Why Bitcoin might be the best asset for binary trading See here!

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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.

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    1st Place! Best Binary Broker 2020!
    Best Choice for Beginners — Free Education + Free Demo Acc!
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  • Binomo
    Binomo

    2nd place! Good choice!

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.

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.

How to Invest with Binary Options

Where to invest your bitcoin is not an easy choice to make. I have made a lot of investments with my bitcoin; some went quite good while others went very bad. In fact, when you are making an investment you must be absolutely aware that you might lose it most of it.

Throughout the years, I have been in bitcoin – I have invested in mining, trading, betting, Altcoins, and even in Ponzi schemes. Needless to say, the last option made me win some good profits but also made me lose a lot more.

Lately, I have been putting my coins in Binary Options. I already knew about Binary Options but didn’t know I could use my Bitcoin to invest with it. Binary Options trading is a very simple and easy way of investing and having some real returns, and once I found out about it I started to invest and up until now have been making some profits. Of course that you need to consider that investing in Binary Options can be as risky as any other High Risk\High Reward investment and for it to be profitable you will need to use a functional strategy. In this article, I’ll try to give an insight into it, while presenting a demonstration on how to invest in binary options and get some real returns.

What Are Binary Options?

Choosing an asset is the first step of your investment. The more familiar you’re with the chosen market, the better your chances of successfully predicting the fluctuations of the asset prices are. For instance, if you have an interest in USD\EUR prices, you may choose to open an investment position with this currency pair.

Binary options are making estimates of an underlying asset performance during a particular time frame. In most forms of investment, the investor purchases the asset they invest in, and the value of the profit and loss is determined upon the changing value of the asset. If the investor sells the asset back to the market whenever its value increases, then they’re making a profit, and if they sell the asset back to the market when its value decreases, then at least a part of their money is lost.

In options, the investor trades futures on the market, predicting the asset’s movement for a predetermined time frame.

The one investment possibility is when you predict that the price of the asset will rise, this type of investment is named “Call” option. The other possibility is presented when you predict that the price of the asset will fall, this kind of investment is called “Put” option.

Assets traded in Binary Options

  • Indices – Such as FTSE, Nasdaq, Dow Jones, Nikkei, etc.
  • Forex – Trading pairs for all the major currencies such as USD, EUR, GBP, JPY, etc.
  • Commodities – Gold, Silver, Oil, Corn, Coffee and many more.
  • Stocks – Stocks and shares of the biggest companies in the world from a variety of industries. Some examples are Google, Deutsche Bank, Coca-Cola and several others.

Trading Binary Options

First you will need to choose your Binary Options Broker. To do that you need to perform your search and figure out what are the most trustable and benefiting Binary Options Platforms in the Market.

As for me, my choice was Bitplutos. But why did I choose Bitplutos? Because it was part of my strategy since Bitplutos offers a 100% bonus for new depositors plus no risk trading. Besides, allowing users to use an anonymous account, Bitplutos also had some other features that could help me stay on track such as: doubling your winnings with “Double-Up” options which can be used when predictions are correct; the selling option which allows traders to sell their position at any time with the “Sell” button (very useful feature to minimize losses); prolonging an opened position to another expiry time with the “Roll-over” feature.

You can open an account and start practicing binary options trading right away with the Bitplutos demo platform with no risks involved (however, you need to become an investor first). Bitplutos platform guarantees full or partial anonymity (it’s completely up to you), fixed returns on your investments, great risk management tools, 24/7 professional support that will teach you how to invest successfully, and much more.

The Bitplutos Education Center also provides novice and experienced traders a valuable resource for learning and improving binary options trading techniques and strategies. Every registered user at BitPlutos has access to high-quality educational material at his fingertips, so don’t forget about that.

