Bitcoin is a center of attraction for traders, and it adds more value when you get the opportunity to trade binary options with this popular coin. But the scary part is that is bitcoin binary trading legal?
Well, we will clear things up about everything regarding legitimacy in this article. Also, you will learn how to trade bitcoin binary options.
Truth be told, binary trading and bitcoin will help you make more money. But with proper care.
We’ll bring everything you need.
Binary options is all about the prediction game. Either you forecast the right asset price within the expiration period, or you’ll lose money. So, the trading process is simple, but the risk is complex as hell. As a result, you must have the power to understand the market for an excellent result.
To become an excellent trader will cost you much. The only thing that matters is your time and effort, not money. Building a strong strategy with a comprehensive trading plan is like breaking your opponent’s defense.
Is there anything to note?
On the other hand, binary options trading is considered to be a high-risk, high-return form of investing and is not suitable for all investors.
Moreover, what is binary options trading article will guide you about the basics of binary trading with a clear anatomy.
Bitcoin is one of the most innovative creations. The virtual currency, or digital coin, has changed how traders think about trading. Statistically, bitcoin is the largest cryptocurrency in terms of market capitalization.
On the other hand, you can trade, invest, or can pay through this coin. Additionally, Bitcoin uses a strong technology called the blockchain. However, more than these lines are needed to understand Bitcoin properly. However, it is a complex process with hundreds of benefits.
It is clear that Bitcoin is decentralized and has zero government control over it. Similarly, it is a popular investment method, though bitcoin has a volatile trading history.
Still, there are a lot of crazy people who are willing to invest more money. And it’s only possible for the coin’s popularity.
Now, let’s find out what bitcoin binary options is.
The main function of Bitcoin binary options is to allow you to trade binary options on crypto assets such as bitcoin. Traders need to choose the asset and predict the future price. If you are correct, you will get a certain payout percentage. But if your prediction goes wrong, you will see a minus balance in your account.
In a simple context, it is all about yes or no.
Moreover, you can use bitcoin in two ways.
Apart from these two, there are no other ways to benefit from the most hyped instruments.
Let’s set an example for you.
Suppose you choose to trade bitcoin at the price of $16,000. You believe that after 60 sec, the price will increase and hit $16,500. So, based on the prediction, you decided to click the “call” option. Just after the 1 minute, if the price increase, you will get your invested amount, including an 80% payout percentage.
Note that the payout percentage depends on the broker to the broker. However, the standard percentage is approximately 90%.
Regarding legitimacy, binary options trading is not illegal. However, there are some limitations depending on the region or country. Similarly, you can’t trade small timeframes in certain countries like the USA, UK, etc.
Moreover, there is a separate set of rules for traders in the United States. The primary rule is that traders won’t be able to trade with offshore brokers.
And about bitcoin binary trading, no, it’s not illegal.
As binary trading has a shady history, we recommend that traders pick regulated brokers. Regulated brokers abide by rules and regulations that help you protect your money from being scammed.
Bitcoin market is extremely volatile. Picking a particular asset type won’t change the trading method. The method will be the same. You have to walk through a few steps to complete the trading process. The steps are:
As we mentioned, you must invest your time and effort to pick the best thing to protect your money. A platform that is regulated won’t disappoint you. At least you will be free from scams. On the other hand, regulated brokers keep you alive with plenty of notable benefits and features.
We will also provide you with an extra benefit by adding this super article in your reading cart.
Moreover, we will mention here the top 3 brokers who are famous and regulated.
Binary options is not just about prediction and luck. Your prediction should be correct and bold. And to make it worthwhile, a solid strategy is a must, whether you are a seasonal or day trader.
Similarly, bitcoin trading in binary options needs a strategy to close a successful position. We wonder how people prefer to trade bitcoin on short-term charts.
A bit risky game.
Moreover, combining technical and fundamental tools will help you determine market sentiment through price action.
Additionally, all you can do is on a demo account. A demo account will allow you to draw charts and use analysis too. In addition, it is one of the most effective tools for identifying patterns and trends without losing money.
So, if you still believe in gambling, no, options trading is far away from this word.
In binary trading, the most amazing part is that you know the winning payout percentage. For new traders, sometimes, picking the right strike price is challenging in a short time.
So, you have to learn how to pick the correct one that maximizes your return and minimizes loss.
After determining the strike price and expiry time, it’s time to open the position. Check the pre-set strategy again and then click the button based on that strategy. Regular binary options trading doesn’t allow you to close the deal in the middle of the trade.
However, binary bitcoin trading allows you to manage risk by setting stop-loss and take-profit.
Do not leave the page once you hit the “place an order” option. Wait and monitor the chart movements. Due to the extreme volatility of the crypto market, your trade may work differently than you planned.
So, if the market moves against you, you can exit early to limit unwanted risk.
Finally, it’s time to close the deal with a return or just nothing. Note that you can save yourself from a huge loss if you choose to take an early exit. Similarly, you can lock your profits early if the market turns in your favor.
Now, we will break down the process and explain how to trade binary options on bitcoin or cryptocurrency. However, the trading principle is the same, but some other aspects are different. Keep a focused mind so that you can get everything at once.
After forecasting the market movement, set the chart and other trading tools to build a strategy. You can use a 60-second or 5-minute trading strategy based on your calculations.
Prepare your right side and fill accordingly:
Enter the investment amount
Choose the expiry time
Start trading
Note that both short-term and long-term trades are acceptable.
In the following list, you will find the top brokers that accept bitcoin for binary trading. However, apart from these, you will get more from the list of our best binary options trading brokers.
But we have chosen just one for your quick start and also based on the payout ratio and other features.
At this moment, Deriv is doing absolute magic. You can trade bitcoin and earn the highest payout or reward. Also, the platform is intuitive for traders. The other platforms are also doing their best to offer something unique. But according to our days of research, we found this platform excellent, especially for beginners.
If you wanna start with a small amount, start today with the most popular digital coin, Bitcoin.
You can also deposit and withdraw via Bitcoin. However,
Also, you can check the review by clicking below.
Deriv does not allow digital options or binary trading on Bitcoin. You can trade bitcoin in the form of CFD and multiplier options. The two types of trading are different from regular binary trading. Moreover, you will get over 25 crypto pairs, where Bitcoin is one of them.
Note that Cryptocurrency contracts traded with multipliers have a time limit.
The coolest thing about binary trading is that you can trade options on multiple instruments. Some assets are better than others’ underlying assets. There are a bunch of money-making trading instruments, and Bitcoin is one of them.
Dig down deeper to find out the 5 reasons why people trade bitcoin binary options:
Compared to the traditional market, bitcoin prices jump by 10% – 50% daily. If you make the right prediction, great rewards will wait for you.
It’s not like other crypto coins are not accepted by brokers. But the major coins always have their new way of surprising traders. Either with their highly volatile nature or the profitability ratio.
So, for short-term traders or binary traders, it’s something lucrative. Use a demo account to clear up your confusion before taking a big step.
Hope this article will help you to learn the basics.
This post was last modified on January 23, 2023 9:46 pm