DeFi Binary Options
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The rise of decentralized finance, or DeFi, has led to one of the biggest shifts in modern investing, giving traders an opportunity to use a neutral financing system that operates on a peer-to-peer basis without an intermediary body like a bank. Now, with the introduction of DeFi binary options, traders have the chance to make money from one of the most straightforward derivatives without going through a traditional brokerage.
This user guide will explain how DeFi and binary options work together, the benefits of trading DeFi binary options, and tips on how to get started. We have also reviewed and ranked the best binary options brokers and apps that offer DeFi trading.
Top DeFi Binary Options Brokers
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1Pocket Option50% Deposit Bonus
Ratings
$50$1MISABinary Options, Currencies, Commodities, Stocks, Indices, CryptosWeb, MT4, MT5Wire Transfer, Credit Card, Bitcoin Payments, Volet, Perfect Money, Visa, Mastercard, Debit Card, WebMoney, FasaPay, Ethereum Payments, Maestro, JetonCashUSD -
2IQCent20% to 200% Deposit Bonus
Ratings
$250$0.011:500IFMRRCBinary Options, CFDs, Forex, Indices, Commodities, CryptoOnline Platform, TradingViewCredit Card, Debit Card, Wire Transfer, Bitcoin Payments, Ethereum Payments, Visa, MastercardUSD, EUR -
3CloseOption$10 Welcome Gift
$5$1National Bank of GeorgiaBinary Options on Forex & CryptosOwnPayPal, WebMoney, Mastercard, Perfect Money, Wire Transfer, Bitcoin Payments, Ethereum PaymentsUSD -
4Videforex20% to 200% Deposit Bonus
$250$0.011:500Binary Options, CFDs, Forex, Indices, Commodities, CryptoTradingViewSkrill, Perfect Money, Bitcoin Payments, Neteller, Credit Card, Visa, Mastercard, Ethereum PaymentsUSD, EUR, GBP, AUD, RUB -
5Binarium
$5$1Forex, Stocks, CryptosOwnQIWI, Yandex Money, Bitcoin Payments, Neteller, WebMoney, Wire Transfer, Visa, Mastercard, Credit Card, Debit CardUSD, EUR, AUD, RUB -
6RaceOption20% - 200% Deposit Bonus
$250$0.011:500Binary Options, CFDsTradingViewCredit Card, Debit Card, Bitcoin Payments, Neteller, Skrill, Perfect Money, Mastercard, Visa, Ethereum PaymentsUSD, EUR, GBP, AUD, RUB -
7BinaryCent20% - 200% deposit bonus
$250$0.011:500VFSCCFDs, Forex, Stocks, Cryptos, Options, CommoditiesOwnVisa, Mastercard, Debit Card, Credit Card, Skrill, WebMoney, Neteller, Bitcoin Payments, Wire Transfer, Perfect Money, Ethereum PaymentsUSD -
8World Forex100% Deposit Bonus
$10.01 Lots1:1000SVGFSAForex, CFD Stocks, Metals, Energies, Cryptos, Digital ContractsMT4, MT5Wire Transfer, Debit Card, Credit Card, Visa, Mastercard, Google Wallet, Apple Pay, Perfect Money, Bitcoin Payments, VoletUSD, EUR, RUB
Here is a summary of why we recommend these brokers:
- Pocket Option - Pocket Option offers a modest crypto offering with 10+ digital currencies including Bitcoin and 65+ tokens if you deposit $1000. The integrated analytics feature in the platform is helpful for finding opportunities, while the daily signals service makes it straightforward to act on short-term crypto opportunities.
- IQCent - IQCent offers 17 crypto pairs through its proprietary terminal, including Bitcoin, Ethereum and Litecoin. Leverage on crypto CFDs is capped at 1:10, whilst binary options payouts vary by token but remain competitive. OTC assets, for example, pay out up to 95%.
- CloseOption - CloseOption traders can access high/low binary options on five major cryptos all paired with USD. Payouts of 40% are available due to digital assets' high market volatility, which compares well with rivals.
- Videforex - Traders can speculate on crypto prices in pairs with USD and CNY through binary options and CFDs. The range of digital currencies is fairly narrow vs alternatives but major tokens like Bitcoin are available.
