Crypto Binary Options
Crypto binary options are gaining momentum in the trading market, with many tokens reaching all-time highs in price and volume. Fortunately, binary options contracts are widely available on crypto platforms and can be traded in a variety of ways. If you want to start investing, read on as we explore what cryptocurrency binary options are, their pros and cons, plus the best online brokers.
Best Crypto Binary Options Brokers
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1Pocket Option50% Deposit Bonus
Ratings
$50$1MISABinary Options, Currencies, Commodities, Stocks, Indices, CryptosWeb, MT4, MT5Wire Transfer, Credit Card, Bitcoin Payments, Volet, Perfect Money, Visa, Mastercard, Debit Card, WebMoney, FasaPay, Ethereum Payments, Maestro, JetonCash, AirtelUSD -
2IQCent20% to 200% Deposit Bonus
Ratings
$250$0.011:500IFMRRCBinary Options, CFDs, Forex, Indices, Commodities, CryptoOnline Platform, TradingViewCredit Card, Debit Card, Wire Transfer, Bitcoin Payments, Ethereum Payments, Visa, MastercardUSD, EUR -
3CloseOption$10 Welcome Gift
Ratings
$5$1National Bank of GeorgiaBinary Options on Forex & CryptosOwnPayPal, WebMoney, Mastercard, Perfect Money, Wire Transfer, Bitcoin Payments, Ethereum PaymentsUSD -
4Videforex20% to 200% Deposit Bonus
Ratings
$250$0.011:500Binary Options, CFDs, Forex, Indices, Commodities, CryptoTradingViewSkrill, Perfect Money, Bitcoin Payments, Neteller, Credit Card, Visa, Mastercard, Ethereum PaymentsUSD, EUR, GBP, AUD, RUB -
5Binarium
Ratings
$5$1Forex, Stocks, CryptosOwnQIWI, Yandex Money, Bitcoin Payments, Neteller, WebMoney, Wire Transfer, Visa, Mastercard, Credit Card, Debit CardUSD, EUR, AUD, RUB -
6RaceOption20% - 200% Deposit Bonus
Ratings
$250$0.011:500Binary Options, CFDsTradingViewCredit Card, Debit Card, Bitcoin Payments, Neteller, Skrill, Perfect Money, Mastercard, Visa, Ethereum PaymentsUSD, EUR, GBP, AUD, RUB -
7BinaryCent20% - 200% deposit bonus
Ratings
$250$0.011:500VFSCCFDs, Forex, Stocks, Cryptos, Options, CommoditiesOwnVisa, Mastercard, Debit Card, Credit Card, Skrill, WebMoney, Neteller, Bitcoin Payments, Wire Transfer, Perfect Money, Ethereum PaymentsUSD -
8World Forex100% Deposit Bonus
Ratings
$10.01 Lots1:1000SVGFSAForex, CFD Stocks, Metals, Energies, Cryptos, Digital ContractsMT4, MT5Wire Transfer, Debit Card, Credit Card, Visa, Mastercard, Google Wallet, Apple Pay, Perfect Money, Bitcoin Payments, VoletUSD, EUR, RUB
This is why we think these brokers are the best in this category:
- Pocket Option - Pocket Option offers a modest crypto offering with 10+ digital currencies including Bitcoin and 65+ tokens if you deposit $1000. The integrated analytics feature in the platform is helpful for finding opportunities, while the daily signals service makes it straightforward to act on short-term crypto opportunities.
- IQCent - IQCent offers 17 crypto pairs through its proprietary terminal, including Bitcoin, Ethereum and Litecoin. Leverage on crypto CFDs is capped at 1:10, whilst binary options payouts vary by token but remain competitive. OTC assets, for example, pay out up to 95%.
- CloseOption - CloseOption traders can access high/low binary options on five major cryptos all paired with USD. Payouts of 40% are available due to digital assets' high market volatility, which compares well with rivals.
- Videforex - Traders can speculate on crypto prices in pairs with USD and CNY through binary options and CFDs. The range of digital currencies is fairly narrow vs alternatives but major tokens like Bitcoin are available.
