Bitcoin is a cryptocurrency that can be spent, held or invested, and it can also be stolen. Bitcoin trading used to be considered risky, but current trends show that it has hit the binary options sector in a big way. This decentralized currency is not regulated by any government or central authority.
What determines the price of bitcoins?
The price of Bitcoin is determined by the ratio of supply and demand. Price increases when demand increases, rates decrease when demand decreases. Bitcoins in circulation are limited and new ones are created at a very slow rate. Because it does not have enough cash reserves to move the market price, its price can be extremely volatile.
Bitcoin trading is popular because:
- Low inflation risk – Inflation is the biggest problem for traders, as all currencies lose some of their purchasing power when the reserve banks keep printing more currency. Since Bitcoin’s minting system is limited to only 21 million bitcoins, it is unlikely to affect inflation.
- Low risk of collapse – Currency fluctuations depend on the government’s trade policy, which sometimes causes hyperinflation and even causes the currency to collapse. Bitcoin is a virtual universal currency that is not regulated by any government.
- Simple, safe and cheap – Bitcoin payments happen peer-to-peer without any intermediaries, which makes it simple and cheap.
- Easy to move – Millions of dollars worth of bitcoins can be stored in your pocket with 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 seizure.
Binary Options Bitcoin Trading Platform
Binary options brokers are familiar with the popularity of this bitcoin and its constantly fluctuating values. So they use this opportunity to offer traders the latest volatile cryptocurrency as an additional payment method. Bitcoin brokers that provide the cryptocurrency as a trading option include:
One-Touch Option – Bitcoin trading can be done with AnyOption or One-Touch Option. For example, a popular current 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 market action.
The trading screen is simple.
Select price direction (UP/DOWN)
Select the time period
Is Bitcoin Trading Safe?
The Bitcoin network is possibly the world’s largest distributed computing project. The most common weakness here is user errors. Bitcoin wallet files can be lost, stolen or accidentally deleted just like any other digital file.
However, users can use robust security strategies to protect their cash. Alternatively, you can choose service providers that offer a high level of security as well as insurance against loss or theft.