Pocket Option For Beginners

Crypto binary options are gaining momentum in the trading market, with many tokens reaching all-time highs in price and volume Pocket Option Use . Fortunately, binary options contracts are widely available on crypto platforms and can be traded in a variety of ways . If you want to start investing, read on as we explore what cryptocurrency binary options are, their pros and cons, plus the best online brokers.

Introduction Pocket Option For Beginners

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1. Pocket Option - Pocket Option offers ultra-short-term binaries from 5 seconds on one of the simplest web platforms for beginners. Payouts rival alternatives at 90%+ while the ‘Double Up’ and ‘Rollover’ features provide further opportunities to profit. Considering the negatives, the suite of 130+ assets trails binary brokers like Quotex, which offer 400+.
2. Quotex - Quotex continues its streak near the top of the industry with ultra-short-term binaries on hundreds of assets. The binary broker provides a web platform that delivers a terrific user experience with a clean design, multiple charting styles, dozens of indicators and daily signals.
3. Deriv.com - Deriv.com offers premium binary options on traditional and emerging financial markets with payouts up to 50,000 USD. Binaries are available 24/7, 365 days a year on a secure platform with responsive customer support.
4. IQCent - IQCent offers binary options with above-average payouts up to 98%. The broker supports an online platform with basic analysis tools but a wide range of timeframes, from 1 minute to 1 month, catering to short and long term trading strategies. Considering the negatives, there are no binaries on stocks.
5. Videforex - Videforex continues to offer binary options with 20% payouts on crypto and up to 98% on less volatile assets, beating many competitors. A wide range of contract lengths are also supported from 5 seconds up to 1 month. New users will appreciate the welcome deposit bonus.

#1 - Pocket Option

Why We Chose Pocket Option

Pocket Option offers ultra-short-term binaries from 5 seconds on one of the simplest web platforms for beginners. Payouts rival alternatives at 90%+ while the ‘Double Up’ and ‘Rollover’ features provide further opportunities to profit. Considering the negatives, the suite of 130+ assets trails binary brokers like Quotex, which offer 400+.

"Pocket Option excels for its easy-to-use web platform which provides a best-in-class user experience for short-term binary traders . The $50 minimum deposit is also accessible for beginners while opening an account is really easy Pocket Option Alice . Looking at the negatives, Pocket Option still trails alternatives in its market offering and regulatory credentials." - DayTrading Review Team

• Min Deposit: $50
• Payout %: 92%
• Expiry Times: 5 seconds - 4 hours
• Bonus: 50% Deposit Bonus
• Platforms: Web, MT4, MT5
• Instruments: Forex, Crypto

About Pocket Option

Established in 2017, Pocket Option is a binary options broker offering high/low contracts on forex, stocks, indices, commodities and cryptocurrencies. With over 100,000 active users and a global reach, the platform continues to prove popular with budding traders.

Pros

• The MetaTrader platforms offer integrated analysis with helpful technical summaries for short-term traders
• Extremely fast and smooth sign-up process that takes less than 2 minutes
• Well-funded traders who deposit $1000+ can qualify for a 2%+ payout boost, more tradable assets and exclusive perks

Cons

• Pocket Option offers a slimmed down iteration of the MT4 and MT5 that doesn't provide the full charting package for advanced traders
• You need to deposit $1000 to access the extended list of 250+ assets, otherwise just 130+ assets are available
• Despite offering competitive payouts up to 92%, binary brokers like IQCent offer higher returns up to 98% based on tests

#2 - Quotex

Why We Chose Quotex

Quotex continues its streak near the top of the industry with ultra-short-term binaries on hundreds of assets. The binary broker provides a web platform that delivers a terrific user experience with a clean design, multiple charting styles, dozens of indicators and daily signals.

"Quotex is best for making short-term trades on popular markets. The payouts up to 98% are above average and enhancements to the platform have ensured it's easy to use for beginners. That said, the lack of regulatory oversight, limited education and weak support are key drawbacks."

- DayTrading Review Team

• Min Deposit: $10
• Payout %: 98%
• Expiry Times: 5 seconds - 4 hours
• Bonus: 30% Deposit Bonus
• Platforms: Web Platform, Mobile App
• Instruments: Forex, Crypto

About Quotex

Quotex has been a top binary options broker since 2019, offering over 400 binaries across currencies, commodities, stocks, and crypto. With contracts spanning 5 seconds to 4 hours, short-term traders enjoy flexibility while payouts that exceed 95%, offer high potential returns. Continuously adapting to trader demands, Quotex provides a user-friendly platform for trading binaries.

