How to Trade Cryptocurrencies With Binary Options?

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Cryptocurrency binary trading has taken precedence these days because of its appeal and simple trading options.

Without any prior knowledge, one can delve into crypto binary trading with ease. As a result, you don't have to be a financial expert to figure out whether your assets are profitable or not.

However, a trader ought to be familiar with a few things before starting afresh in binary trading options.

As the name suggests, a binary trade has two outcomes: win or lose. You either win your amount and earn a profit or end up having nothing at all after the trade expires.

For a binary options trade to work, you need to have the right assets

And one viable asset is a cryptocurrency, which has taken the world by storm in this digital trading market. You can find out more about why and how you can trade cryptos using binary options.

Reasons to trade Cryptocurrency via binary options

Cryptocurrency is the most preferred medium of transaction these days. Being a digital token, one can exchange it for various services.

How to Trade Cryptocurrencies With Binary Options

What's more, these digital tokens have become popular for global trading and an essential asset for investment.

With advanced technology, cryptocurrency is the next avenue for global digital trading. Here is why you need to start looking into cryptos in the first place:

Lower transaction fees

Unlike real money and its hefty hidden prices, cryptocurrencies have nothing like that. With a minimum deposit, a credible crypto broker can exchange them for real money seamlessly.

In addition, there are no hidden costs involved upon conversion due to the anonymity attached to it.

Because of this direct communication, which you can't find with fiat money, a crypto broker can easily give you a simple way to change your cryptos at a lower cost.

Greater value

Cryptocurrencies' increased return is a major incentive for traders to use them in binary options transactions.

Moreover, it is a decentralized digital currency whose value is determined by market demand in relation to the US dollar. By making sure that all crypto transactions are clear, investors can reduce price swings and increase their returns.

24/7 trading

Another essential prospect of trading with cryptos using binary options is its accessibility.

247 trading

Crypto markets are open 24/7 for traders, unlike fiat money trading which isn’t available some days. Therefore, a trader can expect high payouts at any time of the day! 

Moreover, fast crypto trading bots can further streamline the process of cryptocurrency binary trading, executing trades automatically based on predefined parameters and market signals, enhancing efficiency and potentially increasing profitability for users.

Increased payouts

Higher demand for crypto means more chances of earning better returns on your crypto investments. The exchange rate may go up and down against the US dollar, so higher rates mean more profits

Additionally, cryptos can protect you from losses as they are usually capped at a certain threshold that does not let an investor's money go down the drain.

Decentralized currency

Cryptocurrencies have a decentralized financial system where a user or trader has little interference from third parties. Unlike a normal fiat currency system, crypto trading is end-to-end with no external authority overseeing the process.

A step-by-step guide to trading Cryptocurrency with binary options

Before diving into trading cryptos with binary options, you must first understand how binary contracts work. Here is what you need to know:

  • Up/Down: It is where a trader estimates if the value of crypto will go up or down within a given time frame.
  • In/Out: It specifies a 'boundary' or range. The speculation has to fall within the range, or "inside" or "outside" of the boundary.
  • Touch/No Touch: It is where a trader speculates if the price of crypto touches the benchmark or not. They are prone to closing more quickly as soon as touch happens, making it a favorable binary contract for cryptos.
  • Ladder: It allows investors to profit from a rise or fall in underlying crypto prices. In a ladder contract, buyers and sellers agree on a range of possible outcomes for the price of a cryptocurrency after the expiration date. The returns at the lower "rungs" on the ladder are lower, while the returns at the greater strike price are higher.

Next, you must do some relevant market research and find out where to find the best online binary options broker that gets you started. Check out some reviews and ratings of your selected brokers to see if they can show you better results.

It would be better if you look up YouTube and follow successful online traders to employ their techniques in your trading practices. They can guide you on how to do binary options trading and what are the do's and don'ts of the trade!

Choose a crypto broker

You must decide on a credible broker that provides you with trading in cryptocurrencies.

Do some market research and go for those that have some positive testimonials and credentials under their belt and can offer you higher returns on your crypto investments.

A good crypto broker caters to all kinds of investors, such as low-budget, and high-budget, and even offers demo accounts.

Select crypto tokens

Next, select crypto that is in demand.

Select crypto tokens

You can choose any of the following digital tokens as a means of investment:

  • Bitcoin (BTC)
  • Litecoin (LTC)
  • Ethereum
  • Tether
  • Dash
  • Monero
  • Ripple

Your choice of crypto must depend on the market demand for the said crypto. Once chosen, you can deposit the amount along with the chosen binary contract. A new trader can choose a simple Up/Down binary trading option.

Try demo account

A lot of popular online brokers give a new trader a chance to check out binary options trading for free.

They allow them to create a virtual account that requires no additional deposits with pre-assigned funds for you to work with

Moreover, one can find various tools and indices to use in trading simulations. These demo accounts reflect real-world market trends and trading, in general.

Determine the strike price and the expiry date

Next, you must set an expiration date with your broker. Typically, a crypto binary contract can have the following expiration terms:

  • Short-term: Lasts less than 5 minutes.
  • Normal: These can last longer than 5 minutes - for days or until the market closes.
  • Long-term: These can last for several weeks or maybe a year.

Contracts with longer expiration durations and more price fluctuations typically come with better chances.

Wait for results

Now place a wager on the contract. How much risk a trader is willing to take and how much money they have at their disposal are two key factors

You shouldn't risk more than 2% of your total account balance on any single deal. Wait until the end of your contract to find out if you made a profit.

Why binary options trading in Cryptos?

Unlike conventional trading, binary options have higher payouts and better results within several minutes!

Why binary options trading in Cryptos

Plus, it is easier to understand and needs a tiny bit of predictability on your part. Here is why you should start binary options trading this year:

  • Make Profit Easily: Whether a veteran investor or a novice, trading in cryptos can give you higher payouts! With a pre-determined expiry, you can expect to get a high rate of return if your prediction is correct! Moreover, binary options trading gives you a profit margin of about 80% to 95%.
  • Predictable Risk: A trader already knows beforehand the risks associated with binary options trading. Also, cryptos are highly versatile and always in demand in the trading market. Therefore, a trader already knows what they will get in return!
  • Simple Approach: Binary Options trading is simple to understand. Even if you have no knowledge, a good broker provides you with the basic knowledge and the tools you should incorporate into your trading. From analyzing previous data to assessing the size and volume of the assets, a broker gives you all the necessary information!
  • Manageable Assets: Unlike forex trading which requires selling your assets when the demand for the asset is high, binary options need no such hassle! Cryptos are always high in demand, therefore, you only need to predict the price of your asset (if it goes up or down) to make a good profit!
  • Fixed Contract: It is up to a trader when they want to close the trade. A good broker always gives you the option of quitting the trade when your predictions go awry. You will be asked to determine the expiry time prior to binary options trading in cryptos. Plus, brokers also give you guaranteed stop losses so that you have a minimum profit margin.

Key takeaways

A binary option is a type of trade in which there are only two possible outcomes: yes or no.

If yes, you will receive a predetermined payout. However, if the deal fails, you lose your whole investment. In a nutshell, they are a type of financial option with a guaranteed return. 

Many investors find binary crypto options attractive due to their relative ease of use, limited downside, accessibility, and substantial price swings

And binary options trading in cryptocurrencies has the potential to earn a profit as the market expands at an increasing rate.

About the author 

Peter Keszegh

Most people write this part in the third person but I won't. You're at the right place if you want to start or grow your online business. When I'm not busy scaling up my own or other people' businesses, you'll find me trying out new things and discovering new places. Connect with me on Facebook, just let me know how I can help.

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