Make Money Trading Bitcoin – Binary Options Zone

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How To Make Money Trading Binary Options

Now that we have a basic idea on how binary option trades work, let’s take a look at a simple example.

Let’s say, you decide to trade EUR/USD with the assumption that price will rise.

You then look at your trading platform and see that the broker’s payout is 79% on a one hour option contract with a target strike of 1.3000.

After much deliberation, you finally decide to buy a “call” (or “up”) option and risk a $100.00 premium.

You could say it’s similar to going “long” on EUR/USD on the spot forex market.

Ending Scenarios After Entering a CALL Option Gain/Loss
Expiry price is above the strike price
$100.00 x 79% = $79
$100.00 + $79.00 = $179.00
You gain $179.00 on your account.
Expiry price is equal to or below the strike price
You lose your stake and your account declines by $100.00.

As you can see from the calculations above, the risk you take is limited to the premium paid on the option.

Payouts in Binary Options

Now that we’ve looked at the mechanics of a simple binary trade, we think it’s high time for you to learn how payouts are calculated.

More often than not, the payout will be determined by the size of your capital at risk per trade, whether you’re in- or out-of-the-money when the trade is closed, the type of option trade, and your broker’s commission rate.

In the example given above, you bet $100 that EUR/USD will close above 1.3000 after an hour with your broker offering a 79% payout rate. Let’s say that your analysis was spot on and your trade ends up being in-the-money. You would then get a payout of $179.

$100 (your initial investment) + $79 (79% of your initial capital) = $179

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    Free Demo Account.
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Easy peasy, right? Don’t get too excited just yet! You should know that there’s no one-size-fits-all formula for calculating payouts. There are a few other factors that affect them.

Factors in Payout Calculations

Each broker has its own payout rate. For starters, Forex Ninja’s intel shows that most brokers offer somewhere between 70% and 75% for the most basic option plays while there are those who offer as low at 65%.

Various factors come into play when determining the percentage payout.

The underlying asset traded and the time to expiration are a couple of big components to the equation.

Next, the broker’s “commission” is also factored into the payout rate. After all, brokers are providing a service for you, the trader, to play out your ideas in the market so they should be compensated for it.

The commission rate does vary widely among brokers, but since there are so many binary options brokers out there (and more coming along), the rates should become increasingly competitive over time.

When a Binary Option Trade is Closed

As mentioned before, binary options are typically “all-or-nothing” trading instruments in that the payout or loss is only given at contract expiration, but there are a few brokers that allow you to close a binary option trade ahead of expiration.

This usually depends on the type of option, and usually it’s only available within a certain timeframe (e.g., available 5 minutes after an option trade opens, up until 5 minutes before an option expiration).

When trading with a binary option broker that allows early closure of an option trade, the value of the option tends to move along with the value of the underlying asset.

For example, with a “put” (or “down”) option play, the value of the option contract increases as the market moves below the target (strike) price.

This means that, depending on how far it has moved passed the strike, the closing value of the option may be more than the risk premium paid (but never greater than the agreed maximum payout).

Conversely, if the underlying market moved higher, further out-of-the-money, the value of the option contract decreases and the option buyer would be returned much less than the premium paid if he/she closed early.

Of course, in both cases, the broker commission is factored into the payout of an option trade when closed early.

So before you decide to jump head first into trading binary options, make sure you do your research and find out what your broker’s payout rates and conditions are!

Bitcoin trading in binary options

Binary options and bitcoin are a new trend of 2020 in binary trading. Classic assets are not as profitable as the developing cryptocurrency. Because the appearance of the binary brokers new tool is not only a logical step, but the opportunity to capitalize on a strong trend.

I think many people have heard the legend about how in 2020, US residents ordered pizza for 10 000 bitcoins. Today, the cost is equivalent to 10 million USD, and the cryptocurrency has become the most profitable investment of 2020, showing growth of nearly 300% and ahead of U.S. and European treasuries, the U.S. dollar and even gold.

From 1 April 2020 bitcoin became legal tender in Japan along with the yen. From day to day, investors expect the emergence in the United States of the first ETF Fund investing in cryptocurrency. Despite the fact that in the US bitcoin is considered a financial investment instrument, in March SEC has blocked the creation of the Fund. While negotiations and the elimination of the comments of the commission continues, but it is already clear that bitcoin will soon take the place of one of the most promising tools. This means that in 2020 cryptocurrencies have a chance to gain another 50-100%.

What is Bitcoin and the history of its appearance

Bitcoin is a payment system using the payment instrument unit of the same name. Cryptocurrency does not have a single emission center, and is produced through mining. Separate transactions are generated in a special structure — blocks, and the procedure is called blockchain.

