Buy/Sell Bitcoin Cash
Have you heard about the new cryptocurrency called Bitcoin Cash? As you may know, the price of Bitcoin has gone from 0.003 cents at the moment of its creation to more than 4 000 dollars at the time of writing this article. For latecomers to the cryptocurrency world, in August of 2017, Bitcoin Cash was created – a cryptocurrency which could potentially come to replace Bitcoin. In this article, we will be explaining the advantages and risks of investing in this cryptocurrency. However, for people interested in trading BTC Cash CFDs right away, you can click this link to begin trading Bitcoin Cash CFDs with the online broker Plus500 without paying any commissions. If however, you would like to learn more about this cryptocurrency and how to invest with it, please feel free to read the remainder of this article (76.4% of retail CFD accounts lose money).
As we were explaining before, on the 1st of August 2017, the cryptocurrency world experienced a seismic event: the separation of Bitcoin into two separate currencies. From that moment on, there have been two Bitcoins: conventional Bitcoin and Bitcoin Cash. Conventional Bitcoin will continue to have all of the same characteristics that it has had since its inception whereas Bitcoin Cash is, for many people, a new and improved form of Bitcoin. For this reason, before discussing how to invest with BTC Cash, we will investigate some of its characteristics.
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As you will probably know, the success of cryptocurrency as a whole is based, in large part, on blockchain technology. Among other things, the blockchain makes it possible to have a large volume of secure, anonymous and totally centralized transactions. Due to the encryption employed by these digital currencies, they are completely impervious to theft while still being amenable to being traded, bought, sold or exchanged much faster than any more traditional payment method.
Since all cryptocurrencies share the aforementioned characteristics, what makes Bitcoin Cash so different? What is the main difference between BTC Cash and conventional Bitcoin? For one thing, BTC Cash has larger blocks of up to 8 MB in size. This makes BTC Cash more replicable and scalable. The people in charge of the Bitcoin “hard fork” considered that conventional Bitcoin had too many limitations and that a few improvements were needed in order to guarantee that Bitcoin remains the dominant cryptocurrency.
Will Bitcoin Cash become the dominant form of payment in the world? Nobody knows and nobody can really answer that question. One thing is for certain: many people consider that Bitcoin is on its way to becoming the dominant form of payment, but the situation could always change in the future.
How to buy/sell Bitcoin Cash in the UK and the rest of the world
We have just finished discussing a few issues regarding this cryptocurrency. Now we will be taking a look at how to trade with and invest in BTC Cash wherever you may find yourself in the world. In the first place, you will need a broker. We have chosen to talk about one of the best CFD brokers currently on the market, Plus500, since it does not charge any commissions and since it is well regulated. Feel free to choose whichever broker you like, but make sure that it is regulated by a well-established regulator, preferably one from a European Union country, and one which allows trading with cryptocurrencies.
That having been said, below you will find the steps necessary to begin trading with Bitcoin Cash CFDs:
- Open an account with a broker that allows trading with Bitcoin Cash
- If you would like to try Plus500 , click here (76.4% of retail CFD accounts lose money).
- When the page loads, click the button labeled “start now”
- Fill out the required fields with your name and email address
- Your account will now be ready
- When you would like to begin trading, make the minimum deposit of 100 euros/dollars
- Within the investment platform, select Bitcoin Cash and click on buy or sell
As you can see, this process is not very complicated. CFD trading is very easy, but that is not to say that making money from trading will necessarily be as easy. We always like to remind our readers that the risks of this type of trading are high and that it is always possible to lose money.
It is also worth reminding you at this point that when trading with CFDs, it is not only possible to make a profit if the price of Bitcoin Cash increases but also if it goes down. If you consider that its price will decline in the future, you can decide to short-sell it – which roughly means that you will be selling it before subsequently buying it. In this way, if you put in a sell order and the price of the asset declines, you will be able to buy the asset at a lower price and will earn the difference in price as profit. Essentially, trading operations are simple, since there are only two types of operations possible: buying and selling. However, contrary to what many people believe, you are not required to first buy an asset in order to be able to sell it. If you would like, you can always choose to sell an asset with the option of buying it at a lower price – as a result, it is possible to turn a profit with both types of operations.
