Binary options are emerging in recent times, advertised all over social networking sites with huge commissions, and labeled by many as scams for this strategy. So what is binary options ? Is such an investment a scam?
To answer the above questions, let’s learn more about Binary Options through the following article!
Table of Contents
What are binary options?
Binary options, also known as BO, is a method of investing in the up and down movements of assets in the future at a certain time. Binary options are used on many types of assets such as: gold, silver, foreign currencies, cryptocurrencies, stocks … but the most used with this method is still foreign currencies and cryptocurrencies.
To better understand binary options (BO), let’s take a look at the following example:
The current Bitcoin price is $35,000. You see that the coin is in a strong downtrend, and you think the coin will undergo a sell-off and rise again in an hour. You choose the binary options trading method and choose a buy order with a bet of $1,000.
The way to do it is just that simple, and exactly one hour later, if the price of Bitcoin is over $35,000, you have won and earned a profit of $800 (the profit you earn depends on each time).
See also: What is USDT? Understand USDT to become a smart virtual currency player
Should you trade binary options?
For this unique trading method, in Philippines is often labeled a scam. So should you trade binary options? Let’s analyze.
In the world, binary options is not a scam, because most of the brokers or companies that offer this form of trading are accredited companies and have business licenses certified by prestigious financial institutions in the world.
But what is misleading here is that because brokers promote with huge profits that do not match reality, the purpose is only to attract as many players as possible, to be able to make money. rose.
Moreover, binary options are also mentioned by many people as a gambling game because just put in 2 “buy or sell” doors that appear right on the screen, even without the participation of any analysis tools. any market. But this is just a misunderstanding, because binary options is gambling or not is up to the player.
If one enters the market, then chooses a binary options strategy, relying solely on luck or unfounded guesses with the market’s direction and then chooses to “buy or sell”, this is not the case. other than gambling. But for those who have a well-defined strategy, a clear take-profit or stop-loss strategy, and know how to find the right points to enter, this is the standard binary options use of a trader. real investors.
So don’t come to binary options and buy and sell indiscriminately, just rely on luck like gambling. Use binary options when you have a thorough understanding of it, and have a specific trading strategy.
Some reputable binary options brokers
So if you want to trade binary options, then first, you must know how to choose a reputable, licensed exchange, especially the ability to deposit and withdraw money easily. Below we have researched and selected the Top 3 most reputable binary options brokers.
IQ option
IQ Option is a reputable broker, present in 151 countries, with more than 48 million registered accounts and with a daily volume of transactions up to 1.3 million. Besides providing popular investment products such as foreign currencies, cryptocurrencies, stocks… IQ Option also provides binary options trading methods, and this is the strength of this exchange.
The plus point of IQ Option is that it has an exclusive and smooth interface for the binary options trading platform, besides the floor also provides other useful features to help investors analyze the market effectively. then come up with a reasonable strategy.
Olymp trade
Referring to binary options, it is impossible not to mention Olymp Trade. As a binary options trading platform, Olymp Trade is currently present in 134 countries with 25 million registered accounts, monthly transactions up to 30 million transactions, especially Olymp Trade is also supported with 19 languages different languages, including Filipinos.
Besides, for the first deposit, Olymp Trade will add 50% of the amount, it is an offer not to be missed. Good customer service is also a plus point to mention of this exchange.
Conclusion
Through the above article, we hope you have understood what Binary Options are. Hope that you have the best view about binary options and its risks, if you want to expand your financial knowledge, please read our other articles.
See also: What is Bitcoin? How Bitcoin was created
