Bitcoin Gold (BTG): Where, how and why to buy Bitcoin Gold to invest in 2021?





Posted on November 22, 2021, 5:46 PM

Bitcoin Gold (BTG) is one of the first major hard forks of Bitcoin. It was founded in 2017, attempting to be more decentralized than bitcoin.

BTG aims to democratize the mining process and make it more accessible to everyday users by removing the need for specialized mining equipment.

Read on to learn everything you need to know about Bitcoin Gold, owning Bitcoin Gold, or how to buy and trade it.

History of Bitcoin Gold

Bitcoin Gold (BTG) is a cryptocurrency created from a hard fork of Bitcoin (BTC). Bitcoin Gold officially separated from the original Bitcoin blockchain on October 24, 2017.

The goal of the Bitcoin Gold project was to restore the original decentralization of bitcoin mining. In the beginning, bitcoin (BTC) could be mined using ordinary computers. However, as the network has grown, the only way to profitably mine BTC is by using ASICs (Application Specific Integrated Circuits). With the use of ASICs, bitcoin mining has become monopolized. Large corporations control most network hash rates, giving them the power to review transaction history and prevent new transactions from being confirmed.

Jack Liao, CEO of Hong Kong-based mining company Lightning ASIC, first announced the Bitcoin Gold project in July 2017. Bitcoin Gold modified Bitcoin’s proof-of-work (PoW) algorithm to create an asset digital that did not require an ASIC for mining. Instead, Bitcoin Gold used GPU (graphics processing unit) mining, making it more accessible and restoring decentralization to the network.

After the official launch on November 1, 2017, community members criticized the development team after discovering that 100,000 BTG coins had been pre-mined. The team said the pre-mined funds would be used to support the growth of the Bitcoin Gold ecosystem, and five percent was set aside as a bonus for the team.

Bitcoin Gold’s official website was compromised the same month, and over $3.3 million was stolen in this scam.

In May 2018, Bitcoin Gold was hacked by attackers. Hackers stole over $18 million in BTG from multiple exchanges, including Bittrex.

Hoping to prevent future attacks, in June 2018, the Bitcoin Gold Project changed its proof-of-work (PoW) algorithm from “Equihash” to a new hash proof-of-work algorithm, called “Equihash”. -BTG”.

The BTG algorithm is ASIC resistant, so you can mine it yourself if you have a powerful computer. You can also increase your earnings by joining a mining pool.

How to Buy Bitcoin Gold (BTG)

It is possible to buy Bitcoin Gold with a regulated broker and on a variety of exchanges. You can choose a cryptocurrency exchange that best suits your needs on the official Bitcoin Gold website.

Before signing up on an exchange, consider checking whether it is available for cryptocurrency trading in your country.

Some offer to exchange national fiat currencies such as the US dollar for Bitcoin Gold, while others only exchange Bitcoin or Ethereum.

If you want to buy Bitcoin Gold with fiat currencies, CEX.IO might be the right choice for you. It is one of the only exchanges that allows you to buy Bitcoin Gold (BTG) with USD. If you previously owned bitcoins, all you have to do is register on CEX.IO, confirm your account and search for BTG/USD.

Other exchanges that support Bitcoin gold with fiat currencies include YoBit and DSX.

Another easy way to buy Bitcoin Gold (BTG) is the contract for difference (CFD). If you want to buy it as a CFD, consider using a broker that offers a wide range of payment methods, including credit card, bank transfer, etc. The broker allows you to buy cryptocurrencies with a leveraged position in a relatively simple process.

For those looking to buy Bitcoin Gold (BTG) with digital currencies, you will need to go through an exchange that supports the BTG/BTC or BTG/ETH pair you are looking to buy bitcoin gold coins with.

Follow our step-by-step guide to buying BTG:

Step 1: Open an account on an exchange that supports BTG: Most exchanges require an email address, phone number, and proof of ID to register.

Step 2: Identity verification: Some platforms use 2-factor authentication. You will be asked to provide a valid means of identification for a standard KYC procedure.

Step 3: Deposit funds into your account: Fund your account with a bank transfer, pay with a credit or debit card or deposit cryptocurrencies from a crypto wallet to buy Bitcoin Gold.

Step 4: Buy Bitcoin Gold. Complete your purchase.

Step #5: Acquire a Wallet: Consider moving your coins to a hardware wallet for added security. Only wallets, like the Ledger Nano, etc., give you secure long-term storage.

