Understanding Why Bitcoin Is Gaining Popularity in the Binary Options Trading
Now binary options trading brokers also allow you to fund your accounts by using Bitcoins. Bitcoin is a form of digital money, which defers quite remarkably from the other conventional currencies like the dollar and the pound.
Some of the main highlights of Bitcoins are:
- It uses peer-to-peer technology, and is not controlled by any central authorities. The transactions are carried out collectively among the involved parties and the network, without any intervention from the central banks. It is free from any kind of interferences or manipulations by the governments, since it is totally decentralized.
- It is solely a digital form of currency, and you cannot replace them with their physical form. However, you can quickly exchange them for dollars anytime you like.
- The top cap of issuing Bitcoins is limited to 21 millions, which is an average of just 25 coins being mined for every 10 minutes. The pace of mining has slowed down even more in the last 2 years.
- Bitcoins has limitations in acceptance, because they are not universally accepted at all stores. However, the prospect of acceptance does look better with its growing popularity. This cryptocurrency has come a long way since its introduction in 2009.
- Bitcoins are a bit more complex to understand when compared to the conventional currencies like dollars. Therefore, you will need to gain some technical knowledge about them, especially before using them for online trading
- One of the drawbacks of Bitcoins is that the transactions will generally take around 10 minutes to complete, which is unlike the regular currencies where the transactions can be completed immediately. Also, the transactions are irreversible, and the refunding can be done only if the recipient agrees to do so.
- Bitcoin allows you to make transactions in an anonymous manner, because you will not have to give your name or address. Like mentioned above, it works with the peer-to-peer system.
Before buying Bitcoins, you will need to install the Bitcoin wallet, on your smartphone or computer. In addition to computer and mobile wallets, you can go for the online wallet too. Each wallet will have a specific address code. For each transaction, 2 pair of keys (public and private) will be generated. This encryption system is very secure.
The Bitcoin balance of each account is public, which means anyone can know about the balance of a particular wallet. However, you will still stay anonymous, because you don't have to give your name or private information for doing transactions.
These days many of the Forex and binary options trading brokers has started accepting Bitcoin as one of the currencies. You can buy and sell it against regular currencies like dollars and pounds.
Bitcoins for binary options trading:
The prices on the Bitcoin chart keep changing according to the supply and demand ratio. In addition to trading on the price fluctuations of this cryptocurrency, you can also use it as a mode of payment for purchasing other currencies too.
However, it is very important for you to choose a reliable binary options broker who allows you to use Bitcoins as one of their accepted currencies. You can check out the broker reviews on the rating sites, before choosing the right platforms for binary options trading.
Source by Mohammed Abdul Nadeem