While the concept of binary options trading may seem complicated, it is actually quite simple. Today, we will look at cryptocurrency binary options and how you can use them to make short term investments in Bitcoin and altcoin. The term Bitcoin binary options may sound like an overly technical term, but the term is an offshoot of options trading.

Options trading is an all or nothing wager. You will either win or lose. This is different than standard options, which allows you to purchase a financial product. A standard option would have a strike price where you could buy a security before the option expires. You cannot do this with Bitcoin binary options. The payouts on binary options trading depend on the platform used. Bitcoin binary options are considered a form of gambling due to the volatility of digital currencies.

This is unlike standard cryptocurrency trading, where one good buy can make up for months of downswings. Trading in Bitcoin binary options is much simpler than trading in traditional Bitcoin. To get started, find a legitimate trading platform and register for an account.

Once registered, all you need to do is fund your account. Most trading platforms will allow you to purchase options using either fiat or cryptocurrency. You can usually deposit using credit cards, e-Wallets, and even your bank account. Odds are you will have an easier time depositing at an options platform as they are not classified as online gambling sites. After making your deposit, pick the options you wish to trade-in. Most sites focus exclusively on Bitcoin, while others will allow you to trade in Litecoin, Ethereum, and other popular altcoins.

Options range from 30 seconds to as much as a week or longer, depending on the trading platform. Once your options are placed, just sit back and wait for the option to expire. One major downside to trading in Bitcoin binary options is that many fraudulent sites are offering the product. There are a few things you can do to help weed out these scams:. Licensing — First, check to see if a site is licensed by the Cyprus Securities and Exchange Commission, the Commodity Futures Trading Commission, or another primary licensing authority.

If the site is not licensed, move on to another site. Demo Accounts — Most legitimate options sites will allow you to test drive the site with a demo account. This is similar to playing demo casino games at Bitcoin online casinos. Research Companies — The internet is a fantastic research tool, and you can usually find information on scams easily by doing a Google search. If you research on the internet, you will find dozens of websites that offer Bitcoin binary options trading.

How do you know which are the best? Both sites have been in business for years and have stellar reputations. Lastly, remember that Bitcoin binary options are more akin to online gambling than true investing. With standard investing, Bitcoin would have to go extinct for you to lose your entire investment. There are a number of reasons why the world is fascinated by BTC and altcoins, and why you might consider investing in them:. More and more binary options websites are offering Bitcoin trading.

Here are a few to consider. IQ Option originally launched in Cyprus in , and was previously a pretty standard binary options platform. While the company still offers binary trading, it has branched out mainly into offering CFDs.

Here are the basic steps to trading Bitcoin or other cryptocurrencies on IQ Option. 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 In addition to Bitcoin and other normal cryptocurrencies, Binomo features a unique asset called the Crypto IDX, which you can trade. 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 The site is aimed mostly at traders in Russia. If you open an account at FINMAX, you will be able to proceed to the trading platform. Finrally has been in operation since , 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:.

Bitcoin binary options trading has quickly become one of the most popular and potentially profitable investing methods. The value of bitcoin in relation to other currencies typically USD varies wildly almost from minute to minute, making it very interesting from a binary options point-of-view. Buying actual currency or using CFDs on longer time spans should also be considered highly interesting options.

There are now also brokers that accept bitcoin, and other cryptocurrencies, as deposit methods. So traders can fund their account, and be paid out, in Bitcoin or Ethereum etc.

Find Out More. However, if your prediction is correct, you get back your initial payment plus a pre-determined pay-out. The volatility and unpredictability of Bitcoin make it a particularly interesting investment proposition for aspiring traders, with generous winnings available if you can accurately predict the market.

BTC binary options traders will typically find several contract options available at the top brokers and exchanges. Importantly, which product is most suitable for you will depend on your investment approach and strategy:. Not all brokers and exchanges that offer Bitcoin binary options are created equal. With that in mind, there are several factors to consider…. Firstly, which platform offers the best pay-outs and potential winnings on BTC contracts? Also, what is the minimum deposit requirement?

Some even accept Bitcoin payments. Other elements to consider are whether the online broker is regulated. There are multiple scams operating in the binary options and crypto space.

With that in mind, a firm that holds a license with a trusted financial agency, such as the CySEC, can provide peace of mind. Technical traders may also want to check how intuitive and user-friendly the mobile and desktop trading platform is. Finally, some brands offer enticing sign-up bonuses.

These welcome deals can include free trading capital and cash rebates. Just check withdrawal terms and conditions before signing up for an account.

For fundamental investors, this will mean keeping abreast of market developments, such as new regulatory restrictions on the use of cryptos, or announcements that a company plans to offer Bitcoin payments. This will help you take out the right contract to capitalize on the expected rise or fall in the value of BTC. Technical traders may prefer to rely on charts and indicators. The best Bitcoin binary options brokers offer interactive charting with a host of drawing and analysis tools.

This can help you identify patterns and trends, allowing you to choose a suitable binary options contract. Tip: trial a trading strategy on a free demo account first. This can help you validate your approach and make any refinements before investing real cash. One of the key advantages of Bitcoin binary options contracts is that you know expected winnings and losses before taking a position.

However, for newbies, selecting the right strike price and expiration can prove challenging. Select targets that maximize your chances of profit while minimizing your risk exposure. This evaluation should be based on the plan you define in step two. Then once you are familiar with how binary options and pay-outs work, you can try more advanced contract options.

