Bitcoin split again into another currency called Bitcoin Cash (BCH or BCC) on the first of August last year. Following the split of the Bitcoin network, all major exchanges started crediting their clients’ accounts with the new digital currency. Soon after the fork, the price of Bitcoin Cash shot up 100 percent. Immediately after that many exchanges started offering Bitcoin Cash trading. Subsequently, forex and CFD brokerages also started introducing CFD trading on BCH/USD on their platforms.
You can buy and sell Bitcoin Cash in the same way as other cryptocurrencies, but it is not as well established as other cryptocurrencies. Therefore, the options are limited. The Bitcoin Cash hit a new high of around USD 2,000 in November last year. This is over two times the previous peak hit in August last year following the fork.
Top Online Brokers That Offer Bitcoin Cash Trade
|Broker||Min Deposit||Spread||Leverage||Regulation||Open Account|
|0||Non-Spread, Fee 0.1% Per Trade||Non-Leverage||-||Visit Broker|
|$50||Starting 0 Pips||up to 400:1||FCA UK, NFA, CFTC, ASIC, IIROC, FSA, CIMA||Visit Broker|
|$200||From 3 Pips||400:1||NFA, FCA, CySec||Visit Broker|
|$250||as low as 0.1 pips||up to 400:1||ASIC Australia and FCA UK||Visit Broker|
|€100||The Spread can be as low as 0.01%” (0.01% = spread for EUR/USD)||1:294||ASIC, CySEC, FCA (UK)||Visit Broker|
|$100||Starting From 0.9 pips||400:1||MIFID, FSB & ASIC||Visit Broker|
|$100||From 0,2 Pips||1:200||FCA UK (#186171), CySEC (#259/14), CIMA (1442313) and DFSA (F000048)||Visit Broker|
Difference between Bitcoin Cash and Bitcoin
You might think that Bitcoin is more collectible and Bitcoin Cash is very usable. However, the main difference between the two is that the block size of Bitcoin is 1 MB, whereas the block size of Bitcoin Cash is about 8 MB. This makes mining of Bitcoin Cash easier. As it is easily available, it becomes less rare and, therefore, its price may not increase at the same rate as other digital currencies.
Related Article : Binance – Best Platform for Trading Bitcoin Cash (BCC/BTC)
On the other hand, the benefit offered by Bitcoin Cash’s block size is that it can be quickly and easily transferred for cheaper rates. It is, therefore, a better and practical way of buying, selling and moving funds compared to Bitcoin. Some investors are of the opinion that a more usable cryptocurrency would win in the longer term rather than one that is highly priced.
The second difference is that Bitcoin Cash changes the mining difficulty on the basis of the number of miners working at a time. Miners make use of computing power for processing the transactions and receive rewards in Bitcoin Cash for the effort taken by them. Other cryptocurrencies also follow the same system.
But the changing of mining difficulty is unique to Bitcoin Cash and this means that when more miners are active they will be paid less. On the other hand, when less number of miners active, they get paid more for the same work.
This keeps the effect of natural “inflation” that the 8MB block size causes in check. When many miners are active, some of them will turn off their system because it may not be worth their effort. This contributes to reducing the transaction fees and improving the transfer times across the board. When the number of miners is less, more of them would switch on their systems and start processing transactions.
Bitcoin Cash – How to Trade on a Forex Broker or Exchange Platform
The procedures may vary from one broker or exchange to another, but in general, it is as follows:
#1: Create an account using your email address.
#2: Verify your account. You may have to provide proof of identity.
#3: Deposit funds into your account. Use the money to buy Bitcoin Cash.
What to Look for in a Bitcoin Cash Trading Platform
The key factors to be considered are:
#1: Payment Methods
Choose a platform that provides several payment options like cash, PayPal, credit card, etc.
#2: Transaction Time
High order volumes affect the transaction time. Choose a platform that completes transactions faster.
Always opt for an established trading platform with a good reputation.
Now that you know something about Bitcoin Cash trading, here are some of the recommended trading platforms. You need to do a little more research before signing up with any of them as you have to find out as to which platform would cater to your specific needs the best.
The Chinese cryptocurrency exchange Binance is fairly new to the digital currency market, but it has gained a great of popularity in a short period of time because of its Initial Coin Offerings and low trading fees. The exchange has the ability to process about 1.4 million orders in a second. It is the fastest exchange on the market.
You can use the platform for buying several digital currencies, including Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic, EOS, Dash, Bitcoin Gold, LiteCoin, NEO, GAS, Dash, Ripple, and Zcash, among others. Currently, they offer trading in cryptocurrency pairs in ETH, BTC, BNB, and USDT.
eToro, a multi-asset and social trading brokerage, has registered offices in Israel, the UK and Cyprus. The brokerage has a worldwide reach and is regulated in all the markets.
RetailFX came into existence in 2006 in Tel Aviv. eToro OpenBook was set up in 2010 with the copy trading feature as a social investment platform, enabling traders to follow, view, and replicate the trades of top investors in the network.
eToro boasts of more than four million active users and allows individuals to trade in Forex, stock CFDs, and cryptocurrencies.
The forex trading platform of Plus500, founded in 2008, is provided by Plus500CY Ltd., which is a company based in Cyprus and has its headquarters in Limassol. Plus500 offers CFDs on shares, commodities, indices, forex, etc. As far as cryptocurrency trading is concerned, the broker offers CFDs in BTC/USD, ETH/USD, XRP/USD, LTC/USD, DSH/USD, and XEM/USD.
In forex trading, AvaTrade is by far the most recognized online currency trading platform provider. The regulated Forex broker is dedicated to providing customized trading solutions to its clients irrespective of their prior knowledge or experience.
It is easy to open an account on the AvaTrade’s platform and you can be up and trading in a matter of minutes. The greatest advantage of working with AvaTrade is that the broker provides a large amount of educational material, especially to those who are not very conversant with trading. The online forex broker offers more than 250 trading instruments, including fiat currency, cryptocurrency, bonds, and CFDs.
The Bitcoin exchange Cex.io allows users to buy the cryptocurrency for low fees using credit cards. Purchases can also be made for free through bank transfers. The services offered by this exchange are available in many countries around the world, except a few specified by the platform provider. On the basis of verification, Cex.io offers four account levels with different buying limits. This Bitcoin exchange operates as a registered company in all of the districts in which it is present.
Cex.io combines crypto to crypto exchanges, fiat to Bitcoin exchange, and a mining pool. The company also offers trades in mining contracts or Bitcoin mining equipment rights for a specified period of time. In addition, the exchange offers USD/BTC and EUR/BTC pairs along with several crypto/crypto pairs.