Bitcoin Cash Trading
Day trading Bitcoin Cash is on the rise. This review explains what Bitcoin Cash (BCH) is and how to start trading the popular crypto in 2024. We also cover suitable trading strategies, potential risks, future price predictions, and the best Bitcoin Cash brokers.
Bitcoin Cash Brokers
#1 - AvaTrade
Why We Chose AvaTrade
Regulated in five continents, AvaTrade offers a secure way to access crypto markets. There's a great range of digital currencies including Bitcoin, Ethereum and Ripple, plus a crypto index. You can access competitive crypto spreads in the broker's wide choice of platforms as well as 1:2 leverage.
"AvaTrade offers the full package for short-term traders. There is powerful charting software, reliable execution, transparent fees, and fast account opening with a low minimum deposit."
- DayTrading Review Team
- Coins: BCH, BTC, BTG, ETH, LTC, XRP, EOS, DASH
- Crypto Mining: No
- Auto Market Maker: No
- Crypto Spread: BTC <1%, ETH 2%
- Crypto Lending: No
- Crypto Staking: No
- Platforms: WebTrader, AvaTradeGO, AvaOptions, MT4, MT5, AlgoTrader, TradingCentral, DupliTrade
- Regulator: ASIC, CySEC, FSCA, ISA, CBol, FSA, FSRA, BVI, ADGM
About AvaTrade
AvaTrade is a leading forex and CFD broker, established in 2006 and regulated across 9 jurisdictions. Over 400,000 users have signed up with the broker which processes over 2 million trades each month. The firm offers multiple trading platforms, including MT4, MT5, and a proprietary WebTrader. 1250+ financial instruments are available for day trading, alongside a comprehensive education center and multilingual customer support.
Pros
- WebTrader is well-suited to beginners and features a strong suite of technical analysis tools and market research for day traders
- The broker’s unique risk management tool, AvaProtect, protects against losses up to $1 million and is easy to activate in the platform
- There's a great range of fee-free deposit methods, including bank wire, credit cards and popular e-wallets like Skrill
Cons
- There’s an above-average $50 inactivity fee after three months, though this won't impact active day traders
- Traders from the US are not accepted
- There is no ECN account with raw spreads
#2 - eToro
Why We Chose eToro
eToro leads the way in cryptocurrency trading, offering competitive spreads and a fixed 1% commission, plus their own wallet service. The broker offers a vast list of 95+ tokens which is continually being updated. Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more
"eToro's social trading platform leads the pack with a terrific user experience and active community chat that can help beginners find opportunities. There are also competitive fees on thousands of CFDs and real stocks, plus excellent rewards for experienced strategy providers."
- DayTrading Review Team
- Coins: BTC, ETH, BCH, XRP, DASH, LTC, ETC, API3, CRO, SKL, IMX, ADA, MIOTA, XLM, EOS, NEO, TRX, ZEC, BNB, XTZ, DOT, MKR, COMP, LINK, UNI, YFI, DOGE, AAVE, FIL, ALGO, ATOM, MANA, APE, LRC, ENJ, BICO, BAT, BNT, OGN, MATIC and many more
- Crypto Mining: No
- Auto Market Maker: No
- Crypto Spread: BTC 1%
- Crypto Lending: No
- Crypto Staking: Yes
- Platforms: eToro Web, CopyTrader, TradingCentral
- Minimum Deposit: $50
- Regulator: FCA, ASIC, CySEC, FSA, FSRA, MFSA
About eToro
eToro is a top-rated multi-asset platform which offers trading services in thousands of CFDs, stocks and cryptoassets. Launched in 2007, the brand has millions of active traders globally and is authorized by tier one regulators, including the FCA and CySEC. The brand is particularly popular for its comprehensive social trading platform. Cryptoasset investing is highly volatile and unregulated in the UK and some EU countries. No consumer protection. Tax on profits may apply. 76% of retail accounts lose money.
Pros
- Charts are powered by TradingView and offer strong technical analysis features, including 9 chart types and over 100 indicators
- The web platform and mobile app perform better in user reviews and app rankings than top competitors, including AvaTrade
- The copy trading app facilitates a best-in-class social environment, with an engaging social feed and community chat
Cons
- There is a $30 minimum withdrawal amount and a $5 fee, which will affect novices with low capital
- There are no guaranteed stop loss orders which would be a useful risk management feature for beginners
- There are limited contact methods aside from the in-platform live chat
#3 - OANDA US
Why We Chose OANDA US
You can speculate on the world’s biggest cryptos by market cap. Commissions are lower than many peers starting at 0.25%. Through the broker’s partnership with Paxos, clients can spot trade cryptocurrencies on the itBit exchange through the OANDA native platform.
"OANDA remains an excellent broker for US day traders seeking a user-friendly platform with premium analysis tools and a straightforward joining process. OANDA is also heavily regulated with a very high trust score."
- DayTrading Review Team
- Coins: BTC, ETH, LTC, BCH, PAXG, LINK, UNI, AAVE
- Crypto Mining: No
- Auto Market Maker: No
- Crypto Spread: $100
- Crypto Lending: No
- Crypto Staking: No
- Platforms: OANDA Trade, MT4, TradingView, AutoChartist
- Minimum Deposit: $0
- Regulator: NFA, CFTC
About OANDA US
OANDA is a popular brand offering exceptional execution, low deposit requirements and advanced charting and trading platform features. The top-rated brand has over 25 years of experience and is regulated by trusted agencies, including the NFA/CFTC. Around the clock support is available for short-term traders, alongside flexible contract sizes and automated trade executions.
