Binary options are sometimes referred to as ‘all-or-nothing options’, ‘digital options’, or ‘fixed return options’ (FROs), which are traded on the American Stock Exchange.
Bitcoin (BTC) is a digital currency which is created and held electronically and no one controls it. “Bitcoin is an online payment system invented by Satoshi Nakamoto, who published his invention in 2008, and released it as open-source software in 2009. The system is peer-to-peer; users can transact directly without needing an intermediary.Transactions are verified by network nodes and recorded in a public distributed ledger called the blockchain. The ledger uses its own unit of account, also called bitcoin. The system works without a central repository or single administrator, which has led the US Treasury to categorize it as a decentralized virtual currency. Bitcoin is often called the first cryptocurrency… “
Bitcoin as a currency in binary options trading
Bitcoin is now widely used currency and many trading platforms accept it as a method of payment for their clients’ trading deposits. There are many benefits using Bitcoin as a currency. The first benefit is “the fact that the cost of transaction is the lowest among all forms of online payment. This is the very reason why Bitcoin was created in the first place, to lower the cost of online transaction. Since there is no central authority managing Bitcoin, no service fee is paid when receiving or transmitting payment.” Another reason for traders to use Bitcoin as a currency is that Bitcoin itself is tradeable and they can earn extra Bitcoins that way.
“By having all the trading transactions denoted in Bitcoin, a trader is able to shield himself from the fluctuation of this crypto currency while at the same time earn more of it through profits earned in trading.”
Bitcoin as a commodity in binary options trading
With a recent popularity of Bitcoin and its acceptance as a currency, many binary options platforms started using Bitcoin as one of the currencies to trade. so as an asset. Stockbrokers are seeing the value in trading BTC against flat currencies, mainly versus American Dollar.
Today there are 2 main types of Bitcoin binary options platforms:
- First-generation brokers – binary options platforms that allow trading on Bitcoin
- Second-generation brokers – platforms that offer both Bitcoin funding and Bitcoin trading
First generation brokers – brokers who offer Bitcoin trading:
- Coinut – only Bitcoin options exchange platform; programmed as a robust and distributed on Linux operating system coinut.com
- BTClevels – Bitcoin binary options trading platform; with or without registration, hassle free btclevels.com
- 24 Options – one of the first brokers who started offering BTC as an asset 24option.com
Second-generation brokers – brokers who offer Bitcoin funding and trading:
- Traderush binary platform – accepts BTC deposits traderush.com
- Nadex trading platform -accepts BTC funding and allows BTC trading; offers limited risk, short-term trading, transparency and full regulated market nadex.com
- Satoshi Option trading platform – accepts BTC funding and allows BTC trading; doesn’t require account registration neither personal details. Payouts are near instantaneous and the service is accessible from anywhere in the world satoshioption.com
- BTCOracle platform – Bitcoin only platform – allows BTC funding and trading offering few wallet options and full transparency btcoracle.com
- Bitstamp platform – As above, BTC only platform – allows BTC trading and funding but requires login bitstamp.net
- Bitcoin Wisdom – allows trading 3 digital currencies, Bitcoins, Litecoins, Altcoins versus other flat currencies and requires login bitcoinwisdom.com
- Beast Option – allows BTC funding and trading of Bitcoins and Litecoins; guarantees fairness in pricing regardless of market fluctuations beastoptions.com
When choosing a Bitcoin broker it is important to check their terms and conditions, paying a particular attention to the information whether their Bitcoin Assets are stored in “Deep Cold Storage”. It means that Bitcoins are insured and stored offline, where they are not susceptible to hackers.