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 great success in the binary options sector. This decentralized currency is not regulated by any Government, or by any central authority.
What determines the price of Bitcoins?
The price of Bitcoin is determined according to 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. Since 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 part of their purchasing power when the reserve banks continue to print more currency. With the Bitcoin minting system being limited to only 21 million Bitcoins, it is not affected by inflation.
- Low risk of collapse – Currency fluctuations depend on government trade policies, which sometimes cause hyperinflation, and even lead to currency collapse. Bitcoin is a virtual universal currency, which is not regulated by any government.
- Simple, safe and cheap – Bitcoin payments are made peer-to-peer without any intermediary, so it is simple and cheap.
- Easy to carry – Bitcoins worth millions of dollars can be carried in your pocket, on a memory stick. This cannot be done with gold or cash.
- untraceable – The issuance of Bitcoin is not regulated by any government, so the risk of seizure is nil.
Binary options Bitcoin trading platform
Binary options brokers are familiar with the popularity of these Bitcoins, and their constantly fluctuating values. Therefore, they are using this opportunity to offer merchants with the latest volatile crypto-currency as an additional payment method. Bitcoin brokers that provide crypto-currency 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 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 demo account to understand the market action.
The trading screen is simple.
Choose the direction of the price (UP / DOWN)
Select the time
Is Bitcoin trading safe?
The Bitcoin network is possibly the largest distributed computing project in the world. The most common weakness here is user error. Bitcoin wallet files can be lost, stolen or accidentally deleted just like any other digital files.
However, users can use sound 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.