Topic: Bitcoin Binary Options - Beware of Scams... (Read 2782 times)

I stay away from any binary options, either fiat or bitcoin. Sure, it can make you easy money but it can also make you loose great amount of money the same. So as a rule, I stay away from any of it. It is better  for me to earn bitcoins the hard way.

I would say ALL of them are. I don't know why people still fall from this scams, since there are plenty of warnings here and everywhere.

Binary option is a good way of making money and you can make lot of money so to make good money you should choose a reliable and good binary option broker.

http://www.binoptrading.org/

thanks for sharing this post,i am start to interesting about  Bitcoin Binary Options,and when i see this post,i consider to not too hurry create account or doing more far about this,but i hope this is not really scam,because some of my friends interesting about binary.

Can I trade bicoin on top11binaryoptions.com?

iam not using that but good info, thx.

most of the binary options are scam better to avoid this type of sites.

Anything you can do with listed options, you can model in terms of a bunch of trades with binary options.  The primary downside is that the binary options firm is generally making its own market in the stock or commodity, which may be at a different price than the exchange price. 

There are a bunch of scams floating around which suggest "no-fail" strategies for trading binary options, that are essentially equivalent to the old roulette strategy of doubling your bet each time you lose.  Of course this doesn't work in the long term, and you eventually lose your entire stake.

Short term fluctuations in prices are dominated by randomness, so if you're just making individual trades, you're essentially gambling. 

People usually lose their shirts when they first start trading binary options, and then as they get better at it, they manage to almost break even.  The binary options firms need a constant influx of new inexperienced customers for the more sophisticated traders to trade against, which is why there are these constant scams to recruit new patsies.

Probably something the average person should stay away from.

Binary options are mostly a scam. They usually aren't an "option" at all; they're a bet against the house. The house sets the payoff rates. This usually works out well for the house. Not so much for customers. Read the Wikipedia article on Banc de Binary for background.

Bitcoin binary options are even worse, because it's cheap and easy to manipulate the price of Bitcoin for a minute or two.

Thanks for the useful informations mate
That's basically like the Forex I guess , right ?

In my view bitcoin trading is not at all risky if you are not trading blindly. Though I am not trading on bitcoin, but I trade in a yes/no proposition and it seems safe trading for me. There is no guarantee that you will always win but if you understand the market trend before investing here then you can surely make lots of money. Choosing the right binary options platforms is important to trade successfully whether you trade on bitcoin or binary option.

Nice information thank you.

It's great to see some of the instruments used on Wall Street creeping into the Bitcoin ecosystem, but people must understand that Bitcoin is not like Stock... There is no way to predict movements whether up or down.

I wouldn't partake in "Bitcoin Binary Options" because, like the OP said, this is just the purest form of Gambling.

With that said though, someone could strike it lucky... But the chances of that are very questionable at best.

Bitcoin Binary Options Explained

Bitcoin Binary Options are financial instruments which allow you to predict if the price of Bitcoin will rise or fall. If you’re correct you earn the option’s payoff, if you’re incorrect you lose your investment. Each Bitcoin binary option has a specific expiration date at which the option is checked to see if it’s “In the money” (you were correct) or “Out of the money” (you were incorrect). Each Bitcoin binary option also has a specific payoff that you can win. They are called “Binary Options” because the outcome is either win or lose, there’s nothing in between.

An example for Bitcoin Binary Option Trading

For example, let’s say it’s 10am and the BTC price is $575.505. You believe that by 5:10pm on March 17th the price will be higher than $575.505 so you buy a “Call” option. If at 4pm the BTC price is higher than $575.505, you earn the payout of 73% of your investment, if it’s lower, you lose. Another example is if you think the BTC price will go down. You then buy a “Put” option. If the price at the expiration time is lower than the original price, you earn the option’s payout.



The Upside of Bitcoin Binary Options

You don’t have to know the exact value of Bitcoin when the option expires, only if it increased or decreased.
You don’t have to have extensive knowledge in trading to participate in Bitcoin binary options.
Payout can reach up to 88% return on investment.

The Downside of Bitcoin Binary Options

As you may have noticed, Bitcoin binary options have a great similarity to plain gambling. If you study binary options in detail you will see that the trading platform will always have an edge over the investor (you need to win over 50% of the time just to break even).

Because of the unpredictable nature of Bitcoin binary options many countries have strict regulations regarding who is allowed to operate such a business, it is advisable to check if the exchange were you wish to trade Bitcoin binary options is regulated. Also Bitcoin options can become highly addictive (just like gambling), and no matter how knowledgable you are, it’s impossible to consistently predict what Bitcoin prices will do within a short time frame.

If I wasn’t clear enough until now, then keep in mind that trading in Binary Options is highly speculative and involves a significant risk of loss. Such trading is not suitable for all investors so you must ensure that you fully understand the risks before trading.