Ethereum: Binary Bitcoin options – Understand the risks
Binary options have gained significant attention in recent years, particularly among cryptocurrency and investor enthusiasts. However, many people do not know what binary options are really and how they work. In this article, we will deepen the world of binary options, including the Ethereum version, and we will help you understand if it is a legitimate investment opportunity or a scam to avoid.
What are binary options?
Binary options are a type of financial contract that offers two possible results: the price will move in their favor (that is, upload) or against yours (low). This is different from the trade of traditional options, where there are multiple possible results and prices can fluctuate based on various market conditions.
In binary options, essentially buy or sell a position with a single bet. Payment depends solely on the result of that trade, which makes it extremely simple to understand and execute. For example:
- A binary option could pay $ 100 if the price moves in its favor from an initial value of 0.
- On the contrary, if the price decreases by 10%, your initial investment will be paid.
Bitcoin Binary Options of Ethereum
Ethereum has introduced its own version of binary options, known as Ethereum Binary Options (EBOS). These are essentially digital contracts that allow users to bet on the future movement of Ethereum prices. EBOS work similar to traditional binary options, with some key differences:
* FINANCING
: EBOS requires a minimum deposit, which is used to finance your commercial account.
* PAYMENTS : As mentioned above, payments depend solely on the result of the trade.
* Risk management : Users must establish their own risk levels for each operation, since there is no automatic loss or limit in the amount that can be lost.
Is it a scam?
While some users have reported successfully with Ethereum’s binary options, many others have lost significant amounts of money. The industry is not largely regulated, which means that there are no strict guidelines to guarantee equity and transparency.
There are several red flags to take into account:
* Lack of regulation : Many binary options platform operate outside the regulatory frameworks, which makes users recover their losses.
* Unrealistic promises : Be careful with any platform of binary options that make exaggerated claims on guaranteed profits or high payments.
* There are no clear rules : If you cannot find any information on the terms and conditions of the platform, its rules and regulations, or how they work, it can be a scam.
Conclusion
Ethereum binary options are a type of financial contract that allows users to bet on the future Ethereum prices movement. While some users have reported successful, many others have lost money due to the unregulated nature of industry and unrealistic promises made by binary options.
To avoid possible scams:
- Investigate good reputation platforms that adhere to strict regulations.
- Be careful with the offers not requested or exaggerated claims on guaranteed profits.
- Understand your risk management strategies before executing any operation.
- Always establish realistic expectations and have a clear understanding of the terms and conditions of the platform.
Remember, invest in binary options must be done with caution and only after an exhaustive investigation. If you are not sure or uncomfortable with the risks involved, it is better to stay away from Ethereum’s binary options completely.