Bitcoin has become very popular in recent years and many binary options brokers accept Bitcoin deposits and withdrawals. This page will show you exactly which are the best bitcoin binary options brokers.
What Is Bitcoin Exactly?
Bitcoin is the latest buzz rocking the financial world. It goes by many descriptions—cryptocurrency, decentralized digital currency, digital payment system, e-currency, et cetera.
In basic terms, it is a digital payment system and a digital asset like the US Dollar. You can buy product and services with Bitcoin, and you could speculate on the future value of Bitcoin on a trading platform.
These properties pit Bitcoin against traditional currencies. The response to this brawl has been volatile. Even as adoption rate of Bitcoin rises, the value of Bitcoin has gone through several booms and busts in its short history—Bitcoin was introduced in 2009 by Satoshi Nakamoto.
Regardless, from all indications, Bitcoin is here to stay and expectedly, is already leaving its mark on the progressive Binary Options industry.
Types of Bitcoin Binary Options Brokers
The term Bitcoin Binary Options Brokers can refer to either of two groups of Binary Options Brokers:
- Binary Options Brokers that accept the use of Bitcoin for deposits and withdrawals; or
- Binary Options Brokers that have Bitcoin options as one of the numerous assets (like Gold, Oil, Facebook stock) that clients can to trade
Typically, more reputable brokers fall into the second category as support for Bitcoin’s use as a payment system is thin in the Binary Options trading community.
Best Bitcoin Binary Options Brokers
FinpariYear Founded: 2014
Minimum Deposit: $250
Minimum Tradable Amount: $1
Payout Rate: Up to 90%
Number of Assets: 100+
Accepts US Traders: Yes
Finpari is one of the fastest growing Binary Options Brokers currently. Their top appeal is the support of multiple payment methods, some of the fastest withdrawals in the industry; responsive support, and a feature-packed trading platform.
Clients can get their funds out of Finpari within one hour after confirmation for multiple payment methods including Bitcoin. Deposits and withdrawals in Bitcoin have no fees.
In addition to supporting Bitcoin as a payment system, Finpari allows its clients to trade Bitcoin options effortlessly. You get expiry times of as low as 60 seconds with a payout rate of up to 90%.
Finpari offers three distinct account types.
- Bronze Account: $250 to $999
- Silver Account: $1,000 to $2,999
- Gold Account: $3,000 to $50,000
Perks that accompany higher account levels include a decent return rate of 10% on losing out-of-the-money trades (Silver and Gold accounts), 100% bonus (Gold account), among others.
Best Binary Options Brokers to Trade Bitcoin Options
AnyOptionYear Founded: 2008
Minimum Deposit: $250
Minimum Tradable Amount: $25
Payout Rate: 65% to 71%
Number of Assets: 200+
Accepts US Traders: No
AnyOption is a veteran binary broker with support for over 200 assets. It only follows that they key into the popularity and high volatility of Bitcoins trading.
According to estimates, as of 2014, the volatility of bitcoin is seven times higher than gold, eight times higher than the S&P 500, and eighteen times higher than the U.S. Dollar.
AnyOption offers an easy-to-use trading platform with decent payout rate and a high return rate of 15% for out-of-the-money trades. Extended expiry times are also available of up to one month.
Perhaps the biggest draw is that AnyOption is registered with regulators in THIRTY-ONE (31) European countries. Furthermore, they offer a robust customer service with support available in up to 7 languages.
Alternatives
Binary Brokers support for Bitcoins option trading is growing at phenomenal rates. If you already have a preferred broker you plan to use, you may want to contact their support to confirm if Bitcoins option trading is available, even if the broker did not list Bitcoin on their assets list.
US traders looking for a reputable broker to trade Bitcoins on should look no further than NADEX. NADEX is based in Chicago, IL, and is regulated by the Commodity Futures Trading Commission (CFTC).
Bitcoin versus Credit Cards
Bitcoin is a semi-anonymous payment system. If anonymity is important to you, Bitcoin would serve as a better alternative to credit cards.
In addition, the fees for Bitcoin transactions are relatively lower than credit card fees.
Credit card fees range from 0.5% to 5%, plus a fixed charge of between 20 and 30 cents. The nature of Bitcoin, direct peer-to-peer exchange, is such that transaction fees, in the traditional sense, are nonexistent.
What exists is a token (sort of a fee) to fast track the speed of the payment exchange. Therefore, a fee is not obligatory. However, if you want a speedy transaction, you would have to pay a small percentage, often less than 1% of the amount you are transferring.
In terms of security, both credit cards and bitcoins are secure. As long as you do not share your private key with anyone, your bitcoins are safe. Likewise for credit cards, keep your details private, use only on encrypted sites, and you wouldn’t have a fraudulent transaction.
Where credit cards differ from bitcoins majorly is that while you can reverse credit card transactions, Bitcoin transactions are non-reversible. If you are using a non-reputable broker, it is understandable to choose credit cards, should there be a sudden disappearance. For top-flight brokers however, the extra protection is unnecessary.
Bitcoin versus Bank Wire
Bitcoin transactions are faster and cheaper than bank wire transactions. Bank wire fees can reach $80 and take many days to clear.
Bitcoin transactions cost much less especially for transactions in the hundreds and few thousands, and are completed in minutes.
If you practice safe bitcoin keeping, you should have similar level of security. You just have to ensure you do not keep too many bitcoins in your hot wallet(s).
Alternatives to Bitcoin
Dozens of alternatives to Bitcoin exist (here is a list with Paypal binary options brokers). Although, the cryptocurrency train is still light, multiple e-currencies or wallets provide lightning quick transactions at low rates.
PayPal and Skrill (previously MoneyBookers) are alternatives that allow you to perform chargebacks or disputes, as you would with a credit card.
E-currencies like Bitcoin that do not allow chargebacks also exist. Typically, these digital currencies have very low transaction fees. Popular options are Skrill, Perfect Money and Neteller.
In all, there are tens of alternatives to bitcoin accepted by several binary options brokers