A Beginner’s Guide to Bitcoin Cash (BCH)
Bitcoin Cash, often abbreviated as BCH, emerged as one among Bitcoin’s early rivals through a tough fork in 2017. This initiative was spearheaded by Roger Ver, a pioneer investor in Bitcoin. In the crypto world, a tough fork is actually a technique of splitting a blockchain to develop a token with enhanced features and capabilities. Although BCH was specifically designed to outpace Bitcoin in transaction speed, its mission and increasing value have piqued the interest of a various range of investors globally.
Who Got Bitcoin Cash First?
The original holders of Bitcoin Cash were those that owned Bitcoin (BTC) before the BCH hard fork occurred. Once the fork happened, Bitcoin holders received an equivalent variety of BCH tokens. Initially, BCH was valued at around $600 post-fork.
Technical Differences: BCH vs. BTC
BCH boasts a block size eight times larger than Bitcoin’s 1 MB, allowing it to process more transactions per 10 minutes. Both cryptocurrencies employ a proof-of-work mining algorithm to approve transactions.
Buying Bitcoin Cash: A Simple Task
Thanks to several platforms—each internal and external—acquiring Bitcoin Cash is now as straightforward as purchasing your morning coffee. These platforms enable you to exchange fiat or other cryptocurrencies for BCH.
Getting Started: The Basics
Like any cryptocurrency, BCH is stored in digital wallets secured by a non-public key. Your first step is to get a cryptocurrency wallet that supports BCH storage. With its widespread adoption, BCH is compatible with quite a few wallet types, including software, hardware, paper, mobile, and exchange-provided wallets. For guidance on choosing the proper wallet, try Cointelegraph’s guide tailored for investors, enthusiasts, and hodlers.
Where to Buy Bitcoin Cash
Initially distributed to Bitcoin holders post-fork, BCH is now easily accessible because of the web and open-source programs. These programs facilitate the buying and selling of cryptocurrencies at no upfront cost, although premium services are also available for a fee.
Cryptocurrency Exchanges
Cryptocurrency exchanges are sometimes the primary stop for newcomers trying to purchase BCH. Depending in your location and the platform’s services, you possibly can acquire BCH with just a couple of clicks. Exchanges often accept local fiat currency or other cryptocurrencies. They include built-in wallets supporting quite a few tokens, each identified by unique addresses. While exchanges are convenient, they often require government-issued identification for transactions, a step aimed toward curbing money laundering and related crimes. However, bear in mind that exchange wallets are only secure until they fend off hackers, so consider moving your assets to a safer cold storage option like a hardware wallet.
Peer-to-Peer Transactions
P2P trading helps you to buy and sell cryptocurrencies directly with one other person. This method offers lower transaction fees and quicker settlements. Typically, a user deposits fiat currency with a platform, which then connects them with sellers trying to money out their BCH. Transactions are safeguarded by escrow services, which hold assets from each parties until the trade is complete. While P2P is fast and secure, there’s a risk of scammers exploiting chargeback features to reclaim transferred amounts. If you favor, you possibly can conduct offline trades by meeting others in person. In this case, make sure the credibility of the person you are trading with.
Potential Delays in Receiving BCH
Occasionally, purchasing BCH may involve delays brought on by various aspects like partner banks, mining complications, or platform-specific issues. Transaction confirmations can take anywhere from a couple of hours to several days. If a payment is denied, the quantity often returns to the unique payment method. Always research potential delays before selecting a platform.
Expanding Your BCH Holdings
Buying BCH through exchanges and P2P services is only one approach. You may take part in mining to earn BCH by validating transactions on the blockchain. Alternatively, consider accepting BCH as payment for goods and services, either online or offline. Always stay informed about local regulations to comply with crypto tax and income laws.
Image Credit: cointelegraph.com
