Where to Buy Bitcoins
Some of you may have heard about the Bitcoins craze and wondered what it was all about. Then of course there are those who may have heard about Bitcoins, and began to wonder where to trade them for money or at least asked the question “how do I buy a bitcoin?”. Bitcoins is a special kind of digital currency which unlike other digital currencies out there, is actually being traded for real money based on its varying valuations on the exchanges where they are traded. It has become such an accepted form of currency that you can even buy gold with bitcoin.
So how does Bitcoin trading work? Bitcoins are traded as an asset on several digital exchanges. They are also traded as a binary options asset on the platforms of two traders.
Our focus in this article will be on the Bitcoin binary options platforms. However, it is essential that traders who will be trading Bitcoins as binary options assets also know the other digital exchanges where Bitcoins are bought and sold, so that it becomes easier to monitor price, know the order flows that will affect supply and demand, and also mine information that will help the Bitcoins binary asset trader to make informed trading decisions.
Bitcoin Exchanges
Bitcoin is bought and sold in several exchanges, and new ones keep coming up everyday. The following digital exchanges are where Bitcoins are bought and sold:
- MtGox
This site is one of the premier online platform for trading Bitcoins, as well as the second biggest exchange house for this digital currency. MtGox offers a multi-currency Bitcoin trading platform where traders can buy and sell Bitcoins in multiple currencies. There are no setup fees, and traders can signup for an account and start trading immediately. Bitcoins are bought and sold just like any other financial instrument. The Bitcoins platform of MtGox is open every single day of the week. Traders can also access charting information on the MtGox site using the MtGoxLive Graph feature. This feature provides price information on a daily chart, weekly chart and monthly chart. There are no technical tools on this platform.
- Bitfloor
Though this site is no longer operational, it is worth mentioning that Bitfloor used to be an online exchange for buying and selling Bitcoins. However, it was forced to close operations when a run on Bitcoins caused the price of the digital currency to plummet sometime in April 2013, forcing panic withdrawals that eventually forced the firm’s closure.
- BitBargain
This is a UK-based Bitcoins trading exchange which offers several payment options including domestic bank transfers. BitBargain uses an escrow system for the protection of buyers and sellers of Bitcoins.
- CoinBase
Powered by a $25million investment by venture capitalist Andreessen Horowitz, CoinBase is a platform for buying, selling and storing Bitcoins in the United States.
- BTC China
Founded by Bobby Lee, BTC China is the largest Bitcoin exchange in the world, fuelled by the massive numbers of Chinese citizens who trade Bitcoins on this platform. Even though Chinese regulators clamped down on the use of Bitcoins for e-commerce and also banned Bitcoins’ inter-convertibility with the Yuan, BTC China is still able to operate due to its customer verification practices that have kept out those with illicit funds from using their platforms. Since Chinese citizens are still allowed to trade Bitcoins, BTC China is still waxing strong.
Bitcoins Binary Options Platforms
In order to trade Bitcoins binary options platforms, traders will need access to several online resources. One of these resources is BitThis is an online resource that provides among other things, a comprehensive charting and data system for Bitcoins so that traders can know all that they need to know about the Bitcoins market and market activity on an up-to-the-minute basis. The charting system is web-based, offers lots of indicators and different time frames as well as a volume comparison pie chart.
The following binary options brokers offer trading on Bitcoins.
- TradeRush
TradeRush offers binary options trading in Bitcoins as BTC/USD asset. This implies that the value of Bitcoin is in an inversely related pairing with the US Dollar. Only the Up/Down contract can be traded on the BTC/USD asset.
- AnyOption
AnyOption has also added the Bitcoin/USD asset to its list of assets traded with the Up/Down binary options contract. The conditions for trading are just as is obtainable for any other asset. However, only two expiry times exist. The platform brings up an expiry time considered as the nearest one to the trader’s entry, as well as an end-of-day expiry time.
- BTCLevels
BTC Levels is the first binary options online platform dedicated solely to the trading of Bitcoins. The price quotation feeds are obtained from MtGox, underscoring the importance of knowing a little bit about the digital exchanges where Bitcoins are traded. An order book is featured, showing current demand levels for Bitcoins in the exchange house. News about Bitcoins are also featured, as well as expiry times for the bet. Payouts are determined on whether the asset ended as high-rate (above strike price) or low-rate (below strike price). Bets are only accepted at a minimum of 12 hours before expiry time.
Conclusion
With this information, traders should no longer be at a loss as to where they can trade Bitcoins be it as they are, or as binary options contracts.
