Pros of Bitcoin Cash
- Enjoy faster transactions than Bitcoin
- Reduced transaction fees with BCH
- Solves the scalability issue of BTC
- Private and decentralised cryptocurrency
Cons of Bitcoin Cash
- Concerns about security of Bitcoin Cash
History – Why Bitcoin Cash trading was necessary
Bitcoin Cash trading began in 2017. The cryptocurrency was created out of a ‘fork’ of the original Bitcoin cryptocurrency. This was because many people had started seeing that the basic mechanics of Bitcoin could have numerous problems of the future. The biggest of these issues was the ‘scalability’ of Bitcoin.
Simply put, few people had predicted that Bitcoin would become so popular. This meant that Bitcoin wasn’t designed to become a world-beater and therefore it has noticeably slower transaction times compared to regular payment methods like credit cards. The sheer number of calculations required to verify each transaction has meant that Bitcoin payments have failed too be as fast as hoped.
This meant that a summit was called in the Bitcoin community to put a ‘hard fork’ in the crypto. One of these forks was the original Bitcoin that carried on with the same scalability issues as before. The other fork was the new Bitcoin Cash (BCH) that aimed to provide faster transaction times, lower fees and plans to avoid future scalability problems. Once Bitcoin Cash was born, it quickly became used for trading and buying online products just like any other regular cryptocurrency.
Development – Why people continue to buy Bitcoin Cash
It’s fair to say that Bitcoin Cash trading hasn’t taken off in quite the way that many of its supporters had hoped. This is because people have continued to buy Bitcoin in a way that has been completely unaffected by the supposed scalability problems. With Bitcoin continuing to scale impressive heights in its value and market cap, there may seem to be little reason to buy Bitcoin Cash.
But Bitcoin Cash trading has managed to grow credibly over the past few years. From its initial valuation of $240 on 1 August 2017, it has doubled this amount by the time of writing this guide. This has shown that Bitcoin Cash and the regular Bitcoin are perfectly capable of standing side by side. While Bitcoin Cash wasn’t quite the software upgrade that many people had envisaged, it has still grown to be a credible alternative to the original cryptocurrency.
This is because Bitcoin Cash is supposed to be truer to the original vision of what Bitcoin could be. With blockchain technology ensuring completely decentralised control and improved privacy, it’s easy to see why many consider Bitcoin Cash to be the new and improved version of the original Bitcoin.
Statistics and facts about the Bitcoin Cash price
Bitcoin Cash trading relies on a few important facts. It features its own blockchain like regular Bitcoin, but benefits from an increase in block size to 8MB. The increase in block size means that transaction times can be greatly improved. Plus many Bitcoin Cash trading reviews have noted that the faster verification times have also had the added benefit of providing lower on average transaction fees.
All of these improvements should have meant that people should have been rushing to buy Bitcoin Cash. However, the BCH revolution has never quite happened. Plus the crypto suffered a further setback when it experienced its own ‘fork’ to create the Bitcoin SV that again introduced a larger block size that promised faster transactions and the elimination of scalability problems.
However, many people maintain that Bitcoin Cash is still the best crypto to invest in and this is reflected in the fact that its market cap has grown to hit $13.17 billion as of February 2021. Like most cryptos, Bitcoin Cash has seen a fair amount of volatility over the years, but it could still be a good investment.
The best Bitcoin Cash trading practices
It’s fair to say that Bitcoin Cash trading works in a very similar way to how you trade Bitcoin. If you’ve ever had to buy Litecoin or any other altcoin, you’ll find it easy to buy Bitcoin Cash. Like most cryptos Bitcoin Cash can be used to buy online products, and you can simply use it to trade against other cryptocurrencies. We should also note that Bitcoin Cash mining is a popular activity.
When it comes to Bitcoin Cash trading you’ll see that there’s a slight increase in transaction speeds compared with regular Bitcoin. This is due to the increase in block size that means that it doesn’t take as long to verify each transaction. It might seem like a minor point, but it could have a big impact in the long-term adoption of this crypto.
Once you actually buy Bitcoin Cash, you’ll notice that it features relatively low transaction costs. We found that the average cost of trading Bitcoin Cash was normally less than $0.008. This is obviously great news for your trading as even the slightest reduction in transaction fees can have a big impact. After all, many people continue to buy Binance Coin purely for this reason.
The increase in block size may have the benefit of boosting verification speeds, but it meant that people had concerns about its overall security. Such issues mean that the take-up of Bitcoin Cash may continue to lag behind other cryptos.
While many people buy XRP due to Ripple’s close relationship with many banking organisations, the fact that Bitcoin Cash is seen as being slightly less secure will mean that its widespread adoption could be diminished. Although these issues might be concerning, the basic fact is that it shouldn’t affect your trading and if you buy Bitcoin Cash, it’s just as safe as any other major crypto.
