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Are there options on bitcoin

are there options on bitcoin

No. Bitcoin is partially run by computers, but these computers are not used for trading. They’re used in Bitcoin mining, which secures the network and introduces new Bitcoins to the marketplace.

Bitcoin crashed. Will the price bounce back?

No one can tell the future, but we believe that Bitcoin prices will recover and even surpass previous all time highs.

Key Terms in Bitcoin Options Trading

As a concept, Bitcoin options trading can be relatively difficult to grasp, particularly for new traders due to the technical vocabulary that is often used to describe it. Because of this, if you intended to get involved in options trading, or just want to brush up on your investment jargon, then these are the key terms you will want to understand.

Call

If you are bullish on the price of Bitcoin, then you would consider opening a call option, as this will allow you to buy BTC at the strike price, even if the market value is higher. In essence, Bitcoin call options allow you to speculate on the future growth of Bitcoin.

For example, if you buy a call option with a strike price of $10,000 and a 6-month expiration date, you will then be able to buy BTC at $10,000 in 6 months, even if the market value is much higher. You could then go on to sell this 1 BTC at a profit.

Put

If you are looking to short Bitcoin, and believe that its price will go down over the option contract term, then you would want to open a put contract. This will essentially allow you to sell Bitcoin at the strike price, even if the market value is much lower.

In essence, put options allow you to speculate on the decline in an asset’s value. After buying a put option, the more BTC goes down before expiry, the more your option is worth.

For example, if you buy a put option with a strike price of $5,000 and Bitcoin trades below this price at maturity, you will be in the money and will make a profit on the difference in value between the spot price and strike price.

Strike Price

One of the most important terms to consider when purchasing a Bitcoin option is its strike price. In short, the strike price is the price a Bitcoin option holder can buy (call option), or sell (put option) an underlying asset when the option is exercised.

For example, if you have a Bitcoin call option that is “in the money”, then you be able to buy the agreed amount of BTC at the strike price. Conversely, if your Bitcoin put option is “in the money”, you will be able to sell the agreed amount of BTC at the strike price.

Maturity

An option’s maturity date is also known as its expiration date. This is the last date by which the option must be exercised before automatically expiring. After the maturity date, the seller will no longer have any obligation to the buyer, and the buyer will be unable to exercise his or her option.

Typically options will have a fixed expiration date, this might be 1 day, 1 week or any length of time. If your option is out of the money when expiring, you will lose the amount you paid for the option.

How To Open an Account with a Trading Robot

1K Daily Profit is one of the best crypto trading robots.

If you want to to get started trading fast, here are some quick steps to open an account with 1K Daily Profit.

Input your name, email, new password, and phone number. 1K Daily Profit will email you. Click the link in the email.

Click “Add Funds”, which is the yellow button at the top middle of the screen. When funds arrive, click the “Auto Trading” toggle to “On”. 1K Daily Profit’s algorithm will trade cryptocurrency for you, and deliver your returns following each batch of trades. Withdraw profits to your bank account.

How To Trade with an Auto-Trading Robot

Tutorial

1. Check their website and make sure that they are legitimate

The first step to determining this is to check whether their website is SSL secured. An SSL secured website encrypts the data between the client and the server, therefore, making sure that hackers cannot intercept internet traffic and steal data.

2. Sign up to the robot

The process of registering an account with a trading robot is somehow similar to that of a bitcoin bot. Most trading robots have the registration form on their front page and usually ask for details such as names, email and phone number. Also, it is at this stage that traders are required to opt in or out of their mailing list.

Click here to sign up to our recommended autotrading robot, 1k Daily Profit.

3. Try the demo account

Trading robots come with a more advanced demo account to cater for all the trading assets offered. As mentioned earlier, traders who choose trading robots are usually interested in other markets such as forex and hence the demo is equipped to cater for all these functions.

While the demo uses real but historical data to simulate the market experience, it does not always reflect live trading reality. This means that you may find the results of live trading a bit different from demo trading especially when it comes to bitcoin robots. In automated trading, the purpose of demo trading is to help you familiarize with the trading platform before going live.

4. Deposit funds

Most trading robots require a minimum deposit of 250 (USD/EUR) to start trading. The same case applies to bitcoin robots. This amount is the trading capital meaning that you still own it after deposit. Reputable robo-traders provide multiple deposit and withdrawal options and are forthright about the charges that may be incurred.

When choosing a automated trading bot, pay attention to the deposit and withdrawal charges and the amount of time it takes for withdrawals to reflect in your bank account. Remember that behind the trading robot is a broker who is responsible for facilitating transactions.

5. Let the trading robot open and execute trades for you

After making the deposit, traders can now access their live trading account. Most trading robots offer both manual and automatic trading. In manual trading, the robot does the market analysis and recommends an investment, but it is for the trader to place them. This means that they must monitor their trading account now and then to open and close trades.

On the other hand, automatic trading requires little account monitoring mostly less than 20 minutes per day. The robot does the market analysis and automatically place corresponding trades. Automated trading is the most recommended option for beginner traders.

HBSwiss

There are trading robots out there who will claim to offer both robo-trading and crypto-mining. While some are legit, most are not. Crypto-mining is entirely different from trading and currently highly unprofitable given the plummeting crypto prices. For instance, bitcoin mining is currently highly energy intensive and only affordable to institutional miners. Also, the costs of mining have gone high making it less profitable.

A trading robot should never be perceived as a “get rich quick” method but should be seen as an investment with the potential for profits as well as losses. As mentioned earlier, there is no trading robot with 100% accuracy, and therefore any trader can lose money. However, the risk is smaller than trading directly.

Cryptosoft

If you are looking for a simple trading robot that will allow you to trade cryptos and also give you exposure to fiat currencies, the likes of CryptoSoft is what you need. These trading robots have all the features of a bitcoin robot only that they come with an additional feature for fiat trading.

While bitcoin robot trading does not require you to know the industry lingo, you may need to update yourself on forex trading. If you choose to trade both cryptos and fiat currencies, we recommend that you start small and upgrade your account as you familiarize with the auto-trader and trading terms.

As we have seen, bitcoin robots offer crypto trading exclusively while trading robots offer multiple assets trading which may or may not include cryptos. When choosing a trading robot, always have clearly defined goals and seek an expert opinion about different offerings.

Why do celebrities get associated with bitcoin robots?

For the most part, celebrities do not endorse Bitcoin robots. Most of what you hear about are marketing ploys from robot scams.

How Much Can I Expect to Make With a Bitcoin Robot?

The majority of top bitcoin robot software out there promise to help investors make a minimum profit of $10,000 per day. However, the returns depend on the invested capital. CryptoSoft, for instance, guarantees investors an average profit of $13000 per day. InsideBitcoins cannot guarantee the truthfulness of these claims, but it appears that most traders who have tried them are happy with the outcome.

Fintech Limited is another popular bitcoin robot claiming to make overnight millionaires out of ordinary people through crypto-trading. Some of the people in their review section report to have made thousands of dollars in less than a week out of an initial investment of $250. Fintech Limited categorically states that individual profits depend on their invested capital. The more the invested capital, the higher the returns.

  • Mathematical formulas

A trading algorithm can be identified as a mathematical formula of a predetermined trading strategy. In AI and ML-based algorithms, the mathematical formula keeps improving as it is subjected to more market data. In other words, the more it trades, the more accurate it becomes.

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