Bitcoin is a cryptocurrency, which can be spent, saved or invested, and can also be stolen. Trading with Bitcoins was considered risky, but current trends show that it has become a huge success in the binary options industry. This decentralized currency is not regulated by any government or central authority.
What determines the price of Bitcoins?
The price of Bitcoin is determined by the supply and demand ratio. Price goes up when demand goes up, rates go down when demand goes down. Bitcoins in circulation are limited and new ones are created at a very slow rate. Because it does not have enough cash reserves to move the market price, its price can be extremely volatile.
Bitcoin trading is popular because of:
- Low risk of inflation – Inflation is the biggest problem for traders, because all currencies lose some of their purchasing power when reserve banks keep printing more currency. With the Bitcoin minting system limited to only 21 million Bitcoins, it is hardly affected by inflation.
- Low risk of collapse – Currency fluctuations depend on government trade policies, which sometimes lead to hyperinflation and even lead to currency collapse. Bitcoin is a universal virtual currency, which is not regulated by any government.
- Simple, safe and cheap – Bitcoin payments are peer-to-peer without any intermediaries, so it’s simple and cheap.
- Easy to carry – Millions of dollars worth of bitcoins can be carried in your pocket, on a flash drive. This cannot be done with gold or cash.
- Untraceable – The issuance of Bitcoin is not regulated by any government, so the risk of embargo is nil.
Bitcoin Binary Options Trading Platform
Binary options brokers are becoming familiar with the popularity of these Bitcoins and their constantly fluctuating values. Therefore, they are taking this opportunity to offer merchants the latest volatile cryptocurrency as an additional payment method. Bitcoin brokers that provide cryptocurrency as a trading option include:
One-Tap Option: Bitcoin trading can be done with AnyOption or One-Tap Option. For example, the current popular currency pair is BTC/USD.
SetOption: The last option available for asset trading is BITCOIN/USD.
Bitcoin brokers provide a simple online trading platform. All you have to do is visit their website, enter your details and create an account. You can start with a demo account to understand the market action.
The trading screen is simple.
Choose the price direction (UP/DOWN)
Select the time period
Is Bitcoin Trading Safe?
The Bitcoin network is possibly the world’s largest broadcast computing project. The most common weakness here is user error. Bitcoin wallet files can be lost, stolen or accidentally deleted just like any other file in digital format.
However, users can use strong security strategies to protect their cash. Alternatively, you can choose service providers that offer high-level security as well as insurance against loss or theft.