Buying or trading bitcoins has quickly become one of the most popular and potentially profitable investment methods. The value of bitcoin in relation to other currencies (usually USD) varies almost from minute to minute, making it very interesting from binary options options. Buying real currency or using CFDs on longer time frames should also be considered a very attractive option.
There are now also brokers that accept bitcoin, and other cryptocurrencies, as a deposit method. So traders can fund their account, and get paid, in Bitcoin or Ethereum etc. Learn More
Top Bitcoin Broker in Malaysia
BTC / USD chart
Bitcoins are a worldwide phenomenon and there is a growing interest in binary options. Digital currencies have volatile foreign exchange rates making them perfect for all-expiration binary trading. The popularity, and notoriety, of the currency also makes it a prime target for potential scams and the like, so be careful and only trade with trusted brokers like the ones we list here at binaryoptions.net.
To start trading Bitcoin binary options you should have at least a small understanding of what they are. Basically, Bitcoins are digitally created units of currency that can be spent anywhere Bitcoins are accepted. They are meant to be a free and easy system for international trade that does not depend on central banks or impose exorbitant fees. Coins are based on highly complex cryptographic algorithms that generate value in a process called “mining”. Miners, usually tech-savvy computer operators, create coins by running the program, which strictly limits the number and rate at which coins are “mined” to ensure they don’t depreciate in value. Since coins are mined,
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 even some lesser-known cryptocurrencies such as Ethereum or LiteCoin. Therefore traders now have a variety of options when it comes to finding a broker that offers cryptocurrency trading. If your current broker doesn’t offer it, consider moving.
Wallet Wallet Bitcoin
To buy and sell bitcoins (not just to speculate on the price), you need a cryptocurrency wallet. This is where security and transparency are important – these wallets hold your virtual currency, so you really depend on them. We recommend a service called Hodly, which sets a high level of security and has major financial backing to ensure brand strength
How Bitcoin Trading Works
Sensing new opportunities with Bitcoin and binary options, some innovative brokers have come up with ways to trade binary options and Bitcoin together. There are basically 2 ways to trade Bitcoin binary options. The first method is to use Bitcoin as an Exchange medium. The second method is to use Bitcoin as the underlying asset.
Bitcoin as a Medium of Exchange
When using Bitcoin as a medium of exchange, traders will trade various underlying assets in the financial markets with Bitcoin. For example, they might trade the EUR/USD currency pair and call the rise or fall of a binary option. So, if their trade is successful, they will be paid in Bitcoins rather than fiat currencies like US dollars or Euros.
You may be wondering why anyone would want to accept Bitcoin when paid in US dollars as usual before. The first benefit of transacting in Bitcoin is the fact that transaction costs are the lowest among all forms of online payment. This is the reason why Bitcoin was created in the first place, to reduce the cost of online transactions. Since there is no central authority managing Bitcoin, no service fees are paid when receiving or sending payments.
Bitcoin trading
Another main reason traders use Bitcoin in Binary options trading is to earn extra Bitcoin. Bitcoin itself is traded and its value to the US dollar varies according to the demand for it. By having all trading transactions denominated in Bitcoin, a trader can protect himself from the volatility of this cryptocurrency while at the same time making more profit through the profits made in trading.
However, it should be noted that this form of trading is however limited 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 that fall into this category.
Bitcoin as an Underlying Asset
Another method of trading Bitcoin with binary options is to treat Bitcoin as an underlying asset. As mentioned earlier, Bitcoin itself is traded on a dedicated Bitcoin Exchange. The exchange rate in relation to the US dollar rises and falls according to the demand for it.
For example, during the Cyprus banking crisis in 2013, the loss of confidence in the Euro caused investors to switch their security from the Euro to Bitcoin. The sudden surge in demand for Bitcoin helped raise its value to nearly equal the price of gold. Because of this upheaval, some binary brokers started introducing binary options contracts tied to the value of Bitcoin. In other words, Bitcoin is traded just like any underlying asset we find listed on most binary broker platforms.
Deposit And Trade Using Cryptocurrency
Some brokers will now accept bitcoin as an account funding method. This allows merchants to deposit, trade with, and get paid in Bitcoin. A leading broker that offers such services is BinaryCent. They will accept 15 different cryptocurrencies as a deposit method, including Bitcoin, Ethereum and DASH.