Bitcoin is a cryptocurrency that can be spent, saved or invested, and it can also be stolen. Bitcoin trading used to be considered risky, but current trends show that it has become a huge hit in the binary options sector. This decentralized currency is not regulated by any government or any central authority.
What determines the price of Bitcoin?
The price of Bitcoin is determined by the ratio of supply and demand. Price goes up when demand goes up, rates go down when demand goes down. Bitcoins in circulation are limited and new ones are created very slowly. 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 inflation risk – Inflation is the biggest problem for traders because all currencies lose some of their purchasing power when reserve banks keep printing more currency. Since the bitcoin minting system is 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 cause hyperinflation and even collapse the currency. Bitcoin is a virtual universal currency, not regulated by any government.
- Simple, safe and cheap – Bitcoin payments are peer-to-peer without any intermediary, making it simple and cheap.
- Easy to carry – A million dollars worth of bitcoins can be carried in a pocket, on a memory stick. This cannot be done with gold or cash.
- Untraceable – Bitcoin issuance is not regulated by any government, so the risk of seizure is zero.
Bitcoin Binary Options Trading Platform
Binary options brokers are 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 offer cryptocurrencies as a trading option include –
One Touch Option – Bitcoin trading can be done with AnyOption or One Touch Option. For example, the current popular currency pair is BTC/USD.
SetOption – The latest asset trading option available 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.
Select price direction (up/down)
Select a time frame
Is Bitcoin Trading Safe?
The Bitcoin network is probably the world’s most extensive computing project. The most common weakness here is user error. Bitcoin wallet files can be lost, stolen or accidentally deleted just like any other digital file.
However, users can use good security strategies to protect their money. Alternatively, you can choose service providers that offer a high level of security as well as insurance against loss or theft.