If cryptocurrencies have undergone such spectacular growth, it is precisely because many people anticipate that these digital currencies will turn into the dominant form of payment in the world. For this reason, many people are buying cryptocurrencies with the expectation that their value will increase in the future. But, in order to buy/sell cryptocurrencies, you will be required to use more conventional payment methods. That is why it is important to know what payment methods are accepted by any given broker.
PayPal has been the most revolutionary electronic payment method for many years, the one which has most facilitated online purchases and transactions. These days, PayPal has become the dominant means of electronic payment for individuals and companies alike. This is why we are very appreciative of the fact that our broker of choice has included PayPal among the list of its accepted payment methods.
Credit and debit cards
Of course, this broker also accepts credit and debit card payments. Plus500 accepts the two most commonly used credit and debit cards: Visa and Mastercard.
After PayPal, one of the most popular electronic payment methods is Skrill. Skrill has grown a lot in a short time and many young people have a Skrill account. If you have a Skrill account, you can use it to deposit funds into your Plus500 trading account.
Many banks see cryptocurrencies as a threat since these banks – as well as governments – would lose control over money if cryptocurrencies were to become the dominant form of payment. In the meantime, it is still possible to deposit and withdraw funds to or from your trading account via a bank transfer.
What factors influence the price of Bitcoin Cash
As is the case with almost all assets, the price and value of a particular asset depend on its current supply and demand. When many people are interested in buying something, it is only normal that its price should increase. This is why, according to many investors, once many people become interested in buying Bitcoin Cash, it will become the most commonly used currency. On the other hand, other people believe that blockchain technology will never become dominant and feel that, in reality, cryptocurrencies don’t actually have much value. Whatever the case may be, there are a few means available to investors for predicting a cryptocurrency’s supply and demand. This is what we will be discussing in the following paragraphs.
It is almost always easier to determine a cryptocurrency’s supply than it is to establish the current demand for it. Why is this? This is simply because the supply of a cryptocurrency is usually finite. BTC Cash’s total supply is 21 million coins. We have established Bitcoin Cash’s supply, but what about its demand?
Here is where things get a little bit more complicated; at this point, you may want to get out your crystal ball. Will people be using Bitcoin Cash more or less in the future? Will companies start using cryptocurrency as a payment method at some point? Will banks and other financial institutions allow its regular use in the future? There are many factors which could influence demand for Bitcoin Cash in years to come and, as you can imagine, we don’t have an answer for you on this question. We will leave the final estimation up to you.
Before concluding this article, we would just like to draw your attention to two things that we mentioned earlier. The first is that CFDs are risky products and the second is that it is essential to choose a trustworthy broker. How can you tell whether or not a broker can be trusted? In our opinion, the most important consideration is how well a particular broker is regulated. What does that mean? It means that a broker needs to have an operating license issued by a reputable regulatory body. Whichever broker you decide to go with, you should verify beforehand that it has an operating license issued by the regulatory body of a European Union country.
We have been mentioning Plus500 throughout this article because it allows its clients to trade using Bitcoin, Bitcoin Cash, Bitcoin Gold, Litecoin, Nem, Ripple, Zcash, Dash, and Ethereum. Furthermore, it is regulated by CySEC as well as by the FCA which is the regulatory body of the United Kingdom, a very reputable institution.
As you can see, this article is quite extensive since there are many things that can be said about Bitcoin Cash and blockchain technology as a whole. Nevertheless, we have to end this article at some point. So if you want to begin buying and selling Bitcoin Cash CFDs with Plus500 and without paying any commissions, you can do so by clicking this link (76.4% of retail CFD accounts lose money).