What is Binary Options?
Binary options encompasses bitcoin binary option, it is simply a financial opportunity where the payoff is either monetary or nothing depending on a predetermined term. Binary options could either be cash-or-nothing or asset-or-nothing, by this I mean you could actually get involved with cash or you could use an asset.
What are Bitcoin Binary Options?
There are hundreds of market trade binary options. These markets fall into five major groups; Forex, Commodities, Stocks, Indices and Cryptos. Binary Options are usually traded in USD, however, some binary options brokers now base their trading currency on bitcoin. Hence we could say bitcoin binary options are binary options traded in Bitcoins or that which you can fund and withdraw your money in bitcoins. It is possible to make thousands of dollars in trading Binary options if you know what you are doing, it is also possible to lose all your money.
This short video below shows what is possible with binary options. this is how you can make thousands in USD in munites if you know what you are doing.
History of Binary Options
Binary options was gotten from options trading. Options trading is not new to the society, although it has been some sort of business for elites and was practice almost without regulations. Things became different when the Chicago Board of Trade introduced the first structured trading opportunity in the year 1971 and formed the Chicago Board Options Exchange (CBOE). It turned out to be one of the biggest organizations of its kind and presently it is the biggest method of options trading worldwide.
As time goes by, there were tremendous improvements in regulations binding option transactions which lead to a drastic improvement. A safety body known as Options Clearing Corporation (OCC) was created to ensure that investors abide by these regulations. Finally, Binary options evolved from these standard procedures with the aim of initiating a more feasible investment principle with lesser complications.
In the year 2007, OCC adjusted their guideline to give room for binary option to be bartered on major stock exchanges. It was finally approved by the US Securities and Exchange Commission (SEC) in the year 2008; this was done in other to legalize the classification of binary option as tradable contracts in foreign financial markets. Binary Options was first offered publicly by American Stock Exchange in May 2008, followed by CBOE.
Recently, binary option has gained popularity with the trend of Bitcoin being initiated as one of the funding sources of binary options, although some trading platforms use currencies or assets such as gold while others now use bitcoin. Binomo is presently one of the platforms that newly introduced bitcoin into its system. Read about Binomo here
How to trade on Binary Options Using Binomo as an example
First, you register with your trading option platform e.g Binomo by logging into their site and entering your email address and choosing a password. Most brokers give you a demo amount to trade with. You can participate in the live market but you cannot cash out money made with this demo amount. It is just for you to practice and know if you can really trade. Binomo gives you $1,000 in the demo account.
Trading Binary options is quite simple. The steps are as follows
- Select the market you want to trade; BTC/USD, USD/EUR, USD/AUD etc
- enter the amount you want to make the trade with
- enter the time range (this can be as short as 5 seconds to as much as a week)
- select call/higher/up/arrow pointing up or put/lower/fall/arrow pointing down (the term used depends on the broker you are trading with hower it is always indicated with arrows going up or down)
For example, let’s say I want to trade the BTC/USD market. I entered $100 as my trading amount and selected 1 minutes as my trading time. If BTC/USD is at $7,000 and I chose ‘CALL’, I will make about $173 after 1 minutes if the price rise above $7,000 or lose all $100 if it falls below $7,000. Similarly, if I chose ‘PUT’, I will make $173 if the BTC falls below $7,000 after 1 minute or lose all $100 if it rises above $7,000.
See Pictorial illustrations below
What are the Merits of Binary option?
- It is totally independent on the current price of the market (e.g. Bitcoin/USD), it only cares about an increase or decrease in the price of the asset (e.g Bitcoin).
- You don’t need any special expertise skills before you can participate
- Payouts are generally high and could be up to 88%
- If you develop a winning strategy, you can have a steady inflow or income.
Demerits of Binary Options
I will say Bitcoin binary option is just as good as gambling. In Nigeria I can equate it to Bet 9ja, Naira bet, R &S bet etc. Also in some other countries like South Africa I can equate it to bet365 or BetOlimp. Am simply trying to condition your mind to the fact that it is simply a gambling business where one could lose or gain. Also, some countries are bound by regulations that do not allow binary options trading while some options brokers are not regulated. As regards this, I will advise you check if the options broker where you wish to trade bitcoin binary option is being regulated.
Binary Options just like any other gambling business could also be very addictive. You must know that no matter how smart, intelligent or spiritual you think you are it is impossible to consistently predict the certainty of a rise or fall in Bitcoin.
Exchanges where Binary options could be traded
There are lots but few reputable companies where binary options could be traded, it could be in bitcoin or dollars. Some of these companies are
Make Money Online with Binary Option Robot
Some binary options platform have provisions for robots and 3rd party robots. It is quite obvious that the purpose of your investing is to make a good profit on your investment. With trading robot software, trades can be carried out automatically online. Trading soft wares have a very high chance of winning since they are programmed to study carefully before predicting. You could trade successfully using Binary option robots without having a prior knowledge of the platform or binary options trading. However, it is still not a guarantee of profit.
Are Binary Options Scam?
Binary options including Bitcoin binary options are not scam. They sometimes offer excellent returns to investors in a very short time. Binary option could really help you become financially free and independent while you trade from the comfort of your home, although proper measures must be taken. There are things you must keep in mind.
Things You Must Keep in Mind While Trading on Binary Options
- Trading Binary option is not attached to any hidden charges or cost.
- The amount payable on any trade is clearly stated before trade commences.
- You can only lose the amount you have staked in a position, that’s if you eventually lose out on your trade.
- Trading on binary option is quite risky and it’s only advisable to stake what you can afford to lose.
- To be on the gaining side in binary options, you must win most of the trades you place in the market.
- There are different trading options in the industry but the easiest is the UP/Down trading option( e.g. Bitcoin Binary option)
I hope the above has given you an insight into binary options. You can open an account with a binary options broker within the next 2 minutes and start trading. Most binary options broker gives you a demo account loaded with at least $1,000. So you could try it out risk-free to know if it’s right for you. All the best