bitcoin trading and broker
Buying or trading bitcoin has quickly become one of the most popular and potentially profitable investment methods. The value of bitcoin in relation to other currencies (usually the USD) varies wildly from minute to minute, making it very interesting to watch from a binary options point of view. Buying real currency or using CFDs for long periods should also be considered as highly interesting options.
There are also brokers now that accept bitcoin, and other cryptocurrencies, as deposit methods. Hence merchants can fund their account, and can be paid in bitcoin or ethereum etc.
top bitcoin broker in india
| Broker | regulated | minimum deposit | Payment | Bonus | |||
|---|---|---|---|---|---|---|---|
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IQ Option |  |
$ 10 | 91% * | »go to | ||
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BDSwiss | $ 10 | N/A | »go to | |||
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24Option | $ 100 | »go to |
General risk warning: your capital is at risk
* Amount is credited to the account in case of successful investment
the basics
Bitcoin is a worldwide phenomenon and there is a growing interest in binary options. The digital currency has horribly volatile exchange rates which makes it perfect for all-expiry binary trading. The popularity, and notoriety, of the currency also make it a prime target for potential scams and the likes, so be aware and only trade with trusted brokers, such as the ones we list here at BinaryPoints.net.
To start trading bitcoin binary options you must have at least a marginal understanding of what they are. Basically, bitcoins are digitally created currency units that can be spent anywhere bitcoins are. They mean a free and easy system for international trade that doesn’t depend on central banks or charge 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 ordinary computer operators, create coins by running programs that strictly limit the number and speed of coins that are “mined”, ensuring they are not devalued. Has gone. As coins are minted they become available for sale, trade or exchange. Bitcoin is now used around the world and for international trade to exchange currencies but has not yet been embraced by world powers.
A few years ago, the number of brokers offering bitcoin as an asset to trade was very small. Now, the opposite is true. Many brokers now offer trading on bitcoin and also on some lesser-known cryptocurrencies such as ethereum or litecoin. Hence traders now have several options when it comes to finding a broker that offers cryptocurrency trading. If your current broker doesn’t offer it, consider moving on.
bitcoin wallet
In order to buy and sell bitcoin (rather than just speculating on the price), you need a cryptocurrency ‘wallet’. This is where security and transparency are important – these wallets hold your virtual currency, so you are completely dependent on them. We recommend a service called Holly, which sets a high level of security and supports key finances to ensure their soundness:
how does bitcoin trading work
Seeing 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 to use 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 trade various underlying assets in the financial markets with bitcoin. For example, they can trade the EUR/USD currency pair and place a call on the rise or fall on the expiry of the binary option. So if their trade is successful, they will be paid in bitcoin instead of fiat currencies like the US dollar or euro.
You might be wondering why anyone would want to accept bitcoin after paying in US dollars, as it once did. The first advantage of transacting in bitcoin is that it has the lowest transaction costs of all forms of online payment. This is 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 charged when receiving or transmitting payments.
bitcoin trading
Another important reason for traders to use bitcoin in binary options trading is to earn additional bitcoin. Bitcoin trades on its own and its value to the US dollar varies according to the demand for it. By having all trading transactions denominated in bitcoin, a trader is able to shield themselves from the ups and downs of this crypto currency, while at the same time earning more of it through profits earned in trading.
Nevertheless, it should be noted that this form of trading is limited to binary brokers that will accept bitcoin as a medium of exchange. In other words, there are a limited number of binary options brokers that fall into this category.
Bitcoin as an underlying asset
Another way to trade bitcoin with binary options is to treat bitcoin as an underlying asset. As mentioned earlier, bitcoins are traded on specialized bitcoin exchanges. Its exchange rate with respect to the US dollar rises and falls according to the demand for it.
For example, during the Cyprus banking crisis in 2013, a loss of confidence in the euro led investors to switch their safe havens from the euro to bitcoin. The sudden surge in demand for bitcoin helped bring its value almost on par with gold prices. Because of this volatility, some binary brokers began to offer binary options contracts, tied to the value of bitcoin. In other words, bitcoin is traded just like any underlying asset that we list on the platforms of most binary brokers.
Deposit and trade using cryptocurrency
Some brokers will now accept bitcoin as an account funding method. It allows merchants to deposit, trade and get paid in bitcoin. The leading broker offering this type of service is BinaryPoint. They will accept 15 different cryptocurrencies as deposit methods including Bitcoin, Ethereum, and DASH.
