Bitcoin is a cryptocurrency that can be spent, saved, invested, or stolen. Bitcoin trading used to be considered risky, but 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. Prices rise when demand rises, rates plummet when demand falls. Bitcoins in circulation are limited and new ones are created at a very slow rate. Since there is not enough monetary reserve to drive 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 some of their purchasing power when reserve banks keep printing more currency. Since the bitcoin mining system is limited to only 21 million bitcoins, it is almost unaffected by inflation.
- Low risk of collapse – Currency fluctuations depend on government trade policies, which sometimes cause hyperinflation and even crash the currency. Bitcoin is a virtual universal currency that is not regulated by any government.
- Simple, safe and cheap – Bitcoin payments are peer-to-peer without a middleman, making them simple and cheap.
- Easy to carry – Millions of dollars worth of bitcoins can be carried in your pocket, in memory. This cannot be done with gold or money.
- untraceable – Bitcoin issuance is not regulated by any government, so the risk of seizure is zero.
Binary Options Bitcoin Trading Platform
Binary options brokers are familiar with the popularity of these bitcoins and their constant fluctuations in values. Therefore, they use this opportunity to offer merchants the latest volatile cryptocurrency as an additional payment method. Bitcoin brokers providing cryptocurrency as a trading option include –
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One Touch Option – Bitcoin trading can be done with AnyOption or One Touch Option. For example, the current popular currency pair is BTC/USD.
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SetOption – The latest asset trading option available 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 action of the market.
The trading screen is simple.
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Choose price direction (UP/DOWN)
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Select the time frame
Is Bitcoin Trading Safe?
The Bitcoin network is probably the most widespread 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 file.
However, users can use reliable 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.