Bitcoin is a cryptocurrency, which can be sent, saved, or invested, and it can be stolen too. Trading with Bitcoins was considered to be risky, but the current trends show that it has become a big hit the binary options sector. This decentralized currency is not regulated by any Government, or by any central authority.
What determines the price of Bitcoins?
Bitcoin's price is determined according to the supply and demand ratio. Price increases when the demand increases, the rates plummet downwards when the demand falls. Bitcoins in circulation are limited, and new ones are created at a very slow rate. Since it does not have enough cash reserve to move the market price, its price can be extremely volatile.
Bitcoin trading is popular because of –
- Low inflation risk – Inflation is the largest issue for traders, because all the currencies lose some of their purchasing power when the reserve banks keep printing more currency. With Bitcoin minting system being limited to just 21 million Bitcoins, it hard gets affected with inflation.
- Low collapse risk – Currencies fluctuations depend on government trade policies, which at times cause hyperinflation, and even lead to the collapse of currency. Bitcoin is a virtual universal currency, which is not regulated by any government.
- Simple, safe and cheap – The Bitcoin payments take place between peer-to-peer without any intermediary, which is why it is simple and cheap.
- Easy to carry – Bitcoins worth million dollars can be transported in your pocket, in a memory stick. This can not be done with gold or cash.
- Untraceable – Issuance of Bitcoin is not regulated by any government, so the risk of seizure is nil.
Binary options Bitcoin trading platform
Binary options brokers are getting familiar with the popularity of these Bitcoins, and its constant fluctuating values. Therefore they are using this opportunity to offer traders with the latest volatile crypto-currency as an additional payment method. Bitcoin brokers providing crypto-currency as trading option include –
- One touch option – Bitcoin trading can be done with AnyOption or one-touch option. For example the current popular currency pair is BTC / USD.
- SetOption – The latest option available for asset trading is BITCOIN / USD.
Bitcoin brokers provide a simple trading online platform. All you have to do is visit their website, enter your details, and create an account. You can start with demo account to understand the market action.
The trading screen is simple.
- Pick the price direction (UP / DOWN)
- Select the timeframe
Is Bitcoin trading secure?
Bitcoin network is probably the world's vast spread computing project. The most common weaknesses here is the user errors. Bitcoin wallet files can get lost, stolen, or deleted accidentally just like any other files in the digital form.
However, users can use sound security strategies to protect their cash. Alternately, you could choose the service providers who offer high-level security, as well as insurance against loss or theft.