Pros

• Daily signals are useful for finding opportunities, especially for newer traders
• The $10 starting deposit and $1 minimum stake make Quotex.io accessible to beginners
• Quotex maintains its position as an excellent choice for short-term binary trading with turbo contracts from 5 seconds

Cons

• Quotex trails industry leaders when it comes to education and market research
• Quotex is unregulated, which means traders may receive limited safeguards
• Customer support has been weak during tests with no live chat and slow response times

#3 - Deriv.com

Why We Chose Deriv.com

Deriv.com offers premium binary options on traditional and emerging financial markets with payouts up to 50,000 USD. Binaries are available 24/7, 365 days a year on a secure platform with responsive customer support.

"Deriv.com will suit day traders looking to make fast-paced trades using CFDs and multipliers with high leverage up to 1:1000. The broker is also the industry leader in synthetic indices, which simulate real market movements and are available around the clock. "

- DayTrading Review Team

• Min Deposit: $5
• Payout %: 100%
• Expiry Times: 15 seconds to 365 days
• Platforms: Deriv Trader, MT5
• Instruments: CFD, Forex, Crypto

About Deriv.com

Deriv.com is a low cost, multi-asset broker with over 2.5 million global clients. With just a $5 minimum deposit, the firm offers CFDs and multipliers, alongside proprietary synthetic products which can't be found elsewhere. Deriv provides both its own in-house charting software and the hugely popular MetaTrader 5.

Pros

• The free demo account is ideal for practicing short-term trading strategies and no registration is required
• The low $5 minimum initial deposit suits those on a lower budget
• Deriv continues to offer fast and reliable 24/7 support and the WhatsApp service is particularly convenient

Cons

• There's no loyalty program or rebate scheme for high volume traders
• There are limited copy trading tools and analysis features compared to alternatives like IQ Cent
• The range of 100+ assets trails some competitors such as Quotex which offers 400+

#4 - IQCent

Why We Chose IQCent

IQCent offers binary options with above-average payouts up to 98%. The broker supports an online platform with basic analysis tools but a wide range of timeframes, from 1 minute to 1 month, catering to short and long term trading strategies. Considering the negatives, there are no binaries on stocks.

"IQCent will appeal to day traders looking for a straightforward binary options and CFD trading platform with low fees, a range of accounts, and copy trading. Getting started takes less than 1 minute and a $250 deposit. "

- DayTrading Review Team

• Min Deposit: $250
• Payout %: 98%
• Expiry Times: 5 seconds - 1 month
• Bonus: 20% to 200% Deposit Bonus
• Platforms: Online Platform, TradingView
• Instruments: CFD, Forex, Crypto

About IQCent

IQCent is an offshore binary options and CFD broker based in the Marshall Islands. The brand continues to offer a range of unique account types with bonuses and perks, including payout boosts, TradeBacks and free rollovers. With 100+ assets, around-the-clock trading and 98% payouts, the firm is popular with aspiring short-term traders.

Pros

• CFD trading fees are competitive based on tests, including 0.7 pips on major forex pairs such as EUR/USD
• The broker offers up to 98% payouts on binary options, which is more than alternatives like Pocket Option, only offering up to 92%
• There's an accessible $0.01 minimum stake for new day traders with a small budget

Cons

• The broker is not overseen by a respected regulator, though this is common among binary options firms
• IQCent trails binary brokers like Quotex with its narrow investment offering of around 100 assets with no stocks
• The market analysis is very basic with limited technical summaries and insights from analysts

#5 - Videforex

Why We Chose Videforex

Videforex continues to offer binary options with 20% payouts on crypto and up to 98% on less volatile assets, beating many competitors. A wide range of contract lengths are also supported from 5 seconds up to 1 month. New users will appreciate the welcome deposit bonus.

"Newer traders will find a lot to enjoy about trading binary options on Videforex's easy-to-use proprietary platform, as well as the broker's copy trading solution. Payouts also remain higher than most alternatives climbing to 98%."

