Bitcoin cash trading
In This Article
Bitcoin cash trading is relatively new compared to Bitcoin. It is also gaining popularity amongst crypto users. The value of Bitcoin Cash was trading at $240 at its inception in August 2017, and Bitcoin was around $2,700. Currently, it is trending around $203 in 2022
What is Bitcoin Cash?
Bitcoin Cash is based on blockchain technology with a peer-to-peer electronic cash system that intends to become a reliable worldwide currency with fast payments, low transaction costs, and huge transaction capacity. Just as physical money is handed directly to the intended person, Bitcoin Cash can be sent directly to the intended person.
Unlike fiat currency which requires middlemen like banks and payment processors, Bitcoin Cash avoids middlemen as it is a decentralized cryptocurrency. Moreover, since there is no government interference, the transaction fees are less, ease of borderless transfer of funds, and last but not least, the government cannot freeze the funds.
Bitcoin Cash is an alternative to Bitcoin and has its own version of the software and a full-fledged competitive product splitting Bitcoin into two blockchains Bitcoin or Bitcoin Cash. Additionally, in the fall of 2018, another hard fork split Bitcoin Cash into two parts: Bitcoin ABC and Bitcoin SV.
The main differentiating factor between Bitcoin Cash and Bitcoin is the size of the blockchain. Bitcoin Cash has a huge blockchain compared to Bitcoin, making the process of transaction faster and avoiding higher transaction fees. However, due to the size of the blockchain, storage and audit cost more, and the users might find it challenging to download a copy of the blockchain.
Technically, Bitcoin Cash is similar to the Bitcoin algorithm as both the projects have a hard cap of 21 million coins. They also use a Proof-of-Work (PoW) consensus structure and nodes to verify transactions. Therefore, this BCH is considered a hedging tool by the traders who might save some risk by investing in it.
Since the Bitcoin Cash is based on peer-to-peer payments amongst the individuals, the average cost of the transaction fees may be as low as $0.01 with an instantaneous settlement. Thus Bitcoin Cash is ideal for everyday transactions, be it money transfers, international trade, everyday transactions, or microtransactions. People are also attracted to them due to trading in Bitcoin Cash as an alternative source of income and beating inflation.
What is Bitcoin Cash trading?
Bitcoin Cash (BCH) is a hard fork of Bitcoin and can be traded or bought similarly to other cryptocurrencies in the market. This includes buying cryptocurrencies directly from an exchange or through an online broker.
What makes bitcoin and bitcoin cash different?
Although Bitcoin Cash is a hard fork of Bitcoin, there are many key differences between them.Following are the differences;
- Bitcoin: Maximum size of each block is 1MB, allowing 250,000 daily transactions. It uses SegWit2X, a scaling tool. It roughly takes ten minutes on average to process a block.
- Bitcoin Cash: Maximum size of each block is 8MB, allowing two million daily transactions. Since it has huge blocks, the need for a scaling tool is avoided. As per the network conditions, the block processing time adjusts itself automatically.
Is it worth investing in Bitcoin Cash?
Cryptocurrencies are inherently highly volatile assets; thus, these assets are riskier compared to other financial instruments or assets. Depending upon your appetite for risk and the availability of capital, investment in Bitcoin Cash may or may not be a good idea to add to your portfolio. Check if you have the financial appetite to invest in Bitcoin Cash.
Is Bitcoin Cash good for day trading?
Historical data of Bitcoin Cash has shown to have fluctuated up to 20%in a single day. As a result, traders can enter the market when prices are low and sell off when the price of Bitcoin Cash has appreciated. However, the market trend might reverse without any prior indication due to its volatility sp be vigilant.
Bitcoin Cash in the Markets
Bitcoin Cash, an offshoot of Bitcoin, at its inception in 2017, was valued at $240, whereas Bitcoin was trending at roughly $2,700. The value of Bitcoin Cash doubled in a month, tripling itself and hitting an all-time high of $3,785.82 and going as low as $76.93. This cryptocurrency, like others, sees price spikes in response to news events such as being accepted on prominent exchanges and when Bitcoin is having difficulty. Because of its scalability and superior technology, some people have switched to BCH.