Here’s how you buy Bitcoin Cash
Never bought a cryptocurrency before? Don’t worry, as we’ve created a user-friendly guide that will walk you through each step that you need to take to get your hands on Bitcoin Cash. Here’s what you need to do.
Find your perfect BCH trading site
Pretty much all crypto trading sites will have Bitcoin Cash. This means that you won’t have to search too far to find a trading site where you can buy this crypto. Despite this, it’s important to note that not all crypto trading sites can be trusted. Thankfully all of the cryptocurrency trading sites featured here have been checked to make sure that they are legit. Plus we’ve carried out in-depth reviews of these trading sites so that you can find one that’s perfect for your needs. This is important as each crypto trading website will have different rates for transaction fees and much more.
Register your trading account
You’ll always need to create an account to trade cryptocurrencies. Most trading sites allow you to register an account in just a few minutes. Bear in mind that you’ll have to give the crypto trading website some fairly personal information to set up your account. This may mean having to supply your name, address, date of birth and so on. By doing this, the crypto site should be able to verify your account so that you can start trading.
Make a deposit
Once your account has been verified, you’ll have to make a deposit to begin trading. This means that you can choose to deposit in a fiat currency. Bear in mind that some trading sites might not accept payments in Indian rupees. This means that you may have to deposit with an alternative currency like US dollars or euros which could bump up the exchange fees. Don’t forget that you’ll also have the option to make a deposit direct from your crypto wallet.
Buy Bitcoin Cash
While all crypto trading sites will have their quirks, they should all feature a main trading page. This will display the full list of all of the cryptocurrencies that you can buy and sell on the site. Expect to see Bitcoin Cash listed alongside other cryptos like Bitcoin, Ethereum, Ripple, Litecoin and so on. You’ll also be given access to important information that displays the price changes of each cryptocurrency along with its market cap and so on. From here you should simply be able to click on a ‘Buy’ button and then make a decision of how much Bitcoin Cash you want to buy. Once you submit your order, you should find the BCH in your crypto wallet in just a few moments.
Our Bitcoin Cash price prediction
Bitcoin Cash may not be rivalling standard Bitcoin in terms of its market cap, but our Bitcoin Cash prediction is that this crypto is due for sustained growth. The fact that Bitcoin Coin has grown in value by well over 50% since its launch shows that this is a crypto that people believe in.
The fundamental positioning of Bitcoin Cash in relation to scalability issues means that it shouldn’t suffer a slowdown in transaction speeds like that which has afflicted Bitcoin users. Much will depend on how Bitcoin grows in the future. If Bitcoin does start to come into more problems with its scalability issues, then Bitcoin Cash will increasingly seem like a smarter choice for anybody who wants to buy crypto online.
Have there been any Bitcoin Cash trading scams?
All cryptocurrencies tend to be treated with suspicion upon their launch. After all, anybody who remembers the hacking of the Ethereum network in 2017 will understandably be cautious in the way that they buy Ethereum. So the good news is that Bitcoin Cash has never had a major hacking problem.
The relatively low profile of Bitcoin Cash has meant that it seems to attract fewer scams and hacks when compared to the likes of regular Bitcoin. While there remain concerns about how the increased block size of Bitcoin Cash could affect its security, such fears have yet to be justified in the crypto trading community.
Obviously, our Bitcoin Cash prediction should note the fact that this crypto is just as volatile as many other cryptocurrencies. In recent times, we’ve seen the value of Bitcoin Cash shrink as low as $200 to rise to nearly $4,000. So be sure to think carefully about the best time to buy Bitcoin Cash.
Why you might want to try some Bitcoin Cash trading
We’ve hopefully outlined the main fact which is that there are several different reasons why you should buy Bitcoin Cash. The first of these is that Bitcoin Cash was created to overcome the innate problems of Bitcoin. As such, it works just like regular Bitcoin does, but it is future-proofed. This means that Bitcoin Cash could be a smart investment for when Bitcoin suffers that inevitable dip in value.
Bitcoin Cash has been created to offer its users faster transaction speeds. While standard Bitcoin transactions could be frustratingly slow, the increase in block size of Bitcoin Cash means that you won’t have to wait as long for purchases of online goods and services to go through. Faster verification speeds also have the added benefit of reducing the transaction fees that you’ll be faced with.
Of course, Bitcoin Cash isn’t the perfect crypto. The increase in block size has meant that some people have speculated that it could be easier to hack. Plus users of Bitcoin Cash will see much lower liquidity compared to that of other cryptos. But as long as you are aware of these issues, then there’s no reason why you can’t enjoy all of the benefits offered by Bitcoin Cash.