- DayTrading Review Team

• Min Deposit: $250
• Payout %: 98%
• Expiry Times: 5 seconds - 1 month
• Bonus: 20% to 200% Deposit Bonus
• Platforms: TradingView
• Instruments: CFD, Forex, Crypto

About Videforex

Launched in 2017, Videforex offers access to stock, index, crypto, forex and commodities markets via binary options and CFDs. The proprietary platform, mobile app and integrated copy trading are user-friendly and will suit new and casual traders, and the market analysis tools and trading contests provide good ways to improve your trading skills.

Pros

• You can easily mirror the trades of experienced investors with low fees
• Videforex allows you to enter positions with just ¢0.01
• Traders can earn up to 98% payouts on 100+ assets with the broker’s binary options, which is in line with competing brands like IQCent

Cons

• The broker isn’t overseen by a trusted regulatory agency
• US clients aren’t accepted due to legal restrictions
• No MetaTrader 4 integration

What Are Crypto Binary Options?

Before making a crypto binary options trade, it’s important to understand what they are and how they work. Binary options trading involves speculating on the future price of an asset and placing a bet based on a ‘yes’ or ‘no’ outcome. A basic binary options contract requires setting a strike price either above (a call option) or below (a put option) on an asset. After a pre-determined expiry time elapses, the trader either wins his stake plus the profit or walks away with nothing.

Crypto binary options appeal to many traders because of their simplicity. Even without expert financial knowledge or grasp of trading jargon, these contracts are easy to comprehend. Compared to other forms of trading, capped losses will never exceed an investor’s stake and therefore offer a less punishing downside to an unsuccessful trade.

Many brokers offer crypto binary options contracts as well as other popular assets such as forex, commodities and indices.

Crypto Binary Options Contracts

Crypto binary options trading isn’t limited to just one type of contract. Some of the most popular variants include:

• Up/Down – As the simplest crypto binary options contract, traders speculate on how much the value of a coin may increase or decrease at the end of a set period.
• In/Out – This contract involves setting a price range with an upper and lower strike price. Traders then speculate on whether a cryptocurrency will finish within or outside of this range after the contract expires.
• Touch/Double Touch/No Touch – Traders predict whether a value will either touch or not touch a set price. Traders may favour these crypto binary options variants as they occur as soon a touch takes place (and therefore can close more quickly than other contracts).
• Ladder – The ladder binary options contract is unique in that it offers traders a scaling pay-out. In a ladder contract, traders set multiple levels for the price movement of a particular crypto asset after an expiry time. The lower ‘rungs’ on the ladder offer smaller returns, whilst the higher strike price generates greater profits.

Let’s take a look at an example of a traditional up/down crypto binary options trade, using the most popular token, Bitcoin, with a current value of $64,000. Let’s say that a crypto binary options broker or exchange offers a 40% return on a contract for Bitcoin to be worth $65,000 after 4 hours. A trader puts a $100 stake into the contract and will earn $40 on top of their returned $100 stake if the strike price is met. If not, the trader loses the $100 stake.

How Cryptocurrencies Work

Whilst it’s not essential for successful crypto binary options trading, having general knowledge of cryptocurrencies, can be helpful when formulating a trading strategy. The idea or purpose behind a particular coin will often have a strong effect on its value.

A cryptocurrency is a digital token, that, instead of being backed by reserves of gold or other physical assets, operates as a decentralised global currency. Most cryptocurrencies are exchanged peer-to-peer, with the price of traditional crypto tokens driven entirely by supply and demand. The first cryptocurrency to gain traction was Bitcoin, launched in 2009 and now accounting for around 40% of the total digital currency market cap.

Due to the lack of fundamentals in cryptocurrency, many traders regard coin values as reflecting a purer market. Crucially for crypto binary options trading, this also makes for a far more volatile market than traditional trading assets. Daily price movements of between 10% and 50% are not uncommon, even for high market cap coins. Binary options trading is perfectly suited to markets or assets with high volatility, and crypto certainly fits that bill.

