Investing in Bitcoin Gold: should you buy it?
Bitcoin Gold is the newest division of the Bitcoin. Previously we saw a division of Bitcoin and Bitcoin Cash. In this article we look extensively at what the Bitcoin Gold is exactly. You will also immediately see how you can benefit from investments in the new Bitcoin Gold.
What is the Bitcoin Gold in short?
Bitcoin Gold is a new fork. A fork is a so-called division of the original Bitcoin and arises when there is disagreement about a technical aspect of the currency. Bitcoin Gold claims to be an improved version of the Bitcoin.
The main goal of Bitcoin Gold is to decentralize the currency again. The founders claim that too much computing power is needed to obtain a Bitcoin. As a result, it is no longer possible for a normal person to obtain Bitcoins by mining them with computers. The Bitcoin Gold system should make the system more democratic.
How can you invest in Bitcoin Gold
Just like any cryptocurrency, the Bitcoin Gold is very volatile. If you can handle this, the Bitcoin Gold can offer interesting and profitable opportunities. You can trade in this currency with an online broker. With an online broker, you then have the following two options:
- Buy: you earn money when the cryptocurrency’s price increases
- Short: you earn money when the cryptocurrency’s price decreases
As you can see, as an investor in, for example, the Bitcoin Gold, you have two options. This allows you to benefit both from increases and from decreases in the price. This is very attractive, since the price sometimes decreases and increases dozens of percentage points in a day. You can take advantage of this nicely by making the right decision.
How do you invest in cryptocurrencies wisely?
It is important to realize that cryptocurrencies like the Bitcoin Gold have an increased risk. Stocks generally move only to a limited extent. This is different from Bitcoin Gold. It is therefore important to only invest money that you can really miss. You should not be afraid to lose money. In addition to these potential losses, there are of course also larger potential returns.
When dealing with a cryptocurrency such as the Bitcoin Gold, research is important. The currency reacts strongly to certain events. If news comes out, for example, that the security does not work properly, the price will drop sharply. You can respond to this by going short at the right time. When you then think that the bottom is in sight, you can then buy the currency again. That way you can benefit from both the decrease and the increase.
More technical information
The founder of Bitcoin Gold is Jack Liao who launched Bitcoin’s hard fork. The goal of the Bitcoin Gold is to eventually become better than the Bitcoin. He opted for a special algorithm with resistance to ASIC. An ASIC is specially designed for one task. ASIC is therefore often used when mining the Bitcoin. At Bitcoin Gold, however, it cannot be used.
Buying Bitcoin Gold
If you have a lot of confidence in the Bitcoin Gold, you can, of course, buy it. Buying Bitcoin Gold is riskier than trading in it. At the moment the future of Bitcoin Gold is still uncertain. Both the Bitcoin Cash and the Bitcoin Gold fell significantly in value after the launch. It is therefore questionable whether these currencies will ultimately play a significant role in the cryptocurrency market.
In addition to the technical aspects, this will mainly depend on the marketing aspects. The currency must, after all, be put on the market just like with an IPO stock. Support is important here. Only if the currency is eventually accepted as payment will it take on a significant role.
Getting started with Bitcoin Gold right away
Do you want to get started immediately trading in Bitcoin Gold and other cryptocurrencies? It is then wise to first practice with a demo! The most comprehensive broker where you can invest in cryptocurrencies is currently Plus500. Click here to open a free account with Plus500 and discover the possibilities of investing in Bitcoin Gold.