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News & Insights for Bitcoin Cash
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 South Africa, 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.
The situation in 2021
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.
What is Bitcoin Cash
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).
How to Trade Bitcoin Cash CFDs in 4 Easy Steps
- Open a trading account with AvaTrade ZA
- Fund your account
- Fill in your preferred investment amount
- BUY (go long) or SELL (go short) Bitcoin Cash
Why Trade Crypto CFDs With AvaTrade South Africa?
- Uncompromised Safety – With six regulatory authorities and segregated accounts, your money is protected at all times.
- Many Cryptos to Choose From – Trade on the wide variety of cryptos available on our trading platforms.
- No Hidden Fees – We offer zero commissions and no bank fees on transactions!
- Crypto Never Goes to Sleep – AvaTrade ZA is one of the few brokers offer around-the-clock service and support in 14 languages.
- Generous Leverage – Increase your initial capital with generous leverage and get far more exposure to trade than your account balance. Up to 2:1 (for EU residents) 25:1 (for non-EU residents).
- Limit Your Risk – You can preset profit and loss levels by using stop losses or take profit limits when you trade. Determine the maximum amount you are prepared to risk when speculating on the price, or set a price at which you want to take profits. Future orders like Buy Stops and Buy Limits are also available.
- Trade Cryptos Against Fiat Currencies – Unlike many exchanges out there, who are restricting their clients to trade only Crypto to Crypto, our clients can trade Cryptos against Fiat currencies (USD, EUR, JPY etc.), as well.
Why Trade Bitcoin Cash with AvaTrade ZA
- We offer Bitcoin Cash CFD trades with up to leverage
- You can start trading Bitcoin Cash from as little as
- Trading the volatile BCH coin is an ideal addition to any financial trading portfolio
- AvaTrade ZA offers Bitcoin Cash trading around the clock, for your convenience
- You can SELL Bitcoin Cash (go short) and potentially profit even when the Bitcoin Cash price is on a downtrend
- Enjoy live language-specific customer support around the clock
- AvaTrade ZA offers zero commissions on Bitcoin Cash trading and no bank fees charged on transactions
- Zero exposure to hacking or theft simply because you don’t actually buy or sell the cryptocurrency
- AvaTrade ZA is regulated on 5 continents
- Execute trades in just 3 clicks, free from the complex crypto purchasing process
Bitcoin Cash in the markets
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.
5 Facts You Should Know About Bitcoin Cash
- Created from a hard fork of Bitcoin and expected to have quicker reactions to transactions, the Bitcoin Cash fork occurred at block 478,559.
- Despite its reasons for creation and its origins, the BCH coin is considered an altcoin for now. It is not Bitcoin and has no direct connection to Bitcoin’s value.
- Having said that, Bitcoin Cash is its own currency and is useful in that it functions just as Bitcoin does only faster due to the increase in its block size.
- When the hard fork occurred, the coin held no value at all and investors were able to gain ‘free coins’ – from the split of Bitcoin. As in this case Bitcoin Cash saw major changes in the market and managed to secure their place in the ‘top coins’ listing by market cap in November 2017.
- Investors have speculated that Bitcoin Cash was created only because high fees and slow transactions would destroy Bitcoin, and not because Bitcoin was reaching its maximum output of blocks.
We are Here to Help You Trade Bitcoin Cash
AvaTrade South Africa 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.
Bitcoin Cash trading FAQ
- Where can I trade Bitcoin Cash?
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.
- Is Bitcoin Cash the best cryptocurrency for trading?
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.
- What is the difference between Bitcoin Cash and Bitcoin?
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.