Trading strategy

You begin by choosing an asset you wish to invest in, let’s say that you are interested in the Bitcoin/Euro market. If you believe the price is going to go up in the next 15 minutes, you simply decide how much you want to invest the time frames (in this case 15 minutes) and select “Call”. Binary options are a win\lose investment so you will always have to remember that. It means you might get like 85% profit on your investment, but you can lose most of it as well if you don’t manage your risk properly.

First you need to choose an amount to invest. I recommend you never to use more than 10% of your total stack. This is a basic rule for what is called “bank management”. I started with about 2.5% of my whole capital, which was 0.05 BTC. After doing some research and analysis, I chose the asset I’ll be investing in will be the Bitcoin/Euro currency pair.

The strategy I have used is quite simple. All you need to do is to have an estimation as to where the market is inevitably heading; you can do that by analyzing the charts in longer timeframes to evaluate whether the market is heading up or down. After opening a Call or Put position accordingly, you will have to wait for it to expire. If you lose the position, you will need to open the same position with the double amount (0.1 BTC). If you are still in a loss after the second round, you will need to keep opening the same position and doubling the amount until you have your win. Once you have your win, you start all over again from the lowest investment value. Once you reach the demanded amount, you will be able to withdraw your investment and continue to invest with your profit. And remember! You can always Sell your option before expiry to save some losses!

To get started, you will need to register at bitplutos.com. Within the registration process, you will have the choice to select either if you want to stay completely anonymous or partially anonymous. After that, you need to make a deposit via your Bitcoin wallet, a Wire Transfer, Skrill or Neteller and then ask for the first deposit bonus to be credited. Once this is done, and you have your Bonus credited you can start to use my strategy.

I hope this has covered at least some of the important information needed to start trading binary options and will be useful for some. As said before, this is a very simple and easy strategy but it should bring you some good profit if used correctly. Furthermore, my advice is never to invest more than you can afford to lose. If you stick to the rules, you will do fine.

Disclaimer: This is an advertorial, there is a high degree of risk involved investing in binary options. Please seek professional advice prior to acting on any analysis, articles, or information provided. Publications should not be construed as investment advice, and are for educational purposes only.

Would you try binary options? Let us know in the comment below!

A Guide to Trading Binary Options in the U.S.

Binary options are financial options that come with one of two payoff options: a fixed amount or nothing at all. That’s why they’re called binary options—because there is no other settlement possible. The premise behind a binary option is a simple yes or no proposition: Will an underlying asset be above a certain price at a certain time?

Traders place trades based on whether they believe the answer is yes or no, making it one of the simplest financial assets to trade. This simplicity has resulted in broad appeal among traders and newcomers to the financial markets. As simple as it may seem, traders should fully understand how binary options work, what markets and time frames they can trade with binary options, advantages, and disadvantages of these products, and which companies are legally authorized to provide binary options to U.S. residents.

Binary options traded outside the U.S. are typically structured differently than binaries available on U.S. exchanges. When considering speculating or hedging, binary options are an alternative—but only if the trader fully understands the two potential outcomes of these exotic options.

Now that you know some of the basics, read on to find out more about binary options, how they operate, and how you can trade them in the United States.

U.S. Binary Options Explained

Binary options provide a way to trade markets with capped risk and capped profit potential, based on a yes or no proposition.

Let’s take the following question as an example: Will the price of gold be above $1,250 at 1:30 p.m. today?

If you believe it will be, you buy the binary option. If you think gold will be below $1,250 at 1:30 p.m., then you sell this binary option. The price of a binary option is always between $0 and $100, and just like other financial markets, there is a bid and ask price.

The above binary may be trading at $42.50 (bid) and $44.50 (offer) at 1 p.m. If you buy the binary option right then, you will pay $44.50. If you decide to sell right then, you’ll sell at $42.50.

Let’s assume you decide to buy at $44.50. If at 1:30 p.m. the price of gold is above $1,250, your option expires and it becomes worth $100. You make a profit of $100—$44.50 = $55.50 (minus fees). This is called being in the money. But if the price of gold is below $1,250 at 1:30 p.m., the option expires at $0. Therefore you lose the $44.50 invested. This called out of the money.