Pros Of Crypto Binary Options

Here are some of the main advantages of crypto binary options trading:

• Round-The-Clock Trading – Unlike other binary options markets, cryptocurrency is available for trading 24/7. While stocks and shares, commodities and even forex have set regional trading hours, cryptocurrency exchanges run 24 hours a day, seven days a week. This is one of the biggest advantages of decentralised finance for binary options traders and a great reason to favour crypto.
• Greater Payouts Through Cryptocurrency – Some crypto binary options brokers offer contract stakes and payouts in cryptocurrency. For certain types of trade, this can potentially enhance profits or minimise losses. For example, if a trader places a successful call option on Bitcoin through BTC tokens, the rise in price that made the call option successful will mean that their profit is also worth more.
• A Volatile And High Volume Market – Over $100 billion in assets are regularly traded every day on the cryptocurrency markets, while daily swings in asset value can exceed 50%. Crypto market conditions make for an ideal binary options trading environment, with great rewards for traders who can predict significant price changes.
• Capped Losses Protect Traders – The downside of options trading on a highly volatile market is that quick and significant market fluctuations can easily make a serious dent in a trader’s finances. Choosing binary options trading when speculating on crypto protects traders from financial turmoil with capped and preset losses.
• An Abundance Of Choice – Cryptocurrency is unique in that hundreds of new assets are created daily. Leading brokers and exchanges frequently update their supported tokens, so clients have ample coins to choose from when trading crypto binary options.
• A Purer Market – As opposed to trading forex or stocks and shares, cryptocurrencies are free from fundamental influences. Tokens rely solely on supply and demand to determine a trading price. This can enhance the accuracy of technical analysis as well as heighten the volatility that binary options trading thrives in.

Cons Of Crypto Binary Options

Despite the numerous upsides of crypto binary options trading, there are some disadvantages to consider:

• Total Win Or Loss – Binary options trades are often referred to as all-or-nothing, due to their duality. Crypto is no exception to this rule. In crypto binary options, a near-miss of the strike price is worth absolutely nothing. In addition to this, there is no choice to close contracts early to take some profit or prevent total losses.
• Unpredictable Markets – While volatility is undoubtedly a positive and necessary condition for successful binary options trading, crypto markets are notoriously unpredictable. Due to the lack of fundamentals, asset prices can swing wildly in scenarios like a “pump and dump”, with reactionary trades compounding these movements.
• Capped Gains – While the capped losses of crypto binary options contracts will prevent a trader’s loss from exceeding their stake, the trade-off is that gains from successful trades are also limited. Crypto binary options only account for whether the strike price is met or not.

How To Start Trading Crypto Binary Options

If crypto binary options contracts sound like a great opportunity to generate potential profits, here is a guide to help get you started:

Choose A Crypto Binary Options Exchange

The first step for traders looking to start trading binary options is to decide on a platform from which to operate. There are several important aspects to consider when choosing a cryptocurrency broker or exchange. Here are a few of the most important:

• Trustworthy And Reliable – In addition to the safe-keeping of your funds and crypto assets, the best binary options brokers will be regulated, can demonstrate a strong track record, and are recommended by positive user reviews.
• Range Of Assets – The best crypto binary options platforms can offer up to 150 assets to choose from. Trading a variety of assets will allow investors to diversify their portfolios and execute a range of strategies.
• Binary Options Capability And Variants – While this may go without saying, make sure that a specific crypto broker offers binary options trading facilities. Not all jurisdictions allow binary options trading, so don’t forget to ensure this box is ticked before proceeding.
• Trading Platform And Software – An essential facilitator of successful crypto binary options trading is the platform and software a broker offers. Some crypto exchanges may offer a bespoke platform, whilst others may rely on third-party trading software. Traders should find a platform that feels intuitive and supports the graphing and trading tools needed.
• Minimum Deposit And Transaction Fees – Traders should take into account any minimum deposit limits or fees included in the broker’s terms. This may include charges applied to deposits or withdrawals from the platform.

Research The Crypto Market

While it is possible to make successful binary options trades without an in-depth knowledge of the crypto market, it is advisable for traders to first conduct some research on the coins they wish to trade.

This might include researching historical price patterns of coins and the market as a whole. Whilst past performance is not necessarily indicative of future results, traders can still use historical events, such as surges or crashes, to help make predictions as to what the market will do next.

Traders could also analyse the various ecosystems and philosophies of the different coins, as well as their original purpose at the point of introduction into the market. Knowing which coins have significant future ambitions and demand is crucial when judging future value.

