Bitcoin cash is also a cryptocurrency and it was created in August 2017. Bitcoin Cash allows more transactions as it has increased the blocks’ size. The size of the block has increased from 1 Mb to 32 Mb for faster and more transactions. In November 2018, Bitcoin Cash was divided into two types; Bitcoin Cash SV (BCHSV or BSV)) and Bitcoin Cash ABC (BCH or BCHABC). In the start the market of Bitcoin Cash was slow. As the hash rate (a process of ‘blocks’ producing) rises investors and traders start to buy it and hence the popularity increases.
Why trading it?
Here we will discuss why one should trading CFDs on Bitcoin Cash:
- The leverage on the trading of Bitcoin Cash is up to 2:1.
- Bitcoin Cash is available for the whole week and 24 hours in a day for trading.
- Bitcoin Cash is quite volatile and there is a big fluctuation in its value
- It supports fast transactions as it has a blockchain system.
- Bitcoin Cash has very low transaction fee all around the world.
- It has complete privacy, there is no third party while buying and trading it and no one knows about the transaction history.
Advantages:
The advantages of the Bitcoin Cash trading CFDs are given below:
- It is peer-to-peer cash, no one can control the use of money. Bitcoin Cash cannot be devalued by printing the cash.
- The network is reliable and runs without congestion, simple to use, holds the robust blockchain technology, stable, and has a very low transfer fee.
- Bitcoin Cash trading on CFD enables the investors to earn a profit on a fall or rise in price. An investor does not need to hold any Bitcoin Cash to sell or buy.
- The investors do not need to have or open an account for Bitcoin Cash trading. This benefits in various ways as; no fee for withdrawing, and no need for any approval.
(Your capital is at risk)
Disadvantages:
The drawbacks of Bitcoin Cash are listed below:
- As the Bitcoin Cash is generated from Bitcoin to enables extra fast transactions. As Bitcoin is facing the issues of scalability so the Bitcoin Cash is also facing scalability issues.
- Bitcoin Cash is not regulated by central banks and governments. This un-regulation can affect its value.
- Bitcoin Cash is having a competition with Bitcoin and other top cryptocurrencies; this can reduce or limit its popularity.
- Any negative financial news can significantly affect the crypto market and its value.
How to Trade?
Here we will discuss how to trade Bitcoin Cash on different trading platforms:
AvaTrade
- Open a trading account on the AvaTrade platform.
- Deposit funds in an account via credit cards, e-payments methods (WebMoney, Skrill, etc.), and wire transfer.
- Select Bitcoin Cash on the platform and invest the desired amount for trading
IQ Option
- Open a trading account on the IQ option platform.
- Deposit funds in an account via Master cards, VISA, e-payments methods (WebMoney, Skrill, etc.), and many more.
- Select Bitcoin Cash on the platform and invest the desired amount for trading
Plus500
- Open a trading account on the Plus500 platform.
- Deposit funds in an account via fiat money and cryptocurrency methods.
- Select Bitcoin Cash on the platform and invest the desired amount for trading
Where to buy it:
Bitcoin Cash can be bought from the exchanges are listed below:
- Coinbase
- Robinhood
- Binance
- Square Cash
- Coinmama
What you should have in mind about Bitcoin Cash before trading
How does Bitcoin Cash (BCH) work?
Unlike Bitcoin, Bitcoin Cash’s goal was to create a currency that was peer-to-peer and completely decentralised. So, it doesn’t depend on a central bank or any other government to move the money. The aim is to make the currency as frictionless and anonymous as possible. At the moment, Bitcoin cash has over 60 million users, but that figure is not expected to grow fast. It is far more popular among investors because it trades on a far more transparent market than Bitcoin. It is also easier to get involved because Bitcoin cash is a new cryptocurrency and investors can speculate in it without having to worry about the traditional venture capital money.
What is Bitcoin Cash?
Bitcoin Cash is a cryptocurrency that was created to be a more developed cryptocurrency for the real world, and thus the business community and speculators are rather excited about it, especially since most investors do not like the idea of having to worry about the fluctuation in the price of their cryptocurrency (as with Bitcoin and other popular cryptocurrencies).
What makes BCH than BTC?
The main improvement is the blockchain size. At its peak in 2017, Bitcoin had a block size of about 32MB. With this, it was already an order of magnitude larger than what Bitcoin Cash has. The transaction times were also significantly faster because Bitcoin Cash solved the scalability problem that Bitcoin faced by scaling up to support the amount of transactions to the blockchain. The problem was that Bitcoin had a limited amount of coins available to the public and thus there was a gap between the supply and demand for the cryptocurrency. Bitcoin Cash solved this by allowing miners to add more coins to the blockchain, which meant the block size of Bitcoin Cash was increased to around 32MB. Hence, the transaction times of Bitcoin Cash were much faster and the blockchain was larger. That was the main improvement of Bitcoin Cash and it made Bitcoin more suitable for the real world.