- Binarium - Trade binary options on three Bitcoin pairs – BTC/USD, BTC/GBP and BTC/EUR – with flexible contract lengths. Simply bet whether the price of the asset will rise or fall.
- RaceOption - Trade popular crypto CFDs with leverage up to 1:30 and utilize convenient crypto funding in Bitcoin, Ethereum or other altcoins. You can also enjoy fully flexible, 24/7 crypto trading at home or on the go. Cryptos are paired with USD and CNY.
- BinaryCent - BinaryCent offers trading on a decent list of cryptocurrencies, including major tokens like Bitcoin. The broker also accepts crypto deposits and withdrawals, making it straightforward to fund, trade and manage your activities in digital currencies.
- World Forex - Traders can access CFDs on crypto assets through World Forex's dedicated W-CRYPTO accounts, which offer leveraged cryptocurrency trading with spreads from zero. We rate that you can trade on 10 cryptos paired with the USD and EUR, while crypto-crypto pairs are also available.
Pocket Option
"Pocket Option excels for its easy-to-use web platform which provides a best-in-class user experience for short-term binary traders. The $50 minimum deposit is also accessible for beginners while opening an account is really easy. Looking at the negatives, Pocket Option still trails alternatives in its market offering and regulatory credentials."
Jemma Grist, Reviewer
Pocket Option Quick Facts
Bonus Offer | 50% Deposit Bonus |
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Minimum Deposit | $50 |
Payout % | 92% |
Expiry Times | 5 seconds - 4 hours |
Copy Trading | Yes |
Platforms | Web, MT4, MT5 |
Instruments | Binary Options, Currencies, Commodities, Stocks, Indices, Cryptos |
Coins | BTC, ETH, BCH, LINK, AAVE, ALGO, TLM, ALPP, ANT, AVAX, AXS, BNB, ADA, CHZ, COMP, ATOM, DASH, MANA, DGB, DOGE, ENJ, EOS, FIL, GLMR, ILV, ICP, KAVA, LTC, MKR, MASK, MIOTA, XMR, ALICE, NEAR, NEO, NULS, OMG, DOT, MATIC, QTUM and many more |
Crypto Mining | No |
Auto Market Maker | No |
Crypto Spread | N/A |
Crypto Lending | No |
Crypto Staking | No |
Regulator | MISA |
Account Currencies | USD |
Pros
- The range of payment methods beats the majority of rivals, providing fast, secure and convenient deposits for traders in most countries
- Well-funded traders who deposit $1000+ can qualify for a 2%+ payout boost, more tradable assets and exclusive perks
- The MetaTrader platforms offer integrated analysis with helpful technical summaries for short-term traders
Cons
- You need to deposit $1000 to access the extended list of 250+ assets, otherwise just 130+ assets are available
- The maximum binary contract length of 4 hours is restrictive for longer-term trading strategies. Alternatives like Videforex offer binaries up to 1 month
- Despite offering competitive payouts up to 92%, binary brokers like IQCent offer higher returns up to 98% based on tests
IQCent
"IQCent will appeal to day traders looking for a straightforward binary options and CFD trading platform with low fees, a range of accounts, and copy trading. Getting started takes less than 1 minute and a $250 deposit. "
Jemma Grist, Reviewer
IQCent Quick Facts
Bonus Offer | 20% to 200% Deposit Bonus |
---|---|
Minimum Deposit | $250 |
Payout % | 98% |
Expiry Times | 5 seconds - 1 month |
Copy Trading | Yes |
Platforms | Online Platform, TradingView |
Instruments | Binary Options, CFDs, Forex, Indices, Commodities, Crypto |
Coins | BTC, ETH, LTC, ETC, DOGE, MATIC, QNT, SOL, XRP, USDT, XMR, BNB |
Crypto Mining | No |
Auto Market Maker | No |
Crypto Spread | Variable |
Crypto Lending | No |
Crypto Staking | No |
Regulator | IFMRRC |
Account Currencies | USD, EUR |
Pros
- Keen traders can take part in trading contests with cash prizes
- The broker's 24/7 customer support is fast and reliable, responding within 1 minute during tests
- The proprietary terminal offers TradingView-powered charts which deliver dozens of technical indicators and studies
Cons
- The broker is not overseen by a respected regulator, though this is common among binary options firms
- IQCent charges a punitive $10 monthly inactivity fee if you fail to place at least 1 trade per month
- IQCent trails binary brokers like Quotex with its narrow investment offering of around 100 assets with no stocks
CloseOption
"CloseOption is a good pick for traders seeking a user-friendly binary options platform with high payouts and joining bonuses."
