Bitcoin Cash emerged out of the need for a more scalable and efficient digital currency that could democratize global finance more efficiently. It offers faster transaction processing speeds with reduced fees compared to its predecessor.
Even with these advantages, Bitcoin Cash remains below that of its more well-known competitor and therefore remains far from becoming an alternative market leader. Learn more about BCH here.
How it Works
Bitcoin Cash emergeds out of necessity to address its limitations, specifically with regards to processing large volumes of transactions within minutes and high transaction fees.
As a result, some developers proposed increasing the size of Bitcoin blocks in order to facilitate faster transaction speeds and reduced transaction fees; however, this proposal was turned down by most members of the Bitcoin community who instead adopted SegWit instead.
Mining blocks with larger sizes requires more computing power, meaning only large miners are able to compete effectively in this process. This undermines the core principles of Bitcoin and lessens decentralization of the blockchain.
Individuals can invest directly on an exchange and thus own BCH coins outright; or they can buy CFDs that allow them to profit from both upward and downward price movements – providing investors with flexibility without incurring storage costs.
What is BCH?
BCH, or Bitcoin Cash (BCH), was forked off from Bitcoin in 2017 to create global money with fast transactions, lower fees, and larger block sizes. Like its parent cryptocurrency, Bitcoin Cash operates as a decentralized peer-to-peer digital cash system without third parties being involved.
Bitcoin Cash shares many features with its counterpart, including transaction history, reward system and mining algorithm. However, there are larger blocksize limits (up to 8 MB) and an alternative approach towards scaling and fees that differentiates it.
Bitcoin Cash opts for a simpler model that increases transaction processing capacity through increasing block size; as a result, transaction fees tend to be lower than for Bitcoin. Mining takes place according to the same Proof-of-Work algorithm, meaning any miner who owned Bitcoin prior to forking also received equal shares of Bitcoin Cash upon forking.
What is BCHUSD?
Bitcoin Cash was created through a hard fork of the original cryptocurrency Bitcoin due to divisions within its community, in order to offer faster transaction speeds and reduced transaction costs compared with its counterpart.
CoinGecko ranks BCH based on its fully diluted valuation (FDV). To calculate BCH’s market cap, multiplying token price times circulating supply (currently 19 Million). Once this value has been calculated and ranked, CoinGecko ranks it accordingly.
The BCH/USD market provides both perpetual swaps and futures contracts to trade. All market data for this asset comes from third parties and is provided ‘as is,’ so FXCM cannot be held liable for any discrepancies or errors in such information. Each point move on this market equates to $10 of notional trading volume. A minimum value per pip (your actual per point value may differ), is 0.10 USD per point (this information can be found within Trading Station’s Simple Dealing Rates Window), while liquidity will either widen or narrow based on this asset class.
How to Buy BCHUSD
To purchase Bitcoin Cash, the first step in the process is creating an account. Simply provide your name, email address, country of residency and a strong password (we take security seriously!), before clicking “Create Account”. When your account has been approved you will be able to deposit funds to trade BCHUSD.
Your first option for buying BCHUSD could be placing a market buy order, which will automatically fill at the current market price. Or you could create a limit order whereby you manually set the price at which you wish to acquire BCHUSD.
If you want to hedge your BCHUSD position, one way of doing this is by opening a short position – which will profit should Bitcoin Cash’s price drop and offset any losses from your long position. Due to US regulations regarding Binance international trading platforms such as MetaTrader 5, this option is only available through WebTrader; for optimal security while using our WebTrader platform we recommend using VPN technology instead.
