If you have read our guide on how to buy Bitcoin, you will be surely interested in one of the most promising cryptocurrencies in the market in 2017: Bitcoin Cash.
Although it is a relatively young currency, Bitcoin Cash has already entered the Top 3 when it comes to the most valuable cryptocoins. This means that if you are planning to invest in Bitcoin Cash, this is the right moment to do it.
In the following guide, we will explain you what is it and, above all, how to buy Bitcoin Cash along with some useful information about its price and its future in the market.
What is Bitcoin Cash?
Bitcoin cash is the spin-off of Bitcoin. Due to disagreements between miners and developers, a stalemate was found in the direction Bitcoin should proceed. As no solution was found, the cryptocurrency forked into Bitcoin and Bitcoin Cash. Rather than creating a brand-new cryptocurrency, a duplicate was produced using the existing blockchain with an identical history.
Therefore, rather than starting from scratch, all past transactions on Bitcoin Cash’s blockchain are the same as its older brother, Bitcoin. The fork happened on August the 1st 2017, so every transaction prior to that date is identical to Bitcoin. Past then, you begin to see different transactions because the two cryptocurrencies are different.
If you owned Bitcoins before the fork, you will have noticed that afterwards you had the same amount of bitcoin cash sitting in your wallet. That is assuming your platform supports the new altcoin.
Why did Bitcoin Fork?
Scalability. The huge following Bitcoin suddenly experienced meant that there was a massive increase in transactions. The problem was that to accommodate for this the developers suggested increasing the size of each block, however increasing the size means that the miners would need to validate more transactions before they were rewarded with Bitcoin, essentially upping their workload.
Once capacity of a block was reached, fees shot up and Bitcoin became less reliable and some transactions could not get confirmed for days. This ultimately harmed Bitcoins share in the market.
And so, there was a stand-off, developers vs miners.
Bitcoin cash was created to stream line the blockchain, seeing lots of developers migrate over because the idea of a decentralised blockchain is that no central group can make decisions for the entire network.
Value of Bitcoin Cash
Bitcoin cash rocketed after the fork, seeing its price per coin double from $300 to $600 in month 1. This saw it straight in at number 3 in the market cap league table, which had some experts saying it would replace Bitcoin as the leader. At the time of writing this, it sits in 3rd position, with 3 times the market share of Litecoin in 5th.
Volatility is high with Bitcoin Cash, low liquidity means that once it moves, it move fast! Because of this, there are a lot of exchanges and providers that are nervous about offering it to buy.
As Bitcoin Cash has basically been designed as a better version of Bitcoin, it should be something on your list to research and potentially invest in. You, therefore, need to know the best places to buy this cryptocurrency.
Where to Buy BTH
As highlighted above, there are not too many providers offering the opportunity to buy Bitcoin Cash. There are some though, so don’t worry.
You have two options when it comes to buying Bitcoin Cash; actually, owning the cryptocurrency or buying it as a CFD.
When you own a cryptocurrency you need to own a wallet, there are lots to choose from, but some are better than others. To find out more about crypto wallets, go to ‘Best bitcoin Wallets‘.
Deciding on a wallet can often be difficult and a complex procedure, especially for beginners. We recommend using CFD providers like eToro when looking to buy acquire Bitcoin Cash.
5 Advantages of using CFD providers like Etoro to buy BTH:
- Cheaper – The fees are considerably less than exchanges. All you need to pay is the spread, which is barely noticeable compared to some of the commissions you see at exchanges.
- Regulation – The CFD providers we recommend are all regulated because it makes these brokerages accountable for their services. Unlike exchanges, who are not regulated, brokers like eToro have certain stipulations they must adhere to and this increases the security of your funds.
- Leverage – This means you don’t need to put the full position on a trade. Which has two positive consequences; one is that your risk is reduced because you don’t need to put the full amount up and two, the money that is freed up by leverage can be invested elsewhere.
- Payment methods – They offer considerably more payment methods, so depending on your preference you can buy Bitcoin Cash using many payment methods.
- Liquidity – This allows you to buy at a price you want to buy. With exchanges, there are not as many people in the market and so getting the price you want is often more difficult. Using CFD providers basically means you the execution of your buy order is very quick and seamless.
Looking ahead for Bitcoin Cash
After Bitcoin Cash’s difficult birth, which made headline news, the dust has settled, and it has found itself at home in the top 5 cryptocurrencies in terms of market share.
With well-known exchanges beginning to accept the exchange of Bitcoin Cash on their platforms, the cryptocurrency has a good standing to move forward. And with its ability to scale, there is definitely scope for this crypto market to overtake Bitcoin.
For you newbies, I would make sure to check out eToro or similar platforms when starting your journey into buying Bitcoin Cash. It certainly makes life a lot easier than some of these exchanges.