What is Bitcoin Cash?
If you have been following this website, you surely have a good idea what Bitcoin is, but are you familiar with Bitcoin Cash?
To make it as easy to understand as possible, Bitcoin Cash is what is known as a “fork” from Bitcoin. It is a cryptocurrency that was developed with the idea of making faster transaction times.
When Bitcoin was developed, the system was designed with small “blocks” in the blockchain to try and keep spam attacks from developing. While it did work in keeping spam down, it also seriously slowed transaction speeds. And this frustrated short-term traders.
Bitcoin Cash has larger blocks and speeds are faster.
Let’s look a bit closer at Bitcoin Cash…
Who is behind Bitcoin Cash?
When the Bitcoin Improvement Proposal was activated in July of 2017, many key players foresaw issues that Bitcoin would be treated more as just investment instead of a currency that could be used in various mediums.
The large Chinese company, Bitmain announced the hard fork which would be called Bitcoin Cash. Being a major force in mining technology, many players followed the idea and invested in the new cryptocurrency.
How does Bitcoin Cash Work?
When it first started, Bitcoin Cash inherited transaction history of Bitcoin but soon after, transactions were separate. But the Bitcoin Cash system uses the same basic protocol as Bitcoin only with larger blocks allowing for faster transactions.
The main difference comes for those who mine the cryptocurrency.
At first, Bitcoin Cash was easier to mine and nearly as profitable, but miners have noticed that the mining process of Bitcoin Cash fluctuates in an inconsistent manner.
How can I buy Bitcoin Cash?
Buying Bitcoin Cash is simple.
You will first want to attain a “wallet.” The wallet is your own personal digital storage place for your cryptocurrency.
Each wallet has a private key and a public key. The private key is for you alone to manage your Bitcoin Cash while the public key is used to send and receive Bitcoin Cash or other digital currencies.
There are various types of wallets with different features. You can discover more on crypto wallets here on Investing Online.
At that point, you can purchase Bitcoin Cash from other people on marketplaces and they will send it to your wallet via the public key. Or, you can join any number of Bitcoin and Bitcoin Cash exchanges where you can purchase Bitcoin Cash and transfer to your wallet.
How can I trade Bitcoin Cash?
Trading Bitcoin Cash works the same way as buying Bitcoin Cash. You can trade 1 cryptocurrency for another via exchanges or you can trade peer-to-peer via many marketplaces.
As trades are made, miners use their systems to log the records and they are sealed to any changes.
So any buys or trades are dependent on the time it takes for a miner to log that record. It could take 1 minute or ½ hour.
Naturally, miners are looking for the higher paying logs first.
How to choose a Bitcoin Cash Exchange?
Many exchanges offer Bitcoin Cash purchases and trades.
Keep abreast of all our reviews here which can help you choose. But there are 2 properties you should consider when choosing a Bitcoin Cash exchange:
- Where you are – Regulations on cryptocurrency exchanges are still being developed. But some exchanges will not accept investors from certain areas.
- Payment method and fees – Some exchanges may accept pay systems like Paypal, Neteller and others. And others may only accept credit or debit cards. Plus, you want to look at fees incurred such as miner fees and conversion fees.
Overall, Bitcoin Cash is not as difficult to buy and trade as it may seem.
If you have any questions, feel free to contact us and we can help you proceed. And research Investing Online as your questions may have an answer on our pages.