Bitcoin Cash

Table of contents:

Bitcoin Cash: after the Bitcoin spin-off, Bitcoin Cash is on course for success

With the spin-off of Bitcoin in 2017, Bitcoin Cash was born. Since then, the crypto currency has undergone a rapid development, which can be seen by looking at the Bitcoin Cash share price development. Bitcoin Cash has actually managed to establish itself as the most successful Bitcoin fork and to land among the top crypto currencies. Also the Bitcoin Cash forecast looks promising, because the transaction costs and the transaction time are clearly better than with Bitcoin. A good time, in order to invest now into the Bitcoin Cash, or?

  • Bitcoin Cash was created in 2017 by Bitcoin-Fork
  • BCash as the most successful fork of Bitcoin among top crypto currencies
  • Bitcoin Cash allows traders to trade directly on Exchange
  • Free coins with Bitcoin Cash Faucets

Bitcoin Cash: Bitcoin Cash share price development successful despite imponderables

BCash, BCH, BCC – there are many names for Bitcoin Cash. The crypto currency was created by a fork of the Bitcoin network on August 1, 2017. In order to get an overview of the new crypto currency and to understand the differences to Bitcoin, we will take a closer look at its key features. Compared to Bitcoin’s block size limit, which is one megabyte or about 250K transactions per day, BCash has increased this limit to 8 MB, which can allow 2 million transactions per day. Bitcoin Cash delivers more transactions per day compared to Bitcoin and with lower fees.

ADVANTAGES OF BITCOIN CASH

Bitcoin Cash is somewhat behind in terms of market capitalization compared to Bitcoin, although BCash is also among the top 10 crypto currencies. Meanwhile the new Coin could even prepare itself under the best five, however the position can change due to the fluctuations in the Bitcoin Cash course again and again. Positive is however that Bitcoin Cash is the most successful crypto currency in the midst of all the Bitcoin Forks. There are several reasons for this, although the low fees and the more solid exchange rates are the main reasons. There are also clear parallels to Bitcoin, for example the maximum supply of 21 million coins. This limits the number, which naturally leads to covetousness on the part of investors. In the meantime, the total supply has risen to over 18 million, which means that only a comparatively small share can be generated.

Bitcoin Cash Mining explains

Since Bitcoin Cash is based on the Bitcoin block chain, the requirements for mining are similar. With the same proof-of-work consensus and algorithm, users can work on mining with GPUs and CPUs, for example, although the difficulty of the network is the major hurdle to profits. The requirements for Bitcoin cash mining are just as complex as for Bitcoin, so that the GPUs and CPUs mining activities are nowhere near as fast as those of the powerful ASIC machines.

ASICS PREFERRED

These application specific integrated circuits (ASICs) are specialized to develop a certain algorithm, in this case SHA-256. Their hash rate and energy efficiency enable miners to achieve the highest return on investment. They have pre-installed software that miners need to configure and then they can start processing transactions and generating the rewards without much extra effort.

BITCOIN CASH MINING IN THE POOL

Instead of doing PC Mining at home alone with less success, it can help to join a pool. This combines the computing power of the other users and increases the chance of rewards. Of course, users also have to pay fees for a pool, but the chances of celebrating greater success in the community with Bitcoin Cash Mining are much better.

WHAT IS REQUIRED FOR BITCOIN CASH MINING?

The question arises as to what the miners actually need for their activities. The ASICs are actually recommendable because they work much more efficiently. Efficiency is the keyword for making mining profitable. In addition, the connection to the Internet should also be stable to ensure that the connection to the block chain exists and that the blocks found can be reported as quickly as possible.

CONSIDER POWER CONSUMPTION

Electricity costs play an important role in Bitcoin Cash Mining, because if they are too high, mining quickly becomes unprofitable. In order to see whether mining is even worthwhile, users can use a computer for this purpose. In addition to the electricity costs and possible acquisition costs for the hardware, the current Bitcoin Cash exchange rate and the hash power are important in the calculation. If the Bitcoin Cash rate is currently particularly low, mining may not be worthwhile at first. However, users can manage the coins in their wallet and wait for a better Bitcoin Cash course. It is important that the wallet is as secure as possible and protected against hacker attacks. To ensure this, we recommend cold storage as opposed to hot storage, as there are no connections to the Internet.

Managing Bitcoin Cash securely: the Wallet options

If users decide to earn cash mining coins with Bitcoin, not only the appropriate hardware or software is required, but also the wallet. The coins earned are managed in the wallet, although there are differences in the wallet types in terms of application and security level. In order that the coins can be managed as safely as possible in the wallet in the event of unfavorable Bitcoin Cash exchange rate developments, in order to wait for better times, we present the interesting wallet types in more detail.

