Bitcoin Cash (Bcash/BCH) just got added to the worlds largest seller of Cryptocurrency – Coinbase. So why has it been added? Is it possible to make a profit? And should you invest?
I'll try and give you some possible investment options and share with you the possible risks. So read on to learn more about Bitcoin Cash.
What is Bitcoin Cash
Bitcoin Cash was a hard fork of the Bitcoin blockchain. In simple terms – a group of people, didn't like the direction Bitcoin was heading. So they decided to create their own version of Bitcoin and it's called Bitcoin Cash. The main touted benefit of Bitcoin Cash (BCH) is that currently it can process transactions faster than Bitcoin. However, it's important to point out that in the future, if it does get more popular, its transaction speed will slow down and will never be able to compete with currencies such as RaiBlocks, which was built from the ground up to enable instant transactions. This isn't a slight against BCH, and certainly not investment advice for RaiBlocks – I just wanted to make a comparison.
Will Bitcoin Cash replace Bitcoin?
THe BCH team certainly wants it to. They bought the Bitcoin.com domain and promote Bitcoin Cash as the “real” Bitcoin. Currently though, most people still feel that Bitcoin is Bitcoin. Remember there is no one group that owns or controls Bitcoin or Bitcoin Cash. So this could change in the future.
Personally, I believe that there is room for both Bitcoin and Bitcoin Cash and believe that any attempt to pass Bitcoin Cash off as Bitcoin is misleading and fraudulent.
How to Invest in Bitcoin Cash
The easiest way to buy Bitcoin Cash is on Coinbase. However, if you're not based in the U.S then you won't be able to sell your bitcoin cash on Coinbase. If you're based in Australia and looking to buy BCH, I would recommend CoinSpot. You can both buy and sell it easily on that platform.
To trade BCH I would recommend using eToro. It's my trading platform of choice and allows me to trade Cryptocurrencies alongside more traditional markets such as stocks and forex. They have supported BCH for a while now.
How to Short Bitcoin Cash
If you don't believe that Bitcoin Cash is going to be the next Bitcoin, you may be looking to short the currency. The easiest way to do it is through a platform like eToro. eToro allows both Long and Short trading. Remember shorting a cryptocurrency is always risky – if you're new to trading try starting with a demo trading account.
Is this a good time to invest in Bitcoin?
If you were looking for a dip in Bitcoin before investing, well the good news is that as a result of BCH getting added to coinbase, the price of Bitcoin had a dip. I managed to buy a good amount and top up my investment.
Is something dodgy going on?
This needs to be said – when it comes to investing I always try and give you as much info as possible and always urge caution which is why I'm posting this:
Right before Coinbase added Bitcoin Cash, the trading volume of BCH went through the roof. Obviously a group of people knew this was happening and began dumping BTC and buying up BCH. Now this isn't illegal as Bitcoin isn't regulated. If this happened on a stock exchange, those involved would be spending years behind bars. So while it might not be illegal, it certainly is dodgy and not a good way to treat customers.
This could also cause regulators to step in, which I don't think anyone really wants (including me), but if people keep trying to scam people, it may need to happen.