Traders Union analysts notet that almost every trading platform offers at least three types of assets: bitcoin (BTC), litecoin (LTC) and etherium (ETH). The electronic money market is now at about the same point in its development as forex in the early 2000s: it is interesting for investors and is constantly growing in volume. Therefore, binary options on cryptocurrency are one of the promising areas of online earning. Traders Union experts told about the best ways to trade binary options.
How to trade binary options on cryptocurrency
Binary trading is a less well-known way to generate income than mining crypto. But it is also less risky than long-term investments: buying coins to sell them later when the price is high. What is required from a trader when trading BO:
- Select an asset. https://tradersunion.com/brokers/binary/view/quotex/
- Determine where the price will be at the end of the expiry period.
- To open a deal “Above” or “Below”.
- If the forecast is successful, make a profit.
- If long-term investments in crypto is a strategy, which is stretched in time and will probably bring profit only in several years, on binary options you can get income in a minute.
- be sure to trade on a trusted platform, for example Quotex, as one of the good options.
Bitcoin is the first and most popular blockchain-based currency. It appeared back in 2009. Since its appearance, bitcoin has gone through several times of rapid growth and decline, but it is still interesting for investors and shows a growing trend. On trading platforms, BTC is paired with the dollar, litecoin as well as ethereum. Bitcoin is a currency with strong volatility, which makes its movements not always easy to predict.
Litecoin is one of the best-known alternatives to bitcoin. The advantage of the coin is that it is easier to mine, but it is also times cheaper. In terms of capitalization, Litecoin is now the 12th largest cryptocurrency. The creator of LTC is former Google employee Charlie Lee. The coin was very popular at the end of 2017, when it was worth over $300. The price now ranges from $45 to $75 and quotes lend themselves well to technical analysis. LTC/USD and BTC/LTC pairs are available for binary and forex trading.
Ethereum is the second most capitalised currency. It appeared in 2015 and reached its highest level of popularity in early 2018. It is now trading at around $300, and is trending upwards. The asset is paired with either the dollar or bitcoin for trading on BO. Like other cryptocurrencies, the coin reacts strongly to news. For example, when untrue information emerged online in 2017 about the death of the asset’s creator, Vitalik Buterin, the exchange rate went down sharply.
According to Traders Union some brokers also provide market quotes for Dash and Ripple.