To sell Bitcoin Gold, you need to transfer BTG from your wallet to the exchange.

How to buy BTG on CoinStats

CoinStats is one of the best cryptocurrency platforms. It allows you to check current market prices, as well as in-depth information on many of the largest and fastest growing cryptocurrencies.

CoinStats is a cryptocurrency research and portfolio tracking app that provides valuable insights and investment advice to help investors make better decisions. Educational guides and blog posts such as BTG price and how to buy bitcoin on Coinstats are highly recommended for investors.

All you need to do is create an account on the platform, search for Bitcoin Gold in the search section, and choose to buy or trade BTG.

Things to Consider When Buying Cryptocurrencies

When buying cryptocurrencies, you should ensure that you fully understand the legal aspects and the risks involved, including exchange rate fluctuations. If you are unsure, seek independent financial, legal, tax and/or accounting advice.

Here are some key points to consider at all times:

Buy in panic

It’s not a good plan to buy cryptocurrencies if you’re only doing it because you’re afraid of missing out. Panic buying rarely works out well, and we just don’t know what will happen to crypto prices in the future.

Exchange Consideration

To find an exchange that meets your basic requirements, you need to consider several features, such as security, liquidity, fees, transparency, legalities, technology, and user experience.

Adequate research

Before investing in coins, it is essential to meticulously look into the history of the networks and the identity of the founders. Take the time to explore the project’s white paper. It should tell you everything about the developers’ goal, including a timeline, project overview, and specific details.

Bitcoin and Bitcoin Gold: A Brief Overview

Bitcoin Gold price on CoinStats

One of the main goals of Bitcoin Gold has been to “re-decentralize” Bitcoin and make it a more accessible digital asset that could be distributed more fairly and efficiently among smaller miners. To achieve this, Bitcoin’s SHA-256 hashing algorithm was replaced by Equihash-BTG. As a result, the Bitcoin Gold mining process can be performed on standard computer systems just as quickly as on specialized equipment.

Bitcoin Gold developers have also focused on issues of protection and transparency. Unlike Bitcoin, Bitcoin Gold has sought to increase anonymity by not publishing transaction details or wallet addresses.

However, small proof-of-work blockchains like Bitcoin Gold are particularly susceptible to 51% attacks. The blockchain suffered three 51% attacks and multiple thefts of BTG wallets.

Security issues and controversy

The smaller a proof-of-work blockchain, like Bitcoin Gold, the more susceptible it is to 51% attacks. In blockchain, a 51% attack is when the attacker seeks to gain control of 51% or more of the computing power or hash rate of the blockchain.

Bitcoin Gold has faced several attacks in the past, the most recent of which was in January 2020, seeing a total of 29 blocks reordered and over $70,000 in BTG stolen through double-spend attacks.

The first attack happened in May 2018, resulting in the official withdrawal of the platform from a major cryptocurrency exchange: Bittrex. Bitcoin Gold developers responded by updating their mining algorithm to adopt one they called Equihash-BTG.

After reaching its all-time high of over $474 in December 2017, Bitcoin Gold entered a near-perpetual downtrend, falling to $260 at the end of 2017, then to $12.64 at the end of 2018 and $5.41 at the end of 2019. In total , Bitcoin Gold had lost more than 98% of its value in just two years.

However, as bitcoin blows past the $55,000 mark once again in October 2021, it takes bitcoin Gold with it.

BTG: Buy or trade

Apart from buying BTG as a long-term investment, when you wait for the price of BTG to rise so you can sell your cryptocurrencies on an exchange, you can also trade it.

You need a contract for difference (CFD) on a particular cryptocurrency and speculate on the BTG price difference. You can either hold a long position (speculating that the price will go up) or a short position (speculating that the price will go down). This is a short-term investment, as CFDs are usually used in shorter time frames.

There are differences between buying BTG and trading a CFD on a crypto market. You store the crypto you bought in a wallet, but when you trade CFDs, the position is held in your trading account, which is regulated by a financial authority. You have greater flexibility when trading using CFDs because you are not tied to the asset; you are only bound to the underlying contract.

Conclusion

In summary, here are the main advantages of BTG:

Fungibility -1 BTG is equal to 1 BTG at any time. As a fungible digital currency, BTG is identical, replaceable and convertible.

Decentralized – It’s decentralized and community driven.

Faster Transactions – It enables faster transactions with its improved design. While Bitcoin produces around 5 transactions per second, Bitcoin Gold is said to reach 27 TPS.

Olivier Baron
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