Bitcoin has turned into a global phenomenon. Since the prices of Bitcoin skyrocketed in 2017, the bitcoin community started to grow exponentially. Blockchain-based Bitcoin following a decentralized model and cryptographic techniques captivated the attention of investors from all across the world. As the demand for Bitcoin increases, it started facing the problem of scalability, i.e. the limited rate at which the network of Bitcoin processes transactions. To complete any transaction, blocks needed to be updated by miners after verifying the transaction (by solving complex mathematical algorithms). So as the transaction increased in number, the limited size of the block (1MB) started to become full at a higher pace, resulting in higher transaction fees charged by miners and degrading reliability. Thus, the whole purpose of ease of transaction started to fail and lead to the rift amongst the Bitcoin community who tried to find the best ways to resolve the issue of scaling. The hero of our story, Bitcoin Cash also came into the picture. But what is Bitcoin Cash? In this interesting guide, let us explore Bitcoin Cash from scratch to hatch.
What Is Bitcoin Cash? | Hard Fork Of Bitcoin
As the argument to solve the issue of scalability heated more, one of the teams wanted to increase the size of the block to facilitate more transactions per block (reduce transaction time! Developers wished for on-chain up-gradation to maintain the reliability and lower fees of transaction but after the whole of the drama, they separated from the Bitcoin network and created a new blockchain with some customized rules. In August 2017, Bitcoin Cash hard fork, was initiated with a new chain having the block size of 8MB. The hard fork started executing successfully with lower transaction fees, fast transaction time and thus the original principle of Bitcoin continued to maintain. The new cryptocurrency was accepted by investors in no time and helped Bitcoin Cash to maintain its position after Bitcoin and Ethereum in terms of market capitalization.
How To Buy Bitcoin Cash?
Bitcoin Cash might sound to you as one of the opportunities to diversify your crypto portfolio or rebalance your basket of crypto coins. So, let me help you in grabbing the handful of Bitcoin Cash coins by listing some of the platforms.
Cryptocurrency Exchanges: The majority of the crypto community must be aware of the fact that to buy or sell any crypto coin, you have to create your account on the crypto exchange which allows you to buy the specific cryptocurrency. Bitcoin Cash is relatively new in the market but the demand for the coin is continually increasing, so almost the majority of crypto exchanges have listed BCH on their platform. To name a few, Coinbase, Kraken, Bitfinex, Bittrex, Cex.io, Poloniex, and many more exchanges are either facilitating fiat to crypto or crypto-to-crypto purchase on their platform.
Some deregulated exchanges and crypto brokerage companies like Changelly, Shapeshift can also help you to buy BCH and add it to your crypto wallet. Also, peer-to-peer exchange, LocalBitcoinCash can facilitate you in purchasing BCH both via escrow service or via meetup in person.
If you wish to buy bitcoin cash with a credit card, you can create your account on one of the exchanges like Coinbase, Cex.io, Bitfinex, and many more, which supports credit card payments and have BCH as their listed currency. Also, you can use your credit card on the platforms of OTC brokers like Coingate, which can aid you to buy altcoins with credit card.
Mining: If you have the knowledge of solving mathematical algorithms and have a highly upgraded computer system with the availability of massive power supply, you can mine Bitcoin Cash coins just like any other crypto coins. Once you are successful to validate the transaction or mine a block, you will be incentivized with a number of BCH coins ( free bitcoin cash mining? Nope!). So, Is bitcoin mining profitable? It might be a profitable option, but needs high skills and proper infrastructure including bitcoin mining software and hardware. But if you really want to be a part of the miners’ community, you can join the mining pools like BTC.com, F2Pool, ViaBTC, Bitccoin.com and many more to extend your computational power and reward can be split as per the pre-decided conditions.
For Free?: Some newbies amongst you might think- how to get bitcoin cash for free? Is it possible? Yes! Of course! There are many genuine websites available in the crypt space like earn.com, who provide you with free BCH but in exchange you have to complete some online surveys, play games, refer some links to your friends, and also watch some of the videos or advertisements. Some of the apps like Coinomi, provides you free BCH just for maintaining the minimum balance on their platforms. Also, some of the games are available on Google Play Store and Apple sTore which rewards you in BCH as rewards after you win the particular game.
Where To Save Bitcoin Cash?
Like for every crypto coin, you need to read the crypto wallet reviews, and have to choose the best Bitcoin Cash crypto wallet for yourself. What is Bitcoin Cash wallet? Just like every other crypto wallet, which can be software or the best hardware crypto wallet, BCH wallet stores what we explain private key and public keyor the digital codes of the coins owned.Shh!! You are not supposed to reveal your private keys in any case.! You can choose either software wallets like Coinbase, blockchain, mycelium, and many more; or hardware wallets like Ledger Nano, Trezor, etc.
Where Can Bitcoin Cash Be Spent?
Now suppose till the time you reach this section, you already own a few of the BCH coins. Your mind may be boggling- what can I do with Bitcoin Cash? The foremost obvious answer could be, holding the currency for the future and sell it when the selling price will be more than the buying price. That’s what most of the people do, utilizing Bitcoin cash for the purpose of investment. Some other ways are available there to utilize your currency. You can shop online at some of your favorite retail stores, you can dine with your family and friends and you can also shop in person. You just need to search the places who accept Bitcoin Cash by typing the name of the place in one of the tabs of google maps given on the official website of Bitcoin Cash.
How To Utilize Bitcoin Cash?
Do you think that it may be difficult to use the hard fork of Bitcoin? Or How to use Bitcoin Cash? You don’t have to worry because you can use Bitcoin Cash similar to how you use your Bitcoins. Once you have purchased the coins from any reputed exchange or other platforms, you first need to transfer the private keys to your crypto wallet. Now whenever you want to use these coins, you need to access your private keys and transfer the funds to the relevant site or person you wish to pay. Different websites have different procedures, some might ask you to scan QR code to complete the transaction, while others may ask you to confirm by clicking on the link sent to your email id. But the majority of them need the public key of your crypto wallet to complete the transaction.
The procedure might be longer if you had to transfer bitcoin cash to a bank account by converting it into fiat currency. Then, you have to first buy BCH from exchange, save it to your crypto wallet and then complete the transaction.
How To Transform Bitcoin Cash To Bitcoin?
Sometimes, you may get paranoid or get influenced by the various hyped announcements and tweets of the crypto giants and want to either sell your coins or convert them into BTC (always reliable one!). Don’t worry, this article is not meant to boost the sale of BCH but to guide you. So, let me respond to your question-How to convert Bitcoin Cash To Bitcoin?
There are a variety of options available in the market for conversion. The most popular one is to utilize the platform of crypto-to-crypto exchange like Binance which has the listed pair of BCH/BTC. You just need to exchange your coins with Bitcoins by completing few details. You can also use fiat-to-crypto exchange, but then you have to first sell your BCH, convert it into fiat, and then utilize it to buy BTC. Also, you can utilize the platforms like Changelly, Swampy, flyp.me, and many more which can swap your currency in a safe and secure manner with their services of an escrow account. You may also think of a barter system, that is finding a buyer on sites like LocalBitcoins who wanted to have BCH in exchange for BTC.
You must be satisfied enough that you started the article to get the response for-what is Bitcoin Cash? And now when you have completed reading, you are having plenty of knowledge to start your first buy. Bitcoin Cash is here to stay due to its hard-working developing team, continuously upgraded system, and high scalability. So, after having the basic technical analysis, you can have your first buy of BCH.