For a volatile asset, like bitcoin lately is, binary options provide an easy way to manage your exposure and emotions. As your losses are limited it is less likely that you will make impulse trades that are not in-line with your plan. In fact, it is easier to have a proper trading plan with binaries in the first place.
How? This article will guide you through it in 4 simple steps!
Let’s begin with a quick look at the factors that could fuel a new up-trend in the cryptocurrency! The Bullish Case for Bitcoin
Bitcoin enjoyed a great run-up since the end of August; the price has risen from around $200 to as high as $450 in early November. Although since then the market experienced a correction back to $300, BTC looks to hold that all-important level. $300 is the upper barrier of the trading range where bitcoin consolidated after its steep decline in 2014. Now that it has broken out of the range decisively, the technical picture looks promising. Building a binary options position in bitcoin
Binary options only require you to guess the direction of the price of the given asset from the current level. Looking at the technical evidence and the obviously positive fundamental background, BTC is a clear bullish candidate. Now you only need to figure out the optimal strike price and expiration date to get you going.
But before that you will need a binary broker to give you access to these products!
Step 1: Selecting a broker
The factors that you should consider when selecting your broker are the following: Reliability—the history of the broker Payout Ratio—determines your profit Commissions and Fees—the cost of trading Trading Platform—you should feel comfortable with the platform There are numerous options out there but as it is a […]