- Binarium - Trade binary options on three Bitcoin pairs – BTC/USD, BTC/GBP and BTC/EUR – with flexible contract lengths. Simply bet whether the price of the asset will rise or fall.
- RaceOption - Trade popular crypto CFDs with leverage up to 1:30 and utilize convenient crypto funding in Bitcoin, Ethereum or other altcoins. You can also enjoy fully flexible, 24/7 crypto trading at home or on the go. Cryptos are paired with USD and CNY.
- BinaryCent - BinaryCent offers trading on a decent list of cryptocurrencies, including major tokens like Bitcoin. The broker also accepts crypto deposits and withdrawals, making it straightforward to fund, trade and manage your activities in digital currencies.
- World Forex - Traders can access CFDs on crypto assets through World Forex's dedicated W-CRYPTO accounts, which offer leveraged cryptocurrency trading with spreads from zero. We rate that you can trade on 10 cryptos paired with the USD and EUR, while crypto-crypto pairs are also available.
Pocket Option
"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."
Jemma Grist, Reviewer
Pocket Option Quick Facts
Bonus Offer | 50% Deposit Bonus |
---|---|
Minimum Deposit | $50 |
Payout % | 92% |
Expiry Times | 5 seconds - 4 hours |
Copy Trading | Yes |
Platforms | Web, MT4, MT5 |
Instruments | Binary Options, Currencies, Commodities, Stocks, Indices, Cryptos |
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 |
Account Currencies | USD |
Pros
- Well-funded traders who deposit $1000+ can qualify for a 2%+ payout boost, more tradable assets and exclusive perks
- The web platform shines for its straightforward design and usability that will appeal to beginners looking to speculate on popular financial markets in a few clicks
- Extremely fast and smooth sign-up process that takes less than 2 minutes
Cons
- Despite offering competitive payouts up to 92%, binary brokers like IQCent offer higher returns up to 98% based on tests
- The MISA is a weak regulator with limited investor protection for retail traders
- Pocket Option offers a slimmed down iteration of the MT4 and MT5 that doesn't provide the full charting package for advanced traders
IQCent
"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. "
Jemma Grist, Reviewer
IQCent Quick Facts
Bonus Offer | 20% to 200% Deposit Bonus |
---|---|
Minimum Deposit | $250 |
Payout % | 98% |
Expiry Times | 5 seconds - 1 month |
Copy Trading | Yes |
Platforms | Online Platform, TradingView |
Instruments | Binary Options, CFDs, Forex, Indices, Commodities, 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 |
Account Currencies | USD, EUR |
Pros
- The broker offers up to 98% payouts on binary options, which is more than alternatives like Pocket Option, only offering up to 92%
- The broker's 24/7 customer support is fast and reliable, responding within 1 minute during tests
- Keen traders can take part in trading contests with cash prizes
Cons
- IQCent charges a punitive $10 monthly inactivity fee if you fail to place at least 1 trade per month
- IQCent trails binary brokers like Quotex with its narrow investment offering of around 100 assets with no stocks
- The broker is not overseen by a respected regulator, though this is common among binary options firms
CloseOption
"CloseOption is a good pick for traders seeking a user-friendly binary options platform with high payouts and joining bonuses."
Tobias Robinson, Reviewer
CloseOption Quick Facts
Bonus Offer | $10 Welcome Gift |
---|---|
Minimum Deposit | $5 |
Payout % | 95% |
Expiry Times | 30 seconds - 1 month |
Copy Trading | No |
Platforms | Own |
Instruments | Binary Options on Forex & Cryptos |
Coins | BTC, BCH, ETH, LTC, XBT |
Crypto Mining | No |
Auto Market Maker | No |
Crypto Spread | No fee - payouts approx. 40% (Copper) |
Crypto Lending | No |
Crypto Staking | No |
Regulator | National Bank of Georgia |
Account Currencies | USD |
Pros
- Multiple global payment methods are available
- The user-friendly platform is compatible with most web browsers
- New traders can get started with a $5 minimum deposit
Cons
- Binary options are only available on fiat and digital currencies
- Clients need to deposit $50,000+ to qualify for the best payouts
- CloseOption is not regulated by a well-regarded trading authority
Videforex
"Newer traders will find a lot to enjoy about trading binary options on Videforex's easy-to-use proprietary platform, as well as the broker's copy trading solution. Payouts also remain higher than most alternatives climbing to 98%."