The bid and offer fluctuate until the option expires. You can close your position at any time before expiry to lock in a profit or a reduce a loss, compared to letting it expire out of the money.

A Zero-Sum Game

Eventually, every option settles at $100 or $0—$100 if the binary option proposition is true and $0 if it turns out to be false. Thus, each binary option has a total value potential of $100, and it is a zero-sum game—what you make, someone else loses, and what you lose, someone else makes.

Each trader must put up the capital for their side of the trade. In the examples above, you purchased an option at $44.50, and someone sold you that option. Your maximum risk is $44.50 if the option settles at $0, and so the trade costs you $44.50. The person who sold to you has a maximum risk of $55.50 if the option settles at $100—$100 – $44.50 = $55.50.

A trader may purchase multiple contracts if desired. Here’s another example:

  • NASDAQ US Tech 100 index > $3,784 (11 a.m.).

The current bid and offer are $74.00 and $80.00, respectively. If you think the index will be above $3,784 at 11 a.m., you buy the binary option at $80, or place a bid at a lower price and hope someone sells to you at that price. If you think the index will be below $3,784 at that time, you sell at $74.00, or place an offer above that price and hope someone buys it from you.

You decide to sell at $74.00, believing the index is going to fall below $3,784 (called the strike price) by 11 a.m. And if you really like the trade, you can sell (or buy) multiple contracts.

Figure 1 shows a trade to sell five contracts (size) at $74.00. The Nadex platform automatically calculates your maximum loss and gain when you create an order, called a ticket.

Nadex Trade Ticket with Max Profit and Max Loss (Figure 1)

Top Bitcoin Binary Options

Get more out of your bitcoins now. If you want to take a break from Bitcoin gambling, try your hand at trading Bitcoin binary options. Binary options offer a new way you can boost your financial portfolio. It delivers a user-friendly method that can get everyone to start investing. But unlike stock trading, binary options trading couldn’t get any easier. If you want to start trading, make sure you do it with Bitcoin. Bitcoin binary options bring quick ways you can earn profits. It also combines the best features of Bitcoin with the easiest ways to gain returns. If you’re ready to trade binary options with Bitcoin, then choose from the list below. You can find the top Bitcoin binary options brokers here, but make sure to learn more about it.

You’ll never go wrong in Bitcoin binary options trading. This can be one of the fastest ways to make money online. The best part here is you’re in control of your future in this trade. You can even maximize your opportunities to earn and skip the hassle of trading stocks and forex. But before everything else, make sure you have all the essentials.

Know the basics of Bitcoin binary options trading

There are two key points you must understand. First, you can trade binary options using Bitcoin. Second, you can invest in Bitcoin through binary options.

The first one is the better of the two. This means that you can use your bitcoins to invest in contracts. You must simply predict if the asset price will be higher or lower than the strike price by the expiry time. If your prediction is correct, then you gain profits from your investment.

The second way to trade is to simply aim to gain profits from the Bitcoin price movement. This means that Bitcoin functions as one of the tradable assets, but you still use fiat currencies as investments. Bitcoin remains volatile, and this makes it one of the exciting assets to invest in.

Explore Bitcoin binary options brokers

You’ll find several online brokers that offer binary options trading. But not all these brokers will be perfect for either Bitcoin investments or Bitcoin as an asset. If you want to maximize both options, then you need to look for the best brokers online.

Binary options brokers that accept Bitcoin are perfect for this trade. These trading platforms promise easy deposits and quick cashouts. They also keep you anonymous but still give plenty of chances to profit. You can also expect these online brokers to be transparent and secure.

If you’re looking for great Bitcoin binary options brokers, check out BTClevels. You can also try trading binary options at Satoshi Option. These two brokers let you invest in binary options with Bitcoin so expect anonymous trading and quick payments.

