What is Bitcoin Cash?
Bitcoin Cash is a new cryptocurrency coin which came into being in August of 2017. It was the creation of dissenting miners who felt that Bitcoin was having unresolved issues, among them the scalability and high fees.
It’s a network that has many similarities to Bitcoin, and which is virtually spread out across many computer systems all over the globe. It’s also a peer-to-peer type of currency, through which transactions are done between individuals, and businesses, independent from banking operations. The cryptocurrency comes with incredible secure encryption, which prevents cases of criminal activities such as fraud, hacking and any other types of cyber-attacks.
Just like other popular digital currencies, this new coin functions on a public Blockchain which is easily accessible and making it easy to be verified by just about anybody. Its primary efficacy on the money market is that it features much higher speeds and a lot more transactions.
What is Bitcoin Cash Trading?
Although Bitcoin cash is relatively new on the market, several global exchange companies Like MGC Logic are already buying and selling. The first step to undertake when trading with this cryptocurrency is to create a wallet. Then, there are various ways in which you can buy and sell your initial, and subsequent Bitcoin cash. Its as follows:
- You can purchase your coins through a reputable broker, or find a suitable exchange. These can enable you to exchange your Bitcoin cash with other cryptocurrencies such as Bitcoin and Ethereum.
- Currently, Coinbase is also allowing the exchange of bitcoin cash for US dollars. – Other popular cryptocurrency exchanges with which you can trade your bitcoin cash include Kraken and Bitfinex.
- If you go the broker way, then you need to create a trader’s account, fund it, and then start trading right away.
- In case you want to sell your coin for real money, you need to link your bank account, including submission of your full details for verification purposes.
Bitcoin Cash VS Bitcoin (and why is Bitcoin Cash better)?
Bitcoin and Bitcoin cash portray several differences in the manner of their functionalities and features. What is surprising is that more than ever, traders are leaning towards bitcoin cash. Let’s investigate the reasons for this kind of scenario.
- With a capacity of 8MB, Bitcoin cash features a much larger Blockchain limit in comparison to Bitcoin. This allows it to perform more transactions, quickly, and at a cheaper cost. On the contrary, Bitcoin has only 1MB, meaning that it is still experiencing challenges of scalability.
- Bitcoin still possesses more mining pools, which then leaves all of them in a much slower and weakened state.
- Bitcoin’s technical issues are the same critical reasons for Bitcoin cash’s breakaway. For example, Bitcoin’s ASIC is so much slower, while Bitcoin cash is now using a different hash algorithm which allows for faster speeds.
- The technology that Bitcoin cash is currently using also allows for an addition to the number of blocks. There is even expectation that its 8MB capacity could be increased, meaning that traders are in a for a positive revolution when it comes to the overall transaction with the software.
- The cryptocurrency world sees the Bitcoin as being built for purposes of the store for value. Presented with such a picture, it’s only reasonable that a medium range currency comes in as a perfect replacement, and that precisely what Bitcoin cash is doing.
- Bitcoin cash also comes in as a cheaper, quicker, and more effective global currency that serves the needs of the majority of digital money users; while Bitcoin is becoming harder to access.
- Recent spikes in Bitcoin, where it encountered challenges with lowered hash power; and with thousands of pending transactions, pushed most traders to quickly move to Bitcoin cash. The rationale behind this move was that Bitcoin cash is more efficient, centralized, and much faster when dealing with bulk.
- Bitcoin also lacks the more functional EDA algorithm, which is known for its adeptness and efficiency during periods peppered with high prices. On the other hand, Bitcoin cash has this algorithm, ensuring that there is standard work delivery on the Blockchain even if there are dramatic changes in rates, due to an increase in the numbers of miners.
- Bitcoin cash also has time and again come to the aid of Bitcoin, especially when it’s having speed problems with its SegWit2X configuration.
What are Some Basic Trading Rules for Those Who Have Just Entered the Field?
Anyone, including the uninitiated, can invest and reap the benefits that lie in the cryptocurrency business. However, there are a few dos and don’ts to help you along the way (for more detailed guides visit our Trading Academy.
- You need to know the basics of bitcoin cash: Although most traders are so much eager to start trading right away, it important not to rush. Instead, create some basic strategies that you can enter into the market with.
- Also, familiarize yourself with the circulation and the total supply of the currency. You can get to know more about wallets, exchanges, private and public keys.
- Equip yourself with the necessary tools: including analytical charts, to help you learn all about the past and current prices before you make a move.
- Keep up by understanding all the technical terminologies that accompany Bitcoin cash: Such jargons like consensus algorithms, block rewards, and many others can come in handy during trade transactions.
- Understand all the tax implications: One thing that most traders do not realize until it’s too late is that the more you trade, the more you are subject to tax liabilities.
- Do not invest any more than you are willing/can afford to lose: Bitcoin cash, just like any other cryptocurrency is subject to volatility, and slumps. It’s the reason you need to rein in the urge to put in all of your investment.
- Self-control works best, while greed can quickly wipe away your entire investment. Once you have made a kill, you need to walk away and plan for other investment strategies, or a fresh re-entry.
- Don’t assume you are always right: This is because any cryptocurrency investment is, in fact, a game of speculation. It involves more luck than strategy. As such, you can only be right up to a specific small percentage.
Bitcoin cash is the new kid on the block, and although still in its baby steps, its future looks to be quite bright. Some of the reasons for this include its high speeds, and ability to transact with large numbers of merchants on the global platform.
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