While some contracts you can leave until expiry to see whether you win or lose, others may allow you to close your trade early if the market moves against you.

Similarly, if the market is trending in your favor, you may want to consider closing your position early to protect your winnings.

Importantly, check contract terms and conditions first because options may have rules and stipulations about early exits. Trading Bitcoin binary options successfully takes practice. So look for ways to sharpen your skills and learn from your past mistakes. Seek the knowledge of experienced investors by joining forums or look for a provider that offers social trading capabilities.

Free paper trading accounts are another opportunity to improve your skills in a risk-free environment before investing money. BTC binary options are some of the most straightforward crypto trading assets. For beginners, they offer a straightforward proposition with risk and reward known upfront. The volatility of the largest digital currency by market cap also means there is ample opportunity to generate returns.

Just make sure you sign up with a reliable broker before you start trading. Bitcoins are a worldwide phenomena and a growing interest in binary options. The digital currency has a wickedly volatile exchange rate making it perfect for binary trading of all expiries. The popularity, and notoriety, of the currency also makes it a prime target of potential scams and the like, so be aware and only trade with trusted brokers such as the ones we list here on binaryoptions.

To begin trading Bitcoin binary options you should have at least a marginal understanding of what they are. Basically, Bitcoins are digitally created currency units that can be spent anywhere Bitcoins are accepted. They are meant to be a free and easy system for international trade that is not reliant on central banks or charges outrageous fees.

As coins are mined they become available for sale, trade or exchange. Bitcoins are now used to exchange currencies around the world and for international trade but have yet to be embraced by the world powers. A few years ago, the number of brokers offering Bitcoin as an asset to trade was very low. Now, the opposite is true. Several brokers now offer trading on Bitcoin and also some of the lesser-known crypto currencies such as Ethereum or LiteCoin. So traders now have a range of choices when it comes to finding a broker that offers cryptocurrency trading.

If your current broker does not offer it, consider moving. This is where security and transparency are crucial — these wallets hold your virtual currency, so you are absolutely reliant on them. Sensing 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 by using Bitcoin as a medium of Exchange.

The second method is by using Bitcoin as an underlying asset. When it comes to using Bitcoin as a medium of exchange, traders will be trading the various underlying assets in financial markets with Bitcoin. So if their trade is successful, they will be paid in Bitcoin instead of fiat currencies like the U.

S dollar or Euro. You might be wondering why anyone would just want to accept Bitcoin when getting paid in U. S dollar as always been fine before. The first benefit of transacting in Bitcoin is the fact that the cost of transaction is the lowest among all forms of online payment. This is the very reason why Bitcoin was created in the first place, to lower the cost of online transaction. Since there is no central authority managing Bitcoin, no service fee is paid when receiving or transmitting payment.

Another key reason for traders to use Bitcoin in Binary options trading is to earn extra Bitcoin. Bitcoin by itself is traded and its value to the U. S dollar varies according to the demand for it. By having all the trading transactions denoted in Bitcoin, a trader is able to shield himself from the fluctuation of this crypto currency while at the same time earn more of it through profits earned in trading.

Nevertheless, it should be noted that this form of trading is however confined to binary brokers who will accept Bitcoin as a medium of exchange. In other words, there are only a limited number of binary options brokers which fall into this category. Another method of trading Bitcoin with binary options is to regard Bitcoin as an underlying asset.

As mentioned earlier, Bitcoin itself is traded on specialized Bitcoin Exchanges. Its exchange rate in relation to the U. S dollar rises and falls in accordance to the demand for it.

For example, during the Cyprus banking crisis in , loss of confidence in Euro led to investors switching their safe haven of wealth from the Euro to Bitcoin. This sudden surge in demand for Bitcoin helped to push its value up to almost on par with the value of gold prices. Because of this volatility, some binary brokers began introducing binary options contracts which tied to the value of Bitcoin.

Some brokers will now accept bitcoin as an account funding method. This allows traders to deposit, trade with, and be paid out in Bitcoin. The leading broker offering such a service is BinaryCent. They will accept 15 different cryptocurrencies as deposit methods, including Bitcoin, Ethereum and DASH. Yes — you can close out positions early on some trading platforms.

However in doing so, you may lose out on potential returns. Brokers typically calculate your loss or compensation based on how much the price has moved in your favor.

Some platforms also charge additional fees, such as deposit and withdrawal costs, account inactivity fees and more. Fees vary between providers. We recommend signing up with a broker that has a transparent fee structure with no hidden charges. See our list of recommended BTC binary options brokers for low-cost and reliable options. Cryptocurrencies like Bitcoin are bought and sold on exchanges. But whilst some platforms offer mining and staking services, these are different from binary options contracts.

Binary options are straightforward financial contracts where you can speculate on the future price of BTC. BTC binary options contracts are easy to understand.

Bitcoin binary options have become a popular form of investing in the cryptocurrency community. Bitcoiners can trade any amount anonymously whenever and wherever they want to. Sensing a new opportunity with Bitcoin and binary options, some innovative brokers have come up with ways to trade binary options and Bitcoin together. Long Term Option Long-term binary options are much more preferred because they offer lesser risks. 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. The biggest risk when trading binary options is the sparse regulation with such trading system. How to Trade in Binary Binary Options Trading in Bitcoin binary options is much simpler than trading in traditional Bitcoin.

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