Tobias Robinson, Reviewer
CloseOption Quick Facts
Bonus Offer | $10 Welcome Gift |
---|---|
Minimum Deposit | $5 |
Payout % | 95% |
Expiry Times | 30 seconds - 1 month |
Copy Trading | No |
Platforms | Own |
Instruments | Binary Options on Forex & Cryptos |
Coins | BTC, BCH, ETH, LTC, XBT |
Crypto Mining | No |
Auto Market Maker | No |
Crypto Spread | No fee - payouts approx. 40% (Copper) |
Crypto Lending | No |
Crypto Staking | No |
Regulator | National Bank of Georgia |
Account Currencies | USD |
Pros
- New traders can get started with a $5 minimum deposit
- Multiple global payment methods are available
- The user-friendly platform is compatible with most web browsers
Cons
- Binary options are only available on fiat and digital currencies
- CloseOption is not regulated by a well-regarded trading authority
- Clients need to deposit $50,000+ to qualify for the best payouts
Videforex
"Videforex will serve traders looking for a no-frills, easy-to-use platform to speculate on the direction of popular financial markets through binaries. With a sign-up process that takes a matter of minutes and a web-accessible platform, getting started is a breeze. "
William Berg, Reviewer
Videforex Quick Facts
Bonus Offer | 20% to 200% Deposit Bonus |
---|---|
Minimum Deposit | $250 |
Payout % | 98% |
Expiry Times | 5 seconds - 1 month |
Copy Trading | Yes |
Platforms | TradingView |
Instruments | Binary Options, CFDs, Forex, Indices, Commodities, Crypto |
Coins | BTC, ETH, QUANT, UNI, SOL, BNB, DOGE, XRP, XMR, MATIC, USDT |
Crypto Mining | No |
Auto Market Maker | No |
Crypto Spread | Floating |
Crypto Lending | No |
Crypto Staking | No |
Account Currencies | USD, EUR, GBP, AUD, RUB |
Pros
- Traders can earn up to 98% payouts on 100+ assets with the broker’s binary options, bringing it in line with competitors like IQCent.
- Videforex regularly runs trading contests, offering practice opportunities and cash prizes to beginners and experienced traders, with position sizes from just ¢0.01.
- Videforex is one of the few brokers with 24/7 multilingual video support, providing comprehensive assistance for active traders.
Cons
- The client terminal needs improvements based on our latest tests, sporting sometimes slow and unresponsive widgets which could dampen the experience for day traders.
- Videforex lacks authorization from a trusted regulator, meaning traders may receive little to zero safeguards like segregated client accounts.
- The absence of any educational tools is a serious drawback for newer traders who can find blogs, videos and live trading sessions at category leaders.
Binarium
"Binarium has been designed with simplicity in mind, featuring a fast, fully digital sign-up process and an intuitive platform and app with 4 chart types and 12 indicators. With binaries spanning 5 minutes to 3 months, it caters to short- and medium-term traders."
William Berg, Reviewer
Binarium Quick Facts
Minimum Deposit | $5 |
---|---|
Payout % | 80% |
Copy Trading | No |
Platforms | Own |
Instruments | Forex, Stocks, Cryptos |
Coins | BTC |
Crypto Mining | No |
Auto Market Maker | No |
Crypto Spread | N/A |
Crypto Lending | No |
Crypto Staking | No |
Account Currencies | USD, EUR, AUD, RUB |
Pros
- Binarium has the best education centre we’ve seen amongst binary options brands, complete with information on core topics like trading basics and account options, plus professional video guides to using the platform.
