In 2013 and in early 2014 you could occasionally hear about binary options and about how you could make money with them and become rich overnight. At that time it was obvious for me – and for many other people – that this is complete nonsense.
While I used to ignore this phenomenon earlier the year, by now I can’t do it anymore because you literally get bombarded by these things on a constant basis on all channels.
First, if you have a finance blog then there isn’t a week you don’t get several emails about binary options companies wanting to post paid reviews about their services on your site. I obviously ignore these as I personally disagree with these services and I don’t post paid reviews of fake products.
There are also the emails about the “products” themselves, trying to convince me to try them out and deposit money at these binary options brokers. This would obviously be the worst thing to do, as after depositing you most likely won’t see your money ever again.
But lets look into what binary options are exactly…
Binary options appear to be a form of betting on the future development of prices. Like, if you think that the price of gold will increase during the next 10 minutes then you can make an appropriate bet at a binary options broker.
If you bet is correct, you will win, if it isn’t, you will lose all the money you have put at stake.
The problem is that all this is advertised not as betting but as legitimate investing. There is really nothing about binary options that qualify as investing. Most of the time the brokers will allow you to make predictions that will have to come true within just a few minutes or seconds.
While it’s possible to predict the future development of prices, you definitely can’t do this within the time frame of just a few seconds or minutes. Therefore binary options are pure gambling and a game of chance.
Another problem is the fact that most binary options companies are shady. The majority of these companies appear to be operating from untrusted countries such as the British Virgin Islands, Seychelles and similar. Would you want to entrust your money with a “company” from a tax heaven island nation?
And it’s getting even more ridiculous.
Initially, it was only the binary options brokers themselves that advertised such services. Now, a new trend emerged that’s even shadier than binary options themselves. These are called binary options signals.
Binary options signals are supposed to be algorithms that will automatically make correct predictions for you. Supposedly, by using these you will not even have to do anything yourself because the signal algorithm will trade in your place and make you money overnight.
This is why I said it couldn’t become more ridiculous than this. There isn’t any magic software – no matter in what business or domain – that you can just plug in and then it will automatically make money for you.
So, this is why I believe that binary options aren’t something you should be engaging. I mean, if you like betting and gambling, then go ahead. There is nothing wrong with gambling or betting if you understand exactly what you are doing.
However, don’t believe for a second that binary options are real investing or real trading because they for sure are not.
If you are interested in making money from home, then there are various legitimate ways of doing so. No need to get into dangerous and shady investments.