Investment | Investing In Bitcoin Cash Is Becoming Increasingly Popular Due To Several Factors
Investment | Investing In Bitcoin Cash Is Becoming Increasingly Popular Due To Several FactorsUpward momentum has been significant in the past.
After performing in-depth technical research on the price action of Bitcoin Cash, we determined that this cryptocurrency has previously made some incredible returns for investors. When Bitcoin Cash was first forked, it traded on public exchanges for just over $550. The same BCH coins were worth $3,665 each after just three months of trading activity. The result is a huge return of over 560% in one quarter. In 2019, BCH fell to levels under $200, following the wider downward trend that impacted the entirety of the cryptocurrency industry.
Since that time, interest in Bitcoin Cash has resurfaced – with 2020 gains surpassing most other asset classes.
Bitcoin Cash, for instance, hit a low of $152 in March; it has since surpassed $350. In less than 8 months of trading, this results in gains of more than 125%. As we will discuss in more detail shortly, this is far less than Bitcoin has achieved in the same time period.
The underlying technology is better than Bitcoin
Earlier in this Bitcoin Cash Guide, we explained that digital currency arguably possesses superior technology to Bitcoin. Yes, the former is a direct fork of the latter. The project’s developers have since made certain modifications that make Bitcoin Cash a faster, cheaper, and more scalable transaction platform.
Here is the crux of the matter:
Bitcoin’s block size is 1 MB, while Bitcoin Cash’s is 8 MB. This is what makes Bitcoin Cash perform better than Bitcoin.
The Bitcoin network confirms a transaction as valid after 10 minutes. Bitcoin Cash has the ability to adjust its block processing time based on demand. Therefore, if a transaction needs to be confirmed, it can do so much faster. As a result of its larger block size, Bitcoin Cash is able to process more transactions per second. Bitcoin, on the other hand, cannot do this. As a result, the network is limited to around 7 transactions per second. From a purely technical perspective, Bitcoin Cash is arguably the better network out of the two.
Beginners will appreciate the low barrier to entry Beginner investors are best suited to asset classes that are easy to buy. Additionally, the asset in question must be accessible for a small amount of money. For several reasons, Bitcoin Cash meets these requirements. Bitcoin Cash has averaged a price between $150 and $350 over the past couple of years, but you don’t have to buy a full coin. This cryptocurrency, however, can also be fractionally divided, much like Bitcoin.
Since it is a digital currency, this makes sense. A regulated broker like eToro, for example, allows you to invest in Bitcoin Cash for as little as $25.
So, if BCH was valued at $250 at the time of purchase and you invested the minimum, you would own 10% of one Bitcoin Cash coin, or 0.1 BCH. From a risk-management perspective, this is crucial as most cryptocurrencies are volatile. By investing small amounts, you can reduce your risk. Additionally, you can diversify into other cryptocurrencies without breaking the bank. eToro allows you to invest $25 in 8 different cryptocurrencies for a deposit of $200. By doing so, you will not be exposed to just Bitcoin Cash.
Investing in Bitcoin Cash – Various Options
There are a number of ways in which you can make an investment in Bitcoin Cash. As we will discuss shortly, the cheapest and most convenient way to invest is through a regulated broker. You can also invest in Bitcoin Cash through an ATM.
Let’s see how this works :
ATMs that accept Bitcoin
Now, it is possible to invest in cryptocurrencies using a specialist ATM. At the time of writing, there are almost 13,000 ATMs in 71 countries. Many of these ATMs support Bitcoin purchases only, but some also allow you to invest in Bitcoin Cash. Over 3,000 ATMs are available in various cities and regions in the US and Canada, for example. There are approximately 500-ish such terminals in Europe. There are only a few ATMs available to invest in Bitcoin Cash in Asia, Australia, and New Zealand. First, you should check the CoinAtmRadar website to find out if there is a Bitcoin Cash ATM near you.
Typically, the investment process works as follows:
Select Bitcoin Cash from the list of supported coins at your nearest ATM
Then you enter the amount you want to invest in your local currency
If you’re based in the US, you might enter $75
Depending on the size of your investment, the Bitcoin Cash ATM will then display the exact amount of BCH coins you will receive
Taking into account transaction fees, a $75 purchase might result in you having $68 worth of BCH
You then insert $75 into the ATM
Lastly, the ATM prints a ticket with your Bitcoin Cash wallet credentials
Although convenient, it is important to note that investing in Bitcoin Cash via an ATM requires a basic understanding of cryptocurrency wallets.
To claim Bitcoin Cash coins, you’ll need to use the credentials printed on the ATM receipt. For those who know how, this is an easy process, but it can be daunting for those who are unfamiliar with it.
Furthermore, and perhaps most importantly, cryptocurrency ATMs are by far the most expensive way to invest in Bitcoin Cash. It is not uncommon to pay between 10% and 20% in transaction fees. By paying 20% in fees, you have to increase Bitcoin Cash by this amount just to break even!
Cash Broker for Bitcoin
If you don’t want to pay 10-20% in transaction fees or there isn’t a crypto ATM in your area, then you should consider making an investment through a regulated broker. Not only is this more convenient than driving to a physical ATM, but it is also cheaper. Brokers active in the space, for instance, charge less than 1% to invest in Bitcoin Cash.
eToro, for example, does not charge commissions. Using a regulated online broker will also allow you to deposit funds using your preferred payment method. eToro, for example, supports debit cards, credit cards, e-wallets, and bank transfers.
Therefore, you can invest in Bitcoin Cash without having to leave your home. In addition to being cheaper and more convenient, online brokers can also be the safest option. A licensed broker is much more likely to have this trait if the organization that licenses them is reputable. eToro, for example, is regulated by the FCA, ASIC, and CySEC. Thus, you have multiple avenues of regulatory protection.