COLD STORAGE WITH HARDWARE AND PAPER WALLET

Cold storage leads the way in terms of security, because it actually provides 100% protection against hacker attacks. For this, users can choose between two essential offline wallets:

  • Hardware Wallet
  • Paper Wallet

Both are functional, but variable in their application. For example, a hardware wallet is not free of charge, but the paper wallet is. Who would like not only the maximum protection with the administration of the Coins, but also on a functional and designschönes Wallet sets, that should decide for the Hardware Wallet. Based on its size it is comparable to a USB stick and offers easy handling. Once the wallet owners have purchased their Hardware Wallet, they can get started. The installation is user-friendly and step-by-step, so even inexperienced wallet users can easily understand what to do next to handle the wallet. Of course, the individual application steps differ among the providers, but experience shows that the rough procedure is identical.

USING THE PAPER WALLET FOR COINS

The Paper Wallet is actually a piece of paper on which the keys of the wallet are either printed as a string or stored with the QR code. If you want to use a Paper Wallet, you don’t have to pay for it, you can even create it easily by hand. To do this, random wallet addresses are simply generated and then written on the piece of paper. This effort is however enormous, because such a wallet address consists of a string of different numbers and letters. If you make a mistake with the note, you cannot use the wallet anymore. Therefore we recommend to use the generators online to automatically create the keys and print the paper wallet at the same time.

CHALLENGES WITH THE PAPER WALLET

The main advantage of the Paper Wallet is that it is free of charge, coupled with security. However, users must also be aware that a piece of paper is vulnerable to damage or soiling. It is therefore important to protect paper as much as possible from such influences, otherwise it can become unusable if the string is no longer completely readable. We therefore recommend that you print several copies when generating a Paper Wallet and keep them safe. However, if you want to have your Paper Wallet with you, you should at best cover it with a foil to protect it against damage.

HOT STORAGE EXPLAINS: DESKTOP, MOBILE AND BROWSER-BASED WALLET

After we have taken a look at the cold storage, we now come to the hot storage. It is offered in the form of different types of wallet:

  • desktop wallet
  • Mobile Wallet
  • Browser-based Wallet

If users decide to use a mobile or desktop wallet, the software/application is required first. It is downloaded free of charge and installed on the respective end device. This gives wallet owners with exactly this device access to the wallet. If you want more flexibility or do not want to download the application, you can also use a browser-based wallet. Instead of downloading the application, wallet owners log in to the wallet via the browser on their PC or smartphone and tablet and can manage their coins there. These application options sound extremely functional, don’t they? In practice they are, but they are risky. If the hot storage options are not sufficiently secured, the hackers can use clever tricks to access the wallet and steal the coins.

SECURING THE ONLINE WALLETS IS PARTICULARLY IMPORTANT

In the past, hacker attacks on inadequately protected online wallets have repeatedly occurred. To avoid this, we recommend implementing several security levels; for example, activating 2-factor authentication. In addition, a password that is as secure as possible should be assigned. Wallet owners can also provide additional protection by avoiding public networks for access to the wallet, as they are often unprotected.

Use Bitcoin Cash price history and buy coins at the right time

When it comes to finding the right time to buy BCash, it is inevitable to look at the price development. How else would investors know how the current Bitcoin Cash price is developing and what forecasts there might be for the future? A lot has happened at Bitcoin Cash since its introduction in 2017. The introductory price at that time was at a level that was higher than the beginnings of Bitcoin. In the meantime, even the all-time high on December 20, 2017 has been reached at a price of more than 3,900 euros. For comparison: The all-time high of Bitcoin was over 18,000 Euro. Of course no comparison, but still remarkable when measured against the still young history of Bitcoin Cash.

BITCOIN CASH PROGNOSE CORRECTLY ADJUST

For the ideal trading time at the market it is important that the traders make themselves familiar with the course of the crypto currency. It is noticeable that volatility plays an important role in the Bitcoin Cash price development. Even in the initial phase until summer 2018, it was much more pronounced than in Bitcoin. Anyone who wants to buy BCash cheaply should watch out for a possible downward trend and take advantage of the drop in price. However, it depends on which crypto exchange the traders become active on, because prices can vary considerably. The registered users themselves determine how the price develops. Therefore price differences are quite possible. We recommend that you register with several crypto exchanges at the same time in order to compare the live prices and decide on the best one.

