Cryptocurrency is a market with huge volatility. Knowledge of the principles of formation of stable trends and competent analysis of news will help to accumulate significant capital even with a minimum amount of initial investment. If the trader sets a goal to earn a lot and quickly, trading on crypto-currency pairs is almost the only working tool.
In pursuit of rapid enrichment, do not forget about the risks. High volatility generates not only a huge increase in the cost of block-coin. Sometimes there is an equally rapid decline in asset prices. At the same time, the entire market sags, which hits the wallet of traders who are actively investing in altcoins.
Binary options and cryptocurrencies: pros and con
Cryptocurrencies are not the most popular asset in binary trading. Only a small percentage of traders actively trade bitcoin and altcoins, which has several reasons:
High volatility, therefore, increased risks;
Non-standard formula for profit;
Uncertain legal status.
It is worth noting that the advantages of “crypt” gradually force to experiment with it even the most cautious traders. Staying away from a market with a capitalization of billions of dollars is tantamount to omitting huge financial benefits.
Binary options and classic trading
If you decide to invest in the purchase of coins for the purpose of further resale, you agree with the huge risks. There is no guarantee that in the near future after buying the price of the acquired cryptocurrency will not decrease several times. In turn, the principle of binary options allows you to take the best and weed out the main shortcomings of cryptocurrency.
When you open a deal, you do not risk your own capital – you risk only the cost of the option. In this case, you do not need to wait months or even years for the investment to pay for itself. The result of the forecast will be known in a few minutes, hours or days, when the option will be closed in accordance with the expiration period you set. When the circulation of fixed-term contracts is completed, you will receive a fixed profit.
Note: another significant advantage of cryptocurrency is round – the-clock trading. Unlike classic assets that are tied to the schedule of international brokerage exchanges, cryptocurrency can be traded at any time.
How to trade cryptocurrency on IQ Option
To make transactions on crypto assets in IQ Option, it is enough to open the category “Crypto” and select one of the available assets. The platform allows you to trade most popular coins, among which:
There is even TRON in the IQ Option, which is not yet available in the classical way, but because of its presence on the exchange platform users can open transactions in this direction.
After you select an asset, you must set up a deal: specify the amount and the auto-close threshold (if the value drops to the critical minimum you set).
You can also set a price threshold, after which the transaction will be carried out. To do this, click on “purchase at” and specify the value of the asset, upon reaching which the transaction will be opened automatically.
You can see your investment portfolio in the “portfolio” tab. Active and closed deals are displayed here.
Cryptocurrencies in binary trading are a new and promising market, which will have to overcome many obstacles, until its status will be clearly fixed in the world financial market. At the same time, “crypt” is already now a powerful source of enrichment, which is used by many professional and novice traders.
NOTE: This article is not an investment advice. Any references to historical price movements or levels is informational and based on external analysis and we do not warranty that any such movements or levels are likely to reoccur in the future
GENERAL RISK WARNING