Bitcoin’s price is hard to predict and notoriously known for its volatility. A new derivative trading platform is giving bitcoin traders a simple way to profit from calling bitcoin’s ever changing price. Action Crypto allows the user to pick a direction of either up or down; he or she thinks the price is going to be in a certain timeframe. If correct, the trader will receive the bitcoin he originally sent plus the whatever the multiplier was for the option.
We have been involved in trading the forex, equities and commodities for years and have traded on fiat binary websites, anyone who has done knows that if you go on a run against them it becomes close to impossible to cash out, they look for every reason for you to keep your funds on the exchange so you trade more. We wanted to provide a fair and transparent way for traders of all experience levels to enjoy the bitcoin markets. By keeping everything on chain all trade entry strike prices are very transparent and it eliminates any concern over shady business practices. – Action Crypto
Most binary options work similarly but what makes Action Crypto unique is run from the blockchain, bitcoin exclusive, and requires no signing up or divulging of personal information. To use the platform, a user can simply go to the website and made a place an option from there.
We only keep the traders funds for as long as they are in a specific option contract, This is one of the great things about bitcoin our traders are able to trade without worrying about us being in control of their private keys, we only hold their funds in the amount of the contract they purchased, and it is held till 2 confirmations or expiration of the contract depending on how long the contract is then if they win we send it back with their profit. By not having customer accounts our traders are always in control of their funds till they are ready to trade and when they are ready they are only risking the value of the contract they purchased. – Action Crypto
The payout multiplier ranges from 1.33 to 1.80 and depends on how long your option is. The price used for the options is the average price compiled from BitFinex, BTC-E, Okcoin, Bitstamp, and Bitcoin Average. The site uses “probably fair” and allows users to verify their holdings by checking their address on a blockchain explorer.
Another bitcoin derivatives platform, BitMEX just released a similar product a few days. The company released a futures contract based on their own price index. Using a time weighted average during a two hour period of BitFinex’s price, traders can call the volatility of bitcoin over a one month period. The volatility is annualized at the end of the month and traders gain or lose 0.01 BTC based on how their call turned out.
Action Crypto differs greatly because it is not based on the degree of volatility but simply whether the price went in the general direction you thought it was going to. It also allows traders more flexibility in calling the market. Instead of solely offering a one month period, Action Crypto offers the ability to call bitcoin’s price in a 1 minute, 5 minutes, 30 minutes, 1 hour and 1-day timeframe.
The site is currently available to any nationality, except US citizens. To avoid the complex laws that come with interacting with US citizens, Action Crypto has decided to block those users but is looking into adding them in the future.The platform does make an effort to be inclusive of other nationalities, by making the site available in English and Chinese, and having costumer support available in Spanish and Hebrew as well.
Unfortunately do to regulatory concerns in the US at this time its just not wise to accept US traders, hopefully in the future there will be some solid regulations in place and we can apply for whatever licenses are necessary to accept US traders. – Action Crypto
The trading site opened up in early December and has already completed 5488 options and 2166.33 bitcoins at the time of writing. The site will continue to be focusing on upgrading and developing their platform in the coming months to come but is also looking to other bitcoin financial services it could provide.
photo source: Actioncrypto.com
photo source: Actioncrypto.com