USEFUL TOOLS FOR BITCOIN CASH PROGNOSIS

Due to the volatility of the crypto currencies the price forecast is not always easy. Particularly less experienced traders have it clearly more heavily to regard the Bitcoin Cash course of events and to predict its future development correctly. With the help of some tips and tricks this is however more easily possible. Traders can make an effort to do so, for example, by using the technical analysis, because it is based on the historical data of the price and assumes that trends and patterns will repeat themselves at some point in the chart. On this basis, forecasts for the future are made, which sounds simple and is actually simple. However, there is one drawback to the technical analysis despite the less complex application: the current situation of the Bitcoin Cash price is not taken into account. This means that the market figures or other current economic indicators are not included. Consequently, the forecasts can of course become much less accurate.

USE FUNDAMENTAL ANALYSIS FOR MORE PRECISE BITCOIN CASH PROGNOSIS

In order to make the forecast of the Bitcoin Cash price development more precise, we recommend not only using technical analysis, but combining it with fundamental analysis at best. While the technical analysis focuses exclusively on historical data, the fundamental analysis focuses on the current market situation. Therefore, economic indicators or other moods in the crypto-market are also taken into account, making the forecast much more precise. However, fundamental analysis is not always easy for less experienced traders due to the more complex data collection process, so we recommend a little practice in advance for a more confident application.

Trading Bitcoin Cash successfully at Exchange – Traders should know this

Traders have the opportunity to trade not only Bitcoin but also Bitcoin Cash at selected crypto exchanges. Depending on which exchange they choose, the price is offered as a dynamic market price for trading or at a fixed price. The fixed price is defined by the sellers themselves and is available on the platform, waiting for suitable buyers to be found. The advantage is that the traders do not have to laboriously observe and analyze the Bitcoin Cash price development, but can directly decide whether or not to buy the coins at the given price. Thus transparency prevails on both sides, because the buyers know, what they pay for their crypto currency and the salesmen can calculate exactly, what you get for it. Unpleasant surprises, as for instance by the sudden change of the Bitcoin Cash course, are missing.

THE START OF TRADING ON CRYPTO STOCK EXCHANGE

In order for the traders on the crypto exchange to be able to act in the best possible way, it is first necessary to select a suitable trading platform. Since the conditions can vary considerably, we recommend that you turn to a comparison to compare different providers. Once the traders have selected the most favorable trading places for them, nothing stands in the way of free registration. Of course, the traders could also just register at a crypto exchange, but we advise against that. The prices can vary considerably among the platforms, the trading volume and the relation between supply and demand determine the price and the reliability of the order execution.

REGISTRATION AND VERIFICATION

The registration process at the Crypto Exchange is relatively simple. Traders can register their account free of charge, but must verify it after registration. In this way the investors themselves are identified, so that abusive activities such as the theft of personal data are not possible. The verification is carried out by presenting a valid identification document and proof of address, and the documents are sent to the support team via an upload and checked there.

ACCOUNT CAPITALIZATION

Once the support has confirmed the identity of the traders, the account is released for trading activities. However, in order for traders to actually buy Bitcoin Cash, it is necessary for funds to be deposited. There are several ways to do this, such as:

  • Electronic wallets
  • Payment by credit card
  • Bank transfer

Deposits can be made particularly quickly using electronic purses and credit cards. It takes a little longer for bank transfers (up to five working days). With some crypto exchanges, merchants can even capitalize the account with an Internet currency and buy Bitcoin Cash with Bitcoin in this way.

THE THING WITH THE FREE ONLINE WALLETS

In order to carry out the trading activity, not only the trading account and the credit on the account are required, but also the wallet. Many crypto exchanges provide a free online wallet with the account opening, which is quite advantageous for the first trading activities. Who would like to keep however longer surely the Coins or administer larger quantities, we recommend the transfer into the off-line Wallet.

Use Bitcoin Cash Faucets for free coins

Bitcoin Cash can not only be bought and then profitably resold at a crypto exchange, but the coins can also be earned for free. There are various platforms and mobile applications that we already know from Bitcoin, where users can continuously secure coins without much effort and free of charge. It is hardly surprising that with the similarities between Bitcoin and Bitcoin Cash, the faucets are also available. With the help of these platforms, users actually have the chance to secure the coins by registering with the e-mail address and/or public wallet address. Each faucet itself determines how high the earnings are and what payout cycle is available.

EFFECTIVE USE OF FAUCET POTENTIAL

Users can choose from a variety of Faucet providers. For example, the coins are available as payouts every four minutes, every five minutes or even every 60 minutes. What exactly the users have to do is also variable. Sometimes the coins are paid out automatically, sometimes the users have to answer questions. The possibilities are diverse and easy to use. The users can even register for several faucets at the same time to secure the optimal maximum amount of coins, because there is no limit to how many faucets can be used. Whoever turns it on skillfully can thus quickly accumulate coins in the wallet without much effort and sell them profitably on the stock market with a positive Bitcoin Cash forecast.

