Bitcoin is hailed as the “currency of the future” by the cryptocurrency experts. Interestingly, the impact of Bitcoin seems to be far-reaching beyond the mere digital currency sphere. BTC has already forayed into many major mainstream industries, including travel, tech etc. As of now, the most important crypto currency seems to have found its way into binary option trade sector as well.
- How is Bitcoin utilized in binary option trade?
A bunch of innovative and dynamic brokers have come up with two ways to entwine BTC with binary options. One is where Bitcoin is used as an Exchange Medium. The other one is where Bitcoin is being utilized as underlying asset.
- Bitcoin as Exchange Medium
In this case, traders will use Bitcoin to trade several underlying assets across financial markets. For example, traders may trade EUR/USD pair and predict on fall or rise on expiry of binary option. Now, if they are successful, they would be paid via Bitcoin- and not through the traditional currencies like Euro or US Dollar.
But, why would anybody choose to accept the new form of currency (read BTC) instead of the usual USD or Euro? Well, a major reason here is that the transaction cost in BTC is cheaper compared to other modes of payment online. Bitcoin is not regulated by any central authority and hence is free from service fees during transmission or receipt of payment. Just one thing, Bitcoin is a new and complex topic. So, if you want to traden lernen, you should gather a thorough understanding of the digital currency in the first place.
- Bitcoin as underlying asset
In this case, Bitcoin is deployed in binary option trade sector as a major underlying asset itself. However, Bitcoin is infamous for its dramatic volatility. So, before you make any prediction on Bitcoin, you must get an extensive study on its past performance and also the expert projections on its future performance.