- Binarium claims to segregate client funds with EU banks, meaning traders’ money should not be misused and providing an important layer of protection, which is especially relevant given its offshore status.
- The $10,000 demo account, deposit-doubling welcome bonus, smooth sign-up, and 24/7 support make for an attractive onboarding experience.
Cons
- Payouts of up to 80% are on the low side of binary options platforms based on our evaluations, which may deter traders looking for the possible best returns, though you can get back up to 15% of losing trades.
- Despite being operational since 2012, Binarium is an unregulated broker with limited transparency on its website, raising safety concerns and potentially putting your capital at risk.
- Binarium has some way to go to match the investment offering of binary firms like Quotex, with a particularly weak selection of around 20 currencies and 3 cryptocurrencies.
RaceOption
"RaceOption will appeal to investors looking for a feature-rich binary options trading experience with regular contests, account-based perks, and copy trading. The catch is its unregulated status, with little to zero investor protections available based on our investigations."
William Berg, Reviewer
RaceOption Quick Facts
Bonus Offer | 20% - 200% Deposit Bonus |
---|---|
Minimum Deposit | $250 |
Payout % | 95% |
Expiry Times | 5 seconds - 30 days |
Copy Trading | Yes |
Platforms | TradingView |
Instruments | Binary Options, CFDs |
Coins | BTC |
Crypto Mining | No |
Auto Market Maker | No |
Crypto Spread | Variable |
Crypto Lending | No |
Crypto Staking | No |
Account Currencies | USD, EUR, GBP, AUD, RUB |
Pros
- Payouts on popular underlying assets like EUR/USD can reach 95%, beating out most alternatives based on our evaluations, and increasing potential returns, while the first 3 trades are risk-free in Silver and Gold accounts.
- RaceOption makes account funding a breeze with fee-free and near-instant deposits via bank cards and cryptos, plus guaranteed withdrawals processing within 1 hour.
- RaceOption is in the less than 1% of brokers that offers video chat, available 24/7 in multiple languages, although the knowledge of agents about trading and regulatory issues needs improvement from our direct experience.
Cons
- RaceOption is one of the only brokers not to offer a demo account, which when considered alongside the absence of education, makes this broker a poor choice for beginners.
- While still affordable for many retail investors, the $250 minimum deposit raises the entry barrier, especially compared to Deriv and World Forex who are designed for budget traders.
- RaceOption is an unregulated, high-risk broker that doesn’t provide investor compensation or legal recourse options should you run into trading or withdrawal issues.
BinaryCent
"Traders who want a reliable binary options broker with a streamlined platform and high payouts should try out BinaryCent."
Tobias Robinson, Reviewer
BinaryCent Quick Facts
Bonus Offer | 20% - 200% deposit bonus |
---|---|
Minimum Deposit | $250 |
Payout % | 95% |
Expiry Times | 5 seconds - 30 days |
Copy Trading | Yes |
Platforms | Own |
Instruments | CFDs, Forex, Stocks, Cryptos, Options, Commodities |
Coins | ZEC, XRP, XMR, SAN, OMG, LTC, BTC, IOT, ETH, ETC, EOS, DSH |
Crypto Mining | No |
Auto Market Maker | No |
Crypto Spread | N/A |
Crypto Lending | No |
Crypto Staking | No |
Regulator | VFSC |
Account Currencies | USD |
Pros
- Simple and straightforward proprietary platform for binary options trading
- Payouts up to 95% are higher than most competitors and increases profit potential
- Accepts a wide range of funding methods, including cryptos and e-wallets
Cons
- The $250 minimum deposit is higher than most binary options brokers
- Not overseen by any reputable regulator, raising risks and reducing customer protections
- Not available to traders based in the US
World Forex
"World Forex provides both highly leveraged CFDs and digital contracts, making this a good broker for clients who want flexible and rewarding ways to trade. The copy trading service will also appeal to newer traders."
