Why is Bitcoin Gold important to traders?
Bitcoin Gold is a cryptocurrency and a hard fork of Bitcoin. A hard fork is a substantial change to the technology underlying Bitcoin: blockchain. The stated purpose of this hard fork was to restore the ability of common processors to mine Bitcoin.
Bitcoin Gold decentralises mining, giving ordinary users a fair chance to mine on a common processor, as it uses an algorithm that cannot be run on specialty equipment for Bitcoin mining. It was initially released in November 2017, and is among the top 30 biggest cryptocurrencies measured by market capitalisation.
Bitcoin Gold trading hours
You can trade Bitcoin Gold CFDs on Capital.com 24/7.
How to trade Bitcoin Gold CFDs
An individual has two options when trading in the cryptocurrency market. Firstly, they can buy actual cryptocurrency on exchanges, such as buying Bitcoin Gold on an exchange like HitBTC. This is considered a long-term investment, as the individual is waiting for the Bitcoin Gold price to rise significantly, so they can sell their crypto coins on an exchange.
Alternatively, they can trade a contract for difference (CFD) on a particular cryptocurrency, and speculate on the Bitcoin Gold price difference. A CFD is a financial instrument, which is a contract, typically between a broker and an investor, where one party agrees to pay the other the difference in the value of a security, or between the opening and closing of the trade. You can either hold a long position (speculating that the price will rise) or a short position (speculating that the price will fall). This is considered a short-term investment as CFDs are usually used within shorter timeframes. For instance, to trade Bitcoin Gold CFDs, you are speculating on the Bitcoin Gold to Bitcoin (BTG/BTC) pairing.
There are pivotal differences between buying a cryptocurrency and trading a CFD in a crypto market. When buying cryptocurrency, it is stored in a wallet, but when trading CFDs the position is held in your trading account, which is regulated by a financial authority. You have more flexibility when you trade using CFDs because you are not tied to the asset; you have merely bought or sold the underlying contract. As well as this, CFDs are a more established and regulated financial product.
What is Bitcoin Gold? What is cryptocurrency?
Bitcoin Gold is a cryptocurrency and a hard fork of Bitcoin, launched in 2017, to return mining to the common individual. A cryptocurrency is a digital asset conceived for use as a medium of exchange, which uses cryptography to secure transactions, control the supply of additional units and corroborate transfers. In short, cryptocurrency is a decentralised electronic currency. Cryptocurrency is stored in a ‘wallet’, which can take various forms. For instance, Bitcoin can be stored in an online wallet, or alternatively in an offline electronic wallet, and it can even be stored physically in hardware.
Why trade Bitcoin Gold CFDs with Capital.com
Advanced AI technology at its core: A Facebook-like News Feed provides users with personalised and unique content depending on their preferences. If a trader makes decisions based on biases, the innovative SmartFeed offers a range of materials to put him back on the right track. The neural network analyses in-app behaviour and recommends videos, articles, news to polish your investment strategy.
Trading on margin: Providing trading on margin (up to 1:2 for cryptocurrencies), Capital.com gives you access to the cryptocurrency market with the help of CFDs.
Trading the difference: When trading Bitcoin Gold CFD, you aren’t buying the underlying asset itself, meaning you are not tied to it. You only speculate on the rise or fall of the Bitcoin Gold price. CFD trading is nothing different from traditional trading in terms of strategies. A CFD investor can go short or long, set stop and limit losses and apply trading scenarios that align with his or her objectives.
All-round trading analysis: The browser-based platform allows traders to shape their own market analysis and forecasts with sleek technical indicators. Capital.com provides live market updates and various chart formats, available on desktop, iOS, and Android.
Focus on safety: Captal.com puts a special emphasis on safety. Licensed by the FCA and CySEC, it complies with all regulations and ensures that its clients’ data security comes first. The company allows to withdraw money 24/7 and keeps traders’ funds across segregated bank accounts.
History of Bitcoin Gold
Despite only being released in November 2017, Bitcoin Gold still has an extraordinary history. In May 2018, Bitcoin Gold suffered from a successful ‘51% hashing attack’; where a group of miners control over half of the network’s mining hash rate (computing power), in order to prevent transactions and halt payments – allowing them to ‘double-spend’ the cryptocurrency (spending the currency twice, think of it in comparison to counterfeit money). Consequently, the cryptocurrency exchange Bittrex lost 12,372 BTG (roughly $669,325 at the time of loss), and when Bitcoin Gold refused to cover this loss, Bittrex announced that is was to de-list Bitcoin Gold.