Bitcoin Cash is one of the more successful cryptocurrencies to date. It's still a very risky investment versus Bitcoin or Ethereum. All cryptocurrency is exceptionally volatile, therefore understanding each one before trading is essential for success.
Why Trade Bitcoin Cash Vs. Bitcoin?
Many of the issues Bitcoin has faced are said to be easy to handle when trading Bitcoin Cash. For example, there is a scaling issue that has arisen with Bitcoin that is not seen with Bitcoin cash. The cryptocurrency is said to work better with these problems and it still runs on blockchain technology that is safe and secure. Like Bitcoin, Bitcoin Cash operates with ledgers and transactions need to be validated as well.
One of the most significant problems Bitcoin was facing was in regards to the speed at which transfers occurred. Bitcoin is notoriously slow when it comes to trading. Especially when you compare it to other merchant services like VISA that can process about 150 million transactions a day, there are approximately 1,700 per second. VISA can process nearly 24,000 operations per second. Bitcoin, on the other hand, can only handle seven transactions per second. And a single deal may take as long as ten minutes. These are just a couple of issues that Bitcoin Cash is looking to solve.
What Makes BCH Unique Vs. Bitcoin?
Unlike Bitcoin, Bitcoin Cash developers started thinking about the issues of wait times and transaction speeds before programming. They were highly concerned with the future of cryptocurrency and how they could improve the technology to make the cryptocurrency more useful to everyday users. Many of the developers were skeptical about whether or not they could adapt the technology from Bitcoin to Bitcoin Cash. And that's because they felt that the release of Segwit2x didn't address the main issues that people had with Bitcoin. Scalability was still an issue, and the new SegWit2x didn't even follow the same design plan as that set by Satoshi Nakamoto.
Also, with SegWit2x there was little no transparency like they felt needed to be had - something that had previously been seen with Bitcoin. So, on August 1st, a group of miners and developers initiated the hard fork. When they did, they effectively created Bitcoin Cash. It has a smaller blockchain implemented at only 8MB vs. the 1GB or larger of Bitcoin. This in turn sped up the verification process and gave users the ability to change the level of difficulty for validation to keep the survival of the chain safe. Not only that, but it ensured the transaction speed would stay lower as well. It didn't matter any longer how many miners supported it. But what happened was the security of Bitcoin Cash became in question. Many people felt that it wasn't nearly safe or secure enough to be trusted.
This changed a lot of things in the cryptocurrency space. The situation is very fluid at the present moment. Market valuations are always volatile and in the process of calibration to meet the needs of the industry. It almost makes it difficult to get a truly clear picture of what is happening with Bitcoin Cash until it has been running smoothly for a more extended period of time.
Live BCH Price Chart
Bitcoin Cash Trading Strategies
The first step is to learn the basics of investing. Get experience with starting and managing a portfolio, how to reduce risk and make intelligent decisions. Do all of this at a pace that is right for you. You can learn from several different courses online that you can fit into your schedule. Make sure you follow the right instructions, taking information from trusted sources only. There are a lot of offers online that sound too good to be true when it comes to trading Bitcoin Cash. But if something sounds too good to be true, it likely is. Trading Bitcoin Cash is a long-term investment. While it's true that you can make a lot of money very fast, it's also true that most people will have to get around a learning curve before making a generous return.
How to Profit from Trading Bitcoin Cash
A lot of people ask, is BCH trading safe? The answer is yes and no. With a currency as new as Bitcoin Cash, it could be hard to make a profit. But with a currency like Bitcoin, it's possible to make a significant return when only trading percentages of the currency. For many people, that's the only real way to get started in the first place.