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    Bitcoin on the IQ Option: Three approaches to trading

Bitcoin is the first and most popular crypto currency in the world. With a total market value of more than $ 65,000,000,000, it occupies 47% of the world market of crypto-currency and has dominant positions. Trading on Bitcoin attracted the attention of both professional investors and the general public after a sharp jump of 800% in just one year.

When working with the IQ Option platform, traders can choose one of three instruments for trading bitcoins. All three contribute to the best conditions for trading, but should be used in different ways, depending on the long-term / short-term orientation and your personal trading style.

Trade bitcoin
Rapid growth is the main reason for currency popularity
Purchase of crypto currency
The purchase of crypto currency is the first and most obvious choice. The strategy in this case boils down to such a simple algorithm: buying (or selling short) bitcoins and maintaining a position for a long enough period to cover the spread and get an acceptable profit. This mechanism is similar to trading on Forex and the work of crypto-exchange exchanges. A trader must buy a crypto currency if he believes that the BTC price will grow over time, and make a short-sale if the asset price is expected to fall.

With the direct purchase and sale of bitcoins, long-term trends and technical analysis indicators should be taken into account.
With the direct purchase and sale of bitcoins, long-term trends and technical analysis indicators should be taken into account.
When buying a crypto currency, the multiplier does not work, which prevents a possible loss of the entire invested capital for one transaction. The trader's income will depend on the difference between the opening and closing prices. The further the price of Bitcoin is removed from the original position, the higher the profit will be. Some analysts believe that due to higher spreads, the purchase of crypto currency is best suited for long-term transactions.

CFD-contracts for crypto currency
Contracts for the price difference kriptovalyut - another rational solution for trade. Instead of buying crypto currency, you, as a trader, buy a contract. Accordingly, the investor will earn a difference between the current and future prices for bitcoins. As in the previous case, the greater the difference, the higher the share of profit.

When trading on CFD, one should take into account short-term trends and indicators of technical analysis tools
When trading on CFD, one should take into account short-term trends and indicators of technical analysis tools
Despite the apparent similarity, buying CFD contracts and buying crypto currency work differently. As always in trade - the difference in the details. CFDs allow short-term deals because of low spreads. Contracts for the difference do not need significant price fluctuations, in order to maintain a positive net profit. In the case of CFD traders, a multiplier is available. The latter works like a loan, allowing traders to borrow money for a period of one transaction. It can be used to control larger positions than a trader can afford. It should be noted that here both profitability and potential risk are multiplied.

Digital-options
Another option is trading on digital options. This tool gives less profitability, but it has its advantages. Trading on options traders must guess the direction of the trend, not taking into account its strength. In other words, it does not matter if Bitcoin is estimated at $ 5 or $ 50 - as long as you click on the BUY button. You will continue to receive a certain share of the profits. Transactions on binary options can be limited to a period of up to 30 seconds. Even the slightest fluctuations in the exchange rate can lead to an increase in yield by an order of magnitude. Thus, speed and reduced profitability are the most important distinctive features of trading on binary options.