Since its creation, Bitcoin’s value has increased more than 2 million times… yes, 2,592,000 times! It is crucial to get early in the market when the price hasn’t still surged, so keep an eye on bitcoin gold.
Bitcoin has experienced two “hard forks” this year, giving birth to Bitcoin Cash (BCH) in August and Bitcoin Gold (BTG) in October. BTG is less known since it hasn’t gone live on many exchanges, but these platforms are setting everything up to have bitcoin gold very soon, so this is great chance to invest early in a potential cryptocurrency.
Recommended places to trade Bitcoin Gold
Buy Bitcoin Gold using exchanges
Another method to buy bitcoin gold is by using the exchanges where it is available. The procedure for investing in bitcoin gold by buying it via exchanges is not covered here, but here are some guidelines in case you’re taking this approach:
- The most important pair to trade BTG in an exchange is BTC/BTG, so you’ll need to buy some BTC first. In order to do it so, you can use CoinBase, Xapo or Bitstamp.
- Create an account in one of the exchanges that have BTG listed. As for today, the top three exchanges by volume for bitcoin gold are HitBTC, Bitfinex, and Binance.
- Send your BTC (the ones you bought in the first step) to your bitcoin wallet in one of the exchanges above (make sure to use your bitcoin public address to do it).
- Place an order to buy BTG using your available BTC.
Bitcoin Gold didn’t have the best beginning when it was launched on October; however, as the network stabilizes and this cryptocurrency is adopted and supported by several online exchanges, we will see if it has what it takes to advance further. Bitcoin cash, for instance, was able to have a price equivalent to 0.4 bitcoin… bitcoin gold value needs to grow 5 times to cost barely 0.1 BTC.
What’s the difference between Buying Bitcoin and Bitcoin Gold?
Even though BTG is the result of the bitcoin’s blockchain split, BTC and BTG are completely different coins in the cryptocurrency space, and they shouldn’t be confused. All the logic that runs behind BTG infrastructure is different from BTC; as stated before, the cryptographic problem that the miners are set to resolve via the mining process is based on the Equihash proof-of-work system. The main differences are summed up in the following table:
Trade virtual currency securely with the Best Cryptocurrency Exchanges USA and the Best Cryptocurrency Exchanges Canada to invest in Altcoins, alternative digital currency coins, or invest using Trading Robots.
Various methods to invest in Virtual Currency
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Buying Bitcoin Gold at ThinkMarkets
The trading platforms offered by ThinkMarkets are really advanced, with many options to manage every detail of your investment and top-notch graphics tools. On the top of that, it offers two different platforms to trade: Trade Interceptor and MT4. Both are available for Desktop and Mobile devices; however, and for practical purposes, we’ll use MT4 for our example, because this one includes a web trading platform.
What is ThinkMarkets
ThinkMarkets is an online broker that offers a large list of financial instruments including forex, global indices, metals, commodities, and a wide selection of cryptocurrencies. It is a well-regulated platform, authorized and regulated by the Financial Conduct Authority (FCA) of the UK. It is also registered with the Australian Securities and Investments Commision (ASIC). Client funds are secured and held in top-tier banks. It provides advanced tools such as tight spreads (letting users operate safely even during volatility), 24-hour client service (throughout the trading week), and advanced platforms for trading.
Create and verify an account
The first step to buy bitcoin gold using ThinkMarkets is creating a user. As a regulated broker, ThinkMarkets will ask you for personal information. Get started by visiting their website and clicking on “Create account” on the top right corner. Fill the form with your full name, email, password, phone number, and full address. You have to answer a few questions about your financial status, your trading experience, and other details to customize your account:
Once your application is filed, ThinkMarkets will ask you to upload a digital copy of a government-issued ID (i.e., passport, driver’s license, non-driver’s ID). In addition, you need to upload a document that proves that your address is legitimate.
ThinkMarkets will receive your application and will respond to it within the 1-2 business days.
Deposit funds to your account
If everything goes well, you’ll be set up to invest in bitcoin gold in a few hours. The next step is to fund your account so you can have access to the financial instruments available, including BTG, of course.
