What is Bitcoin Cash BCH? Bitcoin Cash BCH trading tutorial

Bitcoin Cash (BCH) emerged from a 2017 Bitcoin fork to improve scalability, increasing block size to 32 MB for faster, cheaper transactions.

Jun 07, 2025 at 02:01 pm

What is Bitcoin Cash (BCH)?

Bitcoin Cash (BCH) is a cryptocurrency that emerged from a hard fork of the original Bitcoin blockchain in August 2017. The primary motivation behind this fork was to address the scalability issues that Bitcoin was facing, specifically the slow transaction times and high fees. Bitcoin Cash proponents argued that increasing the block size limit from 1 MB to 8 MB (and later to 32 MB) would allow for more transactions to be processed per block, thereby improving the speed and reducing the cost of transactions.

The creation of Bitcoin Cash was not without controversy. Some members of the cryptocurrency community believed that increasing the block size was a necessary step to ensure the long-term viability of Bitcoin as a peer-to-peer electronic cash system. Others argued that this approach would centralize the network and deviate from Bitcoin's core principles. As a result, Bitcoin Cash operates as a separate cryptocurrency from Bitcoin, with its own blockchain and community.

Key Features of Bitcoin Cash

Bitcoin Cash (BCH) aims to be a practical and efficient means of payment. Some of its key features include:

• Larger Block Size: The increased block size allows for more transactions to be processed per block, which results in faster transaction times and lower fees.
• Simple Ledger Protocol (SLP): This protocol allows for the creation of tokens on the Bitcoin Cash blockchain, enabling the development of decentralized applications (dApps) and other innovative uses.
• CashAddr Format: Bitcoin Cash uses a different address format than Bitcoin, known as CashAddr, which helps prevent confusion and errors when sending and receiving BCH.
• Replay Protection: This feature ensures that transactions on the Bitcoin Cash blockchain cannot be replayed on the Bitcoin blockchain, providing added security for users.

How to Trade Bitcoin Cash (BCH)

Trading Bitcoin Cash (BCH) involves several steps, from setting up an account on a cryptocurrency exchange to executing trades. Below is a detailed tutorial on how to trade BCH.

Choosing a Cryptocurrency Exchange

The first step in trading Bitcoin Cash is to select a reputable cryptocurrency exchange that supports BCH trading. Some popular exchanges include:

• Binance
• Coinbase
• Kraken
• Bitfinex

When choosing an exchange, consider factors such as fees, security, user interface, and the variety of trading pairs available.

Setting Up an Account

Once you have chosen an exchange, you will need to set up an account. Here are the steps to do so:

• Visit the exchange's website and click on the "Sign Up" or "Register" button.
• Fill out the registration form with your personal information, including your name, email address, and a strong password.
• Verify your email address by clicking on the verification link sent to your email.
• Complete the Know Your Customer (KYC) process by submitting the required identification documents, such as a government-issued ID and proof of address. This step is necessary to comply with regulatory requirements and to enhance the security of your account.

Depositing Funds

After your account is set up and verified, you will need to deposit funds to start trading. Here's how to do it:

• Navigate to the deposit section of the exchange.
• Select the currency you want to deposit, such as USD, EUR, or another cryptocurrency like Bitcoin (BTC).
• Follow the instructions to deposit funds. This may involve transferring money from your bank account or sending cryptocurrency from another wallet.

Trading Bitcoin Cash (BCH)

Once your account is funded, you can start trading Bitcoin Cash. Here's a step-by-step guide:

• Navigate to the trading section of the exchange.
• Select the BCH trading pair you want to trade, such as BCH/USD or BCH/BTC.
• Choose the type of order you want to place. Common order types include:
  • Market Order: This order is executed immediately at the current market price.
  • Limit Order: This order is set to execute at a specific price or better.
  • Stop Order: This order is triggered when the market reaches a certain price.
• Enter the amount of BCH you want to buy or sell.
• Review and confirm your order. Make sure all the details are correct before submitting the order.
• Monitor your trades and adjust your strategy as needed.

