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Bitcoin Cash Guide: Everything You Need To Know

Bitcoin Cash is a cryptocurrency used in the payment system for digital transactions. BCH uses a larger block size to process transactions quickly.  It is most suitable for small purchases, like a cup of coffee, in retail outlets.

The cryptocurrency market is opening new opportunities for traders in the crypto market.

What is Bitcoin Cash?

Bitcoin Cash is a fast and reliable cryptocurrency, created in August 2017. A Bitcoin hardfork that happened in August 2017 brought the Bitcoin Cash. It increased the size of blocks. Bitcoin Cash (BCH) is a variant of the top cryptocurrency Bitcoin (BTC)

The peer-to-peer electronic BCH crypto coin has captured a prominent space in the crypto market with low fees that allow speedy payment transactions. The secure cryptocurrency has a high transaction capacity. Bitcoin Cash payments are made directly to another person.

BCH is one of the top 20 cryptocurrencies and a popular Bitcoin fork with a 32 MB block size. It is a cheaper and faster network than BTC.

History of Bitcoin Cash

Bitcoin Cash is a hardfork of Bitcoin, which happened in August 2017. The network split at a blockchain. The updated software operates faster with low transaction fees, as it has a large block size.

It is the largest Bitcoin fork in terms of active users and market capitalization. Bitcoin Cash initially had an 8MB block but later increased to 32MB. Each block can process more transactions. The number of transactions processed under each block is higher.

  • In 2017, it garnered the support of early crypto investors like Roger Ver, who had an optimistic outlook on BCH.

In November 2018, it underwent another fork, which split Bitcoin Cash into two. The current Bitcoin Cash is Bitcoin ABC.

Price History of Bitcoin Cash BCH

  • The price of Bitcoin Cash is at $641 as of September 2021.
  • Bitcoin Cash started to trade at $290 per coin. By December end, it skyrocketed to $4,300.
  • In 2017, BCH received support from Bitmain, one of the crypto mining platforms.
  • In January 2018, it was at $2,100. But in March 2018, it slipped below $700 levels and surged again in April 2018 to $1,737.
  • In 2019 and 2020, it was languishing within the $400 range.
  • In April 2021, it surged again to the $1,500 range, but by September 2021, it dropped to the $600 range.

Bitcoin Cash Live Price Chart

The live Bitcoin Cash price chart provides real-time updates of the crypto market.

 

Currently, BCH ranks 18th in the crypto market with a market cap of $12.12 billion. The circulating supply is $18.85 million. The Bitcoin Cash price as of September 15, 2021, is $643.87.

The BCH coins in current circulation are 18,844,000. The maximum supply of BCH coins is 21,000,000.

Top cryptocurrency exchanges to trade in Bitcoin Cash are Binance, FTX, Huobi Global, and OKEx. Robinhood cryptocurrency provides a no-commission structure for trading. However, it charges a spread.

What makes Bitcoin Cash Price Move

Bitcoin Cash is faster and cheaper to use. It is more scalable as people can transact at any given time on the blockchain. There is great potential in the future for its usage and adoption.

  • The total supply of Bitcoin Cash is limited to 21 million coins. Transaction charges are lower, almost a tenth of a cent.
  • BCG operates with tools like CashFusion and CashShuffle, which makes payments and Smart Contracts easier.
  • Bitcoin Cash is cheaper, faster, and is more scalable than the top cryptocurrency, Bitcoin.
  • There are many apps that you may already have on your phone with which you can trade. Some of the best crypto trading apps are Venmo and PayPal app. Though convenient, you can trade only with a few crypto coins on these apps. Robinhood cryptocurrency and Webull are other best crypto trading apps that offer commission-free trading.

Bitcoin Cash Price Falling

Bitcoin Cash prices are falling due to many reasons.

  • BCH does not have good market dominance in the crypto world, and it deters people from mining on its network.
  • Unlike Bitcoin, BCH does not have many trading pairs. It is mostly used as a replacement for cash to make micropayments.

Bitcoin Cash Price Rising

Bitcoin Cash prices surged as it gained mainstream importance. Investors buy Bitcoin Cash in the hope that it may increase in value.

  • You can make peer-to-peer payments to individuals for daily transactions. Making payments online and in-store is possible through Bitcoin Cash.
  • One of its best features is payment for microtransactions. You can make small payments such as paying app users and paying for a cup of coffee using cryptocurrency.
  • Cross-border trade is possible at reduced fees.
  • It supports 25,000 transactions in a block, as it has a bigger block size, up to 8 MB.

