Bitcoin is a cryptocurrency that can be spent, saved or invested, and it can also be stolen. Bitcoin trading used to be considered risky, but current trends show that it has become a huge hit in the binary options sector. This decentralized currency is not regulated by any government or any central authority.
What determines the price of Bitcoin?
The price of Bitcoin is determined by the ratio of supply and demand. The price goes up when the demand goes up and the exchange rates go down when the demand goes down. Bitcoins in circulation are limited and new ones are created very slowly. Since there are not enough cash reserves to move 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, as all currencies lose some of their purchasing power when reserve banks keep printing more money. Since the bitcoin minting 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 currency collapse. Bitcoin is a virtual universal currency that is not regulated by any government.
- Simple, safe and cheap – Bitcoin payments are peer-to-peer without any intermediary, making them simple and cheap.
- Easy to carry – You can carry millions of dollars worth of bitcoins in your pocket, on a memory card. This cannot be done with gold or cash.
- Untraceable – The issuance of Bitcoin is not regulated by any government, so the risk of confiscation is zero.
Bitcoin Binary Options Trading Platform
Binary options brokers become familiar with the popularity of these Bitcoins and their constantly fluctuating values. Therefore, they are taking this opportunity to offer merchants the latest volatile cryptocurrency as an additional payment method. Bitcoin brokers that offer the 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 open an account. You can start with a demo account to understand the actions of the market.
The trading screen is simple.
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Select price direction (UP/DOWN)
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Choose a time frame
Is Bitcoin Trading Safe?
The Bitcoin network is arguably the world’s most widespread computing project. 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 good 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.