Bitcoin Trading with Binary Options
Bitcoin is one of the most popular crypto-currencies that is widely used for digital payments across the globe. In fact, Bitcoin has now become a commodity, with its own SEC-authorized market platform for those who want to trade in this e-currency.
If you own Bitcoins or have a desire to invest in the Bitcoin market, you’ll be glad to know that these digital coins can be used to buy into the binary option market. However, you are limited to using them only to purchase in the Bitcoin markets.
Why Use Bitcoin to Invest in Bitcoin Binaries?
Because bitcoins are not government-issued or backed by any central bank, the value of this e-currency is determined by the stock markets (BTC): all markets are extremely volatile these days and Bitcoin is no exception.
Still as owner of bitcoins, you are in a great position to protect the value of your money.
One of the best ways to hedge against a dramatic loss in the worth of the Bitcoins you hold is to invest in Bitcoin Binary Options. With this option, instead of being at the mercy of bitcoin speculators, you can become a bitcoin investor and control your own hedge fund against those who only want to devalue your holdings.
Who Sells Bitcoin Binary Options?
The first thing you need to do is locate a binary options broker that accepts bitcoin for trading. Not all binary options brokers do that. Next, you want to be sure that the broker also provides an option to invest in Bitcoin Binary Option.
Some brokers accept bitcoin for any type of binary option while others only accept bitcoins for buying into binary option.
Combining bitcoin with the purchase of other binary options can be a real headache for brokers since it must be matched with the BTC/USD pair at the time of purchase.
There are two different types of brokers that accept bitcoin for binary options:
- Bitcoin is the sole currency for exchange
- Bitcoin is the underlying asset but you may get USD cash as the settlement
If maintaining your privacy as a bitcoin owner is important to you, you’ll want to find the first type of broker, which ensure all transactions are done in bitcoin exclusively.
If, for example, you own a small amount of bitcoin and you are not concerned about maintaining your privacy, then doing business with the second type of broker will enable you to use bitcoin for the purchase and USD for the settlement.
The Bottom Line
Like any other purchase of binary options, there are risks and rewards. There is no guarantee in the stock market trades and binary options belong to the Over-the-Counter Markets where speed of trades is built into the system.
Additionally, all binary options are done on a Yes/No proposition and while you can win a lot of money, you can also lose it just as easily.