William Berg, Reviewer
Videforex Quick Facts
Bonus Offer | 20% to 200% Deposit Bonus |
---|---|
Minimum Deposit | $250 |
Payout % | 98% |
Expiry Times | 5 seconds - 1 month |
Copy Trading | Yes |
Platforms | TradingView |
Instruments | Binary Options, CFDs, Forex, Indices, Commodities, Crypto |
Coins | BTC, ETH, QUANT, UNI, SOL, BNB, DOGE, XRP, XMR, MATIC, USDT |
Crypto Mining | No |
Auto Market Maker | No |
Crypto Spread | Floating |
Crypto Lending | No |
Crypto Staking | No |
Account Currencies | USD, EUR, GBP, AUD, RUB |
Pros
- Global clients can make free and fast transfers via a wide range of payment types, from credit cards to cryptocurrencies
- Videforex allows you to enter positions with just ¢0.01
- Traders can earn up to 98% payouts on 100+ assets with the broker’s binary options, which is in line with competing brands like IQCent
Cons
- US clients aren’t accepted due to legal restrictions
- The broker isn’t overseen by a trusted regulatory agency
- No MetaTrader 4 integration
Binarium
"Binarium is a good binary options broker for traders looking for an experienced brand with low deposit requirements and a welcome bonus."
William Berg, Reviewer
Binarium Quick Facts
Minimum Deposit | $5 |
---|---|
Payout % | 80 |
Copy Trading | No |
Platforms | Own |
Instruments | Forex, Stocks, Cryptos |
Coins | BTC |
Crypto Mining | No |
Auto Market Maker | No |
Crypto Spread | N/A |
Crypto Lending | No |
Crypto Staking | No |
Account Currencies | USD, EUR, AUD, RUB |
Pros
- Enhanced educational features
- Flexible payment methods and account currencies, including support for crypto payments
- Low minimum deposit requirements
Cons
- Unregulated
- No industry established trading terminals
- Limited information on broker’s website
RaceOption
"RaceOption will appeal to traders new to binary options looking for copy trading, contests and 24/7 customer support. Experienced traders will also appreciate the account-based perks and bonuses."
William Berg, Reviewer
RaceOption Quick Facts
Bonus Offer | 20% - 200% Deposit Bonus |
---|---|
Minimum Deposit | $250 |
Payout % | 95% |
Expiry Times | 5 seconds - 30 days |
Copy Trading | Yes |
Platforms | TradingView |
Instruments | Binary Options, CFDs |
Coins | BTC |
Crypto Mining | No |
Auto Market Maker | No |
Crypto Spread | Floating |
Crypto Lending | No |
Crypto Staking | No |
Account Currencies | USD, EUR, GBP, AUD, RUB |
Pros
- Flexible weekend trading available plus 24/7 multilingual customer support
- Beginner-friendly copy trading opportunities in the broker's proprietary trading platform
- Sign-up bonuses from 20%, plus weekly trading contests and prize giveaways
Cons
- Limited educational resources
- Withdrawal thresholds apply
- No free demo account
BinaryCent
"Traders who want a reliable binary options broker with a streamlined platform and high payouts should try out BinaryCent."
Tobias Robinson, Reviewer
BinaryCent Quick Facts
Bonus Offer | 20% - 200% deposit bonus |
---|---|
Minimum Deposit | $250 |
Payout % | 95% |
Expiry Times | 5 seconds - 30 days |
Copy Trading | Yes |
Platforms | Own |
Instruments | CFDs, Forex, Stocks, Cryptos, Options, Commodities |
Coins | ZEC, XRP, XMR, SAN, OMG, LTC, BTC, IOT, ETH, ETC, EOS, DSH |
Crypto Mining | No |
Auto Market Maker | No |
Crypto Spread | N/A |
Crypto Lending | No |
Crypto Staking | No |
Regulator | VFSC |
Account Currencies | USD |
Pros
- Copy trading and binary options bots are useful for beginner traders
- Payouts up to 95% are higher than most competitors and increases profit potential
- Trade binary contracts from $0.10 allowing trading opportunities for all budgets
Cons
- Not available to traders based in the US
- The $250 minimum deposit is higher than most binary options brokers
- Not overseen by any reputable regulator, raising risks and reducing customer protections
World Forex
"World Forex provides both highly leveraged CFDs and digital contracts, making this a good broker for clients who want flexible and rewarding ways to trade. The copy trading service will also appeal to newer traders."