Withdrawing Bitcoin Cash (BCH)

After trading, you may want to withdraw your Bitcoin Cash to a personal wallet for added security. Here's how to do it:

• Navigate to the withdrawal section of the exchange.
• Enter the amount of BCH you want to withdraw.
• Provide the destination address of your personal BCH wallet.
• Review and confirm the withdrawal details.
• Wait for the transaction to be processed and confirmed on the blockchain.

Security Considerations for Trading Bitcoin Cash

When trading Bitcoin Cash (BCH), it is crucial to prioritize security to protect your funds and personal information. Here are some security tips:

• Use Two-Factor Authentication (2FA): Enable 2FA on your exchange account to add an extra layer of security.
• Use a Hardware Wallet: Store your BCH in a hardware wallet, such as a Ledger or Trezor, for long-term storage and enhanced security.
• Beware of Phishing Scams: Be cautious of emails or websites that try to trick you into revealing your personal information or private keys.
• Keep Software Updated: Ensure that your computer, smartphone, and wallet software are up to date with the latest security patches.

Understanding Bitcoin Cash Market Dynamics

The market dynamics of Bitcoin Cash (BCH) are influenced by various factors, including:

• Supply and Demand: The basic economic principle of supply and demand plays a significant role in determining the price of BCH. When demand increases and supply remains constant, the price tends to rise.
• Market Sentiment: The overall sentiment of the cryptocurrency market can impact the price of BCH. Positive news and developments can drive prices up, while negative news can lead to price declines.
• Regulatory News: Announcements and changes in regulations related to cryptocurrencies can affect the market. Favorable regulations can boost prices, while restrictive policies can cause prices to drop.
• Technological Developments: Updates and improvements to the Bitcoin Cash protocol can influence its price. For example, the implementation of new features or the resolution of technical issues can positively impact the market.

Frequently Asked Questions

Q: How does Bitcoin Cash differ from Bitcoin?

A: Bitcoin Cash (BCH) and Bitcoin (BTC) are both cryptocurrencies that share a common origin, but they have distinct differences. BCH was created through a hard fork of the Bitcoin blockchain in 2017 to address scalability issues. The primary difference is the block size limit, which is 32 MB for BCH and 1 MB for BTC. This larger block size allows BCH to process more transactions per block, resulting in faster transaction times and lower fees. Additionally, BCH has implemented features like the Simple Ledger Protocol (SLP) for token creation, which is not available on the Bitcoin network.

Q: Can I mine Bitcoin Cash?

A: Yes, Bitcoin Cash can be mined using specialized hardware known as ASIC miners. The mining process for BCH is similar to that of Bitcoin, involving solving complex mathematical problems to validate transactions and add them to the blockchain. Miners are rewarded with newly minted BCH and transaction fees. However, the mining difficulty and profitability can vary, so it's important to research and consider these factors before starting to mine BCH.

Q: Is Bitcoin Cash a good investment?

A: The investment potential of Bitcoin Cash (BCH) depends on various factors, including market conditions, technological developments, and regulatory changes. Some investors see BCH as a promising cryptocurrency due to its focus on improving transaction speed and reducing fees, which could make it more suitable for everyday transactions. However, like all cryptocurrencies, BCH is subject to high volatility and market risks. It's essential to conduct thorough research and consider your risk tolerance before investing in BCH.

Q: Where can I spend Bitcoin Cash?

A: Bitcoin Cash can be spent at various merchants and online platforms that accept it as a form of payment. Some popular places where you can use BCH include:

• Online Retailers: Websites like Overstock and Newegg accept BCH for a wide range of products.
• Physical Stores: Some brick-and-mortar stores, especially those focused on technology and cryptocurrency, may accept BCH.
• Services: Platforms like Bitrefill allow you to use BCH to top up mobile phones, pay bills, and purchase gift cards.
• Peer-to-Peer Transactions: You can use BCH to send money directly to friends and family or to pay for goods and services in person.

Always check the payment options on a merchant's website or inquire in-store to confirm if they accept Bitcoin Cash.