Bitcoin is a cryptocurrency, which can be spent, stored, or invested, and it can also be stolen. Trading in Bitcoins is considered risky, but current trends show that it has become a big hit in the binary options sector. This decentralized money is not regulated by any Government, or by any central authority.
What determines the price of Bitcoins?
The price of Bitcoin is determined according to the ratio of supply and demand. Price increases when demand increases, prices decrease when demand decreases. Bitcoins in circulation are limited, and new ones are made at a very slow rate. Since it does not have enough cash reserves to drive the market price, its price can be more volatile.
Bitcoin trading is popular because –
- Low risk of inflation – Inflation is the biggest issue for traders, because all currencies will lose some of their purchasing power when reserve banks continue to print more money. With the Bitcoin minting system limited to only 21 million Bitcoins, it is virtually unaffected by inflation.
- Low risk of collapse – Currency fluctuations depend on government trade policies, which sometimes cause hyperinflation, and even lead to currency collapse. Bitcoin is a virtual universal currency, not regulated by any government.
- Simple, safe and cheap – Bitcoin payments take place between peer-to-peer without any intermediaries, so it’s simple and inexpensive.
- Easy to carry – Bitcoins worth millions of dollars can be carried in your pocket, on a memory stick. It cannot be made of gold or silver.
- Not trackable – The issuance of Bitcoin is not regulated by any government, so there is no risk of hijacking.
Binary options Bitcoin trading platform
Binary options brokers have become familiar with the popularity of these Bitcoins, and their ever-changing values. So they used this opportunity to offer traders with the latest volatile crypto-currency as an additional payment method. Bitcoin brokers that offer crypto -currency as a trading option include –
One touch option – Bitcoin trading can be done with AnyOption or one touch option. For example the currently popular 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 a demo account to understand the market action.
The trading screen is simple.
Select price direction (UP/DOWN)
Select the timeframe
Is Bitcoin trading safe?
The Bitcoin network is likely to be the most extensive computing project around the world. The most common vulnerability here is user errors. Bitcoin wallet files can be lost, stolen, or deleted accidentally just like other files in digital form.
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 assurance against loss or theft.