How To Buy Bitcoins On Binary Options?
Digital coins are no longer a new trading asset in the arsenal of many brokerage companies. Buying options with cryptocurrencies is as easy as with other assets (traditional currencies, indices, commodities, stocks). For beginners we should explain that buying a binary option suggests specifying the price direction of the asset by the trader after the expiration date (for more details on trading in binary options go here). Today we will talk about the principle of making a decision on the dynamics of quotations of the asset BTC/USD.
As we know, Bitcoin is the first and most famous cryptocurrency. One of the main reasons for its popularity is volatility, which makes it possible to get high earnings. It’s clear that the more volatile an asset, the more opportunities for profit the trader will have. Constant jumps, understandable and, on the contrary, inexplicable changes in the value of crypto assets (passing from one extreme to another), a sharp rise and fall in prices – all of this can both alarm some investors and help other market participants who skillfully manage the digital currency and get a fabulous earnings on it (learn here how to make money on cryptocurrencies).
The volatility of Bitcoin is higher than conventional currencies and gold. The increase in its value is affected by a soar in the number of coins, a jump in demand, external factors, for example, fiscal policy, geopolitical crises, media publications, traders’ actions who massively buy or sell digital coins. On the contrary, such negative moments as the closure of Chinese crypto exchanges, hacking of trading platforms lead to a decrease in the value of digital coins. However, this striking volatility and uncertainty of the dynamics of the exchange rate can also bring serious losses to market participants. As a rule, it’s not easy to forecast the crypto asset’s further dynamics and you can’t be assured what is going to take place next in the market – the growth or fall in its value. If you fail to track its value in time and assess the actual mood of the market you’re bound to lose your money.
Today, binary trading using Bitcoin is popular and it brings decent earnings (learn here whether crypto assets are a scam). However, when buying a game using digital coins, during the transaction users can be unpleasantly shocked by a suddenly rocketing value of the crypto asset. Sure, that’s totally inconvenient and unprofitable. Therefore, although the number of deals with Bitcoin has been growing for recent years (the number of Bitcoin-wallets has increased, trading volumes have hit all possible highs), some experienced investors are skeptical about the cryptocurrency and they stay away from trading in this specific asset. However, many market players skillfully adapt to such an enormous instability of crypto values. They simply wait for the right moments, properly use binary indicators and certainly earn a decent income.
Indicators for Bitcoin trading
It’s very convenient and profitable to buy a Bitcoin binary option, as its price isn’t subject to the influence of external market factors. So, volatility due to the news background isn’t a threat at all, while market forecasts can be made quite qualitatively, using reliable indicators. Despite the popular view that Bitcoin doesn’t have much graphic information on the dynamics of its value and therefore technical analysis won’t help here, however, it’s not entirely true. That’s a short-sighted opinion as all market trends can be tracked using the basic trading tools.
The technical analysis is fully applicable for Bitcoin trading. It enables to determine the mood of the market with the help of maximum and minimum prices. Indicators give an opportunity to rapidly respond to market changes and get a decent profit from it. Among the acceptable methods of technical analysis of the market we should mention graphical elements, patterns, candlestick analysis, trade statistics, which is available to users on crypto exchanges (a book of orders, trading volumes).
For those who like high-speed and long-term trade, Bitcoin offers great opportunities to earn money on the growth or fall of its value. Such popular instruments as Stochastic, Bollinger Bands, RSI, MACD, etc., can provide you with fairly accurate data on the mood of the market. So, with the help of MACD, it’s very easy to track the signals of divergence (divergence) of the price chart and the indicator chart, which indicates the fastest reversal for the sale of options:
The fact that technical analysis successfully helps to trade the BTC/USD pair is clearly illustrated in the following situation when the Parabolic SAR indicator is added to the price chart, which perfectly demonstrates market trends:
Using information on the volume of trading you can find out the total number of traded currencies in the market, which passed from hand to hand on the basis of executed orders. The volume indicator that emerged during the price reaching a certain level is a strong signal to start trading in anticipation of the price dynamics in the right direction:
Today, a large number of participants in the binary trade market successfully apply technical analysis to forecast trends. Keeping in mind that the dynamics of exchange rates is also created by investors who trade a large amount of digital coins, you can use corresponding indicators to spot the very beginning of a new trend and place your relevant orders.
The price of the cryptocurrency depends on such fundamental things as supply and demand. So your task is to determine the mood in the market relative to the asset. We advise you to follow our tips and use the service described below for crypto trading.
The choice of the broker and the rules of buying options with Bitcoin
It’s not easy to find a broker who would guarantee you honesty and responsibility for your funds. You need to read a lot of reviews about brokers, compare the ratings of authoritative sources and find a company whose trading conditions will be suitable for you. Binarium is a company that meets all the necessary requirements, standards and it’s popular with investors. You’d better work on its trading platform:
Now let’s talk about a service that will allow you to receive accurate signals for trading. Follow the link below:
This service conveniently shows the day’s highest and lowest price:
The graph shows that:
- You can opt for the UP bid if the price goes to the level of 16200.
- You can opt for the DOWN bid if the price goes to the level of 17364.
As you see, it’s very easy to determine the price highs and lows using this service. It will help you to determine the future direction of the asset price.
When the price is in the middle, you’d better stay away from trading!
You’re welcome to buy binary options with the Binarium broker. You can count on convenient trading conditions, high-quality service and customer support.