What Is Bitcoin Cash
Created as a result of disagreement in the Bitcoin community, Bitcoin Cash (BCH) was established in 2017 as a new Cryptocurrency when it was hard-forked from Bitcoin Classic. A hard fork is a split in the blockchain, which means that Bitcoin and Bitcoin Cash were one and the same until August 1, 2017.
They still have a lot of similarities, but BCH aims to resolve some of the problems related to Bitcoin’s scalability problems, extremely high transaction fees and inability to handle large number of transactions per second. BCH uses the same codebase, but has a block size that is about 32 times bigger than Bitcoin’s. It is being maintained by a large number of independent teams of developers who constantly work on upgrading it. Since the network is spread out on numerous different computers around the world, Bitcoin Cash is decentralized and not owned by one single company. The currency is growing rapidly and aims to become a revolutionized payment system.
Trading Bitcoin Cash Easily
Since it has become one of the most popular cryptocurrencies in the world, BCH is supported on Atecs Capital as well as many other different trading platforms. A lot of trading websites provide a quick and easy way to instantly exchange fiat money for BCH and vise-versa. Also available are trading pairs of Bitcoin Cash and other cryptos such as Ethereum or Bitcoin.
By buying Bitcoin Cash with a simple press of the green “Buy” button using your currency of choice, you will get BCH corresponding to its current value that is shown on the button and on a real-time chart. Be careful not to accidentally select Bitcoin (BTC) instead of Bitcoin Cash (BCH). A clean and straightforward user interface is self-explanatory and you’re able to trade instantly after registering and depositing money into your account. Trading platforms are the fastest way to exchange currencies since it happens instantly instead of having to wait for your order to go through. However, if you do want to wait until the currency reaches a certain price, you can set a price alert.
Bitcoin Cash Trading over Bitcoin Trading
Since Bitcoin Cash was initially made because of discontent with unreliable transactions and limited block size, it is a much more effective and quicker way to transfer currency. Because of the 32mb block size, BCH allows many more transactions to be processed per second resulting at about 10 million a day!
When BCH was forked, everyone who owned Bitcoin also received an equal amount of BCH coins that were earned from competing in the network. This helped Bitcoin Cash acquire a limited and fixed supply of coins that supports price stability and secure investment.
Its transfer times take about 2-3 seconds, compared to Bitcoin’s 10 minutes. Segwit, part of the code that deals with Bitcoin transactions has been removed to further free up block size and increase the speed. Fast transfers combined with a low transaction fee of about $0.2 (Bitcoin fees range from $10 to $50 and are forced to increase every time that the number of transactions overwhelms block size) make it suitable for use in everyday payments. Because of this, it’s constantly getting more recognition and a wider adoption.
However, bigger block size introduces a risk of reduced rewards for smaller miners. This would give bigger companies that have access to better machines an advantage and jeopardize decentralization. On the other hand, with small block sizes come slower and more expensive transactions that would prevent Bitcoin Cash from growing and achieving wider use, making block size increase a much needed and calculated risk.
BCH uses a different and more complex hash along with numerous other security measures. It’s defended from wipeout and replay attacks (mirroring transactions from one blockchain to another). Different transaction signatures and difficulty adjustments make Bitcoin Cash much more stable. Bitcoin development teams have found it difficult to agree on certain aspects and improvements, which makes it grow a lot more slowly. On the other hand, BCH teams have been quick on pushing much needed updates and providing solutions to certain problems.
Importance of Smart Trading For Beginners
Our Education Center is Available with full trader guides, but you can also start here with a few basics.
Analyzing and Being Up to Date There are many different factors that can influence a spike in the price of a currency. Analzing past information can be useful but does not provide any additional value into predicting the future prices. Some things, such as increased publicity can cause a big number of new traders to cause the price to inflate drastically. Since BCH is relatively new, there is a high possibility for this to happen.
New listings at different exchanges can make the currency a lot more accessible to those less tech savvy. This will cause the aforementioned wave of buyers to boost the price. Always be up to date on what new coins different exchanges are listing and be ready. The price spike usually doesn’t last for a long time since everyone is rushing to sell, causing the price to drop significantly. This is usually a good point to buy in.
Be Aware of The Risk You might find a project that seems promising and invest some money into it. You’ll wait and wait, but the expected price jump never happens. Many goals are too ambitions and cause the creators to abandon companies. Technologies fail. These things might happen more often than you think. Cryptocurrencies are hit or miss and you can never be sure that something will succeed, no matter how promising and innovative it might sound. Don’t get discouraged because of this. Be aware that the market is very volatile and only invest what you can afford to lose. Scams Are a Possibility
Never keep your coins in one spot for a long time. Trade with them or use them on exchanges and transfer them to a wallet afterwards. That is the safest place to store them in and you have peace of mind knowing that only you can access them. Hackers present a real threat, but by doing your best to secure them they are going to have a hard time getting to them.
As you gain more experience, you will notice that crypto trading is not all that complex. Research the projects thoroughly, calculate the initial amount of money that you’re ready to spend and stick to it. Even if you do make mistakes at the beginning, they will make you that much more smarter and help you learn an important lesson.