Bitcoin (BTC) has become the most successful and popular cryptocurrency in the world, but it is not without some drawbacks. One of them is the small block size, as a result of which, with an increase in the load on the network, transactions remained unconfirmed for several days. To eliminate this drawback and some others, a fork of Bitcoin called Bitcoin Cash (BCH) appeared.
What is Bitcoin Cash?
Bitcoin Cash is a cryptocurrency that appeared as a result of a fork of Bitcoin. The main goal is to get rid of some of the shortcomings of its progenitor. In particular, BCH offers its users such advantages as secure transaction verification, low commission fees, publicly available innovations, and unlimited growth prospects.
Bitcoin Cash is primarily a payment tool. The hard fork made it possible to implement Schnorr signatures to increase confidentiality and further accelerate transaction processing, and the implemented SegWit protocol allowed increasing the block size to a record 32 MB. The BCH network, like the original Bitcoin, works on the Proof-of-Work consensus algorithm. Miners are engaged in processing transactions and ensure the security of the system. Since Bitcoin Cash is a fork of the BTC cryptocurrency, then the maximum number of coins issued by them should be the same 21,000,000. At the same time, 15,000,000 appeared immediately after the fork.
Why should I trade Bitcoin Cash?
Many traders are already trading BCH profitably, taking into account the following facts:
- Bitcoin Cash, according to financial analysts, is one of the most promising cryptocurrencies. It so happened that this fork attracted the attention of many investors/ordinary users at once.
- At the time of launch, BCH was trading at $440. Six months later, on December 20, 2017, the all time high was reached, which was $4,355 per coin. This incredible growth helped investors who managed to buy BCH to earn many times.
- The minimum price per coin was recorded on December 15, 2018 and amounted to $75 per coin. However, the exchange rate stabilized very quickly and the coin no longer fell below about $100.
As of July 4, 2021, BCH is trading at $537, with a market capitalization of $10,103,074,623. In addition, BCH is a very liquid asset, so you can safely consider it as a profitable investment.
What are the risks of trading Bitcoin Cash?
While crypto trading is often associated with risks, we would like to inform you about the risks you might face during trading BCH:
- Extreme volatility – though one might consider it a good feature, for most of the users it might cause serious troubles, while the cryptocurrency market is not subject to the regular norms, associated with stocks or forex markets. The price of BCH probably halved during 3 weeks, which could cost someone a fortune.
- Absence of regulation – none of the states or international organizations controls cryptocurrency transactions. For a user it means that if his or her password is lost, or the address was entered with mistakes – the crypto will be lost.
- Affected by external events – we all know the stories when a famous influencer, or a billionaire publishes a tweet or officially supports this or that cryptocurrency. The price first surges up and then goes down and while the influencer understands when he or she should fix the profit, regular users might lose the moment and lose money as well.
Where to trade Bitcoin Cash?
You can buy or exchange BCH on crypto trading platforms. You will need a Bitcoin client or a multi-currency wallet to place the purchased coins. The creators of BCH did not bother to develop their own wallet, but decided to use Bitcoin.com, as the main storage option. This solution allows you to place BTC and BCH in one wallet, which is very convenient for traders. Today, you can buy or sell BCH on many crypto exchanges and brokers, the best of which are:
- Binance – it has a convenient interface that includes technical analysis tools, the ability to view charts in full-screen mode, and add interesting cryptocurrency pairs to bookmarks.
- ZBG – it offers traders a high-quality set of trading tools for implementing various strategies. You can trade the most top-end assets with high liquidity on the platform. The exchange also supports rare tokens that have potential in the future.
- 7b crypto broker app – a reliable crypto broker that allows you to quickly and easily trade a huge selection of cryptocurrencies. In addition, you can track the current exchange rate and price changes directly in the app.
Trade Bitcoin Cash for other altcoins
One of the most wide-spread methods to trade BCH is to exchange it on other cryptocurrencies. The list of the coins available for exchange on BCH includes:
- Tether (USDT)
- Binance USD (BUSD)
- Bitcoin (BTC)
- USD Coin (USDC)
- Binance Coin (BNB)
All the trading pairs mentioned above can be traded on 7b with one of the lowest commission rates available on the market.
Trading Bitcoin Cash for goods
Due to the mass adoption of cryptocurrencies, nowadays you can buy physical goods for different cryptocurrencies and BCH is not an exception.
There is even a special marketplace – Bitcoin.com, where users can exchange their items on cryptocurrency.
Leverage trading
Bitcoin Cash margin trading is a crypto trading strategy whereby you pledge your Bitcoin Cash (BCH) tokens as collateral to borrow additional funds to purchase more BCH tokens.
The strategy is very useful if you are extremely bullish on Bitcoin Cash (BCH) in the short term but lack the funds to purchase additional BCH tokens.
How to trade Bitcoin Cash using the 7b crypto broker app?
On 7b, you can buy or sell BCH and more than 2000 other crypto assets at the most favorable rates on the crypto market. In addition, you can easily track the current cost and changes in the BCH rate directly in the application. In order to start trading, you need to perform a few simple steps:
- Create a verified account on 7b.
- Transfer the funds to your account.
- Choose a trading pair that suits you.
- Place a market order.
- Success!
FAQ
Is Bitcoin Cash a good investment?
Definitely BCH is one of the best cryptocurrencies if you want to diversify your portfolio. By eliminating the technical shortcomings of BTC, BCH has gained wide popularity and is among the top cryptocurrencies by market capitalization. The forecast for BCH is positive, for example, according to Digitalcoin, by the end of 2022, the coin may reach a value of $944.
How do I invest in BCH?
Before investing in BCH, you need to have a reliable wallet, for example Bitcoin.com, Ledger, BRD, or edge. In order to buy BCH on 7b, you must have a verified account and funds on it, select BCH in the list and the cryptocurrency you want to buy it with, enter the amount, and confirm the transaction.
How to trade Bitcoin Cash for beginners?
Take note that trading on the eve of important world events is a bad idea. Since you never know how the crypto market will behave. On 7b, to start trading, you need to log in to your account, select a trading pair, enter the transaction amount and confirm it.
How to buy Bitcoin Cash cryptocurrency?
You can buy BCH on many exchanges, brokers, or p2p platforms. The easiest and safest way to use the services of 7b: create an account, go through the verification process, enter BCH in the search bar, place an application, and get coins to your account.
What is the Bitcoin Cash Blockchain?
Bitcoin Cash is a cryptocurrency that appeared as a result of the Bitcoin hard fork. The main goal of BCH is to speed up the transaction processing speed, so the block size is a record 32MB. The standard fee for transactions in the BCH network is less than a penny.
