CoinTelegraph spoke with Damian Cišek, the CEO of BitPlutos, the first binary options platform for Bitcoin, about what binary options can bring to Bitcoin, how it compares to forex trading and whether they can help the industry grow in the digital world.
The trading of binary options is essentially predicting whether an asset price will go UP or DOWN over a period of time. A trader purchases an option and if the trader predicted the move correctly at the end of the option period, it generates approximately 70-80% return on the trader's investment. If the trader was wrong, the investor loses most of the money they had paid for the option. Binary options expiry times vary from 30 seconds up to more than 1 year.
Binary options trading enables trading stocks, commodities, currencies and indices without requiring intricate analysis, and for this reason it is one of the most popular trading methods available. They are very simple to trade, even for inexperienced investors, and binary options trading requires very little starting capital – usually no more than a few hundred dollars.
“Bitcoin […] is going to decentralize bank services and change the world of money as we know it.”
- Damian Cišek
CT: What made you create your BitPlutos platform?
Damian Cišek: Well, I used to be a trader back in the days when binary options were first introduced. I believe it had happened around 2008, three years before Bitcoin came into being. I had no previous experience and was a bit uncertain about it. It quickly turned out that I my worries were exaggerated. I was pretty much successful with binary options and definitely would have continued trading but then something happened.
Bitcoin happened. I immediately got absorbed by it and forgot about binary options. I started crypto-trading as it emerged, using my trading expertise to my advantage. That was great, a plethora of possibilities that Bitcoin brings along, a breather.
“The opportunities binary options bring are immense.”
But soon I started missing binary options trading. Yet, there was nothing to make me abandon Bitcoin. Last year, while I was visiting Amsterdam Expo, I decided to make contact with Spot Option, the leading binary options technology provider. What you see is the fruit of our labor.
By delivering a binary options platform for bitcoins, we wanted to create new ways for Bitcoin users to grow their coins. The opportunities binary options bring are immense. Just imagine 75% profit every trade. Obviously, nobody is perfect and you shouldn't expect to be either, but I just wanted to give you an idea. And the volatility of bitcoin? Assets like bitcoin/Euro or any other bitcoin-based ones are way more predictable than the regular forex currency pairs. That's why we brought BitPlutos into being.
CT: What role will Bitcoin play when it hits the world's financial markets?
DC: Bitcoin, and the virtual currency in general, is going to decentralize bank services and change the world of money as we know it. Stephen Pair, the CEO of BitPay, said that “Bitcoin's integrity is guaranteed by the rules of math and the laws of physics” while Tyler Winklevoss praises Bitcoin by calling it “Gold 2.0.”
It is difficult to argue with that - Bitcoin is supported by no government/bank; it is distributed across the entire network of users; its roots in complex digital mathematics. I think that this makes the currency invulnerable to speculation by politicians or banksters trying to move its value up or down for politics or profit. And financial markets are already affected by it – there are investors who trade crypto-currencies exclusively, because they know that such trading is more profitable and less vulnerable to manipulation.
“Generally, the worse the real currencies get, the better for bitcoin.”
You never know what is going to happen with EUR/USD for instance. There are financial analyses, market research data, introducing brokers who are supposed to help you make profit – but in the end, it all fails when some speculative actions performed by the sly devils happen. Obviously, with bitcoin some speculation may be present but it’s incomparable to the real currencies.
Generally, the worse the real currencies get, the better for bitcoin. Just observe what happened during the last Greek crisis – we all knew which direction the bitcoin rate would go. And many used this knowledge to make fortunes with binary options.
CT: Why binary Options instead of Forex trading?
DC: Binary options are simpler, more user-friendly and profound financial expertise and experience is not required. For example, in binary options trading, the payouts are predefined, the price you pay for the option is clearly set, the expiration times are known in advance. That is non-existent in Forex.
Also, Forex features leverage and spread, which you will not find in BO trading. All they have in common is that you have to predict the direction the asset price is going to follow. Some might say that in Forex you are free to control your trading by using STOP LOSS/TAKE PROFIT tools and in BO trading you are not. That is completely untrue since you are allowed to sell your option at almost any time or prolong your expiry time to your advantage. All in all, binary options trading has a clear edge here.
CT: What do Binary Options offer to the Bitcoin world?
DC: An alternative to trade bitcoin with much higher profits and a clear chance to take advantage of bitcoin-based assets volatility and predictability.
CT: Are there any risks in binary options?
DC: Of course there are risks. Binary options trading might not be applicable for all investors so they must ensure that they fully understand the risks before trading and seek counsel from an independent and suitably licensed individual or financial institution such as BitPlutos.
CT: What makes BitPlutos unique among other binary options platforms?
DC: It is the very first binary options platform to trade exclusively in bitcoin. You will find many bitcoin-based assets with us, which is a great advantage for Bitcoin users. Other platforms usually do not render them available for investors as they are way more predictable and volatile, thus useful for binary trading. We do not restrict that.
We are owned by Exclusive Limited, a financial tycoon in the binary options world that owns also of couple of other brands like eXbino, eXbinoG and eXbinoL. Our company is registered and licensed by the laws of Montenegro.
Our users are completely or partially anonymous (depending on their choice) and prefer us due to our payment and withdrawal methods as well as the trading education they receive.
“[T]he SPOT follow feature … is a tool that makes binary signals obsolete.”
When it comes to education, we suggest providing contact details (phone/skype) as it will improve our communication with investors. Anonymous traders are contacted only via email. We are offering an outstanding VIP Program and a special VIP treatment regarding deposit and withdrawal procedure. However, we do need to verify Wire transfers and Skrill/Neteller as we strictly comply with the international AML procedures.
We also introduced an innovative method of boosting binary options trading efficiency for regular traders. Ever heard of binary signals? Forget about it – they are capricious and unreliable most of the times. Instead, we provide the Strategy Advisor: a unique trading tool that analyzes the most important data: Bollinger bands, Moving Averages and RSI.
Our withdrawals are instant, free of charge and unlimited, which is a rare thing in the binary options world where some platforms transfer money once a week and charge you for it.
Then there is the SPOT follow feature, which is a tool that makes binary signals obsolete. You will now be able to monitor best traders moves in the real time. Yes: ability to learn from the best out there without delay and on-the-fly. That’s a lot I reckon.
“Even some banks are developing their own crypto-currencies already. But they will be controlled and manipulated.”
CT: Final thoughts on Bitcoin?
DC: It’s money 2.0. There is no turning back now, the wheels are already turning. It will change the world of finance as we know it. Even some banks are developing their own crypto-currencies already. But they will be controlled and manipulated. Hopefully, Bitcoin and other cryptos will hold its position and status to turn out the real victor here.
Follow Cointelegraph on Facebook