As Bitcoin gains more and more popularity, there are activities added to the list of potential operations you can accomplish with bitcoins.
For example, if you find a trader who accepts bitcoins, you can make legal purchases, just like you would with any other form of currency. Or you can simply sell your bitcoins at an exchange.
If you’ve mined them, then you might be getting a nice profit and a return on your investment.
Another thing you can do is buy other altcoins and either wait for their price to go up before re-selling (thus making a profit) or use them in other operations. Bitcoins are also accepted in various online casinos so you can gamble with them.
Finally, you can use them to buy binary options and try to make a profit on the market.
As you can see, the possibilities are many and more and more people are getting on the Bitcoin bandwagon so there are even more goods and services on the way.
Bitcoin binary options are a relatively new concept that they’re gaining speed fast.
If you’re good at this sort of thing, you can make very good money (although there are still risks even to the best traders).
The whole concept of binary options is relatively simple – you select whether the price will up or down from the current value in predetermined time period. If you think that the price will go up, you buy a call option.
If you think the price will go down, you buy a put option. In case you’re right, you get the profit offered by the broker (standard is 70% of your investment but it may vary), but if you’re wrong you lose the entire investment.
Let’s illustrate this with an example. Let’s take gold as an underlying asset.
You believe that the price of gold will be higher in one minute than it is now, so you buy a call option for one minute at the price of 1 bitcoin.
In one minute, the price of gold is indeed higher so you will collect a profit (it doesn’t matter if it’s 1 cent higher or a few dollars – if it’s higher and you have a call option, you win).
The rate offered by the broker is 70% so you collect 0.7 bitcoin as a profit, plus your initial investment. You need to be warned, though – the fact that it’s so simple to trade binary options doesn’t mean that it’s easy.
You need to be right in your estimates more than 65% of the time if you want to profit (assuming you invest the same amount for wins and losses).
This is how bitcoin binary options trading works. You’re either right or you’re wrong.
There’s usually no middle ground (unless the price stays the same which rarely happens). You need to be able to read charts, make good predictions based on technical analysis and have a bit of luck because sometimes there are unforeseen consequences.
If you think you can deal with that, then find yourself a reputable broker and start trading.
You can check out UpDown, Beast Options and Satoshi Options. Make sure you read some additional information about the subject before you start trading and the brokers. Good luck!