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

“Announcing the first release of Bitcoin, a new electronic cash system that uses peer-to-peer network to prevent double-spending. It’s completely decentralized with no server or central authority…” Satoshi Nakamoto, announcing Bitcoin on SourceForge in 2009.

Today, cryptocurrencies diversified to include Bitcoins, Litecoins and Ethereum among others. Cryptocurrencies are available on 5 different trading tools namely, Classic Binary , FX/CFD , 60 Seconds , Long Term and TradeReplica. The methodology remains the same when trading cryptocurrencies as asset. Traders need to predict whether the price of the chosen cryptocurrency will move up or down during a specific time frame.

Unlike the other assets, cryptocurrencies are available 24/7. However their availability on the trading platform is limited to the trading tools specifics. Also, the value of cryptocurrencies is dependent on its global credence. For instance, decisions hindering its freedom of use will automatically affect its global price.

Concretely, to trade cryptocurrencies, traders should head to the trading platform, choose a trading tool and select the preferred cryptocurrency .


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.

Ethereum

Ethereum is another type of cryptocurrencies inclined towards the blockchain technologies and distributed computing platform offering a decentralized way of storing highly sensitive financial information. The cryptocurrency token, Ether, is supplied by Ethereum can be transferred between different accounts.

Dash

Dash, which was formerly known as the Darkcoin is a free peer-to-peer cryptocurrency and is among the most user-friendly ones used globally. It was released on January 18, 2014 as XCoin and 2 days later had over 1.9 million coined mined across the world. Its main advantage is its ability to offer instant and private transactions.

Try Cryptocurrency Trading now