For many years now, binary options brokers have been offering traders the option of trading in traditional commodities, assets and currency pairs like the USD/EUR, GBP/USD and EUR/GBP. However, over recent years there have been moves to embrace more unconvential approaches. Today, several binary options brokers have added bitcoins to their list of currencies for trading and now, BTC/USD and BTC/EUR pairings, among others, are frequently found. When selecting a top rated binary options broker, many traders look for one which offers them the opportunity to trade bitcoins as binary options represent the perfect way of trading in this volatile currency.
Why are Binaries a Good Choice for Trading Bitcoins?
In general, Bitcoin is a bullish currency which virtually never decreases in value, even when paired with a high performing currency. Therefore, generally speaking, when an investor trades bitcoins against another form of currency, their trade will be more bullish than bearish.
There are many advantages to trading Bitcoins as an underlying currency asset. Thanks to its bullish nature, it is very easy for a trader to predict correctly that a BTC/USD pairing will be bullish and therefore place their call trade option to gain a profit. The only element that needs to be decided is what limit to place on how far the currency will go up.
Bitcoins as an Investment Currency
Bitcoins are also an excellent choice as an investment currency when participating in binary options trading. Many binary options brokers will now accept Bitcoins as a trading currency, enabling investors to take advantage of the many benefits this form of currency brings with it.
When compared to other methods of deposit and withdrawal, Bitcoin comes out very favourably. As Bitcoin transactions are very rapid with instant processing, execution of trades is advantageously fast – much faster than when using other forms of currency.
Bitcoins are also cheaper than other types of transaction such as credit cards and bank wire transfers, only costing a tiny amount rather than large bank commissions that are generally charged on more traditional types of financial transactions.
Another advantage of Bitcoins is that they hold decentralised status, with no governmental or central bank control. As Bitcoins are owned by the people with no strings attached there is no chance of your money being affected by central banking decisions or problems. This also means that there is no risk of having to wait until the bank has cleared your payments.
Bitcoin accounts are quick and easy to set up. Traders simply access a bitcoin creating computer to begin mining bitcoins. A trading account can easily be linked to a nominal account making deposits and withdrawals a breeze to and from the binary options broker’s trading platform interface.
Bitcoins are also one of the most anonymous and private ways of trading binary options and this is very attractive to those who prefer to keep themselves to themselves when participating in trading. There is no danger of any personal details or information being released when trading in Bitcoins.
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