Although Bitcoin Cash got off to a slow start, it would not have been so prominent and attractive to profit-seeking Bitcoin miners had it not been for the Bitcoin Cash mining algorithm. Traders and investors began to bid up the BCH price after the financial markets learned of the spike and increased rate at which the ‘blocks’ were being produced (known as hash rate). However, prices are still falling, owing to bad working conditions for miners (low rewards) and concerns about the security of this new technology.
Five Facts You Should Know About Bitcoin Cash.
- Bitcoin Cash is created from a hard fork of Bitcoin, and it is expected to carry out quicker transactions. At block 478,559, the Bitcoin Cash fork occurred.
- Bitcoin Cash has been considered an altcoin despite its origin and reasons for its creations. Since it is not a Bitcoin, it does not share any direct connection to Bitcoin’s value.
- Bitcoin Cash is its own currency, functions as a Bitcoin, but carries out transactions faster than Bitcoin due to its increased block size.
- When the hard fork occurred, the coin had no value, and investors received ‘free coins’ due to the split of Bitcoin. As in this situation, Bitcoin Cash experienced significant market shifts and secured a spot in November 2017’s ‘top cryptocurrencies’ list by market cap.
- As per the investors’ speculation, Bitcoin Cash was created to counter high fees and slow transactions that would have eventually killed Bitcoin, not because Bitcoin has reached its maximum block output.
We’re here to assist you with Bitcoin Cash trading.
On all Bitcoin Cash trades, Blockchain Tradein allows you to BUY (go long) or SELL (go short). This service is available around the clock. So whatever direction the currency is moving, you can employ your chosen trading tactics. Visit our trading conditions and charges page to learn more about Bitcoin Cash trading.
Reasons You might trade bitcoin cash.
Exposing yourself to cryptocurrency can be beneficial or detrimental. Remember that this is not financial investment advice; we merely state the facts before investing in this commodity. Before making any investment decisions, please seek expert advice.
- Low transactional fees of Bitcoin Cash: Bitcoin Cash has larger blocks than Bitcoin. Thus much more transactions can fit into each block compared to Bitcoin blocks which are small and scarce. Therefore higher transactional fees are avoided as there is much less competition for users to get a transaction into the next block. While Bitcoin transaction fees are counted in dollars, Bitcoin Cash roughly costs about 20 cents.
- A Rapidly Growing Cryptocurrency: Bitcoin Cash is an offshoot of Bitcoin. Everyone who had a Bitcoin balance at the time of the fork received a Bitcoin Cash balance in exchange.
The fork was well known, and many major exchanges enabled rapid Bitcoin Cash trading, something that new altcoins require months, if not years, to achieve.Many prominent Bitcoin figures, including Roger Ver, an early Bitcoin enthusiast, and Gavin Andreesen, an early Bitcoin core engineer who Satoshi Nakamoto himself entrusted with developing the Bitcoin protocol, praised Bitcoin Cash at its beginning.These factors are responsible for the rapid growth of Bitcoin Cash in both its trade volume and its total market capitalization.
- Larger Block Sizes Mean Higher Transaction Capacity: Bitcoin Cash has a larger block size than Bitcoin, enabling it to carry out higher transactions per second.While Bitcoin can perform three transactions per second, Bitcoin Cash is expected to carry out 24 transactions per second at its full capacity.The developers of Bitcoin Cash are also experimenting with Gigabyte Blocks as part of their plan to compete with existing payment systems like the VISA network.
- Bitcoin Cash Is Backed By Efforts To Scale Up: Bitcoin Cash supporters feel that scaling the protocol at the base layer is the safest way to do it.This is in contrast to Bitcoin proponents who feel that the protocol’s base layer should be tuned to be as secure as possible and that scaling should take place on the protocol’s higher layers, which is yet to be built.Bitcoin Cash has proven to be scalable ‘on-chain’ since the fork.
How to buy bitcoin cash?
It isn’t easy to buy Bitcoin Cash directly. Instead, people will generally approach an exchange and exchange their fiat currency to buy Bitcoin. Then these Bitcoins are traded into Bitcoin Cash.
