Bitcoin Cash (BCH)
Bitcoin first came into existence in 2009 and was the first cryptocurrency to ever make it and become widely known. However, since Bitcoin’s creation, there have been many developments in the cryptocurrency space and the blockchain technology has been improved upon in several ways. One such improvement is Bitcoin Cash, which is a hard fork of Bitcoin’s blockchain protocol.
Bitcoin Cash was created in August 2017 with it’s sole purpose to tackle the issue of Bitcoins scalability. Bitcoin has been experiencing very slow and expensive transactions as the increase of Bitcoin users and transactions occur on the network. Bitcoin Cash aims to solve this scalability issue by issuing block sizes which are 8 times the size of Bitcoins block size, (1mb to 8mb). With an increased block size, Bitcoin Cash can handle many more transactions than Bitcoin can for a fraction of the cost, hence solving Bitcoins scalability issue.
This Bitcoin fork among others, are very controversial topics among the Bitcoin and cryptocurrency community. Many people are strongly against it, and claim you should not be able to simply change the code of the blockchain thus creating another cryptocurrency out of thin air. Then there’s the other side that’s all for innovating and creating upon Bitcoins blockchain. The only way these blockchain forks can go through is if there is enough people in the community who support them.
Regardless if you support Bitcoin Cash or not, both cryptocurrencies have various benefits and advantages over the other. However, Bitcoin remains to be the number one cryptocurrency, while Bitcoin Cash is a very strong altcoin that is closely related to Bitcoin. When comparing the two, Bitcoin can be thought of as “digital gold”, where it may not be the best for transactions, but holds tremendous value. While Bitcoin Cash can be better used as “cash” as its name suggests.
Bitcoin Cash Chart
The current live price of BCH/USD:
How to Trade Bitcoin Cash
The trading of cryptocurrencies other than Bitcoin is becoming increasingly popular as mainstream adoption spreads. Bitcoin Cash is one of the most popular cryptocurrencies as its market cap is among the top 10 cryptocurrencies by market cap. Therefore, it can be traded on various exchanges for several assets. While Bitcoin and Ethereum have the most tradeable assets available, Bitcoin Cash can also be traded for various cryptocurrencies on some exchanges. Although, most of the biggest cryptocurrency exchanges will only allow Bitcoin Cash to be traded for Bitcoin, Ethereum, and sometimes fiat currency such as USD, CAD, AUD, and Euros.
CFD Trading with Bitcoin Cash
While Bitcoin Cash is most commonly traded by actually buying and selling the cryptocurrency for fiat money or other cryptocurrencies, some cryptocurrency exchanges and brokers allow CFD (Contract for Difference) Trading of Bitcoin Cash. This type of trading allows traders to simply speculate which direction and by how much the price of Bitcoin Cash is going to move. Traders who trade this way are not required to purchase any Bitcoin Cash. Traders will need to register with a crypto broker to start trading, or with a CFD broker that offers crypto trading. Once you have done that, you will need to place a deposit and then you can start placing BUY or SELL trades.
Another method which most traders who participate in the trading of Bitcoin Cash use, is exchanging it for Bitcoin and vice versa. This is because everyone who owned Bitcoin before the hard fork on August 1st, 2017 received the equivalent amount in Bitcoin Cash. Therefore, it’s basically like having free money to trade with. Alternatively, if you obtained Bitcoin Cash from the fork, you could simply hold and sell it for fiat currency when it reaches your desired price. Regardless of how you trade your Bitcoin Cash, there is significant risk and as a trader you should always stay informed.