returns. If the prediction goes wrong, the complete investment is lost.

With what kind of trading speed, the trader can regulate themselves on a certain duration for the Binary Options Trading. However, it can fluctuate in the range of 60 seconds to 2 hours. The algorithm framed for this feature does the following. The difference between the profit and loss when trading the binary option comes with an average of 15%.

These strategies vary with most of the formats and approaches. The majority of them are structured based on legal & economic regulations of the country. But this strategy is not applicable for inexperienced traders since a well-knowledged individual is needed here.

The solution to getting out of the problem is indicator strategies. This means that analyze the market and deliver predictions applicable to automatic market indicator recognition programs.

The trading statistics for this strategy have proven great success results of around 80–90%. This means that even a small loss won’t affect the participant’s final results.

With this, the trading systems can produce higher results. But with specific knowledge of the trading process and a basic understanding of how they work. Thus, it is important to grasp the intricacies of Binary Options trading before getting started.

Once you have gained a complete perception of them, you can expand your profits, stable results and effective trading options. As a trader, you should have both practical and theoretical skills.

Why Binary Options Trading can be beneficial as a trader?

This best-in-class feature is a straightforward and innovative approach for the traders who wish to engage with various asset markets with risk prevalence and reward before trading. They can be used for speculations but with hedge risks involved in it.

American options are more ideal since they allow traders to exit their position before the expiration of the contract. On the other hand, some of the binary outlets across the globe haven’t still regulated them.

In addition to this, Binary options also allow investors to access to all types of cryptocurrencies and digital assets. Most of the traders have started to begin their trading career with Binary Options Trading.

You can also expect returns even when you lose. To help reduce the risk and make binary options trading more appealing, many brokers offer a small return on money invested in a losing bet. You won’t be losing 100% of investment instead you will receive at least 5–10% of payouts.

But the thing is you need to choose the top-notch Binary Options Trading broker. These brokers accept the deposit of cryptos gives a yield for trading. You can deposit and trade a huge range of crypto assets.

Here are some of the advantages of the Binary Options Trading brokers:

  • Regulated and licensed companies
  • Fully tested and honest reviews
  • Trade a wide range of cryptos and assets
  • Multi-Lingual
  • Easy to deposit and withdrawal cryptocurrencies

Know the Downsides as well:

Regulation of Binary outlets isn’t regulated especially with the United States. This featured-exchange has been banned in Israel and the European Union for retail traders and has extended the ban.

Though the regulations are tightened, these Binary Options Trading are still risky. Since it involves security and digital assets, they can be highly volatile.

If in case there are regulated exchange brokers, you need to go with the reputed and well-versed in Cryptocurrency exchange development.

Building a Binary Options Trading Platform:

On the other hand, there is a huge set of entrepreneurs who are interested in starting a Binary Options Trading Platform. As this feature has become the most popular one among the traders, creating such a thing can be a huge benefit.

You can initially adopt White label services, in this case, to instantly develop one. Else developing from scratch can also be profitable but will require a great set of time. Decide between the two and choose the one which will perfectly suit you!

Coming to the cost, it will be reasonable. Since you aren’t going to embed plenty of features here, the pricing will be affordable. The only thing you need to do is to choose a best-in-class Cryptocurrency Exchange Development company for this.

You can check for their expertise, a similar set of products developed, the team involved, the brands they have worked with, etc. Recently one of the popular startup called BitSwing has launched a completely decentralized Binary Options Trading on Ethereum.

It is expected that most of the giants would start making their own Binary Options Trading platform to bring in a huge set of benefits. Green signals are over this feature and can be expected in the future. If you are an entrepreneur, you launching a Binary options trading platform can be profitable.

As a trader, trading with Binary options will consist of both advantages and disadvantages. Anyhow, unlike most of the investment machines, it renders returns more than 70%. You can purely focus on the market and its working to perform them effectively! As a proprietor of the exchange platform, you will get profits for every transaction happening on the platform. I hope I have explained to you the basics of Binary Options Trading.

Binary vs Crypto – The Pros And Cons

Binary options and cryptocurrencies are popular choices when it comes to financial trading, both offering their unique features which hold different attractions to traders. While binary options are the more established of the two, it is fair to say that cryptocurrency trading has grown in popularity over more recent years.

