10 Reasons Why You Should NOT Get into Binary Options
Have you ever heard of binary options? If you’ve been looking up ways to make money from home, you’ve probably stumbled across this method at some point. To tell you the truth, I wish I had never heard about this because at one point in my life it took every last penny that I had left. Luckily, I can use that experience to warn others.
What are binary options, though? To put it briefly, they are basically financial options that you can buy that pay off when certain conditions are met. For instance, let’s say you buy an option that will either pay 100 dollars if the price of gold is over $1,400 per ounce on Tuesday at 2 PM, or else it will pay $0 if gold is under this price. You can buy this option for a price—let’s say $45—and you will receive $100 dollars (for a profit of $55) if gold is above that specified amount, or your option will expire and be worth nothing (which means you lose the $45).
If this sounds a lot like placing a bet at a casino, that’s because it pretty much is. Before you fall for this common scam, read through these important reasons why you should avoid binary options like the plague.
1) Every binary options outlet I’ve ever heard of was a scam.
It wasn’t even that people lost a lot because it was risky, it was that the “brokers” were scamming people out of money, plain and simple. I myself was scammed and they preyed on me because I was in a desperate situation and needed to make money.
2) If not all of them are scams…then most of them are.
Okay, maybe I’m biased because years ago, I invested my last $500 in binary options and lost it all. Maybe there are some “legit” binary options outlets that actually play fair and don’t just outright steal your money. It’s hard if not impossible to find a binary options platform that isn’t shady, though. Why? Well, even at its best, it’s still gambling—and most gambling businesses are shady.
3) Even if it isn’t a scam, you have to know what you’re doing to make money.
Let’s assume you were in a perfectly level situation where no one was defrauding you. To be able to trade and make any money, you would still have to really know what you’re doing and have a lot of practice. If you’re a beginner to investing or making money online, you have very little experience, and it would be the worst idea to try to directly compete in a zero-sum game with others who know way more than you do.
4) Even if it’s not a scam, and you’re an expert, you will still lose money.
To take things further, even professional gamblers lose tons of money all of the time. So no matter what you do, over the long term, binary options are a losing game. The house always wins. If you think for a moment about how money is actually made in an real economy (through value-generation), this makes a lot of sense.
5) You’re supporting gamblers and scammers.
Let’s say you’re the luckiest person in the world and you win every time. Just because you are able to make money with binary options, doesn’t erase the fact that you are contributing to the seedy world of gambling and scamming. Do you really want to have anything to do with that?
6) If you win, someone else loses.
That’s the nature of gambling. You can’t work together or co-create, you can only hope that the other guy loses—which brings me to my next point:
7) It doesn’t contribute value to society.
As I implied before, binary options don’t actually generate value. Like any other form of gambling, it’s just a matter of passing money around and nothing is actually created. You just get lucky or you don’t, but you’re not actually contributing.
8) More importantly, it doesn’t contribute value to your life.
Similarly, if binary options and gambling aren’t bringing value to society, much less are they going to produce anything of value in your life. If you want fast, easy money, then fine. Take your chances. However, if you want to make something that will help you grow and truly change your life from the inside out, you will need something more than just lucky streaks. Luck is for people who don’t want to change themselves.
9) Binary options eat away your capital.
You know what I wish I could have done with those $500? Anything else.
Seriously, anything else—any other kind of business—would have been better than investing in binary options. Even if I had invested it in the dumbest business idea in the world, at least I would have learned something about business. Instead, I just learned another hard lesson about scammers and the lengths that they will go to separate you from your money.
You could spend your capital on something better. Don’t waste it on binary options.
10) Binary options are a waste of time when you could just start your own business.
The great thing about a business is that it grows! Just as you change and grow and learn, your business will keep improving with you, as an external reflection of who you are. There is no way that binary options can provide this kind of satisfaction for you.
Binary options are not something that you are building for yourself that has a deeper meaning, is entwined with your life purpose, and will generate value for years to come. No, it’s just dumb luck—and that’s why it’s always the losing strategy in the end.
So if you’re thinking of playing around with binary options, believe it or not, I’m not here to tell you not to. We all have to learn our lessons for ourselves—and I certainly did! The best I can do is just warn you that your desperation or greed could lead you down the wrong path, and you may find yourself quite a bit poorer than when you started.