Binary options trading with Bitcoin is a great way to invest your bitcoins. The trouble is that it is an inherently risky method. With your investment depending on an all-or-nothing bet, it can be nerve-wracking. This is why it is understandable that people often make mistakes under pressure. If these mistakes pile up, you can easily end up losing all of the funds that you allocated to your investment.
To avoid ending up with zero bitcoins in your wallet, here are three mistakes that every bitcoin binary option trader should avoid.
Multiple accounts
Most new traders often get a little too excited with the idea of binary options. This is where they open accounts with multiple brokers and start buying options like crazy. The trouble with that approach is that this can be too much for beginners. Binary options may be just a yes-or-no proposition but in high volumes they can be hard to handle.
A single account with a Bitcoin binary options broker you trust is better than multiple ones. Check with the different brokers on the market and see what they have to offer. Consider how many confirmations from the blockchain they need to process your transactions, as well as what sort of options they have available.
Trading without a system
You don’t want to go into the market just buying what you feel like. This is like going to a gunfight with no gun. It’s best to have a plan before your start trading so that you can guide your market progress. This is especially important in trading high-speed options.
For example, when you’re buying 60-second options on the Nikkei, you’ll need to be able to identify patterns and respond to them quickly. A plan helps you make the right decisions in seconds.
Being afraid of risks
Trading in binary options is about risk. If you are trading like they were ordinary stock, you will end up trading conservatively. You may not end up not losing that much money, but you won’t get the gains that you may have gotten. Recognize the risks but also recognize the rewards.
To avoid ending up with zero bitcoins in your wallet, here are three mistakes that every bitcoin binary option trader should avoid.
Multiple accounts
Most new traders often get a little too excited with the idea of binary options. This is where they open accounts with multiple brokers and start buying options like crazy. The trouble with that approach is that this can be too much for beginners. Binary options may be just a yes-or-no proposition but in high volumes they can be hard to handle.
A single account with a Bitcoin binary options broker you trust is better than multiple ones. Check with the different brokers on the market and see what they have to offer. Consider how many confirmations from the blockchain they need to process your transactions, as well as what sort of options they have available.
Trading without a system
You don’t want to go into the market just buying what you feel like. This is like going to a gunfight with no gun. It’s best to have a plan before your start trading so that you can guide your market progress. This is especially important in trading high-speed options.
For example, when you’re buying 60-second options on the Nikkei, you’ll need to be able to identify patterns and respond to them quickly. A plan helps you make the right decisions in seconds.
Being afraid of risks
Trading in binary options is about risk. If you are trading like they were ordinary stock, you will end up trading conservatively. You may not end up not losing that much money, but you won’t get the gains that you may have gotten. Recognize the risks but also recognize the rewards.