Tobias Robinson, Reviewer
World Forex Quick Facts
Bonus Offer | 100% Deposit Bonus |
---|---|
Minimum Deposit | $1 |
Payout % | 100% |
Expiry Times | 1 minute - 7 days |
Copy Trading | Yes |
Platforms | MT4, MT5 |
Instruments | Forex, CFD Stocks, Metals, Energies, Cryptos, Digital Contracts |
Coins | BTC, DSH, LTC, ETH, ZEC, XRP, BCH, XMR, EOS, NEO |
Crypto Mining | No |
Auto Market Maker | No |
Crypto Lending | No |
Crypto Staking | No |
Regulator | SVGFSA |
Account Currencies | USD, EUR, RUB |
Pros
- VPS hosting
- Several different account types with varied pricing structures
- A wide range of assets to trade, including via digital contracts
Cons
- Withdrawal fees apply
- Weak regulation
- No negative balance protection
DeFi Binary Options 101
DeFi binary options are a type of derivative that asks the trader a simple, yes/no question: Will a digital asset’s price rise or fall by the end of the contract? If the trader answers this question correctly, they will make money, if not, they will lose it. This makes binary options in DeFi straightforward to understand and use, hence their popularity with traders.
When a trader opens a DeFI binary options contract with an online broker or platform, they will choose the asset/token they wish to trade, the amount of money they wish to put down as a stake, and the contract’s expiry time. Finally, they will decide whether they are long on the asset, and predict that it will increase in value, or if they are short and think its price will fall.
The payout for binary options in DeFi varies among brokers and among different assets, but it is common to find trading platforms offering payouts equivalent to 90% of the contract price. This means that a successful trader with a $100 binary options contract will receive the $100 stake back plus $90 in profit. An unsuccessful trader loses their entire $100 stake.
![Understanding DeFi binary options](https://www.daytrading.com/wp-content/uploads/2022/10/DeFi-Binary-Options-Brokers.jpg)
Understanding DeFi
Decentralized finance, also known as DeFi, is a financial system that works through blockchain technology allowing for faster transactions and giving widespread access to financial products and instruments on a peer-to-peer basis without going through any middlemen.
Banks, brokerages and other financial institutions which are regulated by bodies such as the US regulator, the SEC, all exist in a system of centralized finance. The state-sanctioned regulatory bodies are responsible for making the rules by which these systems must abide. In centralized finance, the third party facilitates payment to a user but often charges some kind of fee for using the service, such as a credit card fee.
Decentralized finance, on the other hand, makes use of exchanges between peers and takes out the function of the intermediary body. This frees users from transaction fees and gives them a secure and fast way to transfer money using an internet connection. Therefore, centralized finance is no longer necessary because, in theory, anyone in the world can make a transaction using DeFi with increased control and anonymity.
DeFi use cases leverage the same blockchain technology brought to widespread attention by cryptocurrencies like Bitcoin. A blockchain is a secure ledger of transactions that can be verified by peers, not a third-party financial system. When two parties verify a transaction, the current block is encrypted and a new one is made with information about the previous one. By far the most commonly used blockchain for DeFi transactions is Ethereum. As a result, many of the top DeFi binary options brokers offer contracts on Ether.
DeFi Assets For Binary Options Trading
The assets available for DeFi binary options trading depend on the platform that you choose. Primarily, DeFi is used for trading digital currencies, so tokens like Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Matic (MATIC), Uniswap (UNI), and Litecoin (LTC) are available. In addition, some brokers offer stablecoins like Tether (USDT), plus NFTs. Firms may also provide access to Play to Earn (P2E) services, which also use DeFi infrastructure.
It’s also worth pointing out that the best DeFi binary options brokers, such as Spectre, offer a wide range of tradable assets from digital assets to traditional stocks, commodities or forex.
Benefits Of DeFi Binary Options
Binary options in DeFi are easy to understand for beginner traders. Users simply need to decide if the price of BTC, for example, will rise or fall over a set period. Investors can also speculate on popular digital assets across a range of expiries, from 60-second turbos to binaries that span several days.