Ways to Invest In Bitcoin Cash

Bitcoin Cash supply is capped at 21 million. The best app to buy cryptocurrency Bitcoin Cash is eToro crypto, Coinmama, Coinbase, Bitstamp, and CEX.io.

  • As you get peer-to-peer service, you can stack BCH tokens easily.
  • You can mine BCH tokens, as it is one way of protecting the ecosystem.
  • You can take BCH payment for online and offline services as a business owner.
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How to Open a Bitcoin Cash Wallet:

When you buy Bitcoin Cash for investment purposes, you will own the digital currency. You have to open a Bitcoin Cash wallet to store the cryptocurrency.

You can get your BCH wallet from Exodus, Edge, or Ledger. Get a BCH address with a Normal or Cash address.

Use the best app to buy cryptocurrency, such as CEX.io or Coinmama, buy BCH coins, and then transfer them to your wallet for safety.

Choose the right wallet from hardware wallets, software wallets, paper wallets, or mobile wallets.

Bitcoin Cash Funds

Bitcoin Cash gained popularity from personalities like Roger Ver, who says that Bitcoin Cash is the global cryptocurrency in the crypto market for its ease of use.

Best Performing Bitcoin Cash Funds

The Bitcoin Cash Ecosystem Fund with $200 million helped to develop Bitcoin Cash to provide payment-related solutions for Bitcoin Cash such as remittance processors and payment gateways.

BCH is listed in some of the best cryptocurrency exchanges as you can use digital assets to buy, sell and trade. Best crypto trading platforms that trade BCH are Binance, Coinbase, Coinsmart, and Gemini crypto exchange.

Biggest Bitcoin Cash Funds

Miners contribute a portion of their mining rewards to the development fund. The Bitcoin Cash Development Fund is used to develop the Bitcoin Cash Blockchain.

You can purchase Bitcoin Cash at top cryptocurrency exchanges like Binance, OKEx, FTX, Coin Tiger, and Huobi Global.

Best Bitcoin Cash Trading News Sources

The best news websites that provide Bitcoin Cash trading news are CoinTelegraph, Coinspace, CoinDesk, Reddit, and Bitcoin Magazine.

You can read through a lot of technical analysis and provide a holistic view of the crypto market. You can get the latest data and news stories about BCH on them. Changes in legislation and opinions from prominent personalities get published on these sites. Binance is a top US crypto exchange where you can trade around 150 cryptocurrencies.

Is Bitcoin Cash a good investment (chart and summary)

In 2019 and 2020, BCH was trading below $400. It has a new lease of life in 2021, surging to more than $1,500 in May 2021. In September 2021, it is trading at $650.

BCH serves various purposes and is a good investment for trading in the crypto market. You can make payments by merchants around the world. You can pay for travel accommodation, e-commerce payments, and for paying for goods and services. Its ease of use for micropayments has made BCH a good investment.

However, the crypto sector is unregulated, and it is best to invest money that you can afford to lose.

You can trade on margin with CFD’s though it has its risks on cryptocurrency platforms. You can trade the difference by speculating on the rise or fall of the BCH prices. Choose lowest fees crypto exchange such as Bittrex, Kraken, Coinbase, eToro crypto, and CoinSmart. Bittrex fees are 0 to 0.35% as maker/taker fees. Buying crypto on Robinhood makes transactions easier and faster.

Is Bitcoin Cash In A Genuine Investment?

To check the genuineness of your crypto investment, you should know the founders and developers of the BCH. A few pointers are provided below for reference.

  • BCH is a form of payment launched at a price value of $240 per coin that performs well even for transactions that are small priced.
  • Most users prefer to own Bitcoin Cash for its better performance as they are a Bitcoin hardfork.
  • Bitcoin Cash is not controlled or issued by any central authority like the US Dollar. The transactions are verified by computers on the Blockchain, as it is decentralized.
  • Bitcoin Cash offers cheaper transfer fees and faster transfers. It can handle more transactions per second.
  • The best US crypto exchanges for crypto enthusiasts are Binance.US, Coinbase, Kraken, and Geminin. Make sure that you choose low fees crypto exchanges that do not charge any hidden fees. Limit your risk by setting a stop loss. Remember to safeguard your profits when you trade.

