Bitcoin Cash (BCH/BCC) is an altcoin created on August 1, 2017 as a demerger of the original Bitcoin (BTC) cryptocurrency. The Bitcoin Cash blockchain is almost identical to the Bitcoin blockchain, but has a different block size (8MB) allowing BCH to confirm more transactions in a shorter period of time.
How To Buy BCH
So you’re interested in buying BCH? Currently, there is no way to buy BCH directly with fiat, so the best way to buy BCH is to first purchase Ethereum, transfer it to your chosen trading platform and change it to BCH. We’ll show you how.
2. Once your account has been created and confirmed, log into your Binance account. Once you have logged into the account, go to the menu, click on the funds section and then deposit on the drop down bar.
3. Once you’re on the Deposit section, click the drop down menu labeled “Select Deposit Coin” and look for Ethereum, or type ETH and select.
4. This is your Ethereum Deposit Address, we have chosen Ethereum instead of Bitcoin due to the lower fees and transfer times. Next we’re going to look at buying Ethereum and depositing it into your Binance account.
1. First change the Buy option from BTC to ETH for USD and then choose your amount.
2. When you have chosen the amount of Ethereum you want to purchase (A minimum of 0.05 ETH is required), you will need to register and confirm your CEX account and payment details.
Once that has been confirmed and the ETH has been deposited into your account, we will then need to move it over to Binance.
3. Select the Withdraw option at the top of the site and select Ethereum as your currency. You will then be given a field, where you will add a wallet. This is where you can transfer your money to Binance.
4. Go back to your Binance Account and copy the alpha numeric code under your Ethereum Deposit section and paste it into your Ethereum Withdrawal section on CEX.io. Confirm that this address is correct and press “Withdraw“.
Your Binance account will now be credited with Ethereum.
2. On the trading platform, select the ETH section and use the search function to search for BCH/ETH and confirm.
3. On the BCH/ETH trading section you can now choose how much BCH you want to buy with your Ether. Once you have chosen your amount, press Buy BCH and place your order.
Once your order has been fulfilled, your account will be credited. Congratulations you’re now the proud owner of BCH.
What is Bitcoin Cash?
Like Bitcoin (BTC), Bitcoin Cash is a decentralised system for making payments to each other without the intervention of a central authority. The cryptocurrency Bitcoin Cash, often abbreviated to BCC, is in fact a split-off of Bitcoin: up to blockchain block block 478558, the two currencies were identical. Anyone who owned BTC before the demerger automatically also received a proportionate amount of Bitcoin Cash (BCH).
The main reason for splitting the Bitcoin blockchain was disagreement among different Bitcoin miners / mining pools about how Bitcoin’s scalability could be increased. Since its launch in 2009, the Bitcoin network has become enormously popular, as a result of which all Bitcoin transactions could no longer be included in the blockchain at a certain point in time. The reason for this was that a block had a size of 1 MB (1,000,000 bytes). The size of an average transaction on the blockchain is about 500 bytes, so that “only” 2000 transactions could be included in a block. With an average block generation time of 10 minutes, this means that 2000 transactions could be verified per 10 minutes.
Bitcoin Cash/BCCO? there were many more transactions on the Bitcoin blockchain than 2000 per 10 minutes, it took a long time before transactions were confirmed and relatively high transaction costs were charged. This problem has been solved by the Bitcoin community by means of BIP-141 and SegWit2x: improvements to the BTC blockchain, whereby on the one hand the block size is gradually increased to 2MB, but on the other hand the way in which transactions are stored is adjusted so that more transactions fit in 1 block.
However, part of the community had no confidence in the implementation of Segregated Witness (SegWit) and therefore decided to split away from the BTC blockchain in order to increase Bitcoin’s scalability in another way. The cryptocurrency mining pool ViaBTC had by far the largest role in this respect. As a result, an entirely new blockchain and associated cryptovaluta: Bitcoin Cash (BCH) emerged. Bitcoin Cash does not use SegWit, but each block has a size of 8 MB.
Bitcoin Cash has therefore become an alternative cryptocurrency and can be considered as an altcoin. However, the difference between BCH and other altcoins is that until 1 August 2017 the Bitcoin Cash blockchain has exactly the same history as the Bitcoin blockchain.
Bitcoin Cash value and price movements
BCC is still a very new cryptocurrency and the price is very volatile. Only a very small part of the BTC community has switched to Bitcoin Cash, which means that the vast majority of developers and miners are still focused on the BTC blockchain.
Bitcoin Cash offers an advantage over BTC in the short term thanks to a larger blocksize, allowing the BCC blockchain to process more transactions in less time. However, when SegWit2x is fully activated on the BTC blockchain, it is very likely that developers and investors will only focus on Bitcoin (BTC).
Should the community lose confidence in the SegWit2x activation on the Bitcoin network, there is a good chance that Bitcoin Cash will increase in value. Regardless of that, you can benefit in the short term from the sharp fluctuations of the Bitcoin Cash exchange rate.