IQ Option promises to help you securely buy bitcoin in one click. Find out how it works today in our review.
What Is IQ Option?
IQ Option, found online at IQOption.com, claims to be a “secure trading platform” that helps you buy bitcoin “in 1 click”. All you need to do is enter your email address and password to get started.
Overall, IQ Option promises to offer the “ultimate trading experience”.
In reality, IQ Option is an online binary options trading platform. The company recently launched a bitcoin landing page designed to convince people to signup to the platform.
Aside from being a binary options platform, however, IQ Option also recently announced the launch of its Open Trading Network platform, or OTN, including the launch of OTN tokens. More on that later.
IQ Option was first launched in 2013. The company is registered in Cyprus, and offers Android and iOS apps for binary options trading.
IQ Option recently added cryptocurrencies to the platform. Today, you can trade 7 different cryptocurrencies via contracts for difference, or CFDs. That’s why IQ Option has launched a new marketing campaign catered towards cryptocurrency users.
How Does Cryptocurrency Trading Work On IQ Option?
IQ Option currently offers seven different cryptocurrencies available for trading via CFDs. It doesn’t appear that you can actually buy real bitcoin or cryptocurrencies through the platform. You never actually own the cryptocurrencies – you’re just trading based on your predictions. The seven cryptocurrencies include:
These cryptocurrencies are traded as easily as you trade other contracts on IQ Option. You can view graphs of their stats over time. You can trade via a web interface or through your mobile device.
You can also access popular tools like stop loss (SL) and take profit (TP). Stop loss is used to open a position, while take profit is used to set a price or value at which the transaction will be completed automatically when reached.
What Are Contracts For Differences?
Contracts for differences, or CFDs, are a type of arrangement based on a futures contract. Differences in the settlement are made through cash payments instead of by delivery of physical goods or securities. This is considered to be an easier settlement method because losses and gains are paid in cash. CFDs provide investors with all of the benefits and risks of owning a security – but without actually owning it.
That’s why you can “buy bitcoin” through IQ Option without ever actually owning bitcoin. You’re not actually buying any cryptocurrency. You’re just trading something that represents that security on a digital platform.
Why would anyone want to buy an asset without actually owning that asset? The main reason is leverage. CFDs provide higher leverage than traditional trading. The standard leverage in the CFD market is as low as a 2% margin requirement and as high as a 20% requirement.
Ultimately, CFDs can be found for a number of major assets. On IQ Option, you can access CFDs for cryptocurrencies, fiat currencies, stocks, commodities, and more.
IQ Option Features
- Demo Accounts: You can open a demo account with IQ Option. Your demo account lets you take basic features for a test run. You can see how different features work without depositing money into the platform. You will, however, need to provide an email address to sign up.
- Mobile Support: IQ Option apps are available for iOS or Android.
- Multi-Platform: You can access IQ Option trading through your web browser, or through desktop software for PC and Mac.
- Multiple Chart Layouts: Line, candlestick, area, and bar charts are all available through the IQ Option platform.
- VIP Accounts: IQ Option has an exclusive VIP account option. In order to get a VIP account, you need to deposit $3,000 or more to the platform in a single deposit. VIP status holders gain access to educational materials, entries to larger tournaments (including tournaments with prizes up to $100,000), and higher payouts (like 3% higher payouts on FTSE or Google trades).
Overall, IQ Option’s features are similar to what you’d expect on any binary options trading platform.
IQ Option’s Open Trading Network And OTN Tokens
In October 2017, IQ Option made headlines across the cryptocurrency community for launching OTN tokens as part of its Open Trading Network platform.
Unlike other companies, however, IQ Option is not releasing its OTN tokens through an ICO. Instead, the company is releasing its OTN tokens through a unique mining system. To “mine” tokens, you need to trade crypto assets on the IQ Option options platform. Each week, a new portion of OTN tokens will be distributed to all traders involved in cryptocurrency trading. You get a number of tokens proportional to your share of cryptocurrency trading volume. The number of tokens released each week will gradually diminish.
You can also purchase OTN tokens directly from a cryptocurrency exchange called Livecoin.net.
OTN tokens are Ethereum-based tokens.
The ultimate goal of the Open Trading Network is to connect multiple blockchains together in a transparent, seamless trading environment. The OTN token is used to purchase multiple assets across that network. A press release announcing the trading platform claims that “both digital and conventional assets can be tokenized with the help of OTN.” However, we don’t have many technical details about how the platform plans to accomplish these goals.
IQ Option is also careful to explain that they – as a brokerage company – are not providing OTN tokens to clients. Instead, “all tokens are provided by the OTN Foundation”. They’re also careful to note that they’re not actually selling OTN tokens and “the activity is non-commercial.” You have to engage in trading on the IQ Option platform (which presumably costs transaction fees), but you don’t actually have to pay IQ Option directly – or something like that.
In any case, IQ Option clearly has big plans for its OTN token and the Open Trading Network. However, at this point, we don’t have much technical specifics about how the platform will work.
IQ Option Conclusion
The term “binary options trading” is almost synonymous with the word “scam”. Some countries have even banned binary options trading. Yes, binary options trading can be sleazy. But no, binary options platforms are not always scams. IQ Option appears to be a legitimate trading platform. The platform recently introduced seven different cryptocurrencies, all of which are available via contracts for differences, or CFDs. They’re also preparing to launch their Open Trading Network, which will utilize OTN cryptocurrency tokens to
If you enjoy binary options trading, and want to work with a licensed and regulated provider, then IQ Option is one such option. However, be aware that binary options of any sort comes with its own risks, and many consider it to be glorified gambling.