Bitcoin Cash and the taxes

What actually happens when I have made money by trading coins? This is where the tax comes into play, as it may be due on winnings. While the tax situation is clear for shares and other financial instruments, there is still a lot of leeway and no clear legal certainty for crypto currencies. So far, the Federal Ministry of Finance has only issued a recommendation to the tax authorities as to how the tax treatment should be applied. In practice it can come therefore to the fact that the tax offices decide individually on the taxation of crypto currencies. Nevertheless the dealers should know that they are if necessary taxable on their profits by the trade with Bitcoin Cash.

CONSIDER HOLDING PERIOD AND SAVE TAXES

For example, if you have coins in your wallet and want to sell them profitably, you should pay attention to the holding period. Bitcoin Cash Coinbase (one of the best known crypto exchanges), to trade profitably here is not at all so improbable. In the Wallet the Coins can be sold naturally after the purchase directly, which is in addition, tax-wise not advantageous. If you keep the coins in the wallet for more than one year and sell them profitably afterwards, you don’t have to pay any taxes. However, it is advisable to declare this transaction in the tax return anyway, in order to make it transparently credible that no taxes have to be paid.

Trade Bitcoin Cash with Broker

Trading activities with Bitcoin Cash not only relate to the selection of crypto exchanges, but traders can also become active with brokers. However, the coins are not directly offered for purchase, which has advantages and perhaps also disadvantages. For all traders who actually want to own coins in the wallet, the broker is unsuitable. The traders, who would like to remain however flexible with the investment possibilities, are exactly correct with the broker. Instead of dealing with the selection of a wallet or raising a larger amount of equity, it is sufficient for the traders to open their account with the broker. The trading entry is already possible with few liquid funds, because the positions can be traded with only a few Euro.

CRYPTO CFDS

The Crypto CFDs a way to profit flexibly from the Bitcoin Cash price trend. The traders analyze the price and speculate on its further development. The positions can be closed again even after a short time, so that the smallest price movements can be used optimally. Since CFDs are usually only traded intraday, unnecessary high costs for holding the position overnight are also eliminated. In addition, the leverage of maximum 1:2 makes the crypto CFDs interesting for private investors, because they bring more capital into the market and can achieve higher profits. Since the leverage works in both directions, limiting losses is a must.

TIP: DARE TO ENTER THE BROKER WITH A DEMO ACCOUNT

The trading activities at the broker has another advantage compared to the crypto stock exchange: the traders can usually use a free demo account with virtual credit and thus create an entry into crypto trading without risk. This possibility does not exist with the stock exchanges, because here one actually trades with own assets from the first second on. The demo account offers the trader the opportunity to not only get to know the possibilities on the crypto market, but also to better assess the risks. Especially the volatility paired with the CFDs seems to be very interesting and profitable, but also carries a higher risk. Those who take up this challenge and practice their first trades with the demo account can increase their sovereignty in trading decisions and at best profit from it when trading with their own capital.

CRYPTO SECURITIES AND FUNDS FOR DIVERSIFICATION

In addition to crypto CFDs, securities or funds are among the interesting financial instruments around the crypto market. For example, traders can purchase shares of Bitcoin GROUP SE and use them for the long-term investment horizon. The crypto funds, which are also available from the Crypto Broker, provide even more diversification. Investors who want to exploit the full potential use securities, funds and CFDs in equal measure to optimally diversify the portfolio, spread the risk and benefit from the crypto-market in all respects.

Conclusion: Bitcoin Cash as top crypto currency interesting for profits

The Bitcoin Cash course shows that the crypto currency has much potential. Despite its comparatively young history (introduction in 2017), Bitcoin Cash has meanwhile made it into the top crypto currencies. The spin-off of Bitcoin made it possible for traders to invest in Bitcoin Cash in the first place. There have been many Bitcoin Forks, but none is as successful as Bitcoin Cash. Also the investors can profit from it and buy for example the crypto currency directly at stock exchanges favorably and sell with positive value development profitably. But also the generation of Coins with the help of Mining or with Faucets is possible. Necessary for this, however, is the Wallet, for which we recommend the Hardware or Paper Wallets as a storage variant with the highest security. If you want, you can also trade interesting financial instruments on the crypto-market at brokers and speculate on the development of the Bitcoin Cash price (with CFDs). The advantage: less equity capital is required and traders do not need to invest in the wallet.

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