Tobias Robinson, Reviewer
World Forex Quick Facts
Bonus Offer | 100% Deposit Bonus |
---|---|
Minimum Deposit | $1 |
Payout % | 100% |
Expiry Times | 1 minute - 7 days |
Copy Trading | Yes |
Platforms | MT4, MT5 |
Instruments | Forex, CFD Stocks, Metals, Energies, Cryptos, Digital Contracts |
Coins | BTC, DSH, LTC, ETH, ZEC, XRP, BCH, XMR, EOS, NEO |
Crypto Mining | No |
Auto Market Maker | No |
Crypto Lending | No |
Crypto Staking | No |
Regulator | SVGFSA |
Account Currencies | USD, EUR, RUB |
Pros
- VPS hosting
- STP/ECN technology
- A wide range of assets to trade, including via digital contracts
Cons
- Weak regulation
- No negative balance protection
- Withdrawal fees apply
What Are Crypto Binary Options?
Before making a crypto binary options trade, it’s important to understand what they are and how they work. Binary options trading involves speculating on the future price of an asset and placing a bet based on a ‘yes’ or ‘no’ outcome. A basic binary options contract requires setting a strike price either above (a call option) or below (a put option) on an asset. After a pre-determined expiry time elapses, the trader either wins his stake plus the profit or walks away with nothing.
Crypto binary options appeal to many traders because of their simplicity. Even without expert financial knowledge or grasp of trading jargon, these contracts are easy to comprehend. Compared to other forms of trading, capped losses will never exceed an investor’s stake and therefore offer a less punishing downside to an unsuccessful trade.
Many brokers offer crypto binary options contracts as well as other popular assets such as forex, commodities and indices.
Crypto Binary Options Contracts
Crypto binary options trading isn’t limited to just one type of contract. Some of the most popular variants include:
- Up/Down – As the simplest crypto binary options contract, traders speculate on how much the value of a coin may increase or decrease at the end of a set period.
- In/Out – This contract involves setting a price range with an upper and lower strike price. Traders then speculate on whether a cryptocurrency will finish within or outside of this range after the contract expires.
- Touch/Double Touch/No Touch – Traders predict whether a value will either touch or not touch a set price. Traders may favour these crypto binary options variants as they occur as soon a touch takes place (and therefore can close more quickly than other contracts).
- Ladder – The ladder binary options contract is unique in that it offers traders a scaling pay-out. In a ladder contract, traders set multiple levels for the price movement of a particular crypto asset after an expiry time. The lower ‘rungs’ on the ladder offer smaller returns, whilst the higher strike price generates greater profits.
Let’s take a look at an example of a traditional up/down crypto binary options trade, using the most popular token, Bitcoin, with a current value of $64,000. Let’s say that a crypto binary options broker or exchange offers a 40% return on a contract for Bitcoin to be worth $65,000 after 4 hours. A trader puts a $100 stake into the contract and will earn $40 on top of their returned $100 stake if the strike price is met. If not, the trader loses the $100 stake.
How Cryptocurrencies Work
Whilst it’s not essential for successful crypto binary options trading, having general knowledge of cryptocurrencies, can be helpful when formulating a trading strategy. The idea or purpose behind a particular coin will often have a strong effect on its value.
A cryptocurrency is a digital token, that, instead of being backed by reserves of gold or other physical assets, operates as a decentralised global currency. Most cryptocurrencies are exchanged peer-to-peer, with the price of traditional crypto tokens driven entirely by supply and demand. The first cryptocurrency to gain traction was Bitcoin, launched in 2009 and now accounting for around 40% of the total digital currency market cap.
Due to the lack of fundamentals in cryptocurrency, many traders regard coin values as reflecting a purer market. Crucially for crypto binary options trading, this also makes for a far more volatile market than traditional trading assets. Daily price movements of between 10% and 50% are not uncommon, even for high market cap coins. Binary options trading is perfectly suited to markets or assets with high volatility, and crypto certainly fits that bill.
Pros Of Crypto Binary Options
Here are some of the main advantages of crypto binary options trading:
- Round-The-Clock Trading – Unlike other binary options markets, cryptocurrency is available for trading 24/7. While stocks and shares, commodities and even forex have set regional trading hours, cryptocurrency exchanges run 24 hours a day, seven days a week. This is one of the biggest advantages of decentralised finance for binary options traders and a great reason to favour crypto.
