Bitcoin Cash Overview
Bitcoin Cash is a popular cryptocurrency favoured by many crypto traders and investors around the world and was one of the hard forks of Bitcoin Classic, however the difference is the size of the blocks that are added onto the blockchain. Ever since the launch of bitcoin itself, it faced a number of challenges and issues that were addressed by members of the cryptocurrency community, one of the issues was scalability. The issue of scalability is one that is still brought up by the community and it is to do with the size of blocks, which were set at 1 megabyte and the size would slow down transaction processing times, which would result in limiting the cryptocurrencies potential to be accepted. The reason for the block size to be 1 megabyte was to address the problem of spam attacks on the network during a time when the value of bitcoin was relatively low. However in 2015 the value of bitcoin had risen drastically and the average block size had reached 600 bytes in total, and this created a scene where transaction times would result in long delays when more blocks would reach their maximum data size.
There were a few proposals drawn up by members of the bitcoin community that would deal with the transaction issues. But, because bitcoin isn’t managed by a single authority like a company or institution, any changes to bitcoin itself would require a unanimous vote by the developers and miners on the network. And this was the birth of Bitcoin Cash which was a hard fork of Bitcoin Classic, but bitcoin cash differs from classic in the sense that it increased the block size from 1 megabyte to 8 megabytes. The overall goal of Bitcoin Cash was to increase the number of transactions that can be processed by miners on the network, and this was brought about to compete with the likes of PayPal in dealing with the high volume of transactions that it faces.
Choose a Bitcoin Cash Wallet
At the start of the how to buy bitcoin cash process is the need for a Bitcoin Cash wallet to store the tokens in. Being relatively new, some platforms have been rather slow to fully embrace Bitcoin Cash.However, in the last few months, many major wallet creators have started to adopt Bitcoin Cash. Whilst there are fewer choices of exchanges, there are enough wallets to store the Bitcoin cash in. For software wallets, Jaxx and Exodus are both very popular digital wallets for Bitcoin Cash. Both provide functions for you to use Bitcoin Cash as you would any other cryptocurrency. Hardware wallets that are popular for storing Bitcoin Cash in are Ledger and TREZOR
Recommended Bitcoin Cash Wallets
There are many digital wallets to choose from. We recommend the following wallets when discussing how to buy Bitcoin Cash:
For further information and more in-depth digital wallet reviews, please visit our Crypto Wallets page.
Choose a Bitcoin Cash Exchange
Although in terms of market capitalization, Bitcoin Cash is currently the fourth largest cryptocurrency behind Bitcoin, Ethereum and Ripple, it’s not supported by all the major cryptocurrency exchanges.Despite exchange adoption gradually increasing, only GDAX, Kraken and Cex.io permit you to buy Bitcoin Cash for fiat currency. If you are using other exchanges, you can only get Bitcoin Cash in exchange for other cryptocurrencies like Bitcoin or Ether.
As with any choice of exchange, it is important to do your homework first.
- Check that the exchange accepts users from your country.
- Confirm what methods of payment are available
- Confirm exactly what the fees are. Be sure to look out for the Deposit, Transaction and Withdrawals fees
- Compare the exchange rates. Fees can often be ‘hidden’ within the exchange rates so it is important to weigh up the costs and differences between the fees and the exchange rates
- Check what is involved in the Know Your Customer (KYC) process. What ID is needed, proof of residence and whether or not proof of income will be requested
Recommended Bitcoin Cash Exchanges
Please check out our Crypto exchanges reviews for further information.
CEX.io is one of the preferred options to buy Bitcoin Cash. Based out of London, the world’s financial capital, CEX.io is a trusted and experienced exchange having been around since 2013. You can choose from a strong selection of cryptocurrencies, including Bitcoin Cash.
Trading Bitcoin Cash
As always, we recommend moving the Bitcoin Cash to your personal wallet unless you are intending to trade almost immediately. Once you’ve made your Bitcoin Cash purchase, move it to your own secure self-hosted wallet. You can follow the status of your transaction using a Bitcoin Cash block explorer which enables you to search and navigate through the blockchain. A block explorer can help you check the balance of different Bitcoin public addresses, track coin transfer histories, watch how many confirmations a transaction has and obtain a multitude of statistics regarding the network including the current hash rate. After three confirmations for your Bitcoin Cash have been received, the process has been completed.