This payment system appeared as a consequence of the first hard fork of the Bitcoin cryptocurrency in 2017. The formation of BCH happened as a result of disagreements within the BTC community. The BTC miner and developer groups were worried about its scalability, and they were not sure about the plans of the BTC blockchain to adopt Segregated Witness (SegWit) technology. Any user who had Bitcoin at the time of the fork became the owner of an equivalent amount of Bitcoin Cash. Thanks to the new blockchain rules, the fork supports more transactions (up to 8 megabytes). As with other coins, it is a decentralized platform with no central bank or government control. This coin quickly took a place in the top of the market leaders, and its capitalization exceeds 30 billion USD. Traders can buy Bitcoin Cash on such exchanges as: Binance, Bitstamp, EXMO, WEX and others, as well as trade CFDs.
How Bitcoin Cash System Works
Bitcoin Cash or BCH, is essentially a newer, modern version of traditional bitcoin. Cryptocurrency is practically no different from ordinary bitcoin: the same number of coins, transaction features. The difference is in the block volume, which affects the complexity of the blockchain formation.
Bitcoin Cash operates on the developments of the original bitcoin and on the SegWit2x protocol. Since its launch, bitcoin cash has become one of the most successful bitcoin offshoots. The development of Bitcoin Cash is led not by one developer, but by several independent development teams. Bitcoin Cash is a coin that fully meets the modern needs in the world of cryptocurrency. It is provided with both high transaction speed and reliable protection, therefore it is in the TOP-10 of the best coins. All transactions are stored in a global decentralized peer, or block, which cannot be changed and is protected with the help of advanced encryption technologies. In this way, BCH transactions cannot be subject to censorship or change to make them more secure. The Bitcoin Cash cryptocurrency has a set of key functions and features that distinguish the system:
- Provides faster transactions and lower fees;
- Improved hacking protection system;
- PoW with SHA-256 hashing algorithm;
- System openness and publicity of transactions;
- No waiting queue for confirmation;
- The world’s most reliable blockchain technology;
- Increasing the speed of transactions by increasing the block size.
Main Benefits of Bitcoin Cash CFDs
BCH is the most popular and widely used bitcoin fork right now. Therefore, if you believe in the future of cryptocurrencies, then it makes sense to think about investing in Bitcoin Cash. Forecasts for Bitcoin Cash are mostly positive. Many experts believe that Bitcoin Cash is a more advanced analogue of Bitcoin and should be considered in the long term. That is why in 2017 one of the largest bitcoin forks in terms of capitalization was released. All transactions made at BCH are much faster than in the case of BTC. It is a safe-to-use cryptocurrency that is worth having in your investment wallet. Bitcoin Cash will show not only stable growth, but will also demonstrate complete independence from BTC. Trading CFDs on cryptocurrencies allows for leveraged trading and provides higher liquidity. Many investors trade BCH through CFDs.
It is advisable to start trading on the hourly chart, in accordance with the trend movement of the market, while it is advisable to use support and resistance lines and various technical indicators that help establish the direction of the trend. You can trade breakout strategies, they are quite effective. For all beginners, it is recommended to start trading cryptocurrency on a demo account, since this asset is quite specific and has many different features.