Binary Options Legal in Indonesia? This is the Meaning and How it Works

Bittime – This article discusses binary options in crypto trading. You will learn the modus operandi of fraudsters, why binary options are illegal in Indonesia, and steps to protect yourself from being trapped by fraudulent investments.

What is Binary Option in Crypto Trading?

Binary options are a type of investment in which investors predict whether the price of an asset, including cryptocurrency, will rise or fall within a certain time period. This is a simple form of trading, where there can be only two outcomes: win or lose, yes or no.

If your prediction is correct, you get a steady profit, usually around 70-90% of the initial investment. However, if you make a mistake, you lose your entire investment.

In the context of cryptocurrencies, binary options offer the opportunity to make profits from high price fluctuations. However, it is important to remember that high volatility also means a greater risk of loss.

Read Also: Bitcoin Price Drops Below $55,000, Here's Why!

Are Binary Options Legal in Indonesia?

Binary options are illegal in Indonesia. The Indonesian government through the Commodity Futures Trading Supervisory Agency (BAPPEBTI) strictly prohibits binary option trading activities. This is due to several reasons, including:

• Very high risk level: Binary options have the potential for total loss, so they are high risk for investors.
• Vulnerability to fraud: Many binary options platforms are unofficial and involved in fraud.
• Lack of consumer protection: Investors have no legal protection in the event of a loss.

BAPPEBTI has issued an official warning about the dangers of binary options and asked the public to be careful. Several cases of binary options fraud have also been reported.

How Does Binary Option Work?

The binary options trading process is relatively simple. Here are the steps:

• Asset selection: Investors choose the underlying asset, such as Bitcoin, Ethereum, or other crypto assets.
• Determination of strike price: Investors determine a target price for the asset.
• Determination of expiration time: Investors choose the prediction period, which can be minutes, hours, or days.
• Making predictions: Investors predict whether the asset price will be above or below the strike price at expiration.
• Investment placement: The investor invests a certain amount of money in the option.

If the prediction is correct, the investor gets a steady profit. If wrong, the entire investment is lost.

Contoh Trading Binary Option

For example, you predict the price of Bitcoin will rise above $30,000 within an hour. You buy a binary option with a strike price of $30,000.

If the price of Bitcoin reaches above $30,000 in one hour, you make a profit. Otherwise, you lose your investment.

Advantages and Disadvantages of Binary Options in Trading

The following are the advantages and disadvantages of binary options in trading.

1. Binary Options Benefits

• Simple: The basic concept of binary options is easy to understand.
• High profit potential: If the prediction is correct, profits can reach 70-90% of the investment.
• Limited risks: The maximum loss is the initial investment amount.

2. Binary Options Disadvantages

• Risk of total loss: If the prediction is wrong, the entire investment is lost.
• Dependence on predictions: Success depends heavily on the ability to predict price movements.
• Weak regulation: Many binary options platforms are unregulated, increasing the risk of fraud.
• Addicted: Possible gambling addiction due to its speculative nature.

Fraud in Binary Options

The binary options industry is notorious for many cases of fraud. Some of the modus operandi of fraudsters include:

• Platform Pals: Fraudsters create fake trading platforms to steal investors' money.
• Promise of big profits: They offer unrealistic profits to attract victims.
• Pressure for greater investment: Scammers often pressure victims to invest more money with the promise of big profits.
• Fake trading robots: They sell fake automated trading software that doesn't work.

Also Read: White Bunny Presale: How to Buy WBNY Coins

How to Avoid Binary Options Scams

To avoid Binary Options fraud, you can do the following things.

• Do your research: Learn about the trading platform before investing.
• Check regulations: Make sure the platform is regulated by a legitimate financial authority.
• Beware of promises of high profits: If it sounds too good to be true, it's probably a scam.
• Protect personal data: Do not provide personal or financial information to unknown parties.
• Consider investment alternatives: There are many other investment instruments that are safer and more secure.

Conclusion

Binary options are a very risky and illegal form of investment in Indonesia. With the potential for total loss and high incidence of fraud, it is highly recommended to avoid this type of investment.

The Indonesian government through BAPPEBTI has given a firm warning about the dangers of binary options. Binary options platforms operating in Indonesia generally do not have official permits and have the potential to harm investors.

Instead, investors can consider safer and more secure investment options, such as stocks, mutual funds, or gold. Always do in-depth research and consult a financial expert before making an investment decision.

How to Buy Crypto on Bittime

You can buy and sell crypto assets easily and safely via Bittime. Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti. 

To be able to buy crypto assets on Bittime, make sure you have registered and completed identity verification. Apart from that, also ensure you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application. Study Complete Guide How to Buy Crypto on Bittime. 

Monitor graphic movement of Bitcoin (BTC) price, Ethereum (ETH), Solana (SOL), and other cryptos to find out today's crypto market trends in real-time on Bittime.