There are many Bitcoin Binary Options platforms. Apart from stocks, currencies and commodities, Bitcoin is another instrument for binary options brokers and traders to bet on. Since the economic crisis in 2008, financial experts around the world have been searching for alternative currencies and other forms that could provide not only more safety for their funds, but also a means of enlarging their fortunes. As an alternative virtual currency, Bitcoin seems to be just what the doctor ordered. An independent currency, whose value is determined on the open market alone, Bitcoin has proved more than a mere investment tool; its price also presented a perfect target for binary options. In fact, Bitcoin/USD counts as a currency pair on a number of markets, and it has even found its way to some binary options trading platforms, with returns up to 85% in some cases.
Bitcoin Binary Options – How they mix?
Purchasing Bitcoin is definitely an option. There are numerous trading platforms specialized in Bitcoin trading, but very few of them (if any) offer binary options as well. However, owning Bitcoin can be a headache in itself. You need a virtual wallet in order to authenticate your account; if you lose it, you can kiss your cash goodbye. Furthermore, Bitcoin value fluctuates all the time – it may be worth something today, but there is no guarantee that it will be worth anything tomorrow. That’s the thing about virtual currencies, they are extremely unstable and volatile. This is the very reason why they are so suitable for binary options.
Bitcoin Binary Options
Like with all other binary options, you do not acquire the underlying instrument, but merely bet on its value. This means a binary option on Bitcoin will be much cheaper than Bitcoin itself, yield more profit in a shorter time span and may still be worth something, even if Bitcoin value plummets. In other words, for the same monetary value invested, binary options on Bitcoin are more profitable than Bitcoin itself. Investing $1,000 in Bitcoin and holding it for a month may yield some profit, but betting $1,000 on binary options on Bitcoin could earn you up to $850 in pure profit, in less than an hour, and you can repeat the process as much as you want, provided your hunch is on the money. Not to mention the fact that Bitcoin value could drop and you could lose a lot of money. Naturally, binary options are not without risk, and you stand to lose just as much if you’re not careful. But technically, your profit margin says you’re better off investing into binary options on Bitcoin rather than Bitcoin itself. It’s the same money you’re risking, except this way, your reward is greater and the risk boils down to essentially the same thing. Binary options can yield you 85% return in half an hour; what are the odds of Bitcoin value jumping 85% in half an hour? It seems like an easy choice, doesn’t it?