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Bitcoin Cash (BCH) has had a rollercoaster run-of-form since inception in 2017. This Bitcoin offshoot occurred in late 2017, after the hard fork. The new-age, digital currency initially enjoyed strong gains, albeit short-lived, as it raced towards an all-time high of $3,785. In the years since, the price has whipsawed wildly, largely to the downside. The price crashed towards the end of 2018, dipping well beneath $100 per unit BCH, before beginning the inexorable climb towards higher values. With ultralow average transaction fees, BCH presents as a viable trading opportunity, particularly in a CFD format. At AvaTrade, traders can enjoy significant leverage on cryptos CFDs, with strong upside potential whether prices are trending bearish, or bullish. At the time of writing, in March 2021, the total circulating supply of BCH was 18.67 million, with a total available supply of 21 million, like Bitcoin. At a price of $439, and a year-to-date return of 30.38% (March 1, 2021), BCH is one of the more tepid performers in the cryptocurrency market. For much of 2020, the price hovered around the $200 – $300 mark as the ravages of the pandemic sent shockwaves through the investment community. It was only towards the end of 2020 that the dramatic price appreciation took hold. In mid-December 2020, the price was hovering around $289, and by January 10, 2021, it was $600 per unit BCH. A mild pullback then occurred, sending the price of BCH down to around $400 before another rally took hold on 1 February 2021, when the price went from around $400 per unit BCH to over $700 per unit BCH. Unfortunately for BCH investors, the seemingly unrelenting bull market ultimately lost steam and the price of Bitcoin Cash has come down strongly, along with all other cryptocurrencies riding on Bitcoin’s (BTCs) coattails.
By March 1, 2021, the market capitalisation of BCH was $8.28 billion, significantly less than the market capitalisation during this cryptocurrency’s heyday in 2017. BCH is a technology-driven digital currency which allows for rapid, borderless, cost-effective transactions processing capabilities. While Bitcoin is equivalent to a store of value like gold, Bitcoin Cash is a transactions-based financial instrument, like cash. Here’s an article about Bitcoin vs Bitcoin Cash. In terms of processing capabilities differences BCH processes 100+ transactions per second, and BTC processes just 3-7 transactions per second. The major differences between the two are evident in the fees per transaction. With Bitcoin Cash, traders can enjoy 3,800 times lower fees on transactions, while the attendant fees on transactions for Bitcoin are $5 – $50. Statisticians are quick to point out that the worldwide cash market is valued at approximately $100 trillion, while that of gold (for Bitcoin) is just $10 trillion. The fact that Bitcoin Cash caters to a cash market, automatically means that it has tremendous growth prospects. Despite its massive transaction volumes, BCH is currently only trading at approximately 1% of the value of Bitcoin. Presently, the adoption rates for Bitcoin Cash are strong, and growing with some 100,000+ merchants online, around the world accepting BCH. This borderless payment system is great for P2P transfers, and accounts can never be shut down, or frozen. As a secure, blockchain-based cryptocurrency, South African traders at AvaTrade can enjoy derivatives trading instruments with this crypto, with all the safety and security features in effect. The recent declines may be part of a longer term trend, or a correction, following unprecedented gains led by Bitcoin. Fortunately, SA traders at AvaTrade needn’t be concerned about downward-sloping charts, since Bitcoin Cash CFDs can be traded, irrespective of the direction of cryptocurrency price movement. Price corrections are an intractable component of all financial markets, and we may just see the price of BCH settling at a higher level.
Bitcoin Cash was created by the Bitcoin hard fork on August 1, 2017, made a new version of the blockchain with different rules. Bitcoin Cash was created as a result of counteracting a prolonged Bitcoin scalability problem. It works by switching from the main Bitcoin blockchain to a new version, the software now has capacity for a larger number of transactions (by eight megabytes to be exact).
AvaTrade is an industry-leading broker with some of the best crypto trading conditions available, including the lowest crypto spreads on the market.
Since the infant cryptocurrency launched it had more than doubled in value from the initial Bitcoin Cash price of $300 to over $600. Investors are wondering if this could be labeled the ‘new king of cryptocurrencies trading’. But Bitcoin Cash got off to a slow start in the beginning. If it was not for the Bitcoin Cash mining algorithm breathing life in to the new instrument, it would not seem as attractive to profit-seeking computer miners. Once the finance markets got wind of this jump and rise in the rate at which the ‘blocks’ were being produced (known as hash rate), traders and investors started to bid up the BCH price, hence its rise in popularity.
AvaTrade offers you the opportunity to BUY (go long) or SELL (go short) on all Bitcoin Cash trades. This service is available to you 24/7. You can use your preferred trading strategies regardless of which way the currency is moving. We encourage you to learn more about Bitcoin Cash trading by visiting our trading conditions Please note: The cryptocurrencies market’s high volatility offers endless trading opportunities.
Due to price fluctuation, certain crypto pairs may be suspended and/or removed from our trading platforms periodically.
When trading with AvaTrade ZA you are trading on the price changes of the digital coin, and not physically purchasing it.
The maximum accumulated position size for Bitcoin Cash is $200,000 notional value, details in our Conditions and Charges page.
You can trade Bitcoin Cash at many different cryptocurrency exchanges online, but that can be confusing and dangerous. Online cryptocurrency exchanges are susceptible to hackers looking to steal coins, and are also unregulated, offering no protections to traders. By contrast AvaTrade is fully regulated, and since we offer CFDs on Bitcoin Cash there is no chance of ever losing your coins to hackers because there are no actual Bitcoin Cash coins involved in your trading at AvaTrade. Instead we offer trading on cryptocurrency CFDs, which is far safer.
Cryptocurrencies are known to be extremely volatile at times, with double digit percentage changes not an unusual occurrence. Bitcoin Cash is no different in this respect. There is also a tendency for traders to group into and out of certain tokens in the cryptocurrency markets. This means that at times Bitcoin Cash has been the best cryptocurrency for trading, however that is the exception more than the rule. In general Bitcoin Cash is good for cryptocurrency traders but not any better than the majority of major cryptocurrencies.
Bitcoin Cash was created as a split from Bitcoin, called a fork in blockchain circles, so the two are closely related. Yet they are different and that is the primary reason Bitcoin Cash exists, for those differences. The primary reason for creating Bitcoin Cash was to address the transaction speed of Bitcoin. Because Bitcoin is only able to process 7 transactions per second it is far too slow to be used in any meaningful scale. Bitcoin Cash was created as a way to scale up the number of transactions possible on the network and has been quite successful in that regard. The other difference is not as positive for Bitcoin Cash since it isn’t as secure as Bitcoin.