Cryptocurrency Trading

Cryptocurrencies are the latest digital currencies used worldwide & cryptocurrency trading has become increasingly popular in binary options. Its usage spread across the world thanks to its cryptographic security. With no guarding entity such as central banks and other organizations, this asset is virtually unaffected by any type of interference from governments or big consortiums.

Cryptocurrency Trading in Binary Options

To understand how cryptocurrency trading works in binary options, it is important to firstly understand their meaning. Cryptocurrencies
were created by an unknown group or individual commonly named as Satoshi Nakamoto. It quickly gained popularity and became a
predominant trading asset among traders.

cryptocurrency trading in binary options

Today, cryptocurrencies diversified to include Bitcoins, Litecoins and Ethereum among others. These are available on our trading platform under our FX/CFD trading tool. In fact, cryptocurrencies are traded in the form of CFDs and requires a certain skillsets from traders. Let us go through the main differences.


Unlike the other assets, cryptocurrencies can be traded 24/7 hence providing greater opportunities to traders to trade even in the weekends. Also, the value of cryptocurrencies is dependent on how its global credence. Decisions hindering its freedom of use will automatically affect its global price.


Concretely, to trade cryptocurrencies, traders should head to FX/CFD trading tool and select Forex, CFDs or Currencies. These will retrieve the list of cryptocurrencies available on our platform.

Why trade cryptocurrencies?

Greater volatility

Cryptocurrencies come with their own set of risks and operate in a free market. Unlike other assets, cryptocurrencies recover faster from a down movement and provide greater trading opportunities to traders.

Accessibility

Bitcoins and Litecoins are among the most valuable assets in the world. Since it’s creation, cryptocurrencies experienced a surge leading to big companies willing to buy them.

24/7 Trading

Cryptocurrencies come with their own set of risks and operate in a free market. Unlike other assets, cryptocurrencies recover faster from a down movement and provide greater trading opportunities to traders.

Factors affecting cryptocurrencies trading

1. Demand & Supply

Demand for cryptocurrencies can’t be virtually created. The demand and supply are affected mainly by positive news triggering interest of traders to buy cryptocurrencies such as Bitcoins virtually. Back in 2015, the price of Bitcoin rose following a ruling from the European Court of Justice upon the VAT deeming cryptocurrencies as a currency and not as a commodity. The fluctuation resulted in a hike in the demand for Bitcoin and ultimately a rise in its market price.

2. News related to mining and dedicated exchanges

News that affects cryptocurrencies are mostly related to mining and dedicated financial exchanges. For example, a Ghash.io which is a mining pool started to gain market share, holding a 51% share of Bitcoin mining. This led to an increase in the demand for Bitcoins buying by large consortium fearing a monopoly from the iconic mining pool. Also, traders are encouraged to monitor the correlation between the different cryptocurrencies that exists.

3. Government interference

Similar to other currencies, cryptocurrencies are affected by global economic news to some degree. However, unlike normal currencies, cryptocurrencies are affected mainly by its global credence. Any attempt to hinder its free market price will eventually lead to a hike in its demand and hence its supply.

Popular cryptocurrencies to trade

Bitcoins

Bitcoins are among the most purchased and traded cryptocurrencies in the world. In fact, it was the first decentralized digital currency that was made available. Bitcoins can be kept within a digital wallet with a private key. Bitcoins are available in a free market.

Litecoins

Litecoin was released by Charlie Lee, a former Google employee, back in 2011. Litecoin reached $1 billion market value in 2013. Unlike Bitcoin, Litecoins process blocks of its value every 2.5 minutes.

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