Cryptocurrencies are one of the biggest trends on the financial market and you can find the main one at IQ Option. Bitcoin can be traded on any IQ Option account via CFD in a very simplified way so that you can try to profit from this asset
Bitcoin is one of the most discussed financial market assets of recent times. This is due to its enormous appreciation and the high value it still has. There is also speculation that its value still has a lot of potential to grow.
And what does this have to do with IQ Option?
Well, IQ Option is one of the largest trading platforms in the world, offering an ever-increasing variety of assets, including cryptocurrencies, including, of course, Bitcoin. In this article we’ll share our experience and explain everything you need to know about trading Bitcoin on IQ Option. Is it worth it?
Bitcoin on IQ Option
Bitcoin on IQ Option is available in the form of CFDs (contracts for difference), where you can trade by buying and selling, unlike put and call trades like in binary options.
This can be challenging for traders who are only used to put/call trades, as there are different variables when trading buy/sell. However, so as not to detract from the point, we’ll focus on these in the following topics.
Returning to the focus of this topic, making a Bitcoin buy or sell trade on IQ Option is quite simple: in the top left-hand corner (to the left of the IQ Option logo), I selected the “+” option to open the list of available assets. Go to the “Crypto” menu and you’ll have cryptocurrencies at your disposal, along with 2 Bitcoin options (Bitcoin x100 and Bitcoin).
With that, you’ll have all the resources available, such as chart types, indicators and other settings like chart time and candlestick period to make your Bitcoin trades on IQ Option.
Advantages of IQ Option’s Bitcoin features
In addition to the features available for other assets, there are others for trading CFDs that can help you trade Bitcoin on IQ Option.
Just above the buy and sell options, in the “close” menu, you can set take profit and stop loss levels, i.e. set the points at which you exit the trade when you reach a profit target or loss limit, respectively. And this feature is very good for at least 2 reasons
Greater safety in operations
As CFD trades don’t have an expiry date, as in the case of binary options, you could run an even greater risk if there is a problem such as a connection or power failure if you have an open order. This is why the stop loss feature is essential to avoid unpleasant surprises.
Important tip: set your stop loss limit before you even place a Bitcoin trade on IQ Option.
Risk management
The earning potential of the financial market can bring out many behaviors that a trader should avoid at all costs, such as greed and anxiety. The stop loss, or loss limit, is important not only to act as insurance in the event of an eventuality, as mentioned above, but also to set a loss limit even before making a trade.
Although it sounds strange, the same goes for take profit, which is something like take profit, in which you set an exit point from a trade when it reaches a certain price.
You’re probably wondering why you should set a take profit limit on a trade where Bitcoin is going in your favor. Why not earn more?
The answer is simple: no price goes up forever and it can often turn against you, taking all your profit. That’s why take profit is something different and important when you trade Bitcoin on IQ Option, to guarantee your profit when you get the trades right.
Schedule your Bitcoin trades at IQ Option
In addition to the possibility of setting stop loss and take profit levels, which make a trader’s life a lot easier because, with these levels set, depending on your strategy, you can even get out of front of the computer when you set them, another great feature is the possibility of scheduling your trades.
Often the market doesn’t turn out the way we expect it to, which can be for various reasons, one of them being the price level.
To trade Bitcoin on IQ Option, you can buy/sell on the market or do so via a pending order, in which your buy or sell will only be sent when the price reaches the level you set.
Doing so is simple: on the lower right-hand side, just below the “buy” and “sell” buttons, there is the spread value and then the option to set the buy and sell price.
What is the spread on Bitcoin trading at IQ Option?
The spread, a term we mentioned just above, is another aspect of Bitcoin trading on IQ Option that needs to be highlighted. Present, as in a cryptocurrency broker, the spread is the cost of the difference between buying and selling.
It is not favorable for the trader, as this cost is part of the operation, but it is necessary, as it is one of the ways brokers make money. After all, there are costs for the platform, development, staff, etc.
We can therefore say that it’s a “necessary evil”, but it’s not a decisive factor for you to avoid trading Bitcoin on IQ Option, because after all, in this cryptocurrency market there are still many costs involved and the spread is probably the least of them.
Does trading Bitcoin on IQ Option pay off?
The answer to this question depends more on how you operate in relation to the asset. As we’ve seen, trading CFDs, such as Bitcoin on IQ Option, is different from trading currency pairs on binary options. And that’s the first thing you should pay attention to.
Secondly, we recommend testing this asset (like any other) on the demo account to avoid losing money unnecessarily. Also, be very careful with leverage, which has the “power” to make you a lot of money very quickly, but the same goes for losses.
In general terms, we can say that trading Bitcoin on IQ Option is worthwhile due to the ease and low costs involved, since the only cost you will have is the spread on the asset.
After reading this article, you can access the options for trading Bitcoin with a demo account on the IQ Option platform, and get to know the most interesting trading strategies.