To fund your account, log in to ThinkPortal and go to “Funding” -> “Deposit funds“. You will be able to deposit funds via wire transfer, credit/debit card, PayPal, Neteller or Skrill. Choose your favourite payment method and follow the instructions to complete the process.
Log in to MT4 Platform
To get started, log in to your account by clicking on “Log In” and selecting MT4 WebTrader:
Use your credentials to connect to your account:
Invest in bitcoin gold by trading with ThinkMarket’s MT4 WebTrader
Once you’re logged into your account, you’ll have access to the trading platform. By default, you won’t see any cryptocurrency on the list of financial assets, so the first step is to add bitcoin gold to the list:
- Click on “Symbols” button.
- Click on the “+” sign beside Crypto to display the full list.
- Select Bitcoin Gold. It appears differently depending on your base currency (e.g., BTCGOLDUSD, BTCGOLDEUR, BTCGOLDGBP). Click on “Show” to add this asset to the list:
It is always important to make a basic Technical Analysis (TA) before placing an order. TAs are carried out by looking at the cryptocurrency graph to analyze the trend, volume, volatility, higher highs and lower lows, etc. The intention of this guide is not on TA, but please take a look at the graph of the currency pair before moving into an order:
As observed in the graph above, BTG price has reached an ATH (All Time High) of 470.50 USD but fell into a bearish trend line afterwards, plunging below 150$. Nevertheless, the time for investing in BTG might be closer as the network stabilizes and the cryptocurrency gets notoriety. In order to invest in bitcoin gold, investors should look for a good support line around the $100 neighbourhood and a trend line reversal.
Placing an order to buy bitcoin gold
The last step is placing an order to buy bitcoin gold. There are two types of orders:
- Market Order: when you place a market order, you’re buying the asset immediately, based on the price of the offer within the marketplace. A market order is faster for obvious reasons, but it may not be the best option if you’re looking for a good entry point. If the cryptocurrency is on a rapid bullish trend due to some relevant news that incentives the market, then a market order (with a smart stop loss/take profit configuration) is a good option to don’t miss the train. Take into account that, if the market has not enough liquidity to fill your order, the price can rise significantly.
- Limit Order: on the other hand, we have the limit orders. In this type of orders, the trader sets the price in which he/she wants to buy the asset (lower than current price if buying, higher than current price if selling). This gives the opportunity for the trader to place orders based on price targets.
In this example, we’ll use a limit order. To place an order, double-click on the BTCGold item at the end of the list, or click on “New Order” while bitcoin gold is selected:
Specify your order details:
- Volume: the amount of BTG that you want to buy. For example, if you select 2.00, you would be buying two units of bitcoin gold, equivalent to 308 USD.
- Stop Loss: Here, you will set the minimum price of BTG where you won’t be able to afford further losses. Setting a tight stop loss will be useless in the volatile environment of cryptocurrencies. A value between -8% and -20% is conservative yet acceptable for a stop loss. If you want to make a long-term investment, a stop loss should be between 30% and 50%, but be careful to place long positions in BTG, there’s a lot in stake with this coin and investors need to be cautious. Your position will be closed automatically if the price hits the stop loss value.
- Take Profit: it is the counterpart to the stop loss. Your position will be closed automatically – this time with profits – once the price reaches the take profit value.
- Type: switch between market execution (market order) and pending order (limit order). If you select a pending order, there are 3 additional fields:
- Type: select from buy limit/sell limit (limit order for buying/take profit) buy stop/sell stop (only buy if the price reaches a target above current price / stop loss).
- At price: specify the price of the limit order.
- Expiry (optional): expiration date of your order.
You will find an example of how to buy bitcoin gold through a limit order below:
The order above is set to buy 3.00 BTG when its price drops to $139. The position will close automatically if the price plunges below $110 (▼-20.5%) or if it rises above $390 (▲+180%). When you’re sure about your configuration, click on “Place“.
You’ll be able to manage your order and portfolio by clicking on the tabs at the bottom of the page: