Bitcoin Binary Options
While trading binary options has been going on for some time now, the recent emergence of bitcoin binary options is changing the game. The use of a decentralized cryptocurrency like bitcoin opens up the possibilities of this unique trading platform.
What Are Bitcoin Binary Options?
Let’s start with binary options themselves. Somewhat similar to trading on the stock market, trading binary options allows you to buy and sell based on whether you believe the value of a share will go up or down. The big difference is that you are not buying and selling the actual share. Instead, you are buying and selling “options”. With the stock market, if you buy a share and it rises or falls, your gain or loss is simply the different between your purchase price and the stock’s current value. However, with bitcoin binary options trading, you get paid a predetermined amount of money if the share you purchased meets specific criteria. So, whether you win or lose is black and white, and the payout is clearly established.
How do BTC Binary Options Work?
When trading bitcoin binary options, the main thing to understand is “calls” and “puts”. When you begin trading, you have only two choices: you can buy what is known as a “call” or you can buy what is known as a “put”. If you believe the value of the stock is going to go up, then you are going to want to buy a “call”. If the value of the stock goes up to the agreed upon “strike price” within a set time period, you win a payout. If it fails to reach the strike price, you get no payout and lose your investment. On the other hand, if you believe the value of the stock is going to go down, you want to buy a “put”. By purchasing the “put”, you are essentially placing a bet that the value will fall, and if it falls by the agreed upon amount, you have the right to sell the commodity at the “strike price” and generate a profit.
While all that may sound like a mouthful, trading bitcoin binary options is quite simple at its heart. All you need to know is if you think a value will go up or down within a specific period of time. Once you have this information, it takes only a few moments with a bitcoin binary options trading platform to place your order. This makes it easy to trade large amounts of binary options in a short period of time.
A new development in the binary options world is the ability to trade bitcoin options. This means you can buy “calls” and “puts” based on your prediction of whether the value of bitcoins will go up or down. While many people are simply purchasing bitcoins to store and save them because they believe the value will be going up over time, buying bitcoin options allows you to double down on your belief of where their value will go.
It’s important to remember that, like the stock market, bitcoin binary options can be viewed as essentially a different form of gambling. You are risking your currency because you think the chances of a reward are worth the risk. Yes, you may be correct in your prediction and be awarded an excellent payout. But there is still a large element of chance involved, so be certain to never risk an amount that exceeds what you would be comfortable losing! Set your limit before you begin trading bitcoin binary options, stick to it & have fun!