Bitcoin, Bitcoin, Bitcoin….Bitcoin! Its a real boom! Probably world is going crazy with that! People invest millions in something, which, at first sight, is difficult to understand for others. But, actually, it’s very simple! So, the explanation for this phenomenon is only one word — cryptocurrency!

What the marvelous-miracle and wondrous-wonder it is? Why, actually, cryptocurrency? Why Bitcoin? What else the platform IQ Option can represente for us?

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Cryptocurrency – is a digital instrument of exchange used for transactions and currency savings, which is encrypted for their protection.

Many of us are still wary of bitcoins. It was associated more with the “back side” of the payment relations, as well as purchases of illegal goods on the Internet, rather than real legal tender for a long time. But soon, cryptocurrency presented on the on-line market, can become an alternative to real cash. And for all those who tries to claim it by saying – “this case is so imbued with fraud”, we have a simple answer — the technology of the block-chain. With this technology, fraud is almost impossible!

Another plus of the of cryptocurrencies score is the fact that there will be no need in banks in the context of transactions. We all know how sometimes banks delay the process of processing transactions, while getting commission payouts for intermediary services.

The revolution, which is already carried with the cryptocurrency appearance, is truly impossible to overestimate. Not everyone can realy imagine all the wonderful possibilities of the cryptocurrency world. After all, imagine that being in any corner of our beautiful blue globe, you will get the opportunity to transfer your funds instantly and securely directly anywhere you need. This will attract the attention of almost all, as now the international translation is not carried in 1-2 seconds. Therefore, the possibility to send money from one corner of the world to another in a matter of minutes will attract the attention of not only legal entities but even private individuals.

The use of cryptocurrencies means:

• trading at any time in 24/7 mode;

• high volatility as a typical result of low liquidity;

• low risk (in comparison with the other instruments of financial market).

The main components that have to be correctly identified by traders, before they start trading cryptocurrency binary options, would be (especially considering the impact of changes at the financial and political environment in the countries where, bitcoin has the value and impact on the digital currency – America and China):

• trend direction;

• changes of trade volume;

• signals of trend change.

It is necessary to be master of your own emotions, especially trading on the cryptocurrency market, and consider the following key points:

• Don’t be greedy for profit. Don’t waste your precious time waiting for the rate growth, when it is already on a high level. Because in the pursuit of greater profit, you can easily miscalculate and miss it and get a loss.

• Expect, because patience is often very important in this case. You should not immediately rush to sell you bitcoins, if you bought it and after do not see any real price fluctuations. What if suddenly after some time, lets just say, a week or two it will grow in 10 or 20 times, then waiting will be a key to profit. So, check all the latest news about cryptocurrency you are going to invest, also read thematic forums and reviews by other top traders.

• Track the capitalization of the cryptocurrencies and trading amount, to have an idea about the overall situation and as a result be ready for possible current “spikes”.

Therefore, analyzing the price fluctuations of cryptocurrencies and identifying trends it is possible to develop a personal trading strategy and plan, to know when it is time to start to improve trading on a real account at platform IQ Option.

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THE MAIN CRYPTOCURRENCIES IQ OPTION

Bitcoin is the most popular and truly dominant cryptocurrency in the world, that was established in 2009. It takes about 45% of the worlds cryptocurrency market with the total value of more than $ 65 billion. At the moment, this cryptocurrency is the most expensive in the world.

Ethereum is the second popular cryptocurrency after Bitcoin, that worth more than 1/2 of the value of all bitcoins. This fact is a huge success, considering the achievements of the first cryptocurrency. Ethereum is famous for its leaps of volatility. Also the really interesting feature of Ethereum is Smart Contracts that are in its block-chain technology, thereby ensuring time reduce transaction delays and provide additional security.

Ripple is, first and foremost, a company that generates a global tendencies in the fielf of finance. Therefore, it is logical that this company decided to launch its own cryptocurrency. Transaction are executed almost instantly with Ripple. And its characteristic features are scale and speed, as system is able to handle 1000 transactions per second, which is 66 times faster than Ethereum. Also it is described as an unrivalled stable. Today the cryptocurrency Ripple occupies the third position in terms of market capitalization in the world.

Litecoin was created on the wave of the triumphant popularity of Bitcoin and is one of its alternative cryptocurrencies. A significant difference between Litecoin and Bitcoin is that the first one is able to confirm transactions much faster, additionally is not controlled of the centralized institution. This cryptocurrency can boast of nearly zero commissions and almost instant execution of the transaction — as much as 4 times faster than Bitcoin.

Dash (formerly Darkcoin and XCoin) was open to the world in 2014. This cryptocurrency has all the characteristics of Вitcoin and Dash. It also has the ability to private transactions (Private Send), instant transactions (Instant Send) and decentralized control (DGBB). Using Dash possible to make transactions in a couple seconds with complete assurance of anonymity.

IOTA is a relatively new cryptocurrency on the market, which is based on the concept of register Tangle (its essence is that the system will not make any difference between the validators, who approve transactions itself, and regular users, who must approve two previous transactions. This is a decentralized system.

Trading on platform IQ Option you can use one of three tools intended for trading bitcoins: cryptocurrency, CFD-contracts on cryptocurrency and digital options. Each of these tools should be used depending on the temporal orientation of the trading plan and personal trading style of the trader.

» Cryptocurrency purchasing is a logical first instrument. The mechanism of action is similar to the trading on the Forex market and work at cryptocurrency exchanges. After all, cryptocurrency maintains a position for a sufficiently long term, allowing the trader to get the desired profit and covers spread. If a trader believes that the price of a certain cryptocurrency increases over time, then he will need to make a purchase. It will execute short sale, in the case of waiting for its fall. With all this, the income directly dependents on the difference between the opening price and closing price of the transaction. Analysts believe that for long-term trades the cryptocurrency is best suited due to its higher spreads.

» CFD assumes that trader buys a contrac? but not cryptocurrency, thereby earns on the price difference (current and future). Way of earning in this embodiment is similar to the previous: the higher price – the higher profit. Despite the similarity of purchasing contracts for difference (CFD) and purchasing cryptocurrency, they both work in their own way. Trading CFD trader can use the multiplier, which allows him to borrow the required amount for the period of the transaction, thus the trader is able to control a larger position than without the loan. Also, if you purchase a CFD, short-term transactions due to low spreads will be allowed. Also there is no need for significant price fluctuations, with the aim of preserving net profit. But remember that trading this way profitability and risks will be equivalently multiplied.

» Digital options are a instrument that gives a lower yield, in comparison with the previous two, but in its turn has advantages, namely speed and reduced yield. A trader who chooses to trade digital options should predict the direction of the trend, regardless of its strength. Such transactions could be time-limited – 30 seconds. So, remember that even the smallest changes of exchange rate can lead to higher profitability.

TRY CRYPTO TRADING

“General Risk Warning: Binary options trading carry a high level of risk and can result in the loss of all your funds.”

Trade cryptocurrency on IQ Option
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