Bitcoin became the first cryptocurrency, emerged in 2009, but the name of its creator remains unknown. The mechanism of emission is limited, because every year mining (bitcoin issuance) is becoming less profitable. But increasing the price of the cryptocurrency today, and its growth can earn more than for emissions. In previous articles we have already partly revealed the concept of bitcoin and its prospects:

  • here you will learn why only bitcoin has the right to be called a cryptocurrency and why it, and not Litecoin or OneCoin will be interesting to traders;
  • this article analyzes the dynamics of quotations of bitcoin since its creation and identify the key drivers of growth and depreciation. Those who are going to work with bitcoin binary options, analysis will be useful;
  • here you will learn the opinions of professional investors working with bitcoin since 2009.

In these articles you will learn about the legislative aspects in relation to bitcoin and about what will happen to cryptocurrency in the future. Buy bitcoin on special exchanges, but it’s easier to make a prediction of its price in binary options. Even if the bitcoin price will rise by only 10-20%, a correct prediction will bring up to 90% of profit.

Factors influencing the exchange rate of Bitcoin

Since bitcoin does not have its own emission center and not recognized as money (except Japan), the impact of the economic laws for money is not standard. Main factors of influence:

  • China’s policy towards bitcoin. As China has more than 80% of the global turnover of cryptocurrency, any attempts to ban or limit anonymous withdrawal of capital lead to price decrease;
  • the perception of bitcoin by institutional investors and companies. During the crisis, bitcoin serves as a protective asset. Any news that someone started to accept payment in bitcoins or planning to invest large sums of money, raises the rate;
  • speculative. With the rapid growth in the trade includes those who are poorly versed in its causes. It is not advised to make predictions on bitcoin in the short term at the time of active growth or decline.

How binary options of cryptocurrency work

Binary options and bitcoin have the same principle of trading, and trade with other assets. The exchange rate of bitcoin depends on more fundamental factors, technical analysis will not give accurate signals as bitcoin general economic laws apply only indirectly. A few tips on how to trade cryptocurrency:

  • do not place a short expiry time. Even the strongest trend in a short period of time is zigzag-like. Optimally — a few days or months;
  • do not trade in the flat;
  • follow the news (primarily from the USA and China);
  • read the specialized forums, dedicated to the cryptocurrency, there are a lot of hints about the prospects for quotes.

The principle of operation of cryptocurrency binary brokers is similar to any other asset. Ticker of asset – the PTS. For trading with binary options for bitcoin with brokers who provide this service, choose a couple of BTC/USD and make your prediction after setting the period of expiration.

Brokers working with bitcoin

Yet the few binary brokers allow you to trade bitcoin. The most progressive brokers:

  • Olymp Trade. Broker, who offered a simple platform and optimum set of technical tools. Although the proposed yield on bitcoin is relatively small, to make a profit here is easier than with volatile currency pairs;
  • Binomo. The broker offers the minimum bet (from $ 1), high yield of transaction and ensures no slippage.

And finally here is a practical example of a trade with bitcoin binary options. To do this, go to the platform, select bitcoin in the top menu (income — 45%) and the analyze the graph. It is volatile, but there is some law — wave motion in the minute period of time.

Although minute timeframe we did not recommend, in this case the price is in the flat, so you can try to make a prediction on the minimum or the maximum. Waiting for a maximum bet on falling prices.

The first forecast turned out to be unsuccessful, because in one minute the price has managed to not only fall, but come back to high — a vivid example of how difficult it is to trade in flat. By the martingale calculator make bet on 725 rubles.

On the hourly chart there are visible spikes and another of them just happened. However, the duration of the last burst is not more than 2 minutes, therefore make a prediction for the price drop, but the period of expiration should be set to 5 minutes.

Alas, that forecast also appeared to be unsuccessful. The price entered in an accurate horizontal position. Increase the rate to 2336 rubles and wait when the price will move at least some way. Open minute option for growth. Again, failure. Last bet on the entire amount of the deposit for growth – and the prediction is correct!

With this example we showed that:

  • trade in the flat is very dangerous and fraught with losses. As bitcoin grows in the long term, then the expiration time should be put the more the better. Trade with minute options is almost unpredictable;
  • the martingale strategy can bring income if you use it wisely. In the example we intentionally started with a large amount to show the possible consequences.

Summary. Binary options and bitcoin is the easiest way to make money in the long run. Unlike Forex, here a trader will not lose money from a temporary drawdown or closing a position by stop loss. Bitcoin has all of the fundamental reasons for growth in the near future, and this means that it is possible to earn good money! And how to do it, you know now! Write your comments after the article.

If you’re unfamiliar with Bitcoin, the latest types of trading should be enough to get you interested. Along with binary trading, it is becoming the mainstream. In fact, bitcoin trading with binary options is quite simple.

Before analyzing this new type of trading, let’s take a look at what Bitcoin actually is.

What is Bitcoin?

Bitcoin is a digital currency. Its creation and transfer is based on an open source encryption protocol. Bitcoin’s popularity is ever-growing and is accepted by many businesses and individuals.

In other words, it’s a virtual alternative to “real” money. The concept makes a lot of sense. After all, money is no longer symbolic of actual gold in storage, and very often, we use it on an entirely cashless basis.

