Are you looking for the best binary options brokers for BTC/USD currency pair trading? Find here a comparison table designed to make it easy for you to find the best binary option broker for BTC/USD trading. You can find payouts, return to loss, contract types and expiration times for every trusted broker listed in the table.
Bitcoin has emerged as an extremely popular digital currency and binary options are an exciting way to participate in the bitcoin phenomenon. A number of binary brokers have also introduced various forms of Bitcoin trading and are expected to expand this even further. We believe that in a few years there will not be any brokers at all on the market that will not be offering this form of virtual currency.
What are Bitcoins?
Bitcoin is essentially a digital currency, which is no physical entity, created by a mysterious individual or a group of individuals known as “Satoshi Nakamoto” and designed to facilitate online payments without a centralized authority. They are created by specialized computers that are used for Bitcoin mining. Maximum of bitcoins that are ever to be created is 21 million. A Bitcoin has a value expressed in USD, so all people have to do is to exchange USD into virtual currency if they want to get them. Bitcoins now have a market value of about $1.04 billion based on supply and exchange rates.
Binary Options BTC/USD Trading
Several binary options brokers are offering the opportunity to trading in Bitcoin binaries with Bitcoin as the underlying asset, not only as medium of payment. Binary Options are very suited to limit the risk in trading this digital currency, given the bitcoin price volatility that has often been experienced in the marketplace. In fact, Bitcoin binary option contract allow traders to trade its price movements without the risk of holding actual bitcoins. Unlike CFDs, profits are fixed and don’t depend on how much the price of bitcoin rises as falls.
Bitcoin is definetely a currency or asset that offers a good volatility compared to other assets. The volatility is mainly due to the supply as well as varying demand for bitcoins in the exchange markets. For instance, its exchange rate in relation to the U.S dollar rises and falls in accordance to the demand for it. Basically, brokers could allow you to trade bitcoins (BTC) in relation with any other currency in their platform. Obviously, the most commonly traded binary options for bitcoin is in the form of BTC/USD as a currency pair. This value changes all the time depending on how much Bitcoins people buy or sell. A trader simply enters whether they believe the price of bitcoins in the future will be higher or lower than the current price. When predicting correctly, traders win a fixed payout, usually between 70%-85%.
Other brokers are offering Bitcoins binary options as a one touch asset. A price is given prior to trade execution and you need to determine if the currency’s value will reach that point prior to expiration with profit levels ranging from 190 to 220 percent.
Binary Options Key Facts
- Loss of confidence in Euro during the Cyprus banking crisis in 2013 led a lot of investors to convert their real money into virtual money. This sudden surge in demand for Bitcoin pushed its value up to almost on par with the value of gold prices.
- Between January and April 2013, the Bitcoin price went from $13 each all the way up to $266 only to rebound and top $1000 per bitcoin at the end of that year.
- During 2014, prices have mostly been on a downtrend
Type of BTC/USD Binary Options
These are the usual contract types that can be used to trade BTC/USD in the binary options market.
- Up/Down: Predicting if the BTC/USD price will go up before the expiration time comes.
- Touch options: Predict if BTC/USD will touch any strike at its expiration.
- In/Out: Predict if BTC/USD will stay within two predetermined strike prices.
Factors Influencing Price of BTC/USD
- The fluctuations that this currency will see will be based solely on demand since the supply will remain static.
- A couple of years ago, platforms for bitcoin exchanging have been hacked and this damaged the bitcoin itself, sending the price lower, as opposed to periods when the price soared.