When the new coronavirus pandemic hit the world, a financial crisis was triggered by the quarantine imposed as a measure to prevent the spread of the disease.In Brazil, social distancing restrictions lasted several months and several people lost their jobs during this period, others reduced their budgets, leading many to look for new ways to earn money.
Because of this, applications and investment companies in binary options started to attract people, as their options are quick and easy to invest in.
Several applications offer intuitive interfaces, such as the investment platform IQ Option, which reached users' cell phones offering an investment option with fixed returns even for those who have no experience or prior knowledge of the financial market.
What are binary options and how do they work? Binary options are globally regulated investment options since 2013, as opposed to traditional investment options such as the Stock Exchange. In this format, you do not invest in purchasing shares, but in assets.
The investment works by projecting an increase or decrease in the value of the asset throughout the operation. If the investor “bets” on the appreciation of the asset and at the end of the period demonstrates appreciation, the return can be up to 90% of the amount invested.
Negotiations take place through online investment platforms, on websites or applications such as IQ Option, which can be carried out through automated systems, with interfaces accessible even to those who have no knowledge of the financial market.
However, the practice is not regular in Brazil. To invest, the user needs to open an international account to carry out operations and receive profits.
Binary Options Investment Formats Investment formats are summarized in five options: Money or nothing, property or nothing, one touch, no touch and 60 seconds. The “money or nothing” format consists of betting on the value rising or falling, regardless of the final value. The “asset or nothing” format is the opposite of the money or nothing option, regardless of the value that the asset reaches.
In the “one touch” and “no touch” formats, the operating time determines the salary. In the “one touch” format the asset must reach a specific value within a certain period of time, while in the “no touch” format the asset cannot reach the threshold value.
The 60-second format consists of quick operations, which require greater experience and knowledge from the investor. In this format, the transaction can be closed immediately after the asset reaches the desired value.
Tips for investing in binary options 1. Use reliable platforms Investment platforms, or brokers, are how you make your investments. Find a reliable company, like the IQ Option app, to carry out your investment operations. Check if the company is registered and look for user reviews.
2. Think strategically With these types of investments, it is important to remember that there is no exact formula for the failure or success of operations. There are several strategies that work depending on the time of day or property.
Before investing, study this type of business and start with smaller amounts until you understand the logic of the operations.
3. Use the available information To invest in different options you need to know how to analyze the available information, such as graphs, in addition to using indicators. Therefore, investors look for the best way to invest by examining financial market fluctuations, avoiding bad investments.
It is also important to pay attention to global financial news, especially events that can cause market volatility. This way, you have more security when investing online.
4. Only invest what you can afford In this type of investment, it is essential that you manage the available assets well. Don't risk too much of your budget, so you don't lose everything at the end of the day.
Divide the money into different operations, so that it has more chances of completion and less impact in case of loss.
5. Have control and know when to give up There are days when the market has no defined upward or downward trend, with assets changing value quickly. On days like this, experienced investors recommend: if you lose 3 trades in a row, stop investing for the day. This is a rule that many follow and swear it works.