It is important to recognise that when you trade in either, you are not owning the underlying asset but just trading on its price. This form of trading means that you never actually own the stock, you predict whether it will go up or down or reach a certain amount in a given time. Each come with their own set of benefits and of course, their pitfalls.

To ascertain the pros and cons of both of these trading methods and which suits you the best, we have put together this guide so that you can make an informed decision as to which suits you better and what you should be considering when choosing between binary options and crypto.

In this guide, you will learn:

    Any costs involved in each trading type Key differences and what will suit you The pros of cons of binary vs crypto trades

Take your next step:

Trading Payouts And Losses

When considering whether to trade binary options or crypto, it is essential to understand the trade payouts and losses you can encounter. Which is going to make you the most money and with one which will you have the most success? While a good winning streak of short term options can produce good profits, a swing in an ever-fluctuating world of crypto can be even more profitable.

The opposite can be said of either though if the prices go against your trading. With binary options, you can expect anywhere between 60% and 90% returns depending on the broker that you choose. Then there are small transaction fees to consider. Any commission owed will be taken before you are paid out. With crypto, the payouts aren’t entirely as predictable and can vary depending on some factors.

You should have respect for the volatility of the markets as when they fluctuate they can do so dramatically in a short space of time. It is also crucial to weigh up how much your transaction fees will affect your profits and your losses.

Buying crypto can prove quite expensive especially given that bitcoin reached $20,000 for one coin at its peak.

The Costs of Each Method

With cryptocurrency, you are speculating on the cost of the asset without actually owning it. Buying crypto can prove quite expensive especially given that bitcoin reached $20,000 for one coin at its peak, but trading in it is far less costly. There are however many fees to consider. To begin with, converting money into a Coinbase account carries a cost.

You can expect to pay $35 just as a transaction fee for entering the exchange. When you weigh up the cost of entry and exit, that’s a cost of $70. A $100 trade, therefore, is going to cost you a lot. The same value in options doesn’t carry the same level of fees. Binary options are subject to far lower transaction fees.

If you choose a broker that offers trading in your base currency, then this is a fee you can avoid. With Crypto the spreads can mount up, and the more popular digital currencies can be costly to trade in. On a positive though, the only thing that affects the price is supply and demand. As a decentralised currency, no government or authority has control, and it is purely a global asset.

Which Trading Type Suits You

Binary options could be viewed as more popular than crypto because it is undoubtedly more established. Perhaps it is easier to understand and with more knowledge and experience available out there to help you learn how to improve your trading. Cryptocurrencies are more of an unknown quantity given that they are a relatively new concept. Variety with binary options may be considered to make it more appealing.

With assets like commodities, stocks, indices and currency pairs, you can trade on lots of different assets and build up quite a healthy portfolio. In addition to the variety of assets, there are also some diverse trade types – high/low, touch/no touch, ladder options, pairs and more. With short expiry times, you can make lots of trades in a short space of time.

With crypto, while there are a few different digital assets, it isn’t quite as varied as binary. Trading depends on the sort of experience you are after. If you like the variety, then you may prefer binary; however, some people prefer the volatility of crypto and the fact that the fluctuating intraday prices can produce some healthy profits.

It’s also not subject to the same influences as binary options – there are no external factors to consider, the currency is decentralised, and you aren’t at the mercy of governments and authorities.

The Final Pros And Cons

Cryptocurrency is available globally and is a decentralised currency meaning that it has one value everywhere. There are no currency conversions or the like to be concerned about, and its traded around the clock. While this can be a good thing, the downside of this is that you can’t be active while asleep and may miss out on some great opportunities.

With binary options, at least you know when you can trade. The crypto market is very volatile and subject to fluctuating rates which can swing quite a lot in a day. Higher predictability gives the savvy trader plenty of opportunities to make a large profit or equally to lose a lot. Not all brokers will offer every type of asset in either binary or crypto. In fact, with some, you will have a much greater choice than with others.

Many brokers that offer binary, CFDs, Forex and crypto trading may provide more of one type than the other depending on when they established and what they prefer. Some will dabble in crypto and specialise in binary options.

Robert has consulted for our website for five years and is a well-established member of the team. While he is passionate about the site, most of Robert’s time is focused on his current position as CEO of a professional coaching company.

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Best Binary Options Broker 2020!
    Good Choice for Beginners!
    Free Trading Education, Free Demo Account!
    Get a Sign-Up Bonus Now!

  • Binomo
    Binomo

    2nd in our ranking!

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