Bitcoin is a cryptocurrency that can be spent, stored or invested, and it can also be stolen. Trading with Bitcoins was considered risky, but the current trends show that it has become a big hit in the binary options sector. This decentralized currency is not regulated by any Government or any central authority.
What determines the price of Bitcoins?
The price of Bitcoin is determined by the ratio of supply and demand. As demand increases, the price increases, and when demand decreases, rates decrease. Bitcoins in circulation are limited and new ones are created at a very slow rate. Its price can be extremely volatile because there is not enough cash to change the market price.
Bitcoin trading is popular because:
- 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 mintage is limited to only 21 million bitcoins, it is not affected by inflation.
- Low crash risk – Fluctuations in currencies depend on government trade policies, which sometimes lead to hyperinflation and even currency collapse. Bitcoin is a virtual universal currency, not regulated by any government.
- Simple, safe and cheap – Bitcoin payments are made peer-to-peer with no intermediaries, so it’s simple and cheap.
- Easy to carry – You can carry a million dollars worth of bitcoins 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 there is zero risk of confiscation.
Binary options Bitcoin trading platform
Binary options brokers are familiar with the popularity of these bitcoins and its ever-changing values. Therefore, they take this opportunity to offer traders the latest volatile cryptocurrency as an additional payment method. Bitcoin brokers that provide cryptocurrency as a trading option include:
One touch option – Bitcoin trading can be done with AnyOption or one touch. For example, the current popular currency pair is BTC/USD.
SetOption – The latest 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 movement.
The trading screen is simple.
Select price direction (UP/DOWN)
Select a time frame
Is Bitcoin trading safe?
The Bitcoin network is perhaps the world’s most widespread computing project. The most common vulnerability here is user error. Bitcoin wallet files can be accidentally lost, stolen or deleted just like any other file in digital form.
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.