Bitcoin Binary options are a simplified version of traditional options. Instead of estimating multiple details at once, binary options streamline the estimation process and allow an investor to make one decision: will an asset increase in price by a given date? Binary options limit loss potential, and are a great place to start for options beginners. They can be traded on FOREX, NADEX, and CBOE (Chicago Board Options Exchange). Investors can purchase options that expire several hours in the future, weeks, or months. Different than previous binary option offerings, the new service which is called Up Down processes payments and payouts in Bitcoin only.
Here is an overview of binary options and trading tips and pitfalls for beginners.
Binary options and Bitcoin Overview
Binary options function similarly to traditional options: investors can buy a call option — a prediction that an underlying asset’s price will increase, or a put option — a prediction that the underlying asset’s price will decrease. The price that binary options investor stands to earn is capped, however, unlike traditional options.
Binary options and Bitcoin can be bought as