Binary options on cryptocurrency is one of the ways to make money, where one does not have to determine the trend reversal points (zones). It is enough to correctly predict whether BTC and altcoins will rise or fall. Traders Union experts told that this makes it a popular service among novice crypto traders.
One of the problems traders face is the inability to determine the entry point into the market and the best time to complete a trade. Often users are confident that the price of bitcoin and other assets will rise. However, the trader does not know exactly what level the chart will reach. The holder of tokens or coins runs the risk of being late in opening or completing a trade and losing money.
What are binary options?
Many terms in crypto trading originally originated in other markets (stock, currency, commodities). In particular, binary options (abbreviated as BO) have long been used by forex brokers. This is due to the fact that crypto trading is in many ways similar to conventional trading in fiat currencies.
A binary option is a contract (agreement) between the platform (broker) and the client. The user tries to predict in which direction the quotes of the selected asset will change. If his guess is correct, the broker pays the client a reward. But if the prediction is unsuccessful, the trader loses the money paid as a deposit for the BO.
Essentially, trading bitcoin with binary options is a bet between the user and the trading platform. More often than not, the bet is on which way the quote of the token or coin will change. If the trader is confident that the price will rise, he or she buys a put option. The reward is paid on the condition that the rate of the crypto-asset increases in the future. Call options are used if the trader predicts a decrease in the price.
The advantages of binary options in cryptocurrency trading
Traders Union experts noted that the main advantage of BO compared to other types of trading is the ease of making predictions. It can be difficult for beginners to know when to buy or sell an asset. Experienced crypto traders use different analysis methods to find pivot points (levels). For beginners, it is easier to determine if the price of a token or coin is going to rise. But BO transactions can also lead to losses. There are also disadvantages to this way of earning. But the main thing is always the choice of a reliable trading platform.
Where is the best place to trade
According to Traders Union Cryptocurrency binary options are usually available on platforms that also operate forex at the same time. Binary options are less common on digital asset exchanges. In any case, novice traders should look for websites of large and reliable companies.
Disclaimer: This article contains sponsored marketing content. It is intended for promotional purposes and should not be considered as an endorsement or recommendation by our website. Readers are encouraged to conduct their own research and exercise their own judgment before making any decisions based on the information provided in this article.