But not everyone is happy with the increase of block size. Since there was a lack of scalability in Bitcoin, the main technology that was used to scale Bitcoin was called Segwit. This is a solution that was proposed to increase the block size of Bitcoin to around 32MB, or around 1.7 times the size of Bitcoin at its peak in 2017. This meant that blocks could handle more transactions and more data and therefore they took up less storage space, and therefore this made the transaction times of Bitcoin more efficient, and hence the demand for Bitcoin Cash increased. At this point, Bitcoin Cash took over the market as the second-largest cryptocurrency in terms of market capitalisation, behind only Bitcoin. So, the big question is – why does the market price of Bitcoin Cash fluctuate like this?
The real answer is that Bitcoin Cash faces a lot of negative press. Bitcoin Cash is still very new and the debate on it has not even started. Bitcoin Cash was initially created as a fork of Bitcoin and there is no consensus on whether the two are compatible. So, Bitcoin Cash is not considered to be a true bitcoin or to be equal to Bitcoin in terms of development or technical specifications. It was later changed to reflect the changes in the Bitcoin community and thus the opinions of different people. As a result, the trading of Bitcoin Cash has not been a profitable investment. So, the demand for Bitcoin Cash was quite low and therefore, the demand for Bitcoin Cash was declining. The number of investors and speculators increased and the number of people who want to buy Bitcoin Cash increased to compensate for the increase in the price of Bitcoin. So, as Bitcoin Cash price fell, the number of speculators who wanted to buy it became lower and then, Bitcoin Cash price fell again. Therefore, when the price of Bitcoin Cash started to increase again, the number of speculators who were willing to buy it also increased. So, the speculators were forced to buy Bitcoin Cash because the demand for Bitcoin Cash was so high.
What makes Bitcoin Cash unique?
Bitcoin Cash was created as a result of a hard fork to Bitcoin’s blockchain. Bitcoin, which has a block size of 8MB, was designed to accommodate large transactions, such as those on the Ethereum network. However, as more transactions were processed, Bitcoin experienced a severe scaling problem and became slower and slower to process transactions. The transaction fees of using Bitcoin Cash became high, and it became clear that the network would not scale. The Bitcoin Cash development team chose to increase the block size of Bitcoin’s blockchain to 8MB.
Bitcoin cash, the result of the Bitcoin fork, was intended to be a more scalable and efficient alternative to Bitcoin. The size of the block on Bitcoin Cash is 32KB, compared to 32MB on Bitcoin’s blockchain. This significantly increases the amount of data that is stored in a block and makes it possible to process transactions more quickly. The main benefits of Bitcoin Cash are that the transaction time is significantly faster, the network is more scalable and more efficient, and it is cheaper to run a node. However, some developers remain concerned about the scalability of Bitcoin Cash. For example, there have been concerns that a hard fork to Bitcoin Cash is necessary if Bitcoin is to be widely adopted as a payment system. At this point, Bitcoin Cash is still a brand new coin and its future growth remains uncertain.
How to buy Bitcoin Cash
If you are using a Bitcoin wallet:
- You can transfer your funds to a Bitcoin Cash address on Coinbase, Kraken or any other exchange.
- You can sell Bitcoin Cash at another cryptocurrency exchange, such as Gemini.
- The most popular way to buy Bitcoin Cash is to buy it on a wallet that supports Bitcoin Unlimited (Bitcoin ABC).
- In order to do this, you need to specify your personal seed (essentially, your private key).
- The best way to get started with buying Bitcoin Cash is to use one of the many recommendation services available on the web.
- There are a number of ways to purchase Bitcoin Cash, and the types of accounts you can establish depend on your requirements.
- Below is a summary of the fees you can expect to pay for your Bitcoin Cash purchase.
- The amount of your transaction fee is a negotiation point between the two parties.
- If you have a very large transaction fee, you can always purchase Bitcoin Cash using another cryptocurrency.
- If you want to know the fees for different cryptocurrencies, you can do a Bitcoin Cash comparison index.
- If you bought Bitcoin Cash in one of the popular and trusted Bitcoin exchanges, such as Coinbase, you may be able to transfer your funds to another location using a WalletFS or another direct transfer service.
- Our recommended service is Coinbase. One of the benefits of using Coinbase is that you can store your Bitcoin Cash anywhere you like. You can also sell your Bitcoin Cash to another cryptocurrency and get paid in Bitcoin Cash, without any storage fees. You can read more about using your Coinbase account here.
(Your capital is at risk)
What can Bitcoin Cash be used for?
Bitcoin cash can be used for a lot of different purposes. There are several options that you have to consider to use bitcoin cash for your daily transactions.
In 2017, there were huge changes to the bitcoin blockchain. It started off as an exchange-traded instrument that was created in a hard fork of the Bitcoin blockchain. The bitcoin cash hard fork was created to preserve the original vision of Satoshi Nakamoto. This vision is that of a global currency that could be used without any specific government intervention.
The advantage of bitcoin cash is that the number of transactions is not limited. Instead, it is designed to allow for an increase in the number of transactions that take place on the network. This increases the liquidity of the cryptocurrency and helps it become an accepted means of payment for a broad range of transactions. This, in turn, has allowed bitcoin cash to grow and reach a mass market adoption. The total number of transactions is now about 2.5 times greater than it was in 2017.
