How to Trade Bitcoin Binary Options
Binary options trading has simplified and streamlined investing, making it fast and easy to trade stocks, currencies, commodities, and indices. But did you know that you can also trade bitcoin binary options?
In this guide, we will introduce several binary options brokers that offer cryptocurrency trading and talk about how to trade bitcoin and altcoins on their sites. But first, let’s talk briefly about bitcoin itself.
What is bitcoin?
If you are new to bitcoin (BTC), you may not be entirely sure what it is.
Bitcoin was invented in 2008. It is a cryptocurrency, meaning that it is a digital currency with no physical form. Unlike fiat currencies, neither Bitcoin nor other cryptocurrencies (“altcoins”) are controlled by governments.
Why trade Bitcoin and other cryptocurrencies?
There are a number of reasons why the world is fascinated by BTC and altcoins, and why you might consider investing in them:
- 1 BTC in May 2010 would have cost you a penny. In December 2017, you could have sold it for $17,900.
- The high volatility of cryptocurrencies attracts traders looking for
fast-pacedaction and opportunities to scalp value.
- Bitcoin can help you to protect your privacy when making financial transactions. It also can provide you with increased flexibility in terms of making deposits or withdrawals to and from various accounts regardless of your geographic location. Transfers can be rapid compared to other methods.
- Some trading websites may offer substantial bonuses to investors who deposit or trade in BTC or altcoins.
Binary options brokers that offer Bitcoin trading
More and more binary options websites are offering Bitcoin trading. Here are a few to consider.
IQ Option originally launched in Cyprus in 2013, and was previously a pretty standard binary options platform. While the company still offers binary trading, it has branched out mainly into offering CFDs.
Cryptocurrencies available to trade include:
- Ethereum Classic
- Bitcoin SV
- Bitcoin Cash
So, there are quite a few altcoins you can trade along with BTC.
How to trade Bitcoin binary options at IQ Option
Here are the basic steps to trading Bitcoin or other cryptocurrencies on IQ Option.
- Select bitcoin as the asset you want to trade (or pick the altcoin of your choice, if trading another cryptocurrency).
- Enter in the investment amount you want.
- Buy or sell based on what you believe the price of Bitcoin is doing.
Once you submit the order, you will be in the trade, and it will be listed under your open positions.
Binomo is a binary options site which has been in existence since 2014.The site allows you to open an account with just $10, and sets a minimum trade size of just $1, so it is a great entry point for beginners.
How to trade Bitcoin binary options at Binomo
In addition to Bitcoin and other normal cryptocurrencies, Binomo features a unique asset called the Crypto IDX, which you can trade. The company invented the Crypto IDX, and together with the EUR/USD pair, it is among the most popular assets on the site. It derives its value from the quotes of Bitcoin and some altcoins, but the exact formula is not disclosed.
As with IQ Option, Binomo has broadened its reach into CFD trading alongside binary options.
Trading on this site works much the same way. You select the asset you want to trade (Bitcoin, Crypto IDX, or any other asset), choose your investment amount, an option expiry time, and then buy or sell depending on what you think about where the asset is going to end the expiration time.
Another website which allows you to trade Bitcoin along with many other cryptocurrencies is FINMAX, founded in 2016. The site is aimed mostly at traders in Russia.
Here are the crypto assets that FINMAX offers:
How to trade Bitcoin binary options at FINMAX
If you open an account at FINMAX, you will be able to proceed to the trading platform.
- Pick the asset you want to trade (e.g., Bitcoin).
- Enter the amount that you want to invest.
- Pick an expiry time for the option.
- Choose the direction that you believe that the asset is moving.
Finrally has been in operation since 2017, and like the other sites on this list, now offers both binary options and CFD trading. These crypto assets are available to trade on the site:
How to trade Bitcoin binary options at Finrally
The trading platform Finrally offers is similar in terms of features and use as the others we have discussed. To enter a trade, you need only select the asset you want, put in the amount you wish to invest, pick the expiry time, and choose the direction that you believe price is moving.
Recommendation: Start by Testing
Even though there are many possibilities for profit with assets as volatile as bitcoin and altcoins, it is important to remember that same volatility can also lead to sudden and severe losses.
For that reason, we highly recommend that you begin by backtesting and demo testing before you invest real money on bitcoin binary options and CFD trading. You should only go live once you are profitable in demo based on a reasonable amount of data.
You now know more about trading bitcoin: what some of the possible advantages are, how to do it, and some of the websites which are offering BTC binary options and CFDs. If you are ready to take the next steps, research the sites above in more detail and decide where to open an account. It only takes minutes to sign up and start trading. Good luck!