Bitcoin Gold(BTG) is a cryptocurrency with Bitcoin fundamentals. The founders looked to mend the shortcomings in transaction verification and mining witnessed in the Bitcoin blockchain. This article explores Bitcoin Gold and goes through the different options to buy BTG in 2023, along with the pros and cons
Best Brokers to Buy Bitcoin Gold in 2023
There are many ways to purchase Bitcoin Gold due to its popularity. We have compiled a list of the best crypto brokers in the industry where you can easily purchase these coins.
How to Buy Bitcoin Gold Online?
There are several ways to buy Bitcoin Gold through exchanges and peer-to-peer platforms. Some of the most preferred exchanges are Bithumb, Bitfinex, and Binance. Users can also use Swap services which allow swapping Bitcoin Gold with other cryptocurrencies. Examples of these swap services are Swapzone, Change Now, and Changehero.
The following steps explain how to buy Bitcoin Gold online.
Step 1: Find a Suitable Exchange
Step 2: Fund Your Exchange Account
Step 3: Make the Transaction
Step 4: Storage
How to Trade Bitcoin Gold?
Trading and investing in Bitcoin Gold are different. Apart from speculating on prices, a trader needs to carry out fundamental and technical analysis before trading. Platforms offer trading instruments like spread betting and derivatives such as the contract for differences (CFDs).
Here are the steps that will guide you to trade Bitcoin Gold:
Step 1: Find an Online Broker
Step 2: Deposit Money
Step 3: Decide How to Trade
What Are the Different Ways to Pay for Bitcoin Gold?
The options available to pay for Bitcoin Gold will depend on the exchange. Some exchanges have forged partnerships and integrated with other payment services apart from direct bank deposits, and credit and debit cards.
Here are the most common methods users can pay for Bitcoin Gold:
Credit Cards: They are offered by financial institutions and allow holders to borrow funds against a line of credit. The main ones offered by banks include VISA, Mastercard, and American Express. Cardholders should check whether their bank allows cryptocurrency purchases. This check should also extend to the crypto exchange because not all exchanges allow credit cards.
Credit cards offer a quick way to complete Bitcoin Gold purchases unlike the use of direct bank deposits. Another plus for credit card users is the ease of transaction completion. This method is mostly preferred by investors who want to make a quick purchase or beginners.
Using credit cards comes with major drawbacks especially considering the high fees. Customers can expect to be charged fees exceeding 5%. Some of the fees levied on credit card transactions include exchange fees, cash advance fees, and cash advance interest rates.
Crypto purchases with credit cards are normally limited. Banks put these limits in place to minimize the risks associated with crypto purchases in exchanges. Other drawbacks are risks resulting from credit card data leaks and lack of anonymity.
Debit Cards: Unlike credit cards, debit card purchases are backed by funds in the user’s account. Customers can link their debit account with the crypto exchange and complete the purchase easily.
Some of the common advantages of debit cards are ease of use, good security, and support for quick transactions. Like credit cards, debit cards suffer from the lack of anonymity and transaction limits imposed by banks.
Cash: Purchasing Bitcoin Gold with cash is not widespread. Unlike Bitcoin which is offered in ATMs and Peer to Peer platforms, Bitcoin Gold is still not as popular.
Getting a vendor who accepts cash for Bitcoin Gold will need a lot of research. This may involve scouring forums like Reddit and Discord. Still, there will be chances of encountering scammers. We recommend the use of escrow service for cash transactions.
The advantage of cash purchases is the privacy that the transactions offer. Buyers are unlikely to face rigorous KYC verification unlike on exchanges.
PayPal: PayPal has recently developed a feature that allows for buying, selling, and holding major cryptocurrencies but Bitcoin Gold is not one of the options.
Some exchanges like Coinbase, and eToro allow users to connect PayPal as a payment option. PayPal assures buyers a secure way to deposit funds to their accounts on the crypto exchange.
On the downside, the availability of exchanges that accept PayPal as a funding option is a challenge. Transfers from PayPal are normally associated with higher charges.
What to Consider When Buying Bitcoin Gold?
Investors looking to buy Bitcoin Gold need to carefully consider several factors before making a purchase. A purchase is either a short or long term investment, therefore if you are looking to turn a profit, consider the following factors:
Deposit Fees: This depends on an exchange, location, and method of deposit. For instance, deposit fees vary from exchange to exchange. Some platforms allow users to deposit for free in a bid to encourage usage of their platforms. The main methods for deposit are bank transfers, credit/debit cards, and crypto-assets such as Bitcoin. For most exchanges, depositing other cryptocurrencies is free or a minimal fee is applied. Credit cards are one of the most expensive methods through which to make a deposit.
