Bitcoin Cash: What Is It?
August 1 saw the emergence of a brand-new cryptocurrency: “Bitcoin Cash,” also known as “Bcash” and using the currency tickers “BCC” or “BCH.”
Bitcoin Cash has a shared history with Bitcoin, but as of the beginning of August 2017, it has forked off to form its own blockchain and currency.
The Fork: How does it happen?
Rather than creating an entirely new cryptocurrency (and blockchain) that starts from block 0, the fork works by creating a duplicated version of the blockchain that shares a history that is the same as the original.
Meaning all the previous transactions on Bitcoin Cash’s blockchain are the same as Bitcoin main’s blockchain, with subsequent balances and transactions being entirely independent of each other.
To simplify, this means that anyone who owned Bitcoin prior to the fork will now have an equal sum of Bitcoin Cash listed in Bitcoin Cash’s forked blockchain.
What is the Market Behavior?
Of course, price discovery has been quite volatile during the first couple of days. And more importantly, price discovery is still very limited.
Many are still having difficulties accessing their BCH because there are not many wallets that support the new currency. As well, many exchanges have not yet enabled BCH deposits, with some exceptions.
Despite these factors, trading has started, and in less than three days Bitcoin Cash has become the third largest Cryptocurrency, after the original Bitcoin in first and Ethereum coming in second. Since the BCH launch, the exchange rates on various trading platforms have fluctuated between 0.4 BTC per BCH and 0.05 BTC per BCH.
Why is Bitcoin Cash so important?
Bitcoin Cash is getting more attention right now since the hard fork was calculated that it would coincide with Bitcoin’s core, to activate a code change named BIP 148, a highly publicised event in its own right.
Is Bitcoin Cash worth anything?
At this time, BCH is worth a decent amount — at least, on paper. It is currently trading at around the value of $400/coin, making it the third-biggest cryptocurrency by market cap.
Here at TopBrokers.Trade, we take pride in providing the best possible online trading broker comparison, reviews and ratings. These reviews enable you to select the best trading platform for your needs. We don’t just help you to pick a great place to trade, but also do everything we can, to show you how to get started. To learn more about Bitcoin Cash or other popular cryptocurrencies please visit our Trading Guides or FAQ.
How to Find the Best Online Broker for Bitcoin Cash Trading
Because there’s so much competition in the market as well as having many brokers and exchanges to choose from, it can be difficult for beginners to know which option will work best. Here are a few things we suggest keeping in mind before you decide on the right online broker for your Bitcoin Cash trading:
Use a regulated online Broker or Exchange. The regulatory body develops rules and services protect the integrity of the market, as well as traders, and investors, such as the Financial Conduct Authority (FCA) in the UK. Due to possible safety concerns, open your trading account with a regulated broker.
Cryptocurrency trading happens 24 hrs a day online, so customer support should be available at all times. You’ll want to be able to speak with live support, and many brokerages have a local UK office for ease of use. The representative’s ability to answer your questions regarding spreads and leverage, as well as company details is very telling. The details of a good broker should be out in the open for everyone to see, either online or otherwise.
An ideal broker should be able to offer either multiple account options or provide you with an element of customizability. Perhaps the broker even has a separate account for beginners. Look for a broker that offers competitive spreads and easy deposits/withdrawals.
When selecting an online broker, many focus on one asset class. Nonetheless, you should keep in mind there are many other types of investment alternatives offered. Including Forex, cryptocurrencies, Stocks, ETFs, or CFDs.
Buying and selling Bitcoin Cash costs money. However, unlike buying stocks or bonds, brokers usually charge a percentage. You may consider looking for an online broker that charges a flat rate fee instead of the percentage model.
Because Bitcoin Cash is traded in a market where people are both looking to buy or sell the currency. Therefore, it is crucial to consider the amount of liquidity that an exchange can have. Liquidity is the ability to sell without the price being significantly affected, causing the price to drop.
For additional information regarding trading Bitcoin Cash as a CFD, check out our guide on “The Basics of CFDs“. It’s important that you remember that leverage works both ways and it will magnify the gains and losses.