Binary Options Trading: How are Crypto Traders & Exchanges reaping profits?

[sirty143]

Cryptocurrencies are the term that has imprinted in every single industry. Be it Banking, Finance, Agriculture or any other, cryptos are becoming the most popular modes of payment in the world.

With this rise, the trading platforms are also becoming increasingly prevalent to assist the traders. There have been a huge set of features in White label services such as IEO Module, Security Token listing, Margin Trading, Liquidity API, Atomic Swaps, etc.

Yet another futuristic feature in the current Bitcoin exchanges is the Binary trading platform. This guide provides you with a clear perception of Binary Trading Options in the exchanges.

Binary Trading Options: What are they?

Binary Trading Options is a form of trading in which you predict if the price of Bitcoin will rise or fall in a certain amount of time. If your prediction is right, you will get a high amount of payoff. If in case you are incorrect, you will lose your investment.

Each option will have an expiry date within which you need to decide. If your prediction comes right, you can find “In the money”. Else, you will find “Out of the money”. It also has a specific payoff when you win.

Since the trader needs to choose between these two options, it is rightly termed as “Binary Options Trading”. This feature is more common in Cryptocurrency exchanges.

An Example of Binary Trading Options:

For instance, let us consider the price of Bitcoin to be $6500 at 10 AM. To perform this, you predict the price to be higher on January 6, 2019, at 5 PM. Hence, you make a “Call” option. If in case the Bitcoin price is higher than $6500 at 4 PM, you will receive a payout of around 73% of the investment. Else, you will lose.

In the same way, if you predict the price to go down, you can opt for a “Put” option. Similarly, if the price gets lower at 4 PM, you will earn Payout for your investment.

I’m a newbie. How can I make use of Binary Trading Options?

Most of the newbies have started using Binary Trading Options. However, it has both Advantages and Disadvantages:

The Binary Trading Options allows the traders to bid the price of cryptocurrencies that lack huge capital. You don’t need an extended and well-researched knowledge about the price and the domain. A little awareness can help you with perfect prediction. The payout can reach up to 88% of ROI.

On the flip side, the invested amount can also be lost if the prediction goes wrong. It has been said that a trader needs to win at least around 50% to gain payout. Since there is volatility associated with Cryptocurrencies.

Moreover, Binary Trading Options are becoming addictive with industries like Gambling. Regardless of how knowledgeable you are, it is impossible to predict the price within a short time frame.

Popular crypto exchanges like Nadex have already introduced Binary trading options on their platform.

Growth of Binary Trading Options:

This feature has become open to the traders right after the SEC approval in the year 2008. Earlier, only banks, institutional investors or high worthy individuals were making use of this. Following the SEC was the American Stock Exchange and CBOE offered Binary option feature for their traders.

Once the traditional markets have started accepting them, cryptocurrency exchanges too adopted them. Slowly and steadily the frequency of Binary Options Trading and the improvement in the Bitcoin Exchange Script that now allows online and mobile app trading.

How to do Binary Trading Options work?

Binary Options Trading exchanges are no longer used for trading of digital assets or virtual currencies. But are profited based on forecast and predictions in the crypto market.

The major task for the traders is to close the trading during a specified amount of time. If the prediction gets right, the trader can get up to 90% of the returns. If the prediction goes wrong, the complete investment is lost.

With what kind of trading speed, the trader can regulate themselves on a certain duration for the Binary Options Trading. However, it can fluctuate in the range of 60 seconds to 2 hours. The algorithm framed for this feature does the following. The difference between the profit and loss when trading the binary option comes with an average of 15%.

These strategies vary with most of the formats and approaches. The majority of them are structured based on legal & economic regulations of the country. But this strategy is not applicable for inexperienced traders since a well-knowledged individual is needed here.

The solution to getting out of the problem is indicator strategies. This means that analyze the market and deliver predictions applicable to automatic market indicator recognition programs.

The trading statistics for this strategy have proven great success results of around 80–90%. This means that even a small loss won’t affect the participant’s final results.

With this, the trading systems can produce higher results. But with specific knowledge of the trading process and a basic understanding of how they work. Thus, it is important to grasp the intricacies of Binary Options trading before getting started.

Once you have gained a complete perception of them, you can expand your profits, stable results and effective trading options. As a trader, you should have both practical and theoretical skills.

Why Binary Options Trading can be beneficial as a trader?

This best-in-class feature is a straightforward and innovative approach for the traders who wish to engage with various asset markets with risk prevalence and reward before trading. They can be used for speculations but with hedge risks involved in it.

American options are more ideal since they allow traders to exit their position before the expiration of the contract. On the other hand, some of the binary outlets across the globe haven’t still regulated them.

In addition to this, Binary options also allow investors to access to all types of cryptocurrencies and digital assets. Most of the traders have started to begin their trading career with Binary Options Trading.

You can also expect returns even when you lose. To help reduce the risk and make binary options trading more appealing, many brokers offer a small return on money invested in a losing bet. You won’t be losing 100% of investment instead you will receive at least 5–10% of payouts.

But the thing is you need to choose the top-notch Binary Options Trading broker. These brokers accept the deposit of cryptos gives a yield for trading. You can deposit and trade a huge range of crypto assets.

Here are some of the advantages of the Binary Options Trading brokers:

 * Regulated and licensed companies

 * Fully tested and honest reviews

 * Trade a wide range of cryptos and assets

 * Multi-Lingual

 * Easy to deposit and withdrawal cryptocurrencies

Know the Downsides as well:

Regulation of Binary outlets isn’t regulated especially with the United States. This featured-exchange has been banned in Israel and the European Union for retail traders and has extended the ban.

Though the regulations are tightened, these Binary Options Trading are still risky. Since it involves security and digital assets, they can be highly volatile.

If in case there are regulated exchange brokers, you need to go with the reputed and well-versed in Cryptocurrency exchange development.

Building a Binary Options Trading Platform:

On the other hand, there is a huge set of entrepreneurs who are interested in starting a Binary Options Trading Platform. As this feature has become the most popular one among the traders, creating such a thing can be a huge benefit.

You can initially adopt White label services, in this case, to instantly develop one. Else developing from scratch can also be profitable but will require a great set of time. Decide between the two and choose the one which will perfectly suit you!

Coming to the cost, it will be reasonable. Since you aren’t going to embed plenty of features here, the pricing will be affordable. The only thing you need to do is to choose a best-in-class Cryptocurrency Exchange Development company for this.

You can check for their expertise, a similar set of products developed, the team involved, the brands they have worked with, etc. Recently one of the popular startup called BitSwing has launched a completely decentralized Binary Options Trading on Ethereum.

It is expected that most of the giants would start making their own Binary Options Trading platform to bring in a huge set of benefits. Green signals are over this feature and can be expected in the future. If you are an entrepreneur, you launching a Binary options trading platform can be profitable.

Final Thoughts

As a trader, trading with Binary options will consist of both advantages and disadvantages. Anyhow, unlike most of the investment machines, it renders returns more than 70%. You can purely focus on the market and its working to perform them effectively! As a proprietor of the exchange platform, you will get profits for every transaction happening on the platform. I hope I have explained to you the basics of Binary Options Trading.


SOURCE: medium.com

[TomPluz]

I am considering binary trading to be more of a gambling and though there can be some people whoa re really good at predicting the direction of the price of an asset at a specific time frame, many also lost most especially those newbies who are attracted by the classy and easy going advertisements put up by binary platforms especially in social media. I am not recommending binary trading to anyone except maybe those who have already studied the strategies and techniques to gain good profits in here.

[FlamioCryptoNews]

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