Bitcoin cash launched in 2017 after miners split the bitcoin blockchain ledger. You can trade both bitcoin cash and bitcoin CFDs with ADS Securities.
Ready to start trading?
Opening an account with ADS Securities is simple and secure. You have the option to open a live account via our secure client portal or try our FREE Demo Account.
What is Bitcoin Cash?
Although bitcoin cash (BCH) is similar to bitcoin (BTC) in many ways, it has a different blockchain and different rules, which means that it’s now incompatible with bitcoin.
In 2017, bitcoin’s popularity skyrocketed, and the mining community could no longer keep pace with demand due to scalability issues.
Some believed that the software needed to be revised, while others felt that this would devalue the cryptocurrency. While some wanted to implement SegWit2x (a scaling tool), others felt that block size should be expanded instead.
Ultimately, these disagreements couldn’t be resolved, leading to a split in the blockchain known as a ‘hard fork’. This meant that one group of miners could implement their changes on the existing bitcoin blockchain, while others could create an offshoot for their changes, known as bitcoin cash.
Ultimately, this meant that although bitcoin and bitcoin cash have a shared history until the fork, their transaction histories since have been separate and the two currencies are now incompatible.
A History of Bitcoin Cash
When it initially launched in August 2017, the value of bitcoin cash was around $380 (bitcoin was valued at around $2718 per coin at the time).
When trading began, volatility was significant for several months, including large price swings in either direction. Bitcoin cash also struggled to gain ground on bitcoin, which remained a market-leader with a substantial reputation.
However, bitcoin cash did experience a substantial rally in 2017, thanks to a failed fork in bitcoin, when SegWit2x was not implemented as planned. This left investors and traders disillusioned and looking for another outlet for their investments.
With over 900 cryptocurrencies currently available (and many of these unmined), bitcoin cash still faces substantial competition in a growing market.
Why Trade Bitcoin Cash CFDs?
CFDs enable you to speculate on the price of bitcoin cash without you needing to take ownership of the actual cryptocurrency. With CFDs, you’re trading a contract based on prices in the underlying market, so you have the same exposure to market movements as you would if you bought the cryptocurrency.
As you don’t own the currency itself, you also don’t need direct exchange access, which can be a positive. These exchanges are often difficult to access and have slow transaction processing times. Plus, there’s usually very little regulatory framework behind them, meaning that the risk to investors is extremely high in terms of default or fraud.
ADS Securities allows you to go either long or short on bitcoin cash CFDs, meaning that you can speculate in rising and falling markets. Open an account with us to start trading bitcoin cash CFDs or try our interactive CFDs trading courses where everything is covered, from basic concepts to advanced skills.