You may be clued up on Bitcoin, but how much do you know about its not too distant cousin, Bitcoin Gold (BTG)?
Where to buy Bitcoin Gold
Read on to find out more about Bitcoin Gold in 2020 or skip ahead to our step-by-step buyers guide if you’re up to speed and ready to invest.
What is Bitcoin Gold?
Bitcoin Gold has been around since 2017 and it’s seen its fair share of controversy since then. But don’t let that put you off – it’s still an interesting coin that’s worth a second look if you’re a trader or investor.
After receiving criticism for launching (and being pre-mined) before it was ready, Bitcoin Gold was hit by an attack serious enough to rock its staunchest supporters. However, since those dark days, BTG developers have been hard at work to stabilise the coin and repair the reputational damage caused by the attack.
How does Bitcoin Gold work?
Bitcoin Gold is a hard fork of Bitcoin (BTC) and can be used in much the same way. It’s decentralised and exchanged by users, without the need for banks to facilitate transactions. The big difference is in the way BTG is mined.
The BTG developers wanted to level the playing field and make specialised mining equipment redundant, so they swapped out Bitcoin’s proof-of-work algorithm, effectively democratising the Bitcoin mining process and opening the doors to more miners.
How to buy Bitcoin Gold online – step-by-step guide
Step 1. Get a suitable wallet
Before you jump online and buy your BTG, it’s a good idea to peruse the various BTG storage options and have a wallet ready. It’s all too easy to leave your cryptocurrency on the exchange after you’ve bought it, but we recommend you find a wallet and transfer your funds as soon as soon as possible. There are plenty of good wallets out there, including:
- Core Wallet: If you’re looking for a versatile desktop client, the Bitcoin Gold Core Wallet should be near the top of your list. It’s compatible with macOS, Windows and Linux, so most BTG buyers should be covered.
- Trezor Wallet: When security is your number one concern, we suggest you look at one of our favourite hardware solutions, the Trezor Wallet.
- Coinomi Wallet: If it’s the convenience of using your wallet on the go you’re after, you’ll want to check out an iOS and Android mobile option. There are plenty to choose from, but we like Coinomi for its versatility and security.
Step 2. Find a Bitcoin Gold exchange
Buying and selling Bitcoin Gold isn’t as easy as some other cryptocurrencies, but that doesn’t mean it’s impossible. To get started, you’ll need some other form of cryptocurrency (we recommend BTC – it’s the most widely accepted crypto) as most exchanges won’t accept fiat currency for BTG.
Here are our preferred exchanges for buying cryptocurrencies like Bitcoin Gold:
- Changelly: When we’re buying cryptocurrencies, we usually head on over to Changelly, and t’s not just the slick design and easy-to-use interface that keeps us coming back. Changelly also offers competitive rates for a host of coins and, crucially, it currently lists BTG.
- HitBTC: Another place to source Bitcoin Gold is HitBTC. It can take a bit of time to get used to the site, but once you get to grips, you’ll find a wide range of coins on offer, including BTG.
Step 3. Withdraw your BTG
As mentioned above, it’s a good idea to withdraw your BTG once you’ve bought it as it’s safer to keep your cryptocurrency in a wallet than it is to leave it on the exchange.
How to trade Bitcoin Gold – step-by-step guide
You won’t need to bother with a wallet if you’re only interested in trading BTG. Trading is a matter of speculating on price movements rather than actually buying the currency, so storage needn’t be a concern.
Step 1. Find a broker
There aren’t too many brokers that will allow you to speculate on BTG, but we found a couple that will, including Avatrade, a broker that specialises in CFDs (contracts for difference).
Step 2. Deposit money
Once you’ve found a cryptocurrency broker, you’ll need to make a deposit. You should be able to start with a low amount – minimum deposits aren’t usually bank-breaking sums. Nonetheless, if you’re new to trading, it’s a good idea to sign up for a demo account before you start trading with real money.
Step 3. Decide how you’d like to trade
The two main cryptocurrency trading methods are CFDs and spread betting. They’re broadly similar in that they both require you to bet on whether you think your chosen cryptocurrency will gain or lose value over a set period of time. If you aren’t sure of the differences between CFDs and spreads, it’s worth talking a closer look before you start trading.
Step 4. Start trading
When you’ve had a play around with your demo account, you might decide you’re ready to start trading on your live account. We recommend getting a good feel for the platform before you begin. And keep in mind, cryptocurrencies can be highly volatile, so it’s easy to win and lose money very quickly, even if you’re a seasoned pro.
The aim of the game is to predict whether the currency’s value will go up or down. If you think it will go down, take a short position (sell) and if you think it will go up, take a long position (buy).
If you feel you’ve got the hang of trading, you might choose to add leverage to your strategy. Leveraged trading allows you to put up a fraction of what the trade is worth (known as a margin), which means you can make bigger trades and significantly boost your potential earnings. Needless to say, if things don’t go your way, leveraged trading can also inflate your losses. This is not a strategy for beginners, but savvy traders use stop-loss orders to limit the risk.