As if finally understanding the cryptocurrency concept wasn’t hard enough, we’re now in the days of various Bitcoin currencies. It is now pretty much comparable to the situation of dollars: there’s both the Canadian dollar and the US dollar, and they obviously have very diverse geographical uses. But things are slightly more obscured when it comes to the blockchain, as you can probably imagine.
Bitcoin Cash is a very popular altcoin among cryptocurrency traders. It walks the precarious line between fading into many other altcoins and clasping the fame and fortune of the real Bitcoin.
Bitcoin Cash was created in August 2017 following a hard fork and a division in the Bitcoin blockchain. There are constant discussions, and many ideas about how best to improve cryptocurrency, and Bitcoin Cash is a direct consequence of the debate.
In this handy guide, we will discuss what exactly is special about Bitcoin Cash, how to purchase bitcoin cash, who accepts the currency, and where to buy bch.
What is Bitcoin Cash?
Bitcoin Cash arises from the scalability problems that face Bitcoin. The initial blockchain has expanded exponentially lately. This indicates that many more transactions and users are using the digital currency, which is slowing down the network. The 1 MB limited Bitcoin block size implies that blocks are filling up more swiftly than they can be mined. At times, transactions have become slow and costly.
Bitcoin Cash makes some discrete protocol modifications, the principal one being a block size of 8 MB. This development permits more data per block, indicating that in each block mined, more transactions can be processed. Many see this as an incredible development regarding how to properly scale the network.
Others remain resolute that it’s merely a short-term fix that doesn’t resolve the issue, and there’s no implementation of opinions—like Segwit, whose protocol is now running on the initial Bitcoin blockchain—to help efficiently break transactions down into tinier, more manageable bits.
Importantly, currency is duplicated with a split in any blockchain. This implies that the historical Bitcoin transaction data were repeated, and anyone with the original Bitcoin cryptocurrency was credited with an equal amount of Bitcoin Cash. So does that suggest there was free money up for grab? Yes, yes it does—particularly when each Bitcoin Cash is worth hundreds of dollars.
Step 1: Get a Bitcoin Cash Wallet
Before you can purchase bitcoin cash, you’ll need a Bitcoin Cash wallet to stash it in. A lot of providers and exchange platforms have been hesitant to welcome Bitcoin Cash. There could be several reasons for this. Some may hold on to ideas about the best way to scale the cryptocurrency; others may just want to concentrate their efforts.
Many major wallet creators have recently been embracing Bitcoin Cash. While there may not be many exchange choices yet, you can find plenty of places to stash your coins away for now.
Industry leaders Ledger and Trezor, are examples of hardware wallets that support Bitcoin Cash. Both provide functionalities for you to use Bitcoin Cash just like would any other digital currency.
After a somewhat sluggish start, they’ve also added the ability to claim your BCH if you were already holding Bitcoin at the time of the blockchain division.
There are many software wallets you can use to store your BCH; you may even already be storing your original Bitcoin on one of these. Exodus offers a seamless shapeshift service with its wallet software so that you can transfer your funds at will.
For instance, you can swap between Bitcoin Cash for Ethereum Classic if you’re feeling expressly alternative. Jaxx supports many currencies, Bitcoin Cash included. The service can be used on both desktop and mobile devices, so you can have your private key with you every time.
Electron Cash is a modified form of Electrum. If you’re familiar with Electrum, then you’ll have no difficulty jumping on board with its related technology: it’s just a fork from Electrum with all the essential elements for Bitcoin Cash.
Some exchange platforms accept Bitcoin Cash, although it may not be a really good idea to leave your funds in their wallets for an extended period. Even though storing funds with online companies can expedite quick trading, you tend to lose charge over your private keys. Depending on what service you use, this might be a security risk. Coinfloor offers a satisfactory wallet that lets you trade on its United Kingdom exchange. It will store your keys in cold storage offline while making your coins ready to trade with on quick notice.
Step 2: Find a Bitcoin Cash Exchange
Unlike Bitcoin exchanges, Bitcoin Cash exchanges, which offer the best way to buy bitcoin cash are quite a few. However, there are still some outstanding options with which you can work.
Coinmama – One of the earliest exchanges in the cryptocurrency market. Coinmama lets you purchase Bitcoin Cash with a credit card at a moderately low fee (acknowledging the fees charged on other exchanges accepting credit card). Coinmama also takes users from almost all nations around the world.
CEX.IO is also an excellent option, one of the best places to go after learning how to buy bch. The United Kingdom-based company founded in 2013 is an experienced, trusted name in the industry. You can select from a wide range of currencies, Bitcoin Cash included. If you simply want to get ahold of some digital assets, there’s a quick purchase option through credit/debit card.
Be informed, though, that the credit card option is a costly one. You can deposit via bank transfer for low-fee trading, and trade on the exchange for a fee of 0.2%, and it will save you some cash on large buy and sell orders. The Europe-based exchange lets you work in both EUR and USD.
You can even use margin-trading methods on the platform to maximize your profits while also watching out for the market depth.
Coinbase – The most prominent Bitcoin exchange around recently added Bitcoin Cash support and buy/sell options. Coinbase lets you get competitive rates if the exchange supports your country.
Step 3: Transfer the BCH to your wallet
As usual, we strongly suggest that you never leave funds on an exchange. After you’ve finished purchasing your Bitcoin Cash, move it to your self-hosted wallet. Using a Bitcoin Cash block explorer, you can then track the status of your transaction. After you get three confirmations for your Bitcoin Cash, you can safely assume the process is completed.
Bitcoin Cash Conclusion
It’s evident that Bitcoin Cash has still not gained full approval by substantial parts of the cryptocurrency space. It still sits solidly in second place to its older brother concerning both availability and price.
The future for Bitcoin as a whole is unclear. More hard forks and splits are a certainty, and Bitcoin Gold hasn’t experienced a large profile since it split from the Bitcoin blockchain in October 2017.
Bitcoin Cash is staying away from the Segwit protocol, whereas the initial blockchain advances on toward improving the incorporation of the protocol. Who will eventually dominate? No one, in the short term, —and we’re likely to see further turmoil very soon. Bitcoin Cash might have the pleasure of being the first significant split that has earned acceptance.