Bitcoin Cash trading enables traders to speculate on whether the price of BCH will rise or fall in value, without the need of taking ownership of Bitcoin Cash.
Bitcoin Cash (BCH) is a digital currency that emerged from the Bitcoin network towards the end of 2017 with the aim of being the true application and realization of Satoshi's original white paper. As defined by Satoshi Nakamoto, it is meant to be the true “peer to peer electronic money”. Driven by dissatisfaction with Bitcoin's scalability issues, Bitcoin Cash is destined to be a more realistic cryptocurrency on the blockchain for regular transactions.
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Why trade Bitcoin Cash?
There are many advantages to trading Bitcoin Cash. One of the following points is due to the benefits already provided by BCH as one of the most powerful cryptocurrencies today. Trading BCH encourages seasoned people to bet in the cryptocurrency market, whether or not they already own any of the cryptocurrencies. Bitcoin Cash Trading is all about trying to decide whether the price of BCH will rise or fall, and when to jump on the bandwagon.
The advantages of Bitcoin Cash trading combined:
Low transaction fees
Liquidity
Choose between long or short
Bitcoin Cash Volatility
Access to the Bitcoin Cash market
Effective tax benefits
Security when trading
1. Low transaction fees
BCH provides virtually zero processing rates. This implies that without thinking about the exorbitant service costs, people can trade as much BCH as they want.
At the time of writing this article, the average BCH transaction fee is $ 0.0035. In January 2018, the price had reached its highest, reaching $ 0.904. Total processing costs have not been spread out too much since and have remained relatively stable since. Since last year, transaction fees have hovered around $ 0.0040 and $ 0.0060, which is negligible.
Despite the current state of Bitcoin Cash, transaction fees are unlikely to increase the need for cars as the blockchain has not been pushed to its limits.
2. Liquidity
Liquidity is a measure of how quickly and efficiently Bitcoin Cash can be converted to cash, ensuring that there is no change in the market value of BCH. The importance of liquidity is that it largely affects the ease with which you can open and close positions. A trader can easily find a buyer in a liquid market without having to reduce the price of the asset to make it more attractive.
Due to the fact that Bitcoin Cash offers more scalability, this in turn means that it has greater trading volume. The larger trading volume then turns into more trading activity and ultimately presents itself to a more liquid market. Liquidity can also be analyzed by analyzing bid-ask for BCH. Buyer-seller art measures the difference between the price a buyer is willing to pay for a piece and the price the seller is willing to accept a piece. The lower the bid-ask seller, the more liquid the coin.
Generally speaking, the Bitcoin Cash market is pretty much illiquid as transactions are spread across many exchanges, which means that relatively small transactions can have a huge impact on market prices, asking for volatile demands on BCH.
3. Choose between a long or short position
Much like the price of a stock, Bitcoin Cash always has a value for which it will be sold. In this sense, you can profit from your BCH by selling your coins once the market value has increased. When you buy BCH coins and expect the price to go up, you call it a long time. However, when you trade with the price of Bitcoin Cash and profit from both falling and rising values, this is called a decline.
Due to the growing popularity of BCH, there are a multitude of trading platforms on which you can buy your BCH coins. With these platforms, you will have the option of doing either, where an uptrend or a downtrend can be predicted at the same time. In most platforms, where you are trading on margin, you will still be able to buy or sell.
4. Bitcoin Cash volatility
The volatility of Bitcoin Cash is part of what makes this coin and its trading so exciting. The rapid fluctuations in intraday prices offer traders a selection of options to go long and short, but also with additional risk. So, if you are planning to explore the Bitcoin Cash market, make sure you have done your homework and developed a risk management policy. BCH has a relatively high level of volatility, hovering around 15.27% at 7 days.
5. Access to the Bitcoin Cash market
The Bitcoin Cash Market is available for trading whenever you want. On virtually all major cryptocurrency exchanges, Bitcoin Cash is listed, which signifies a high degree of security and buy-in in the buying and selling of this token. In return, this also boosts acceptance and increases the investment potential of your BCH and increases your chances of greater income in the future and higher profit earning through trading.
This is different, unlike normal stock markets, in that a centralized market administration does not support the regulation of market hours. BCH transactions can take place any time of the day, wherever you want, whenever you want. However, they only occur between a buyer and a seller on various crypto exchanges around the world.
6. Effective tax benefits
The ability to spread bets and CFD trading on Bitcoin Cash would present pstantial tax advantages over investments in virtual and real currencies. It's an effective way to practice price monitoring and get a good idea of what price movements look like, without the added tax costs.
For example, you are subject to Capital Gains Tax (CGT) when you sell your crypto for profit, for example if you buy something with it for more than what you bought it for. “Had achieved the acquis. However, with spread betting, you can exclude the tax debt from the calculation because you don't actually own the assets. On the other hand, a contract for difference, otherwise known as a CFD, is also responsible for this tax, but even more efficient and carries less risk. However, you can offset your risks with your CGT liability benefits, making CFDs useful for hedging. Note that the processing of spread bets and CFDs in cryptocurrencies such as Bitcoin Cash is only open
7. Security when trading
A powerful blockchain platform is used by Bitcoin Cash and is almost impossible to hack. As blockchain requires unanimity of all nodes, transfers and fund transfers cannot be changed by a single user.
Cryptographic encryption provides the entire payment system with another layer of authentication and provides a means of analyzing safe and protected transactions.
If you want to keep your BCH coins more, you can always use physical (hardware) or software wallets to store your tokens. Dedicated wallets provide an accumulated standard of security over trading site accounts and exchange storage.
Should I buy or trade Bitcoin Cash?
Before making a final choice, it is essential to understand the differences between buying and trading Bitcoin Cash. The use of CFDs makes it easier to determine the viability of investing in BCH with lower risk thresholds. All considerations, such as transaction fees, tax obligations, and security should all be taken into account. If you want to learn more about Bitcoin Cash, check out this in- depth guide .
You might be interested in buying Bitcoin Cash if ...
You want to become the full owner of the amount of Bitcoin Cash you buy
You are happy to pay the full value of the asset in advance
You don't mind paying capital gains tax on profits
You don't mind waiting for an exchange account before you can buy or sell
You don't mind introductory limits or maximum deposits
It is normal that you pay additional fees for deposits or withdrawals
You might be interested in trading Bitcoin Cash if ...
You want to benefit from the price of Bitcoin Cash without owning it
You want to leverage your position to invest only part of the cost up front
You want to take advantage of the tax advantages of spread bet or CFD trading with Bitcoin Cash
You want to start trading right away
You don't like maximum deposit limits
You don't like paying deposits or withdrawal fees
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