Meanwhile, other brokers let you trade fiat money for Bitcoin price contracts. Here, you can use dollars or euros as investments. If you get in-the-money trades, you get your profits from Bitcoin price movements. But unlike with the previous online brokers, you won’t get the cashouts right away. Still, this is worth a try. Check out AnyOption to trade Bitcoin assets in binary options using fiat.

Secure profits from binary options trading

Make sure you have all you need before starting to trade. Using trading signals will help you decide which assets to invest in. Learn different binary options trading strategies too to increase chances of gaining profits. But most of all see to it that you understand how Bitcoin binary options trading works.

Get ready to make your first trade. Look for the best binary options brokers and start trading on or with Bitcoin.

Binary options

A option is a financial contract that gives the buyer the right to buy or sell an asset for a specified price (strike price) on or before a certain date (expiration date). A call option allows the holder to buy the underlying asset on or before the date. A put option allows the holder to sell the asset for that price on or before the due date. Options are valued according to the difference between the strike price and the current market price of the underlying asset.

Options are used widely in financial markets to hedge or speculate on the price of an underlying asset with a quantified risk. Complex financial instruments can be built using combinations of buying and selling call and put options with different strike prices and expiration dates.

A binary option is a simple type of option that is valued according to a true/false statement. For example if the price of the underlying asset is above a certain level the call (long) option will pay 100, if it is below it will pay 0. For a put option the reverse is true.

Binary options make for simple valuation and are therefore a good way for traders to avoid complicated valuation, which often work in favour of option issuers to the detriment of buyers.

Binary options have become a popular way to trade major financial markets online.

Binary Options and Bitcoin

With the popularity of Bitcoin and its acceptance as a currency binary options platforms began adding BTC as one of the currencies to trade. This has further helped the growth of binary platforms as well as mainstream recognition of Bitcoin as a currency. Most brokers only offer it as a currency pair versus the American Dollar.

Bitcoin Binary Option Smart Contracts

Bitcoin allows the creation of smart contracts for binary options. The contract itself holds the funds in escrow and on expiry date pays all the funds to the Bitcoin address that was on the correct side of the true/false statement.

This allows the complete elimination of counterparty risk. The solvency of the option issuer is irrelevant if the funds are already locked in the contract itself. It is irrelevant if the company or party that issued the option disappears, defaults or wants to change the terms of the contract. The elimination of counterparty risk allows long-term financial contracts in a trust-minimized way.

Smart contracts rely on an oracle to verify external conditions.

  • Alice and Bob each send 1 BTC to the contract 2-of-3 multisignature address which is controlled by private keys K1, K2, K3.
  • Alice holds K1
  • Bob holds K2
  • Oracle holds K3.
  • On expiry if condition is TRUE the oracle sends K3 to Alice. Alice withdraws 2 BTC.
  • On expiry if condition is FALSE oracle sends K3 to Bob. Bob withdraws 2 BTC.

The mechanism is very similar to an escrow contract but instead of a mediator holding the third key the oracle holds it and can resolve automatically based on simple true/false conditions. Ideally to prevent it from being compromised or targeted, the oracle would be a simple automated system unaware of the information that it was sending. It would only know to send an encrypted e-mail to Alice if true, to Bob if false.

The example above is can be tried using a multisignature wallet like GreenAddress and a simple oracle like Early Temple or Reality Keys.

Reality Keys details a slightly more complex way of doing this which allows funds to be sent to Alice or Bob depending on a conditional: Conditional payments using branching bitcoin transactions.

How To Trade

Trades are placed by predicting the direction an asset will move during the specified time frame. The time that option ends is called an expiry time. Expiry times range anywhere from 30 seconds until months away. At the end of the time if the direction you chose was correct, you win the trade. Winning trades pay out slightly less than 100% and typical payouts range between 80-85% depending on the broker.

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    1st Place! Best Binary Broker 2020!
    Best Choice for Beginners — Free Education + Free Demo Acc!
    Sign-up and Get Big Bonus:

  • Binomo
    Binomo

    2nd place! Good choice!

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