Bitcoin is the world’s first cryptocurrency to hit the market and the most expensive digital currency today. This digital coin has a market capitalization of approximately $65 billion, which makes up 47% of the global digital currency market. Its exceptional volatility has attracted thousands of traders and investors from around the world. Today, traders can engage in Bitcoin trading with the IQ Option platform.
What is IQ Option?
This is a well-established and reputable broker that facilitates the trading of cryptocurrencies, forex pairs, options, commodities, ETFs, stocks, and indices. These brokers offer traders an award-winning platform where they can conveniently trade with many useful tools and features that work to improve their chances of winning. IQ option started trading with binary options back in 2008. It has since grown to become a leading broker that processes approximately 2 million trades per day.
Before IQ Option cryptocurrency platform, there were very few other services that offered spreads of digital currencies. Still, none came close to offering such a variety as IQ Option does. When trading in an emerging market such is in cryptocurrency, it is crucial that you have access to easily purchasing options on the freshest currencies.
The IQ Option Bitcoin platform makes it easier for traders trading Bitcoin by creating a wallet for them and handling the complex blockchains. This, in turn, makes it easier for investors to speculate with digital currencies like BTC without worrying about creating a wallet or following up with the blockchain.
Bitcoin trading with IQ Option
When trading Bitcoin with IQ option, both traders and investors have the option to choose any of its three BTC/USD instruments. Although all three instruments offer the ultimate trading experience, they should be used depending on their long or short term position and their personal trading style.
This is the basic and most obvious choice when working with Bitcoin. The strategy for trading with Bitcoin Purchase is quite straightforward. All you need to do is buy or sell your Bitcoin and then keep the newly acquired position open for as long as possible to cover the spreads and make a reasonable gain.
This instrument is very similar to online cryptocurrency exchanges and forex trading. The trader is advised to buy the digital currency only if they believe that the price of the Bitcoin will increase with time. If, on the other hand, the trader predicts that the asset will deteriorate, they should short sell it.
With Bitcoin Purchase, no multipliers are involved, which makes it harder for traders to lose their entire investment capital in a single trade. Your profit will be based on the difference between the asset’s opening and closing prices. Therefore, the further the BTC price moves from its opening price, the higher your profit. Some analysts believe that due to Bitcoin Purchase’s higher spreads, it is highly recommended for long-term trades.
How to trade BTC on IQ Option
To trade Bitcoin, click on “Open new asset” tab and choose Bitcoin.
Choose the preferred dollar value of your Bitcoin from the “amount” window on the right side of the screen.
After choosing the amount, click on the Buy or Sell button to enter the position. Once you have successfully entered a position, you can monitor it LIVE. Here, you can enter the take profit or stop loss orders based on your trading strategy.
How to deposit money in an IQ option account
Click on the “deposit” button on the top right corner of your screen
Choose your preferred payment method. Note that you can put money to your account using both fiat and Bitcoin
Check the 3D-Secure box if you plan on withdrawing your Bitcoin later on.
How to withdraw an IQ Option account
Click on the drop-down menu and click on “withdraw funds”
Select how you want to withdraw your funds from IQ Option to your account. Although you can deposit in Bitcoin, you cannot withdraw any digital funds. All profits on IQ Option are processed in Fiat.
Bitcoin spread and fee on the IQ Option platform
The spread for Bitcoin at IQ Option changes according to the current market conditions and the selected leverage. As of 2nd April 2019, the spread was ranging at around 7.68 %. The overnight fee is on buy position -0.065% and on sell position +0.015%. IQ Option reviews and updates these fees on a weekly basis.
Another way to trade Bitcoin with IQ Option is through Bitcoin-based CFD (contracts for difference). In this case, instead of buying Bitcoin, you will purchase the contract. In the same way, your profit will be based on the difference between the current price and future price of Bitcoin. Just like in Bitcoin Purchase, the bigger the difference, the more profit you will earn.
Even with this superficial similarity, Bitcoin Purchases and CFDs work differently, and this difference is mainly in the details. For instance, CFDs are highly recommended for short-term trades due to their low spreads. CFDs do not require major price swings to make a profit. Also, with CFDs, investors have access to multipliers which can be used to take bigger positions than would have otherwise been able to afford. However, the magnitude of a profit or a loss is also multiplied.
Leverage for Bitcoin at IQ Option
The available leverage for Bitcoin at IQ Option depends on where you are based. Usually, the rule of thumb is that European traders can trade 1:2 leverage whereas traders from other jurisdiction can trade with up to 1:50.
Seeing that the crypto market is quite unpredictable, IQ Option crypto accounts are fully integrated with Stop Loss and Take Profit systems. These essential tools help to prevent disastrous losses. However, whether or not you decide to use them is up to your strategy.
Regardless of the trading tool you choose, the trading possibilities are many. Each strategy has its own advantages and should be undertaken with a clear end-goal in mind. Also, make sure to try out the live demo account to see just how tempestuous the markets can be.