Bitcoin Cash Links With The Dark Web

Bitcoin Cash Blockchain has a small block size by which it cannot increase the number of transactions. Transaction fees on Bitcoin are much smaller than Bitcoin Cash.

Competing cryptocurrencies such as Litecoin and Dash partner with various organizations in various countries like Venezuela, but Bitcoin Cash is not very competitive. It remains relatively unknown to investors.

Traders fear that there may be another fork on its blockchain in the future.

Trading Bitcoin Cash Crypto

Trade on the best crypto trading platforms for a profitable venture. Some of the best cryptocurrency brokers are Coinbase, Crypto.com, and eToro.

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How To Trade Bitcoin Cash

The cryptocurrency market has both investors and traders in Bitcoin Cash. Some buy crypto as a long-term investment, while some speculate on its prices, hoping that its value will increase.

The crypto market operates 24 x 7. Cryptocurrencies trade over varying time zones. Make use of risk management tools for trading. Pre-set your profit and loss limits. Determine the risk you are prepared to take on your speculative trade.

Investors: When you buy the crypto to take ownership of the digital currency and hold it in your digital wallet, you get a profit when it increases in value. BCH holders can also enjoy CashShuffle while using particular wallets, by which your transactions remain secure and private.

You can purchase Bitcoin Cash on any exchange such as Bitstamp, Binance, Kraken, Gemini, Coinbase, or BitMax. You will own the BCH crypto and you can wait for a significant price rise if it is a long-term investment. You can also sell or exchange the coins for a profit.

Traders: Traders can use CFD to speculate on the price difference. If you take a long position and Bitcoin Cash value increases, you make a profit. However, if the value decreases, you will make a loss.  You should have an account with a secure trading provider. Robinhood crypto day trading is free, and traders can buy and sell crypto frequently.

Some of the best cryptocurrency exchanges for free crypto trading are Phemex, KuCoin, and crypto.com. Webull crypto does not charge for your crypto trade. Though Webull crypto fees are nil, traders are charged a spread, for the purchase and sale of crypto.

Top Crypto exchange with lowest fees is Binance.US, Kraken, and Cex.io.

Ensuring My Bitcoin Cash Trading Is Profitable

The cryptocurrency market is highly volatile as it depends on government regulations, political events, Blockchain forks, and ICO’s. Have a sound crypto currency trading plan, manage your trading strategy and use risk management tools to protect your investment.

Best crypto platforms like Binance, Coinbase, PrimeXBT, and Coinsmart offer open source and commercial software for trade. Robinhood crypto day trading is free, though you have to pay the spread. Crypto exchanges with the lowest fees are Bittrex, Gemini, and Kraken.

You can demo trade before you risk your live money. Use advanced trading strategies for cryptocurrency futures trading. You can understand the direction of the market, which will minimize risk.

Buying Bitcoin Cash Beginners vs. Professionals

Best Way for Beginners to Buy Bitcoin Cash

When you start your crypto journey, you have to choose the best cryptocurrency trading platforms that sell Bitcoin Cash. Acquire a basic understanding of Bitcoin Cash and cryptocurrency.

You can purchase them against fiat currencies like the Dollar, Pound or Euro, or other crypto currencies. Make use of various open-source programs to buy and sell cryptos on the internet. Choose the best crypto platforms for investing in BCH that allow you to access multiple markets using a single account.

  • Check the authenticity of the cryptocurrency exchange.
  • Purchase BCH tokens. When you purchase BCH tokens, store them in digital wallets for safety. You will get a private key for protecting your wallet. Once you safely store your BCH on the BCH wallet, you can send it to other corresponding wallets around the world.
  • You can purchase BCH through peer-to-peer transactions, by which you connect to others who are willing to sell tokens for cash.

As a beginner, you can invest in BCH in an exchange, but you have to go through the verification process and provide your photo ID, address, and income details. Such details are required for Anti-Money Laundering and Know Your Customer verification.

When you choose the best crypto exchange, check the authenticity of the crypto platform so that you can safely buy and sell cryptocurrency. You should be able to convert fiat currency into BCH crypto.

Buying crypto on Robinhood is best as it provides free trade. Kraken is the best crypto exchange that charges a 1.5% fee. If you use Kraken Pro, your price will decline significantly. For newbies in the crypto world, Coinbase is the best choice, as the crypto broker is super easy to open an account with ease of use.