Another primary advantage of decentralized finance is that it offers lower fees than traditional banking solutions. The aim of DeFi is to utilize a peer-to-peer model to allow everyone to make transactions at a minimal cost, if any.
The transaction times are also faster using DeFi binary options platforms than many other payment solutions, which is an advantage to traders looking to deposit and withdraw funds via digital currencies instantly.
Getting Started With DeFi Binary Options
Find A Platform
When choosing where to trade DeFi binary options, there are a few top brokers that will give you the best experience. In many ways, this makes the process of choosing a platform easier than with traditional trading instruments – these brands stand out against the rest and therefore are the best options to choose from.
The top firms also offer automated bots on MT4, books, courses and calculators, strategy hacks, staking, definitions of key DeFi terms, and more. It is also worth checking the brand’s downloadable platform provides rich market data, free withdrawals, user-friendly graphs and indicators, plus the latest digital asset news and insights, along with trading ideas and signals.
Note, DeFi binary options brokers often don’t have strict KYC requirements at the sign-up and login stage.
Develop A Strategy
The next important step is to develop an OTC 1-minute or 5-minutes volume strategy, for example, for trading DeFi binary options. This particular aspect of DeFi binary options is, for the most part, the same as traditional binary options, so take the time to educate yourself and build a strategy that works for you.
We recommend practicing binary options strategies on a demo account before you use real funds to minimize potential losses.
How To Start
Getting started with DeFi binary options is simple. Begin by checking multiple websites for different DeFi exchanges and see what they offer and what kinds of contracts will be available to you in the USA, Australia or Germany, for example. Once you choose from a list of brokers, you can set up an account and enter your details.
Once signed up, you need to deposit funds, often in the Ethereum network’s native token Ether (ETH), and once this has been done you can begin buying binaries.
Ensure you have enough ETH or digital currency in your account to make trades and remember you need to have the entire stake available for each trade. Once this is done, you can begin trading DeFi binary options.
Tips For Trading DeFi Binaries
Below are some of our top tips for trading binary options in DeFi:
- Avoid scams and frauds by ensuring that you are using a trustworthy and reputable platform; this will help to keep your funds safe. You can check local regulations and requirements or look at a watchdog’s blacklist to steer clear of problem companies with insecure wallets or misleading no deposit bonuses.
- Never invest more than you can afford to lose, and always ensure that you are aware of the risks before you begin trading.
- Ensure you study the digital asset’s charts and historical performance before you open a contract, so that you have a better idea of how your trade will unfold without finding out when it’s too late.
- There is always risk involved in making investments, so ensure you make educated decisions based on an informed DeFi binary options trading strategy.
Are DeFi Binary Options Good Or Bad?
Binary options on DeFi are one of the most flexible trading choices out there and can bring large yields to switched-on traders. While trading derivatives on DeFi is still relatively new, it does pose advantages to traders such as faster transaction times and fewer intermediary fees.
The idea behind decentralized finance is to create a more secure environment for individuals and traders, but this doesn’t mean you shouldn’t be cautious – be wary of where you are placing your funds and always do your research beforehand. Use our list of the best DeFi binary options brokers and trading platforms to get started.
FAQs
What Are DeFi Binary Options?
DeFi binary options involve a contract between a trader and a broker in which a bet is placed on whether the price of a digital asset, such as Bitcoin, will rise or fall. Payouts typically range from 70% to 95%+. The top DeFi binary options websites offer opportunities on leading digital currencies by market cap, plus stablecoins.
Are DeFi Binary Options Only Available On Crypto?
While DeFi binary options are mostly known for trading on cryptocurrencies as underlying assets, the sector is growing all the time, and NFTs and Play-to-Earn (P2E) solutions may become available. Halal trading products are also available, along with binaries that can be used to hedge an index, for example.
Can You Make Money From DeFi Binary Options?
Yes, decentralized binary trading works on the same principles as standard trading. Therefore, you can make money from trading binary options in the same way, but often with reduced fees and faster transaction times. For crypto investors, DeFi binaries allow traders to finance and execute trades on digital assets using tokens like Bitcoin.
Are DeFi Binary Options Safe?
Trading DeFi binaries comes with the same security questions as traditional binary options trading, in that you need to ensure you are investing through a platform that is reliable and trustworthy. It is also important to use a tried and tested strategy, alongside an effective risk and money management system.