CoinTelegraph spoke with Damian Cišek, the CEO of BitPlutos, the first binary options platform for Bitcoin, about what binary options can bring to Bitcoin, how it compares to forex trading and whether they can help the industry grow in the digital world.
The trading of binary options is essentially predicting whether an asset price will go UP or DOWN over a period of time. A trader purchases an option and if the trader predicted the move correctly at the end of the option period, it generates approximately 70-80% return on the trader’s investment. If the trader was wrong, the investor loses most of the money they had paid for the option. Binary options expiry times vary from 30 seconds up to more than 1 year.
Binary options trading enables trading stocks, commodities, currencies and indices without requiring intricate analysis, and for this reason it is one of the most popular trading methods available. They are very simple to trade, even for inexperienced investors, and binary options trading requires very little starting capital – usually no more than a few hundred dollars.
“Bitcoin […] is going to decentralize bank services and change