The best cryptocurrency brokers are eToro, Binance, Gemini, and Coinbase. The cryptocurrency is available at ATMs in certain regions. PayPal supports four cryptocurrencies, which are Bitcoin Cash, Litecoin, Ethereum, and Bitcoin.

You can check reviews to ensure that your crypto exchange is secure. There is software for trading crypto. You have to pay a fee to use day trading crypto software provided by exchanges. You can get tips for day trading cryptocurrency, such as strategies, technical analysis, and crypto trading bots. The automated software increases the revenue of the trader and reduces risks associated with losses. Cryptohopper is a free crypto trading bot that keeps your account secure. Pionex is considered the best exchange that has 12 free trading bots.

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How Pros Buy And Invest In Bitcoin Cash

Do extensive research before selecting the best cryptocurrency trading platform. Professionals choose low fees crypto exchanges for trade. Top Crypto exchanges that use blockchain technology provide decentralized order books that are more secure. Traders prefer CoinSmart, FixedFloat, Binance, PrimeXBT, and Cash App lowest fees crypto exchanges, as they offer a wide variety of tokens for trade. Robinhood crypto fees are nil. Traders who invest a lot in the crypto space choose a good crypto broker like Coinbase as it is the safest place to store your crypto coins.

  • Professional traders access margin trading. It increases their buying power, as well as risks on trade. Traders on crypto choose the best crypto exchange based on the security and authenticity of the cryptocurrency platforms.
  • Professionals prefer day trading cryptocurrency as they prefer to speculate on crypto prices. When you are crypto day trading, be constantly tuned in to the latest big news and events. Remain updated on the economic and political news that drives the crypto market by using mobile apps.
  • Crypto trading bots are computer software that traders use. They help them to buy and sell crypto tokens at the right time and right price.
  • Professionals prefer Cryptocurrency futures for trading as it multiplies profit while holding fewer cryptocurrencies.

Tax liabilities on Bitcoin Cash

As a business owner, you should comply with income tax laws and crypto tax as prescribed within your jurisdiction.

Tax on Bitcoin Cash US

All taxpayers in the US must report transactions on BCH for tax purposes.

All retail transactions such as purchases, sales, usage, and personal investment of Bitcoin Cash come under capital gains tax, even if they are small in value.

Mining businesses have to pay capital gains tax, and they can make deductions for their investment in equipment.

Airdrops and hardforks come under ordinary IT rates.

Tax on Bitcoin Cash UK

All gains from crypto assets are taxed. The guidance under HMRC (Her Majesty’s Revenue and Customs) provides a better understanding for investors and traders in the crypto market.

All profits made on crypto assets as personal investments are taxed. All losses get deducted from overall capital gain.

You have to pay tax for mining, airdrop, salary received in crypto, and rewards in crypto.

How Much Do You Need To Start Investing In Bitcoin Cash

You can 10% of your portfolio in risky crypto assets, especially in the lesser-known crypto tokens like Bitcoin Cash. It is best to know more about your investment before making a purchase. There are many crypto currency trading platforms to choose from.

Bitcoin Cash Investors Summary

Bitcoin Cash was created from a Bitcoin hardfork at block 478,559. BCH is different from BTC. It is an altcoin and is not high-priced like Bitcoin. It functions faster than Bitcoin with increased block size. The main reason for Bitcoin Cash creation was to address the slow transaction speed of Bitcoin, which can process only seven transactions per second.

On average, BCH processes 116 transactions per second and is more scalable. Bitcoin Cash transaction fees are very cheap, making it attractive to investors and traders. It competes against Visa and PayPal in terms of the volume of transactions processed.

Best crypto trading apps provide Bitcoin Cash (BCH) for trading. Choose the best crypto exchange that allows you to trade in a wide range of crypto currencies.

Bitcoin Cash does not enjoy much investor confidence. Its adoption rate is lower than Bitcoin, as it is much younger than BTC. Investors prefer BCH for the Hashrate, which is a computational power measurement per second, while mining. However, people are still hesitant over fears of the new technology. Further, it does not provide good conditions for its miners.

Diversify your crypto trade, use technical indicators such as volume, moving averages, oscillators, developing trends, and stop losses.

All cryptocurrencies are extremely volatile, and Bitcoin Cash is no different. It is a good cryptocurrency for traders but is not any better than other major crypto currencies.

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