Bitcoin Cash (BCH)
Bitcoin Cash (BCH)
Bitcoin Cash (BCH)
What is Bitcoin Cash
Bitcoin Cash was once part of Bitcoin but today it is a cryptocurrency with a unique blockchain. The developers created it through the mining of Bitcoins. It came into being in the last part of the year 2016 and that makes it younger than the original Bitcoin.
Bitcoin developers wanted to make several important changes and they, therefore, forked Bitcoin Cash. Unfortunately, they were unable to agree on some of the key changes something that influenced some of the developers to make a new cryptocurrency.
The new cryptocoin used the Bitcoin algorithm but with several new modifications. The changes include:
- Bitcoin Cash has lower transfer fees, which means that the users are able to save more money when trading. Bitcoin Cash transactions cost around $1 but that of Bitcoin can be over $25.
- Buying Bitcoin Cash is faster, which means that you will never wait for 10 minutes. Bitcoin transaction verification can take 10 minutes.
- Bitcoin Cash handles many transactions per second. Therefore, many people can use it at the same time. That is not possible with Bitcoin.
All the advantages are associated with the large block of Bitcoin cash (it is eight times that of Bitcoin). Buying Bitcoin Cash is cheaper, faster and more scalable. That is why more and more people are going for it each day.
What is Bitcoin Cash trading and how to Buy Bitcoin Cash?
Buying Bitcoin Cash can be a big challenge. After deciding to buy the cryptocoins, most traders choose exchanges like Coinbase, MGCLogic, and Bitfinex. That involves the exchange of fiat money for Bitcoin, which they later exchange for Bitcoin Cash. The process is the most obvious but comes with many risks.
To Buy Bitcoin Cash faster and anonymously, you have to consider LocalBitcoins. The exchange allows you to purchase Bitcoin Cash in your local currency and it is available in all parts of the world. Unlike many exchanges, this method allows you to trade without an ID card. Unfortunately, it will expose you to frauds. Vet every trader before you initiate a transaction. The fees can be as low as 1 percent. TDS Capital Group is currently the world’s leading cryptocurrency trading platform and therefore worth considering.
If you have no problem handing over your ID card details, Coinbase is a better choice. It provides a wallet, exchange and user-friendly interface. The prices are competitive at 3.99 percent when using credit/debit cards and 1.49 percent when using bank transfers.
Buying Bitcoin Cash vs. Buying Bitcoin
Bitcoin Cash and Bitcoin are different cryptocurrencies and each of them comes with its benefits. For example, Bitcoin has a larger network and infrastructure, while Bitcoin Cash has faster transaction speed and low transaction fees. When choosing between the two, you will have to consider what you need. If you want a more secure currency, Bitcoin is a better choice, but if you need more affordable transaction rates and faster transactions, Bitcoin is a good option. Here are the main differences.
The network size
It is evident that Bitcoin has the largest supporting infrastructure and network compared to Bitcoin Cash and other Cryptocurrencies. That is because it has existed for a very long time and Bitcoin Cash is very new. Therefore, experts see Bitcoin as more stable and stronger than Bitcoin Cash is. Experts believe that the mining support and infrastructure makes it more secure. Even though transactions take a very long time, they are usually confirmed. On the other hand, the cost of Buying Bitcoin Cash is very low. And because of the Blockchain protocol, some of your transactions are likely to get rejected.
Block size limit
The main purpose of creating Bitcoin Cash was to end the long-time debate among the Bitcoin community on how to upgrade Bitcoin so that it can accommodate many users. Among the key differences is the maximum limit of the block. Bitcoin Cash has a limit of 8MB and that of Bitcoin still stands at 1MB. As a result, Bitcoin Cash is able to process over 2 million transactions in a day, while Bitcoin only processes 250,000 transactions in a day.
The block size limit of Bitcoin is small (1MB of data) and it is painfully slow because it performs only 7 transactions per second. Bitcoin Cash, on the other hand, handles over 24,000 transactions per second. And because Bitcoin transactions take very long to process, they are expensive and the increase of Bitcoin demand has worsened that. The block size of Bitcoin Cash is 8MB (eight times that of Bitcoin). That allows processing of many transactions per day and reduces the costs. The average processing costs of Bitcoin is over $6 and that of Bitcoin Cash is roughly $0.20. The cost is likely to increase in the future.
The processing rate of Bitcoin transactions is painfully slow, Bitcoin has many wallets and the Bitcoin community has accepted it. On the other hand, Bitcoin Cash is not widely accepted because it is still a new cryptocurrency. Therefore, you should expect a few exchanges and wallets.
Some basic trading rules for those who Wish to Buy Bitcoin Cash
Bitcoin Cash trading is profitable, but you have to trade responsibly. You have to read our Trader Guides to observe the market movement patterns. For example, if the value of Bitcoin Cash rises dramatically throughout the day, you should exit because that is risky. Here are some of the rules to follow if you are a new trader.
Create a plan
When starting to trade in cryptocurrency, most people believe that all they need is a computer, internet connection and some money to buy the cryptocoins. After that, they can start making huge profits. That is not the case. You have to plan and set your trading goals. Bitcoin Cash trading requires enough planning and you will have to stick to your plan. If you fail to do that, you will definitely make some of the beginner mistakes. You have to set your target value and know when to exit the market.
Practice to learn
Learning through practice is important. The internet offers many demo accounts that you can use for practice. You have to research on the aspects of Bitcoin Cash trading if you want to make profits. Bitcoin Cash trading requires knowledge.
Diverse your trading
You should never risk everything on one endeavour when trading in Bitcoin Cash. You have to break down your investment into several small lots. That way, you will be able to benefit from many positions at different price levels.
Do not invest your life money or savings
Investing your all savings or money is dangerous. A single event can drastically change your life. You have to observe this rule always because in Bitcoin Cash trading the level of uncertainty is very high.
Use the available trading tools
You have to take full advantage of the available technology if you want to make huge profits. The available tools include customized charting tools, graphs and trading bots. However, before using any of them, you have to understand how it works.
Do not trade emotionally
If you execute a trade that results in a huge profit, you might get tempted to try that severally. However, you should know that cryptocoins trading is not easy. Many people get stressed after making huge losses. Learn how to control the bad feelings.
All trades carry some risk. Cryptocurrencies are more volatile and after deciding to get Bitcoin Cash, you have to keep in mind that your capital will be at high risk regardless of the broker you choose. A single event can result in a loss of capital. Remember the golden rule – spend only what will not make you stressed if you lose it.