How to Trade Bitcoins on Binary Option Platforms
In this article, we will look at the binary options trading process on two binary options platforms: (1) BTC Levels and (2) Hello Binary.
This will give traders an idea as to what they will encounter on both trading platforms when they eventually decide to trade the Bitcoins/USD asset.
BTC Levels
BTC Levels is one of the binary options brokers that offer Bitcoins as a binary options asset. Indeed, BTC Levels operates uniquely by offering Bitcoins as the only asset traded on its online platform. BTC Levels pulls its market data from Mt. Gox, the 2nd largest Bitcoins exchange in the world.
The Platform
Here is an overview of the BTC Levels platform so we can give you a heads up when it comes to using BTC Levels to trade Bitcoins as binary options:
Expiry times: BTC Levels offers just one expiry time for its Bitcoins trades: a daily expiry. All trades are taken before 1300GMT, and whatever time you place a trade before 1300 hrs GMT, your trade will have 24 hours to either be in the money or out of the money.
Trade Type: Only one trade type is available, and this is based on whether the Bitcoins asset will end up higher or lower than the entry price (market price). These outcomes are therefore “above the line” or “below the line”. This is illustrated below:
There is no return of the trader’s funds if the price ends at breakeven point, because the trade can only end as the asset being above the line, or below the line.
In other words, if the Bitcoins asset ends “on the line”, the trade will end up on the losing side.
The value of the trade on expiry is calculated using the last known price feed from the Mt Gox exchange.
Payouts: The payout structure gives out the profits from successful trades as a percentage of the invested amount. This is usually indicated just before the trader enters the market.
Technical Analysis: An online interactive chart is presented on the BTC Levels trading interface. The time periods for which charts are available are 5 minutes, 1 hour, 3 hours, one day and one week. The chart to be selected will depend on whether the trader is a scalper, a day trader or a long term swing trader.
Hello Binary Platform
Hello Binary is represented here by one of its turnkey white label partners known as Xpert Market. Hello Binary recently adopted Bitcoin trading as the Bitcoin/USD asset. XpertMarket offers Bitcoin/USD as an Above/Below contract, with the strike price at market rate. The platform looks like this:
The expiry times start off from one week. There are other expiry times listed and these are one month and six week expiry times. Obviously the brokerage does not want to suffer hits from the extreme price volatility of Bitcoins at the present time.
The payout for the Bitcoin/USD option is 73%. This percentage is reduced if the trader opts for a loss return percentage not exceeding 10%. Other trade conditions are similar to what is obtainable on conventional turnkey binary options platforms.
Disclaimer: the regulatory status of both brokers mentioned in this article is still uncertain. This article is therefore just for informational purposes, and given the recent volatility in Bitcoins trading, traders are advised to do all due diligence before committing real money. This piece is purely for educational purposes only.
