Bitcoin Gold (BTG) - All you need to know
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Ways to invest in Bitcoin Gold
The best way get started with Bitcoin Gold is to sign up with an online broker or a cryptocurrency exchange. There you can buy and sell coins, either holding the coins directly or by using CFDs to predict price movements.
The links below teach you about both methods, and introduce other ways of gaining exposure to a cryptocurrency like Bitcoin Gold.
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What is Bitcoin Gold?
It is a cryptocurrency that has been around since October 2017, and its market denotation is BTG. In essence, it is a hard fork of Bitcoin, which occurs when a new, evolved version of a blockchain no longer accepts the older version of the blockchain.
The original purpose of Bitcoin Gold was to decentralise the mining process. While this seems at odds with Bitcoin’s already decentralised status, the BTG developers felt that Bitcoin’s proof-of-work (PoW) algorithm favoured major mining operations, preventing regular individuals from profitably engaging in the mining process.
As a result, Bitcoin Gold uses a tweaked version of Bitcoin’s consensus algorithm, which is called Equihash-BTG. In theory, this helps level the mining playing field. While BTG has experienced its fair share of controversy following major hacking events such as a 51% hashing attack in May 2018, the coin now has a relatively strong reputation and has secured its spot as one of the top 100 cryptocurrencies by market capitalisation.
How does Bitcoin Gold work?
It works in much the same way as Bitcoin. It is a form of decentralised currency that records transactions on a blockchain, which is effectively a digital ledger. Bitcoin Gold doesn’t need to be manually governed by a central presiding authority like a bank. Instead, its algorithm allows transactions to be facilitated automatically, while also ensuring the anonymity of both payment senders and recipients.
In essence, BTG miners validate each transaction by using high-powered computer rigs to solve complex computational math problems, which allows transactions to be validated. Miners receive BTG for their efforts.
However, there are some key differences between Bitcoin Gold and Bitcoin. Most notably is the democratisation of the Bitcoin Gold mining process, which allows for a fairer playing field when compared to Bitcoin. In addition, Bitcoin publishes transactions details – including wallet addresses – via its explorer, whereas Bitcoin Gold steers clear of releasing any such information.
How to invest in Bitcoin Gold
There are lots of different ways to gain exposure to cryptocurrency and it’s a good idea to get to know them all before you choose what’s best for you. Here’s a list of methods you can use:
- Broker platforms. Buying through an online broker is a fast and easy way to get a piece of Bitcoin Gold. The best brokers offer superior customer service, an intuitive trading platform, and affordable transaction fees.
- Cryptocurrency exchanges. Numerous different crypto exchanges will allow you to buy, sell, and trade Bitcoin Gold. Look for a reputable exchange that executes transactions seamlessly and securely and allows you to trade a variety of different cryptos.
- Trusts and funds. An investment trust is a closed-end investment strategy that UK investors can use to get a variety of different assets. Increasingly, there are trusts that include cryptocurrency as one of the assets and you can look around to see if any have bought up Bitcoin Gold.
- Debit cards. A crypto debit card is a method of purchase that allows you to make purchases online instantly using your coins. These tend to be available only for the largest, most popular cryptocurrencies.
- Crypto apps. The momentum seen among cryptocurrencies has spawned many new cryptocurrency apps. These let you do things like borrow, lend, or invest your coins, along with many other features.
- Wallets. With a wallet you can store and track your coins securely. If convenience matters to you, look for a crypto wallet that serves as many purposes as possible.
Where can I buy Bitcoin Gold now?
Latest Bitcoin Gold price analysis
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