- Greater Payouts Through Cryptocurrency – Some crypto binary options brokers offer contract stakes and payouts in cryptocurrency. For certain types of trade, this can potentially enhance profits or minimise losses. For example, if a trader places a successful call option on Bitcoin through BTC tokens, the rise in price that made the call option successful will mean that their profit is also worth more.
- A Volatile And High Volume Market – Over $100 billion in assets are regularly traded every day on the cryptocurrency markets, while daily swings in asset value can exceed 50%. Crypto market conditions make for an ideal binary options trading environment, with great rewards for traders who can predict significant price changes.
- Capped Losses Protect Traders – The downside of options trading on a highly volatile market is that quick and significant market fluctuations can easily make a serious dent in a trader’s finances. Choosing binary options trading when speculating on crypto protects traders from financial turmoil with capped and preset losses.
- An Abundance Of Choice – Cryptocurrency is unique in that hundreds of new assets are created daily. Leading brokers and exchanges frequently update their supported tokens, so clients have ample coins to choose from when trading crypto binary options.
- A Purer Market – As opposed to trading forex or stocks and shares, cryptocurrencies are free from fundamental influences. Tokens rely solely on supply and demand to determine a trading price. This can enhance the accuracy of technical analysis as well as heighten the volatility that binary options trading thrives in.
Cons Of Crypto Binary Options
Despite the numerous upsides of crypto binary options trading, there are some disadvantages to consider:
- Total Win Or Loss – Binary options trades are often referred to as all-or-nothing, due to their duality. Crypto is no exception to this rule. In crypto binary options, a near-miss of the strike price is worth absolutely nothing. In addition to this, there is no choice to close contracts early to take some profit or prevent total losses.
- Unpredictable Markets – While volatility is undoubtedly a positive and necessary condition for successful binary options trading, crypto markets are notoriously unpredictable. Due to the lack of fundamentals, asset prices can swing wildly in scenarios like a “pump and dump”, with reactionary trades compounding these movements.
- Capped Gains – While the capped losses of crypto binary options contracts will prevent a trader’s loss from exceeding their stake, the trade-off is that gains from successful trades are also limited. Crypto binary options only account for whether the strike price is met or not.
How To Start Trading Crypto Binary Options
If crypto binary options contracts sound like a great opportunity to generate potential profits, here is a guide to help get you started:
Choose A Crypto Binary Options Exchange
The first step for traders looking to start trading binary options is to decide on a platform from which to operate. There are several important aspects to consider when choosing a cryptocurrency broker or exchange. Here are a few of the most important:
- Trustworthy And Reliable – In addition to the safe-keeping of your funds and crypto assets, the best binary options brokers will be regulated, can demonstrate a strong track record, and are recommended by positive user reviews.
- Range Of Assets – The best crypto binary options platforms can offer up to 150 assets to choose from. Trading a variety of assets will allow investors to diversify their portfolios and execute a range of strategies.
- Binary Options Capability And Variants – While this may go without saying, make sure that a specific crypto broker offers binary options trading facilities. Not all jurisdictions allow binary options trading, so don’t forget to ensure this box is ticked before proceeding.
- Trading Platform And Software – An essential facilitator of successful crypto binary options trading is the platform and software a broker offers. Some crypto exchanges may offer a bespoke platform, whilst others may rely on third-party trading software. Traders should find a platform that feels intuitive and supports the graphing and trading tools needed.
- Minimum Deposit And Transaction Fees – Traders should take into account any minimum deposit limits or fees included in the broker’s terms. This may include charges applied to deposits or withdrawals from the platform.
Research The Crypto Market
While it is possible to make successful binary options trades without an in-depth knowledge of the crypto market, it is advisable for traders to first conduct some research on the coins they wish to trade.
This might include researching historical price patterns of coins and the market as a whole. Whilst past performance is not necessarily indicative of future results, traders can still use historical events, such as surges or crashes, to help make predictions as to what the market will do next.
