Buying or trading bitcoin has become one of the most popular and highly profitable investment methods. The value of Bitcoin in relation to other currencies (usually USD) varies a lot from minute to minute, which makes it very interesting in terms of binary options. Buying real money or using CFDs for a longer period should also be considered a very interesting option.
Some brokers accept bitcoin and other cryptocurrencies as a deposit method. Merchants can fund their accounts and pay with Bitcoin or Ethereum etc. to learn more
Best Bitcoin Brokers in Vietnam
Platform
Bitcoin is a worldwide phenomenon and interest in binary options is growing. Digital currencies are great for binary trading on all maturity dates with volatile exchange rates. The popularity and fame of the money is also a prime target of potential scams etc, so only trade with trusted brokers such as those registered in binary options.
To start trading bitcoin binary options, you need to at least understand what those options are. Basically, bitcoin is a digitally created unit of currency that can be used anywhere bitcoin is allowed. They should be a free and easy system for international trade that doesn’t depend on central banks or charge exorbitant fees. Coins are based on very complex cryptographic algorithms that create value in a process called Mining. A miner, usually a tech-savvy computer operator, runs programs to generate coins, which strictly limits the number and speed of mined coins so that they do not lost value. Mining allows you to sell, trade or trade.
A few years ago there were very few brokers that offered Bitcoin as a trading asset. Now the opposite is true. Some brokers now offer trading for lesser known cryptocurrencies like Bitcoin and Ethereum or LiteCoin. Therefore, traders have many options regarding finding a broker that offers cryptocurrency trading. If you are not currently offered by a broker, consider migrating.
Bitcoin wallet
Buying and selling bitcoin requires a ‘crypto wallet’ (rather than simply guessing the price). Security and transparency issues – this wallet holds virtual currency, so it is completely dependent. We recommend a service called Hodly, which provides important financial support to establish a high level of security and ensure robustness.
How to trade Bitcoin
Some innovative brokers have discovered new opportunities with bitcoin and binary options have devised ways to trade binary options and bitcoin against each other. There are basically two ways to trade bitcoin binary options. The first way is to use Bitcoin as a medium of exchange. The second way is to use Bitcoin as the underlying asset.
Bitcoin as a medium of exchange
If you use Bitcoin as an exchange, traders will trade Bitcoin and the various underlying assets of the financial markets. For example, they can trade EUR/USD currency pairs and claim to increase or decrease on binary options expiration. Therefore, if the transaction is successful, you will be paid in bitcoin instead of fiat currencies like US dollars or Euros.
You may be wondering why someone would always want to accept Bitcoin when they are paid in US dollars like before. The first advantage of bitcoin transactions is the lowest transaction costs among all types of online payments. This is why Bitcoin was first created to reduce the cost of online transactions. There is no central authority to govern Bitcoin, so no service fees are paid when you receive or transfer payments.
Bitcoin trading
Another major reason for traders to use bitcoin in binary options trading is to get more bitcoins. Bitcoin itself is traded and its value in US dollars depends on demand. All trading transactions are displayed in Bitcoin which will allow traders to protect themselves from the volatility of this cryptocurrency, while also making more profit from trading profits.
However, this form of trading is limited to binary brokers who will accept Bitcoin as a medium of exchange. In other words, binary options brokers that fall into this category are restricted.
Bitcoin is an underlying asset
Another way to trade bitcoin with binary options is to treat bitcoin as an underlying asset. As mentioned earlier, bitcoin itself is traded on a special bitcoin exchange. The exchange rate relative to the US dollar rises and falls according to demand.
During the Cyprus banking crisis of 2013, for example, a loss of confidence in the euro led investors to convert their safe-haven assets from euros to bitcoin. This rapid increase in demand for bitcoin has helped increase its value to par with the price of gold. Due to this volatility, some binary brokers have started to introduce binary options contracts related to the value of Bitcoin. In other words, Bitcoin is traded like the underlying asset listed on most binary broker platforms.
Deposit and trade in crypto
Some brokers now accept Bitcoin as an account funding method. This allows traders to deposit, trade and pay with Bitcoin. The main broker offering this service is BinaryCent. They accept 15 cryptocurrencies as a deposit method, including Bitcoin, Ethereum, and DASH.