Brokers accepting bitcoin deposits
So far, Bitcoin has been the most valuable cryptocurrency and rightfully so for a number of reasons. Quickly gaining trust among the online community, Bitcoin has managed to replace many of the traditional methods of transacting online.
When you own a digital wallet, you can instantly fund your trading account and start purchasing binary options.
Backed by the blockchain technology, the exponential rally in the price of Bitcoin and the protection of anonymity, Bitcoin continues to overtake and replace traditional currency as we know it.
While Bitcoin is still in its nascent stage and its market share remains small compared to the likes of PayPal, Bitcoin as an alternative form of payment is quickly catching up.
Many online businesses have already started accepting Bitcoin as a payment method, and binary options brokers are on board as well due to the distinct advantage Bitcoin offers.
Why binary brokers work with Bitcoin
There are many reasons businesses, including binary options brokers, would prefer to work with Bitcoin. Most obviously, Bitcoin as a deposit and withdrawal method has no restrictions. For traditional e-wallets, such as PayPal or Neteller, the binary broker often faces considerable resistance.
While PayPal explicitly does not process or deal with binary options brokers’ payments, there are also personal details shared in PayPal transactions. However, with Bitcoin, there is no personal identity revealed between the parties.
Of course, when traders search to deposit with Bitcoins, the brokers will find a way to work with digital wallets.
Bitcoin’s anonymity also gives some binary brokers a greater advantage. They can open their businesses to a wider market. Thus, digital funding allows binary brokers to access even restricted markets.
How to fund a trading account with Bitcoin
If you are one of those traders who do not have a Bitcoin wallet yet, it is never too late to get one. You simply open a digital wallet account. There are number of exchanges, but the biggest is Coinbase.
- Mobile digital wallet
- Secure storage
- Insurance protection
- Instant Exchange
Opening an account at Coinbase is easy and quick. Once your account is set up, you can then purchase Bitcoins by using one of the traditional funding sources, such as credit or debit cards. You can use the mobile digital wallet; all buying and selling can be done on your smartphone.
Coinbase offers insurance protection in case of a breach of its online storage. The policy covers cyberattacks and employee theft. In fact, less than 2% of customer funds are held online. Most of the digital currency is held in offline secure storage.
Once you have a digital wallet, you can purchase Bitcoins and then use them to fund your trading account. Your binary options broker will give you the details of its Bitcoin wallet. This is the broker's digital wallet address to which you can transfer your Bitcoins.
Your trading account will operate in BTC currency, and when you generate profit, you can withdraw funds to your digital wallet. Then, you can use your wallet to purchase directly or you can convert your digital currency into flat currency, such as U.S. dollars or Euros.
Advantages of using Bitcoin
- User Anonymity
- Very Low Fees
- Democratized Currency
There are quite a few benefits for both brokers and traders regarding Bitcoin as a funding source. Anyone who owns a digital wallet can purchase Bitcoins, but this doesn’t mean you can deposit at any binary broker.
Most of the brokers restrict customers by their country of residence and not by payment method. When you choose a broker, first you need to ensure the broker accepts registrations from your state.
Because Bitcoin is a digital currency, transaction processing is extremely fast. All payments should be completed instantly, but for withdrawals, you will have to wait for your broker’s approval.
Because there is no central controlling authority, Bitcoin is a democratized version of a currency. It is not subject to central bank policies, and it can be difficult for authorities to seize Bitcoin assets.
There is also a significantly lower cost of transactions for Bitcoin funding than for traditional forms of payment. This creates a unique opportunity for both traders and binary options brokers to use the digital currency.
With Bitcoins, you are transferring the cryptocurrency from one address to another; it is a purely peer-to-peer system. The transaction fees are very low or, in some cases, non-existent. Thus, brokers and traders obviously like to transact with digital currency.
The downside of using Bitcoin payments is the consistent volatility in Bitcoin prices. Traders will have to bear with the constantly fluctuating rates.
Funding your binary options account with Bitcoin has some apparent advantages. Because the currency is not issued or controlled by any central authority, there is a greater degree of freedom transacting with Bitcoins.
Factors such as transactional costs, fast processing times and, more importantly, the ability to stay anonymous are some of the benefits traders will definitely enjoy when using Bitcoin as a payment and withdrawal method.
There are many binary brokers offering Bitcoin digital payments, but you still have to find one that is regulated and works in your country.