Digital options continue to go from strength-to-strength despite tighter regulations from governments around the world. It has critics, with some comparing it to gambling. However, with minimum deposits as low as $10 and 86% returns on the riskiest trades, it is little wonder that it is taking the trading world by storm.
Notably, if one wanted to invest their money with little risk, the returns are very small. Most banks offer 1-3% returns. When you consider that inflation can fall within that range, your money basically remains stagnant. Notably, banks invest deposits in a similar way to binary options. They speculate on the market and make data-backed decisions. They then give savers a small portion of the returns.
For centuries banks and governments have controlled the gates to true wealth building. Those with expert knowledge of global markets will never become broke. They dont have to manage inventory, provide great customer service or ride downturns. In fact, every good investor hopes for economic turmoil. A lot of money is made during periods of uncertainty.
Wherever people invest money, you will find fraudsters. The digital options industry is no exception. People have launched websites with the sole purpose of scamming people. They have ridden the momentum of digital options in order to steal billions of dollars collectively.
Despite tighter regulation, government agencies have struggled to control the digital options industry. Many have moved their operations to countries with loose laws. The EU moved to ban digital options altogether, but what use is a ban if anyone can find the platforms and trade within minutes?
Arguably, governments are trying to control something they dont understand. There are legitimate platforms out there, which have enabled people to build a fortune from home. The trading floor has been opened to every man, and that is an incredibly powerful feeling.
If the failed war on drugs has taught us anything, it is that you cant stamp out what people love to do. They will only move it underground, and this simply makes things worse. For instance, as governments begin to crunch down on digital options, many platforms are now beginning to accept cryptocurrencies. This results in anonymous trading. On the other hand, it also enables brokers to remain anonymous.
The best thing governments can do is to educate people on the pros and cons of trading digital options, and how to do so in a safe and secure manner. Arguably, the reason why governments are keen to regulate the digital options market is that they dont benefit from it. Most digital options platforms set up in tax havens. Moreover, they provide an attractive alternative to traditional investment products such as bonds and savings.
The main advantage of digital options might also be regarded as a negative. The low barrier to entry means that it attracts people with very little investment knowledge. They treat digital options more like a form of gambling. Any investment strategy based on guesswork is gambling. The best digital options traders treat it like any top Wall Street Trader. They do the following:
1) Carry out deep research into their chosen currency pairs. It is better to know a lot about a little, then little about a lot.
2) Aim to improve their strategy on a daily basis.
3) Review each trading session to find areas where a lack of concentration or guesswork affected their decision making. A top digital options trader never guesses. There is a logical reason for every trade.
The best thing newcomers to digital options can do is to sign up to a demo account and use that to develop a strategy and learn. It isnt an easy way to make money, and more than 80% make a loss. Therefore, in order to become an exception, you must make exceptional actions.
Before signing up to any digital options platform, it is worth knowing the telltale signs of the fraudulent ones. There are many horror stories of people losing a fortune with no way of tracing the criminals. Therefore, it would be wrong of me to not keep you informed.
1) Any platform which seems to guarantee success is likely to be a scam. You are four times more likely to lose money trading digital options than to turn a profit.
2) Cryptocurrency only digital options platforms are more likely to be fraudulent. Even if they arent, cryptocurrency prices move frequently. You could have your profits wiped out.
3) Any platform which heavily promotes using lifestyle marketing is likely to be deceptive. A type of lifestyle marketing is the use of mansions, private jets and other luxurious items to promote a brand. They are promoting the illusion of success instead of the route to getting there.
4) Just because your favourite influencer promotes a digital options platform doesnt mean it is legitimate. People can say some amazing things when money is involved. You need to perform due diligence and make sure that you have picked a secure, reliable platform.
To conclude, digital options can be a good way to make money; however, you need to develop the mindset of a professional trader. There are many pitfalls, but so long as you carry out extensive research, you are unlikely to fall victim. Compared to traditional forms of investing, digital options can be a faster route to wealth.
