Cryptocurrency trading is the practice of speculating the price movements by using a CFD trading account or selling and purchasing the underlying tokens or coins by an exchange method.
These cryptocurrency denominations can be confusing for the traders and can generate various questions in their mind. So, the article contains the answers to these common questions with proper explanation. It will also provide details to novice investors about where to buy bitcoin.
The most famous cryptocurrency widely used for trading is Bitcoin. It gained popularity after its price skyrocketed in the year 2017. But, the most crucial thing that many people don’t know is that bitcoin currently has three types: Bitcoin Cash (BCH), Bitcoin Gold (BTG) and Bitcoin (BTC). There are other forms too, but the three above given forms are the most popular ones.
Types of bitcoin
1) Bitcoin (BTC) – Bitcoin is a virtual currency created in January 2009, based on the idea of whitepaper given by pseudonymous and mysterious Santoshi Nakamoto. It offers low transaction fees compared to the traditional online transaction mechanism and is regulated by a decentralised system, unlike government-issued currencies.
Bitcoins do not have any physical body; they are just the balance placed on a public ledger that can be accessed by the investor. The online computing process verifies all the transactions. These tokens have triggered the launch of many virtual currencies in the monetary market, collectively known as Altcoins.
Price as of March 30, 2021- $ 59056.70
Market Cap- $1,104,728,931,340
Supply- 18,668,543
2) Bitcoin Cash (BCH) – Bitcoin Cash was created in August 2017. This crypto is named as such because it makes use of the original bitcoin cash client. It helps to mitigate the lag in the transaction time, which is a significant problem faced by traders over time.
Bitcoin was initially launched with the block of 1MB to reduce fraud and spam with it. But as time passed and this transaction became popular, the number of people investing in it Increased, with this the transaction time for purchasing surged subsequently. This limitation was eliminated by building a larger block.
This bitcoin has a large block size (8MB) that allows more transactions to be processed. This token underwent some changes in November 2018 and got split into two types Bitcoin Cash SV and Bitcoin Cash ABC.
Price as of March 30, 2021- $530.89
Market Cap- $9,928,539,892
Supply- 18,693,488
3) Bitcoin gold (BTG) – Bitcoin Gold was a solid turn in the open-source cryptocurrency trading which happened on October 24 2017. Like other virtual currency, it is also regulated by a decentralised authority.
For mining bitcoin, one needs a hardware instrument called ASIC. It is expensive and very energy-intensive to handle. Due to this reason, its access is limited to the elite class rather than a regular trader. To diversify its use the authority should try to start this mining process by regular computers.
Price as of March 30, 2021- $37.43
Market Cap- $654,689,560
Supply- 17,513,924
Where Can You Buy Bitcoin, Bitcoin Gold and Bitcoin Cash?
You can buy any bitcoin they all are related to one another but are not the same. All these tokens are available on various exchanges, but one can trade Bitcoin with 101investing—the best brokerage firm for trading crypto.
They are the market leader providing the best trading services not only in crypto but also in commodities, stocks, CFDs and indices. The firm was created by FXBFI in the year 2020 and regulated by CySEC. It’s headquarter is situated in Cyprus. The minimum deposit required to open trade is $100 with the leverage up to 1:30. They provide trading on the advanced platform Meta Trader 4 along with the best customer service.
If you are new and wish to practice trade before starting trading, don’t worry 101investing provides a demo account for novice traders. So, begin carefree trading with 101investing.