Bitcoin is a currency perhaps better suited to the modern day. Trading on its value is the logical progression.

What are binary options?

If you know all about binary options, skip to the next section of this article. If not, this is what you need to know.

Binary options refer to an all-or-nothing decision. Instead of buying and selling assets, with your trade hinging on the changing price of those options, you stake your money on whether the price will rise at all, or fall. You predict either “Call” or “Put”, the only two options available.

The “Call” option predicts that the price of the asset will rise. The “Put” option predicts that the price of the asset will fall. If it goes your way, you earn. If not, you lose.

Bitcoin trading with binary options

Quite simply, Bitcoin trading with binary options refers to betting on whether the Bitcoin price will go up or down when paired with the US$.

Binary Options are popular, partly because they are easy to use and don’t require a lot of maintenance. You don’t need to follow every fluctuation in price, as you’re only invested on the value going up or down.

So too, Bitcoin trading with binary options is quite simple. You simply call or put on Bitcoin, input the amount you’re investing and the time frame over which you’re predicting, and choose the instruments you’re using.

How much can you earn?

Binary options can earn you a lot of money. You also stand to lose your entire investment. If the price goes beyond your target price when choosing a call option, you’ll get up to 85% ROI. If not, you’ll lose 100% of your investment.

This is the downside to binary options, with Bitcoin or any other trades. Instead of risking devaluation of your money, you’re risking it all. However, it is not as risky as trading on leverage, for example, with which you stand to lose more than you invested.

Get started now

Binary Options trading is simple, and can be accessed by beginners and experts alike. Trading on Bitcoin is as simple as any other currency or asset. This seems to be the future of trading, and it’s certainly worth a look.

Get trading binary options today. Be responsible, and you’ll be sure to reap what you sow.

Bitcoin trading and binary options

The dizzying growth in the cost of bitcoin over the last period made the current financial asset the most attractive and popular for investors. Today, all advanced users and financial literate people are trying to use the crypto currency as much as possible to generate income and save personal savings. However, the growth of quotations Bitcoin, despite the attractive moments, created financial obstacles for investors with minimal capital. Against this background, it is profitable to make profits on bitcoins become binary options. It was the bitcoin theme and binary options that we decided to dedicate this material to.

So, let’s consider the principles and advantages of classical investment of funds in the crypto currency and the profitable aspects of binary trading on the fluctuations of bitcoin. Today, the network offers many sites for direct purchases and sales of bitcoin, which offer many good prospects for investors. The main advantage of classical use of crypto-currencies in this format is the physical possession of the asset, the possibility of selling the asset at the most favorable prices, and the use of a financial instrument as a means of preserving capital. But at the same time, this format of investment activity is fraught with financial problems and certain risks.

– First, in order to obtain a sufficiently significant amount of profit, the investor needs a very large capital: the cost of one bitcoin coin fluctuates around 2500 USD, so we get a very high financial threshold for entering the process, which is not available to everyone today!

– Secondly, with a direct purchase of an asset, the profit will depend on the growth of its value. And given the rather wide range of volatility of quotations, which is demonstrated recently in the crypto currency market, it is possible with equal success here, how to earn serious capital, and get big losses. Thus, financial risks can completely level out the potential income of the investor.

As for binary options in this matter, this tool for investors offers the most optimal conditions for profit from fluctuations in the value of the crypto currency.

– Firstly, it does not require a large start-up capital, since the trader does not buy the asset in kind, but only uses the price movements for bitcoins. To make a profit, according to the financial conditions of the professional broker of binary options Binomo, work on the market can start with a capital of 10 USD. In addition, here the most important thing is cryptocurrencies, but only the direction of the movement of quotations. The investor receives a profit when confirming the trade forecast, regardless of the number of points of price movement.

– Secondly, a trader in binary trading receives a fixed indicator of the profitability of the option at a level of up to 83%. Thus, it is easy to calculate both the liquidity indicators of the trading position, and the level of risks and financial losses.

– Thirdly, the investor does not need to wait until the quotes of the asset grow to indicators that will bring a large amount of profit. And, as you know, with the action in the asset this period can be calculated in months. In binary trading, the term of work: 1 min. To 24 hours, which greatly simplifies the work of the investor and allows you to quickly earn the most minimal changes in the value of the asset.

And, of course, it’s worth mentioning about a simple mode of market valuation and generation of forecasts for binary options. In this case, traders can clearly determine the movement of quotations with the help of special indicators, which will affect the high financial performance.

To summarize, to find that the aggregate set of resources is a financial asset bitcoin and binary options.

“General Risk Warning: Binary options trading carry a high level of risk and can result in the loss of all your funds.”

Best Binary Options Brokers 2020:

    The Best Binary Options Broker 2020!
    Perfect For Beginners and Middle-Leveled Traders!
    Free Education.
    Free Demo Account.
    Get Your Sign-Up Bonus Now!


    Recommended Only For Experienced Traders!

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