You can approach Blockchain Tradein, as we also have Bitcoins on our exchange. You can easily buy Bitcoins through a fiat currency or your debit or credit card. Once you buy these Bitcoins, you can trade them for Bitcoin Cash.
How did bitcoin cash come about?
Bitcoin Cash was the outcome of the Bitcoin hard fork in August 2017. Bitcoin Cash was designed to have a larger block size than Bitcoin, allowing more transactions into a single block. Bitcoin Cash and Bitcoin share several technical similarities despite being philosophical differences.
Where to trade bitcoin cash?
Bitcoin Cash can be very challenging to trade. However, Bitcoin can be bought across exchanges through fiat currency, and then these Bitcoins can be traded for Bitcoin Cash.
At Blockchain Tradein, you can buy Bitcoins on the Blockchain Tradein platform through fiat currency by debit card or credit card. Once these Bitcoins are bought, they can be traded across for Bitcoin Cash.
What are the drawbacks of bitcoin cash?
The risks associated with Bitcoin Cash vary depending on members participating in the trading cycle: financial institutions, non-financial firms, and individual investors. Since Bitcoin Cash is volatile, the market can turn from bullish to bearish without any prior indications. Bitcoin Cash’s inherent volatile nature is the risk that the investors have to consider. The value of Bitcoin Cash can drop to zero at any time as Bitcoin Cash has no fundamental value.
While Bitcoin Cash’s creators and supporters have concentrated on transaction throughput and on-chain scaling, the peer-to-peer feature appears less important. As a result, there are fewer miners and network nodes in Bitcoin Cash.
Many fear that this is a flaw in Bitcoin Cash, making it vulnerable to being hacked or co-opted by special interests such as nation-states, which may put pressure on payment recipients to provide more identities.
The Bitcoin Cash development team is substantially smaller, and it lacks familiarity with the Bitcoin system.
As a result, improvements on Bitcoin like the Lightning Network, privacy upgrades, and side chains are positioned to outcompete them.
Because of the lack of development depth, Bitcoin Cash may be more vulnerable if the network is attacked or one of its parameters fails.
Other well-known blockchains, such as Bitcoin and Ethereum, work on technologies that use second layer protocols, often known as off-chain scaling, to attain a higher network scale.
Some of these second-layer technologies, if effectively adopted, can directly compete with Bitcoin Cash’s strengths, such as low transaction fees and high transaction throughput.
Buying Bitcoin Cash on cryptocurrency exchanges has significant drawbacks. You have significantly more apparent risks to begin with. On an exchange like LocalBitcoins, you might be cheated by an unscrupulous individual.
This is a peer-to-peer exchange where traders meet in person to make trades now and then, and you can deposit money via bank transfers. LocalBitcoins, unfortunately, has several disadvantages. New traders have been targeted by unscrupulous people who try to defraud them of their money.
What does bitcoin cash’s recent history reveal?
Bitcoin Cash experienced a brief plunge before stabilizing and now appears to be on a broadly upward trend.
If the cryptocurrency can make it through the year, we may anticipate it to continue to rise. However, don’t expect Bitcoin Cash to catch up to Bitcoin in terms of value anytime soon.
Even by cryptocurrency standards, Bitcoin Cash is a dangerous trade. It’s better suited to traders who wish to buy some as a hedge in case more miners embrace Bitcoin Cash’s scaling solution.
It’s also a fantastic option for traders who are skeptical about SegWit or believe in Bitcoin Cash’s ideological beliefs.
Why is bitcoin cash considered controversial?
The bitcoin community has been divided over Bitcoin Cash. The Hard Fork appears to have triggered a deluge of Bitcoin Gold (and promptly crashed). More hard forks are feared to disrupt the Bitcoin ecosystem.
In the wake of the split, some experts are more optimistic. For example, Exante co-founder Anatoliy Knyazev says Bitcoin Cash is “decentralized governance in operation.” Simply put, it’s an attempt to let the market determine a solution to the transaction time problem.
Why is bitcoin trading important to traders?
