The virtual and anonymous Bitcoin currency is gaining increasing popularity as a trading instrument. Because of the possibility to trade upwards or downwards on the fluctuations of the Bitcoin share price, many binary options brokers are currently allowing their traders to trade binary options in the Bitcoin. Generally, binary options in the Bitcoin / USD currency pair offer rather satisfactory returns that oscillate on average between 65% and 85% of the initial investment.
Binary options brokers are not the only brokers that offer trading in the Bitcoin; prior to them, trading platforms that specialize in the trading of virtual currencies have also allowed investors to invest in the Bitcoin. As a trader, you are most probably wondering about the difference between binary options brokers and Bitcoin trading platforms? Since these two types of brokers may prove particularly interesting and profitable, which one should we choose and what type of Bitcoin investment is least risky? The answer is the following! 😉
It is possible to buy the Bitcoin in many base currencies, such as the euro, the US dollar or the sterling pound through trading platforms that offer the Bitcoin to traders and investors, referred to as electronic wallets (e-Wallet). Just like a binary options broker, these platforms or portfolios require opening an account and validating it. Once this is accomplished, it will be possible to buy and sell Bitcoins.
Currently, the Bitcoin is worth $348.87 on the CoinDesk platform. To give you a sense of the volatility of the Bitcoin and its incredible rate fluctuations that are synonymous with trading opportunity, simply refer to its historical chart where we can see that on December 4, 2013, just over a year ago, the Bitcoin was worth $1,124.76; i.e. just over a year ago, the course of the Bitcoin was worth more than 3 times its current value! It is also worth noting that the Bitcoin was worth less than $3 at the end of 2011 which is further evidence of its significant volatility.
When you invest your money in a Bitcoin portfolio as proposed by a trading platform, please be aware that the price of the Bitcoin can plummet at any moment. Thus, there is a considerable risk of loss of value of your portfolio. The Bitcoin trading platforms are often strongly criticized given that some individuals do not consider the Bitcoin to be a stable currency. Unlike binary options where a trader will only stake his funds on a given maturity in the Bitcoin market, on these platforms the money invested in Bitcoin is subjected to the risk of constant fluctuations!
Through binary options brokers, it is also possible to speculate on the price of the Bitcoin. However, please be aware that unlike the Bitcoin exchange platforms and e-Wallet, you are not actually buying the Bitcoin in this case, instead you are speculating on the value of the BTC / USD course. Many specialists and traders consider this an advantage since you can benefit from the price expansions and contractions of the Bitcoin without risking one’s capital in this market.
In the above example, you can see that the current price of the Bitcoin is $349.27 at 15:25. Here we simply need to predict whether the price will increase or decrease when our maturity will expire at 15:45. In this case, our exposure time on the market is only 20 minutes and the return on investment offered by the 24Option binary options platform on which we are speculating is 70%. Thus, in the event of a gain for a bet of $100, the platform will repay our $100 investment in addition to $70 return on investment.
Many traders consider binary options on Bitcoin as a real advantage compared to Bitcoin investment via trading platforms given that the maturities are short and the trading is free of charge. However, it should be noted that the maturities may reach several months depending on the wishes of the trader and on the selected broker.
BonusBinaryOptions.net personally believes that Bitcoin trading through exchange platforms of virtual currencies is much more risky for the trader because:
1. First of all, the Bitcoin is an uncertain currency that is relatively risky for long-term investment and if left on hold in the market with no safety against a price plummeting, as was the case after the incredible increase in 2013.
2. Bitcoin trading through these platforms requires high capitalization. For example, in order to buy 4 bitcoins at the current price of $349, we will need to invest the sum of $1,396!
With binary options brokers, when we trade in Bitcoin the risk is lower because through these brokers we are not really buying Bitcoins, but as a binary options trader our only concern is the change in the value of the Bitcoin. Thus, binary options are a good alternative to invest in the Bitcoin because:
1. The return on investment for a winning transaction is between 65% and 85% of the initial investment.
2. The maturities offered by the binary options brokers are short and make it possible to earn money quickly.
3. It is not necessary to have several thousand dollars of capital, as binary options brokers are open to the smallest investors and make it possible to take minimum positions of only a few dollars ($25 in the example of 24Option mentioned here-above).
As the name of our “BonusBinaryOptions.net” website suggests, we specialize in negotiating binary options BONUSES. In fact, we have negotiated exceptional bonuses on deposit with the majority of the binary options brokers listed in our website for the benefit of our readers. Using the example of the regulated binary options broker fca cysec 24Option that offers Bitcoin trading, upon opening a 24Option account through a link in our website, you can directly double your deposit thanks to the negotiated 100% bonus, while under normal circumstances this broker only offers a maximum of 20% bonus on deposit to its new traders. Other brokers that offer Bitcoin trading, such as OptionWeb and TopOption, also make it possible to benefit from negotiated bonuses on deposit. Upon opening an OptionWeb account you can take advantage of a negotiated bonus of 100% in the same manner as opening a TopOption account, while under normal circumstances OptionWeb also offers a mere 20% bonus and TopOption does not offer any bonus.
In addition to the negotiated bonus, when you choose a binary options broker through our website you will instantly be entitled to the BonusBinaryOptions.net guarantee; the latter allows you to benefit from the special relationship that we enjoy with the different brokers of the trading industry, hence making it possible for us to quickly resolve any potential problems that you may encounter with them.