Bitcoin is not a nascent technology anymore. It has grown into this monstrous phenomenon that is taking the world by storm. Its decentralised nature, which practically eliminates the need to have a middlemen for conducting a finance transaction, has earned him brownie points in remittance sector. As an asset class, Bitcoin value has shown tremendous growth — it level with $1 back in 2011, and is now valued around $1400. While as a method of payment, the number of merchants that accept Bitcoin has grown two-fold in the last two years.
The constant growth of Bitcoin has also influenced other sectors to adapt it into their existing business models. For instance, Bitcoin – as a currency – is now used as collateral to trade international stocks, indices and fiat currencies by WhaleClub, First Global Credit, etc.. In fact, many brokers out there actively accept Bitcoin to trade binary options.
The reason for the availability of parallel investment services for Bitcoin holders is volatility. Volatility is the shadow of Bitcoin prices. On an average day, Bitcoin price for each unit is expected to fluctuate between 10-15 dollars in either direction. Compared to other asset classes, such volatility is high and risky.
The Bitcoin users therefore take good care of their holdings by either investing them into other, stable assets or by simply making bets on the outcomes of Bitcoin price. For the latter reason, many users now use binary options to improve their investments in Bitcoins as much as possible.
What are Binary Options-based Bitcoin Brokers?
Binary options are a type of option in which investors can get a fixed amount during a certain window of time, or get nothing at all. Binary options allow traders to predict the volatility of assets, depending on the price increase or decrease at any given time. If the prediction of the binary option is correct, then the traders will receive their profits. Otherwise, if the prediction of the binary option is incorrect, then investors will lose their investment. Another form of this practice are the predictions of the Bitcoin market – which are not limited to stocks or currencies, you can virtually predict anything you want.
Binary options basically means that you can either buy an option when prices go up or when prices go down over a given time. Binary options trades involve “all or nothing” bets.
Investors have the choice of potentially maximizing their investments if they choose the right options. If their predictions are incorrect then they lose everything they have bet. This is why binary options are also called “all-or-nothing” options, digital options or fixed-return options.
Bitcoiners can now choose among a range of Bitcoins brokers that facilitating binary option trading activities. Since the Bitcoin is gaining popularity now, many brokers have already added the crypto-currency to their assets.
However, before you start trading for Bitcoins, you first need to know the different types of brokers that can help you manage a whole lot of technical tricks about binary options and Bitcoins. Combining binary options and Bitcoins will give you a headache but with the right binary options broker, things should be much simpler to understand and follow. Note that not all binary options brokers do not trade with Bitcoins, so it is important to determine which ones accept the crypto-currency.
There are two types of binary options brokers with Bitcoin: 1) Those who use Bitcoins as the only means of exchange; and 2) those who use Bitcoins as their underlying asset. Binary Option Brokers with Type 1 Bitcoins are the brokers that trades specifically for Bitcoins. If you have Bitcoins, you will want to trade using Type 1 brokers, in addition you will be able to preserve your privacy.
Can You Trust Bitcoin Brokers?
Reliable Binary options brokers are not easy to find. There are many so-called binary options brokers on the internet but most of them are actually scams. This is why it is important to analyze the binary options brokers before beginning to trade with them.
There are precautionary measures that investors can make to ensure they make a transaction with a reliable binary options broker. Above all, do not trade with a broker who operates from a country that does not have a strict regulatory system. Make sure that the broker with whom you engage operates within jurisdictions of a country that recognizes binary options as a form of trading.
The general rule is that if the binary options broker has received a lot of criticism, then it probably is not a good broker to be associated with. Consider our reviews at LiveBitcoinNews.com as a guide to find the best Bitcoin brokers on web.
What better way to determine the credibility of the binary broker than to test its services, if the broker agrees to offer a test. See for yourself if the broker’s platform is right for you. Most binary options brokers are registered with reputable companies and they are more transparent with their operations.
Investors can also check out the forums to see discussions about scams in the middle of binary options. There is a lot of information you can get through forums and chat rooms from people who have had experience with binary options with Bitcoins.
Binary options are not made for everyone. If you do not like to take risks, then binary options are clearly not intended for you. Know that the price you will have with the binary options is either $0, or with a return on investment, up to 90%.
If you want to invest in something that will give you high returns on investment over a short period of time, then consider the binary options. You do not need to trade too big, most binary options brokers accept small bets to allow traders to see how their binary options work.
With binary options, you can multiply your Bitcoins as long as you keep a strategy that works. Remember, binary options involve predictions, timing, volatility and risk so simply use licensed binary option operators to avoid the fear of being scammed or cheated by an unlicensed broker.