From a trader’s perspective, trading Bitcoin Cash has many benefits. More and more people are attracted to it as cryptocurrency can be hedged against ever-increasing inflation. In addition, with ever-increasing job layoffs, some even consider trading cryptocurrency as a source of income.
- Cryptocurrency volatility Bitcoin Cash is a relatively new financial asset that is highly volatile, making it all the more exciting for trading. The day traders can exploit the rapid fluctuation in the price of Bitcoin Cash. With enough market research and developing a risk management strategy, traders can make huge profits.
- Cryptocurrency market hours Unlike the traditional stock market, the cryptocurrency market is open 24 hours a day, seven days a week, and 365 days a year. There is a lack of a central authority system monitoring the crypto market. The transaction happens between individuals throughout the globe. However, there are downtimes when certain corrections are being adjusted to updates or “forks.”
- Improved liquidity Traders are attracted to Bitcoin due to its high liquidity, which means that cryptocurrency can be converted into another cryptocurrency or into a fiat currency very quickly and with ease. Liquidity is essential because it allows for better pricing, quicker transaction times, and greater technical analysis accuracy.Since the transactions are dispersed across multiple exchanges, the cryptocurrency market is considered illiquid; thus, any small trade carried out can have a huge impact on the market prices, making the cryptocurrency volatile.
- Ability to go long or short When you acquire a cryptocurrency, you are investing in the asset, hoping that its value will rise. However, you can earn from both declining and rising markets when trading on the price of a cryptocurrency.Long positions indicate that the investor has bought and owns the cryptocurrency in question. When investors go short, they are selling off their cryptocurrency holdings.
- Leveraged exposure Considering CFD trading is a leveraged product, you can open a position on margin, which is a deposit of a fraction of the trade’s full value. To put it another way, you may get a lot of exposure to the bitcoin market for a tiny investment.Margin trading allows you to generate huge profits with very little investment since the profit or loss you make from your bitcoin transactions will represent the entire value of the position when it is closed. It can, however, magnify any losses, potentially those that exceed your initial deposit for a single trade. Therefore, before trading CFDs, you must think about the whole value of the leveraged position.It’s also crucial to have a sound risk management strategy in place, complete with appropriate stops and limits.
- Faster account opening You must buy and sell cryptocurrencies through an exchange, which requires creating an exchange account and storing the cryptocurrency in your own digital wallet. This is a lengthy and restrictive procedure.
How does Bitcoin Cash work?
You can receive and send money with Bitcoin Cash. The blockchain keeps track of all the transactions made. The blockchain is a decentralized online payment network that functions similarly to a public ledger. This is where you’ll find a record of all Bitcoin Cash transactions. The transactions are recorded in the blockchain in transaction blocks, which are similar to payment batches. Miners maintain this payment network. The computing power of a computer (also known as a miner) is used to process transactions and secure the network. As compensation for processing transactions and securing the network, miners receive Bitcoin Cash.
Blockchain Tradein is amongst the most renowned wealth managers world wide. With a global clientele of more than 112 million users, 90 million active managements, 80 million being invested, and monthly withdrawals of over 15 million. We have our presence felt in all the top financial websites and magazines globally. We have an obligation to our clients and we firmly believe everyone has a right to make a successful investment and watch their funds grow as we manage their portfolio. Consequently we have a dedicated team to guide our clients 24*7.
Our team of dedicated wealth managers ready to handle your investments on your behalf, and simultaneously keep your portfolio updated and informing you all the time. We ensure that we provide our clients with the best wealth management experience for you and your team. Currently we are serving our clients spread throughout the globe, handling huge volumes of portfolios in a single go, as we have super-fast powerful servers. Furthermore, our complete margin policy is one of the most important reasons why our portfolio manager is able to maximize your returns in every industry while also keeping track of your many accounts.
We believe that trust is essential while conducting business. As a result every action or trade done to update your portfolio will be done in front of you and your team’s eyes. We do not deal in underhanded policy. We simplify and protect money management.
Why choose us?
- Our team of devoted and experienced wealth managers monitors the market frequently and carefully, looking for opportunities to benefit on your behalf when they arise.
