CryptoIndex For Binary Options
Internet technologies are not standing still and new promising developments are regularly appearing. The main trend for the last few years has been binary options and cryptocurrencies. This article will be devoted to analyzing this topic in the context of earning money. It will cover both theory and practice.
Cryptocurrencies in a nutshell
Everyone has heard of Bitcoin, you can even hear about it on television. However, not everyone has a real idea of what it is. Let’s consider this issue briefly and to the point. So, Bitcoin is a fundamentally new payment tool, and it has a number of advantages in comparison with classic electronic systems for transferring money.
The distinctive features of Blockchain technology:
- Bitcoin is based on a decentralized structure (Blockchain) that does not have key nodes – it consists of tens of thousands of computers and servers connected to a single network. This increases the level of security and provides fault tolerance, along with independence from state and other regulatory bodies.
- The system allows you to process any amount of data in a minimum amount of time. In the Blockchain structure, you can easily transfer several billion dollars in just a few minutes, paying a purely symbolic commission for this. A classic bank transfer in this situation would take at least 3 days.
- The number of Bitcoins is limited as they are not produced by a “dollar printing machine” but as a result of complex mathematical calculations requiring large computer power. This nuance ensures cryptocurrencies a great future for the coming decades. There are numerous discussions about a likely transition to a digital economy.
CryptoIndex – what is it and what is it served with?
The Binomo binary options broker offers its clients three trading assets from the category of cryptocurrencies: BTC (Bitcoin), LTC (Litecoin), and CRYPTO IDX (CryptoIndex). The first two do not need any further introduction. The CryptoIndex is a new asset from Binomo which shows the average price index of four popular cryptocurrencies: Bitcoin, Litecoin, Ethereum, and ZCash.
The advantages of the Binomo CryptoIndex:
1. A smoothed line chart on which all techniques of technical analysis work perfectly. There are no sharp price jumps against expectations, which can be typical for currency pairs due to key economic news releases and other fundamental factors.
2. A high percentage of profits – up to 83% of the investment.
3. Round-the-clock availability. You can trade on any day of the week, including holidays and weekends. The percentage of profit does not decrease at night.
4. Ideal for turbo options. The chart retains the correct structure at small time intervals.
The picture above shows a visual comparison of two charts with the same timeframe (5 seconds). In the first case (BTC), it is practically unusable for technical analysis, and with the CryptoIndex, the situation is quite acceptable – all candles are of a regular shape, without gaps or breaks. It is also worth mentioning that for the BTC/USD and LTC/USD pairs, Binomo often sets a very low percentage of profit – around 15%. Therefore, it is unprofitable from all points of view to trade cryptocurrencies on a broker platform in their pure form.
A CRYPTO IDX earning strategy
The system is based on the use of two moving averages with different period settings. So, in the Binomo terminal you need to add two Moving Average lines. One of them must have the standard settings (50), and the period of the second should be equal to 12. To make it more convenient, the fast indicator can be colored yellow.
Rules for entering the market:
1. Option “Up”. The price moves from the fast line to the slow one and pushes it from its position from the bottom upwards. The signal to open the trade is the closing of the candle above the red moving average.
2. Option “Down”. The yellow line (period 12) is above the red line (period 50), and the price pushes the long moving average from its position from the top downwards. The transaction should be opened immediately after the closing of the candle below the MA.
An example of real trading on a strategy
The desired asset is selected on the Bimono terminal, and two Moving Average lines with the required period settings are added to the chart. A timeframe of 15 seconds is enough to get accurate signals and it saves time as well, because the duration of one transaction is only 60 seconds.
The price goes from the yellow line towards the red moving average and breaks through it. This is the signal to open a trade – an option “Up” is purchased for one minute.
After 60 seconds the price of the asset continues to increase on the chart; accordingly, the operation closes with a profit. The strategy makes it possible to earn almost $8 in just one minute, and you only need to strictly follow the rules of the trading system.