With that said, it’s also important to keep on top of hype, news and updates surrounding a particular coin. You can often gauge market sentiment by following social media, news sites and even celebrity endorsements that may affect the crypto market.

Opening A Crypto Binary Options Contract

Once you have selected your preferred broker and conducted your research into the crypto market, it’s time to open a binary options contract. After creating an account with a crypto exchange and choosing your target asset, here are your next steps:

1. Deposit your funds via bank transfer, credit/debit card, or an available online payment method. Some exchanges also allow traders to deposit via cryptocurrency.
2. Select your preferred crypto token to trade and choose the binary options contract you wish to open. If you’re a beginner, you may wish to opt for a simple up/down trade to begin with.
3. Set your strike price and expiry time, ensuring that you are balancing risk and reward. Typically, greater odds are offered on contracts with longer expiry times and higher price movements. However, it’s important to research other factors that may affect your crypto binary options contract.
4. Now you can stake your contract. This will depend on the capital and risk tolerance of each trader, however, it is advised that you do not stake any more than 2% of your capital in any single trade.
5. Wait until your contract expires and discover whether you have made a profit.

Tips & Considerations

• Regional Differences – Some jurisdictions limit or ban crypto binary options trading for their residents. In the US, an exchange-based system offers traders binary options odds instead of individual brokers, but some platforms are licensed to provide binary crypto options contracts to US residents too.
• Taxation – Some countries such as the UK currently consider binary options trading as gambling and therefore not liable to taxation. Other jurisdictions may require binary options traders to declare their earnings for tax. Due to this, before you start trading, it is worth researching or seeking advice to ascertain whether you’ll be exempt from tax.
• Demo Account – For traders who wish to practice crypto binary options before staking real funds, many brokers provide demo accounts. These demo accounts allow investors to trade virtual funds to test out binary options contracts on the crypto market.
• Sign-Up Bonuses – Many binary options brokers offer new customers a sign-up bonus for opening an account on their platform. These bonuses may come in the form of ‘no deposit’ or ‘deposit match’ bonuses and give traders the chance to increase their trading capital.

Final Word On Crypto Binary Options

Crypto binary options are an appealing form of derivative for many traders, due to their simplicity, capped risk, round-the-clock trading opportunities, and sizeable volatility. As the market continues to grow exponentially, binary options trading on cryptocurrencies can be potentially profitable. Choosing a top platform is imperative, as the best crypto binary options brokers and exchanges will offer a wider variety of coins, plus lower fees and more advanced technical tools.

FAQs

When Can I Trade Crypto Binary Options?

An advantage of trading crypto binary options is that, unlike other binary options markets, cryptocurrency is traded 24 hours a day, seven days a week. This accessibility means that traders have greater opportunities for placing crypto binary options contracts, as well as more freedom when setting expiry times.

Can I Trade Bitcoin Binary Options?

Bitcoin is just one of the many crypto tokens available for binary options trading, with some platforms offering contracts on over 150 different coins. While some traders may be more comfortable with binary options trading on major coins like Bitcoin, Ethereum and Solana, many successful trading strategies involve the often greater volatility of the smaller market cap altcoins.

Do I Have To Pay Tax On Crypto Binary Options Earnings?

Whether a trader has to pay tax on their crypto binary options earnings will differ depending on their jurisdiction. Some countries consider binary options trading as gambling and therefore exempt from taxes. Other jurisdictions require traders to declare and pay tax on profit, so it is worth checking your local tax laws.

Can I Make Money From Crypto Binary Options?

Traders can potentially profit from crypto binary options trading, with many brokers offering over 90% returns on some contracts. However, whether a trader is successful at binary options trading depends on a variety of factors and can of course come with inherent risk.

Can I Automate Crypto Binary Options Trading?

Many traders utilise algorithms to automate crypto binary options. Using automation means faster contract creation, round-the-clock market monitoring and immunity from emotional trading. Preconfigured bots can be purchased by traders, while those familiar with programming may opt to create their own.

All contents on this site is for informational purposes only and does not constitute financial advice. Consult relevant financial professionals in your country of residence to get personalised advice before you make any trading or investing decisions. Daytrading.com may receive compensation from the brands or services mentioned on this website.

Risk Warning: Trading CFDs on leverage involves significant risk of loss to your capital.