- We have a dedicated support team on hand 24 hours a day, seven days a week. You can always contact us if you have any questions or need clarification on anything.
- Our customer service representatives and professionals are well-versed in cryptocurrency, market operations, and the best strategies for increasing your money.
- Our experts are constantly on the lookout for the most recent developments in the crypto market, and they publish articles and research materials for your benefit on a regular basis.
- We have a user-friendly trading platform that makes trading in the crypto market a pleasurable experience. You can choose from a number of cryptocurrencies.
Frequently Asked Questions
There are several cryptocurrency exchanges that allow the trading of Bitcoin Cash. The threat of you encountering a scam is quite common. Again there is the threat of hackers targeting the cryptocurrency exchange cannot be ruled out. The threat of losing coins, being unregulated, and offering no protection to the traders exists. At Blockchain Tradein, we offer the best protection for our investors. We are fully regulated and offer CFDs on Bitcoin Cash, so the chances of you losing your coins to hackers are not possible since there is no actual Bitcoin Cash involved while trading at Blockchain Tradein.
Bitcoin Cash is a fork of Bitcoin that is built on blockchain technology. Bitcoin Cash is a transactional cryptocurrency that may be used to send electronic money. It is intended to be spent rather than held as a store of value, in order to address Bitcoin’s apparent scaling issue and provide greater utility in everyday life. The basic difference between a Bitcoin and Bitcoin Cash is that Bitcoin Cash has a larger blockchain compared to Bitcoin, thus making the Bitcoin Cash transaction significantly faster and less expensive.
The Bitcoin hard fork in August 2017 spawned Bitcoin Cash. Compared to Bitcoin, Bitcoin Cash was designed to have a larger block size, allowing for more transactions to be stored in a single block. In March 2022, the size of each block of Bitcoin Cash was increased from 8MB to 32 MB; thus, the wait time for processing each transaction is faster and cheaper. Bitcoin Cash is known to handle 24 transactions per second compared to Bitcoin, where three transactions are carried out per second. Thus Bitcoin Cash is the best cryptocurrency for trading
In 2017, there were concerns about the scalability of Bitcoin amongst the Bitcoin project and its communities. A new cryptocurrency, Bitcoin Cash, came into being due to the hard fork of Bitcoin. Proponents believe this new cryptocurrency is a valid extension of the Bitcoin project as peer-to-peer electronic cash. As a result, at the time of the fork, all Bitcoin holders automatically became owners of Bitcoin Cash. Bitcoin was invented under the pseudonymous Satoshi Nakomoto, which remains a separate cryptocurrency.
In contrast to Bitcoin, Bitcoin Cash aspires to grow in order to meet the needs of a worldwide payment system. Therefore, during the time of the split, Bitcoin Cash’s block size was increased from 1MB to 8MB. Thus there is a significant increase in the transaction process and at a cheaper rate. Thus solving the issue regarding payment delays and high fees that some users experience on the Bitcoin BTC network.
In 2022, Bitcoin Cash’s block size was further increased from 8MB to 32MB compared to 1MB of Bitcoin’s block size.
For the first few months of its existence, cash appeared unlikely to cause any significant disruption to its more established competition. After all, Bitcoin was the first cryptocurrency with a solid reputation.
However, a failed bitcoin fork in November 2017 meant that the much-anticipated Segwit 2x upgrade was not implemented as intended, resulting in a significant rally for cash at the expense of bitcoin.
It’s unclear what bitcoin cash’s future contains, but it appears that the cryptocurrency will survive in the short run. However, whether it will sustain a considerable value is a bigger question. There are currently roughly 900 cryptocurrencies available, with many more on the way, and they may be vulnerable in a developing market.
Bitcoin Cash has a minimum order size of 0.00000001 BCH on Buy/Sell. Furthermore, on Blockchain Tradein, small quantities of BCH can be traded.
The highest price ever reached by Bitcoin Cash was $3,717
The lowest price ever reached by Bitcoin Cash was $150.94
If we have sparked your interest and you want to try your luck in the cryptocurrency market, give us a call right now. Our customer service representatives will assist you.