Traders could also analyse the various ecosystems and philosophies of the different coins, as well as their original purpose at the point of introduction into the market. Knowing which coins have significant future ambitions and demand is crucial when judging future value.
With that said, it’s also important to keep on top of hype, news and updates surrounding a particular coin. You can often gauge market sentiment by following social media, news sites and even celebrity endorsements that may affect the crypto market.
Opening A Crypto Binary Options Contract
Once you have selected your preferred broker and conducted your research into the crypto market, it’s time to open a binary options contract. After creating an account with a crypto exchange and choosing your target asset, here are your next steps:
- Deposit your funds via bank transfer, credit/debit card, or an available online payment method. Some exchanges also allow traders to deposit via cryptocurrency.
- Select your preferred crypto token to trade and choose the binary options contract you wish to open. If you’re a beginner, you may wish to opt for a simple up/down trade to begin with.
- Set your strike price and expiry time, ensuring that you are balancing risk and reward. Typically, greater odds are offered on contracts with longer expiry times and higher price movements. However, it’s important to research other factors that may affect your crypto binary options contract.
- Now you can stake your contract. This will depend on the capital and risk tolerance of each trader, however, it is advised that you do not stake any more than 2% of your capital in any single trade.
- Wait until your contract expires and discover whether you have made a profit.
Tips & Considerations
- Regional Differences – Some jurisdictions limit or ban crypto binary options trading for their residents. In the US, an exchange-based system offers traders binary options odds instead of individual brokers, but some platforms are licensed to provide binary crypto options contracts to US residents too.
- Taxation – Some countries such as the UK currently consider binary options trading as gambling and therefore not liable to taxation. Other jurisdictions may require binary options traders to declare their earnings for tax. Due to this, before you start trading, it is worth researching or seeking advice to ascertain whether you’ll be exempt from tax.
- Demo Account – For traders who wish to practice crypto binary options before staking real funds, many brokers provide demo accounts. These demo accounts allow investors to trade virtual funds to test out binary options contracts on the crypto market.
- Sign-Up Bonuses – Many binary options brokers offer new customers a sign-up bonus for opening an account on their platform. These bonuses may come in the form of ‘no deposit’ or ‘deposit match’ bonuses and give traders the chance to increase their trading capital.
Final Word On Crypto Binary Options
Crypto binary options are an appealing form of derivative for many traders, due to their simplicity, capped risk, round-the-clock trading opportunities, and sizeable volatility. As the market continues to grow exponentially, binary options trading on cryptocurrencies can be potentially profitable. Choosing a top platform is imperative, as the best crypto binary options brokers and exchanges will offer a wider variety of coins, plus lower fees and more advanced technical tools.
FAQs
When Can I Trade Crypto Binary Options?
An advantage of trading crypto binary options is that, unlike other binary options markets, cryptocurrency is traded 24 hours a day, seven days a week. This accessibility means that traders have greater opportunities for placing crypto binary options contracts, as well as more freedom when setting expiry times.
Can I Trade Bitcoin Binary Options?
Bitcoin is just one of the many crypto tokens available for binary options trading, with some platforms offering contracts on over 150 different coins. While some traders may be more comfortable with binary options trading on major coins like Bitcoin, Ethereum and Solana, many successful trading strategies involve the often greater volatility of the smaller market cap altcoins.
Do I Have To Pay Tax On Crypto Binary Options Earnings?
Whether a trader has to pay tax on their crypto binary options earnings will differ depending on their jurisdiction. Some countries consider binary options trading as gambling and therefore exempt from taxes. Other jurisdictions require traders to declare and pay tax on profit, so it is worth checking your local tax laws.
Can I Make Money From Crypto Binary Options?
Traders can potentially profit from crypto binary options trading, with many brokers offering over 90% returns on some contracts. However, whether a trader is successful at binary options trading depends on a variety of factors and can of course come with inherent risk.
Can I Automate Crypto Binary Options Trading?
Many traders utilise algorithms to automate crypto binary options. Using automation means faster contract creation, round-the-clock market monitoring and immunity from emotional trading. Preconfigured bots can be purchased by traders, while those familiar with programming may opt to create their own.