Trading Fees: Trading fees are normally tiered, with minimal fees associated with a larger and more frequent trading pattern. Exchanges may charge a flat rate or a calculation of the trading volume of an account in 30 days normally expressed as a percentage.
Volatility: Bitcoin Gold also experiences periodic price swings that traders can take advantage of. These generally occur at an extreme pace compared to mainstream assets like Gold or stocks. Volatility arises from market sentiments among other factors.
Regulations: Bitcoin Gold is not regulated by any central authority. Regulations are likely to increase enthusiasm for Bitcoin Gold investors. There is also a chance that taxes could be introduced, which could drive the cost of trading higher. Enthusiasts still believe that the absence of regulations is a plus for the market.
Long-term Holding (HODL): This is a popular trading strategy that when used effectively can be beneficial. It helps investors sidestep market volatility in the short term. However, the strategy is also risky due to market perspective, competition, inflation, and development roadmap for the crypto.
Short-term Holding: Due to the extreme market volatility that characterizes Bitcoin Gold, short-term holding can rake in profits when the market does well. On the downside, this strategy is susceptible to loss of investment.
Availability on Crypto Exchanges and P2P Marketplaces: If crypto is not listed on a crypto exchange, it becomes tedious and expensive to purchase it. Bitcoin Gold is found in over 60 exchanges— while this makes it available it is not a mainstream crypto asset like Bitcoin or Ethereum, making Bitcoin Gold absent on most P2P platforms.
Is It Safe to Buy Bitcoin Gold Online?
There are some extra features and steps buyers can take to make sure the purchase and subsequent storage are safe. Remember that there are no recovery processes for crypto or funds in crypto exchanges in case of hacks.
On sign up, ensure to activate 2FA authentication. This requires users to have two forms of verifying their credentials before access to their account. 2FA is facilitated by codes sent to emails or as text messages and using the Google Authenticator App.
Storing Bitcoin Gold in your crypto exchange wallet is not recommended. After purchase, transfer your tokens to a specialized wallet for better and specialized security.
Often, we find ourselves scouring the internet when we seek help. We recommend the use of official sites to avoid getting misdirected and to avoid scammers. Check out Bitcoin Gold’s site for support and official communities.
Providing KYC details on exchanges is common on most exchanges. We recommend providing only what is mandatory to complete the verification process.
How to Store Bitcoin Gold?
We recommend transferring coins to a safe wallet after purchase. Bitcoin Gold can be stored on an array of wallets that are compatible with Android, Windows, and IOS. It is possible to store your Bitcoin Gold in a hot or cold wallet.
Hot wallets are connected to the internet and are downloadable. They make trading and spending crypto easy. Hot wallets can be categorized as a mobile, tablet, desktop, or online wallets. The drawback is that hot wallets are vulnerable to attacks.
Cold wallets are offline and more secure. They are less convenient for traders who want to trade and spend Bitcoin Gold frequently.
There are more than 18 wallets where investors can store their Bitcoin Gold. Here are some examples:
Hot Wallets: Exodus, SafePay, and Evercoin.
Cold Wallets: Trezor, Ledger, and Coldlar.
How to Sell Bitcoin Gold?
Traders can use the following ways to sell their Bitcoin Gold:
You can sell your Bitcoin Gold for cash or other crypto assets. The selling process is similar to buying. The process involves:
Step 1: Register/Login
Step 2: Load the Bitcoin Gold
Step 3: Sell
Step 4: Confirmation
Traders do not outrightly own Bitcoin Gold on broker platforms. Traders can sell their tokens when their sell order conditions are met or after the expiry of time.
Is It Worth Buying Bitcoin Gold Right Now?
Short-term investment in Bitcoin Gold looks to take advantage of price volatility to make smaller profits frequently. A trader should understand that this carries substantial investment risks. There is some consensus that over the long term, the coins could double but this is subject to numerous factors.
Bitcoin Gold was launched to address specific issues. The developers looked to make mining more accessible and affordable compared to Bitcoin. They were also driven to address the issue of transparency and protection which they deemed insufficient on the Bitcoin Blockchain.
Investors who want to buy Bitcoin Gold should look at reputable exchanges like Binance US and gate.io. Buyers can complete the purchase using fiat currencies or other cryptocurrencies like Bitcoin.
Despite competition from other coins like Litecoin and Bitcoin Cash, the short and long-term prospects for Bitcoin Gold look promising. Risks still stand due to many external factors that may affect the price negatively.