The advance of the crypto-currencies over the past years turned them into interesting investing instruments both for long-term trading solutions, and for speculative instruments. More and more brokers offer bitcoin (BTC) trading instruments as a solution to attract investors on their platform. In their turn, the investors look at these instruments as solutions either to protect themselves from the high volatility of the crypto-currencies or to make bitcoin gambling more interesting and to bet exactly on the volatility of this alternative currency.
Basically, there are a few steps to take if you are willing to bet on bitcoin. First of all, you need to select, carefully and after a bit of an investigation, the best broker that offers these types of instruments, and then you have to decide what is the best solution for you in terms of trading instruments. One popular solution is the BTC/USD binary options that can offer a safe investment opportunity and important ROI if traded correctly.
Safest BTC/USD binary option solution
In this respect, traders use this instrument in their bitcoin gambling, focusing exclusively on the price of the BTC. What is specific for binary options is the expiry date. Meaning the deadline for their bet. For example, if a trader believes the BTC/USD will go up from the current value by next month, and he buys a binary option that expires that next month, if the value do go up, he makes money.
The binary option is popular among traders specifically for the time frame it expires, which can go from under a minute (there are some brokers that offer 30 seconds options) up to several months. This wide variety of options can be, however, rather tricky. At the first glance, the system is simple – all you have to do is predict the BTC/USD value at a certain point in time, gamble on it and cash in the profit. Not so fast! The prediction is quite difficult to make and you need to have quite a few information to make an educated bet.
The must-do in binary option trading is acquiring information. And we are not talking about information on how to trade, but information on market trends. The traders need to make analyses of the market, to understand when the BTC/USD may go up or come down and take an informed decision. Some brokers or sites identified this need and even came up with products to help traders, namely signals that alert you on potential appreciation or depreciation of the BTC. Some better than others, of course, but it is up to you to decide how and if you use such signals to decide to put a bet on BTC/USD binary options.
Timing is key
Another “instrument” you need to master in your bitcoin gambling is the timing. Since the binary option comes with various expiry date, you need to understand which one works best for you. Meaning if you decide to make a bet on a short, medium or long expiry. With the short ones, you need to be very swift in decision and have the necessary amount of information to predict a one minute or so value of the BTC. The longer the expiry date, the more chances to place a correct bet. However, since they are, let’s say “safer”, the potential winnings are lower.
All in all, if you decide to use BTC/USD binary options, you need to have information on market trends, a good broker and a keen eye for details.