The basics of crypto trading
Bitcoin cash is one of the 5 most popular cryptocurrencies in the world. It’s known for its high reliability, instantaneity of transactions and low fees. The coin can be used to pay for purchases from any point of the world.
The Bitcoin Cash network is a newer version of the classical Bitcoin. It has emerged because of the increase of speed of processes and the high fee for conducting of transactions. With a hard fork of the Bitcoin blockchain, the code and operational algorithms have been changed.
The newer version of the currency can be considered an enhanced one. The protocol itself hasn’t been changed nearly in any way. The creators have kept the same block time, reward system, supply limit (21 million coins) and hash algorithm. There are also two important distinctions between the networks:
Due to the increase in blocks’ size and the absence of SegWit the system conducts far more operations within the same time period, which also reduces the fee’s amount.
Bitcoin Cash was created a little more than a year ago – on August 1st, 2017. The background of its emerge consisted of the problems of the original Bitcoin: a slow transfer of funds (in May 2017 conducting of one transaction could take up to a week), overvalued fees. For these reasons, people have given up the possibility to pay with Bitcoins in cafes, restaurants and for taxis. Eventually, a decision has been made to perform a hard fork and to introduce a new, “faster” cryptocurrency.
The very concept of creation of a new cryptocurrency belongs to the via BTC mining pool and the Bitmain mining group. The new coin appeared on August 1st last year at 15:20 MSK. At that time the currency was obtained by:
As in the case with Bitcoin, its fork Bitcoin Cash can be mined, which is performed very actively nowadays by MC Pool based in Hong Cong. Participants of the pool declare that they’re mining mostly for fun but not for profit.
The new coin can be easily mined, so professional “miners” give up this idea due to its low effectiveness.
Bitcoin Cash attracts sustainably high interest of miners and investors so the coin’s price remains rather high (about $ 400-450). Users who have already had a chance to work with this cryptocurrency note a number of its undoubted advantages:
Not many disadvantages of this cryptocurrency can be named. They mostly have to do with miners as the profitability of mining per a time unit can vary significantly. Mining requires increasingly sophisticated equipment which causes smaller players to be driven out of this sphere while mining itself is becoming more and more centralized.
Another disadvantage of BCH is a lack of government regulation. Still, a negative effect of this point is doubtful: from one hand, a user remains completely anonymous, and from the other – such situation contributes to growth in a number of operations in the Net-connected with terrorism.
Negative sides for users are the inability to cancel an erroneous operation and price fluctuations.
The new Bitcoin Cash currency appeared on August 1st, 2017. A level of interest in it was so high that many users had bought Bitcoins beforehand in order to get these coins after the hard fork. Initially the cryptocurrency was offered to the public on August 2nd. At that moment the exchange rate of the coin was fluctuating around $ 459-473.
In September and October 2017 a significant decrease in value has been observed which changed to increase in November. The coin reached its peak in December after exceeding a $ 2000 rate.
Then a downward trend has been drawn up. The coin’s price is gradually reducing even now. The up-to-date exchange rate is $ 442,32.
The cryptocurrency demonstrates fine results with no drastic price fluctuations. Demand for the coin from the users is also being sustained. BTH takes the 3rd place according to its value giving way only to Bitcoin and Maker. Its market capitalization grants the coin the 4th place (more than $ 7,7 billion) after BTC, ETH and XRP.
Bitcoin Cash is the most popular and recognizable Bitcoin fork. The coin attracts not only active traders but also long-term investors. The currency is characterized by its relative stability, hence the forecast for the nearest future presumes sustainability of the price. The coin is expected to attract the highest interest in 2021-2022, reaching a value of $ 1400-1650 per 1 BCH.
Nowadays Bitcoin Cash is vastly applied not only by traders, but also by average users. The coin is utilized for the following purposes:
The currency can be kept on exchanges or in online wallets, but the best choice is to use desktop versions of wallets. They are more secure. Other types of wallets are also provided for storing, including mobile ones.
The Cash App by the Square company based in San Francisco has announced a Bitcoin (BTC) giveaway in a tweet posted on July 26 since its stock price keeps growing, according to the data from the MarketWatch.
In its tweet posts, the official Cash App account has made an announcement that it would give away $50,000 in BTC. In its further tweets, the company representatives also stressed out that the number of re-tweets first increased to 12,300 and then reached the bar of 40,300.
As it has earlier been reported by Cointelegraph at the end of June, the Square company has already enabled BTC deposits to all the users of the Cash App. It is notable that Square’s founder Jack Dorsey, who is, by the way, the creator of Twitter, has hired a team to improve the crypto infrastructure in general.
In June 2019, the value of the asset could not keep above several important levels, so now it is moving towards $380, said analyst Latika Mehrotra. On Thursday, June 20, the average market rate of Bitcoin Cash fell to $406, after which it slightly increased. Now the bitcoin fork is trading at $408, over the past day its price has decreased by 1%.
Three days ago, the value of the coin reached $438, after which it began to drop sharply. According to Blockoinomi analyst Latika Mehrotra, the cryptocurrency tried to overcome the resistance level of $440, but it failed. Then the correction began below the support levels of $430 and $422. During the downtrend, the bullish trend line of $428 was destroyed, so the price of the asset continued to decline, the expert explained.
If in the near future the cost of the crypto would be below the $412 zone, there is a risk of a deeper fall, Mehrotra said. According to her, in this case, the price of the coin may fall below $405 and $400, after which it will move towards the zone of $385- $380. However, if BCH remains above $400, it will be able to re-test the $420 mark, after which it will reach $440, the analyst predicted.