Pros
- The broker's API facilitates access to 25 years of deep historical data and rates from 200+ currencies
- The proprietary OANDA web platform continues to deliver a highly competitive charting environment, including 65+ technical indicators powered by TradingView
- Seasoned day traders can access industry-leading tools, including an MT4 premium upgrade and advanced charting provided by MotiveWave
Cons
- It's a shame that customer support is not available on weekends
- The range of day trading markets is limited to forex and cryptos only
- There's only a small range of payment methods available, with no e-wallets supported
#4 - Eightcap
Why We Chose Eightcap
Eightcap’s crypto offering is best-in-class with 250+ crypto derivatives, surpassing that of almost every alternative. Testing also reveals Bitcoin spreads of 12 pips, coming in lower than most competitors, while it offers real-time trading ideas through the Crypto Crusher market scanner. Add in convenient deposits and withdrawals in digital currencies, and Eightcap offers the complete package for serious crypto traders.
"Eightcap delivers in every area for day traders with a growing selection of charting platforms and AI-powered tools. Now sporting 250+ crypto CFDs and the Crypto Crusher market scanner, it's also become a stand-out choice for crypto trading, winning our 'Best Crypto Broker' award two years in a row."
- DayTrading Review Team
- Coins: BTC, ETH, LTC, BCH, XRP, XMR, DSH, EOS, XLM, ADA, TRX, DOGE, BNB, DOT, MATIC, VET, AXS, NEO, SOL, UNI, AAVE, KSM, THETA, CAKE, SUSHI, ATOM, XTZ, SNX, COMP, FLOW, EGLD, PUNDIX, RAY, ZIL, QTUM, BAND, OMG, FIDA, BADGER, NEAR and many more
- Crypto Mining: No
- Auto Market Maker: No
- Crypto Spread: $12 (BTC)
- Crypto Lending: No
- Crypto Staking: No
- Platforms: MT4, MT5, TradingView
- Minimum Deposit: $100
- Regulator: ASIC, FCA, xCySEC, SCB
Pros
- Eightcap stands out with a selection of powerful trading tools, including MT4 and MT5, the innovative algorithmic trading platform Capitalise.ai, and more recently the 50-million strong social trading network TradingView.
- After bolstering its roster in 2021, Eightcap offers one of the most extensive selections of cryptocurrency CFDs in the market, with crypto/fiat pairs, crypto/crypto pairs, plus crypto indices for broader exposure to the market.
- With tight spreads from 0 pips, low commission fees, and high leverage up to 1:500 for certain clients, Eightcap provides cost-effective and flexible trading conditions that can accommodate an array of strategies, including day trading and scalping.
Cons
- The demo account expires after 30 days and can only be extended upon request - a notable inconvenience compared to the likes of XM with its unlimited demo mode.
- In spite of an increasing variety of tools, Eightcap doesn't offer industry favorites like Autochartist or Trading Central, which offer cutting-edge charting analytics, live news, and market insights for short-term traders.
- Eightcap needs to continue bolstering its suite of instruments to match category leaders like Blackbull Markets with its 26,000+ assets, featuring a particularly weak selection of commodities.
#5 - Uphold
Why We Chose Uphold
You can buy and sell 250+ crypto assets with fiat currencies or in crypto pairs using the straightforward mobile app or through Uphold's browser-based account homepage. This is significantly more than many rivals. You can also earn up to 16% APY by staking one or more out of 32 valid tokens, or send tokens to an external wallet.
"Uphold remains a top choice for crypto investors looking for a one-stop-shop solution to accessing the markets. There are over 250 tokens to buy, sell and trade through flexible platform options."
- DayTrading Review Team
- Coins: BTC, BTCO, AAVE, ALCX, DYDX, INH, XYO, API3, GHST, LSK, AUDIO, GLMR, NMR, CAKE, GODS, REQ, CHR, TRB, DAO, ROOK, XRP, ETH, BAT, ADA, ALGO, ATOM, AVAX, AXS, BCH, BAL, BTG, CSPR, COMP, CRV, DASH, DCR, DGB, DOGE, DOT, EGLD and many more
- Crypto Mining: No
- Auto Market Maker: No
- Crypto Spread: Up to 1.5%
- Crypto Lending: No
- Crypto Staking: Yes
- Platforms: Desktop Platform, Mobile App
- Minimum Deposit: $0
About Uphold
Uphold is a digital asset platform offering a range of services, from crypto trading and staking to payment cards that provides rewards and easy multi-currency payments. The company was established in 2015 and has enabled $4+ billion in transactions. Uphold is now active in 180+ countries and deals in 200+ crypto and fiat currencies.
Pros
- Uphold is 100% reserved which helps to protect client funds
- The proprietary app is extremely easy to use with a slick design and navigation
- Fees are competitive based on tests, with 26 underlying platforms helping to source the best prices
Cons
- Customer service is slow based on tests, with limited contact options
- The charting analysis features on the platform trail specialist exchanges
- There is a 2.49% fee if you want to use debit or credit cards
Bitcoin Cash Explained
Bitcoin Cash is a popular cryptocurrency with the symbol ‘BCH’. It was created in August 2017 as a hard fork of Bitcoin (BTC). Bitcoin was forked to develop important updates that allowed for effective scalability. This was needed because the speed of transactions on the Bitcoin network was slow, concerning coin miners and developers about the ability for mass adoption. The Bitcoin Cash fork was created by updating Bitcoin’s blockchain code with a few modifications.
Bitcoin Cash is also a payment network and medium of exchange that allows for 24/7 peer-to-peer transactions.
Bitcoin Cash runs on its own blockchain technology. Blockchain is a decentralised digital ledger, which permanently records transactions and can be viewed by anyone. For decentralisation to occur, it requires nodes (computers) to verify transactions by miners who use computing power to solve mathematical equations on the blockchain. Afterwards, 1 Bitcoin Cash coin is mined.
Just like BTC, BCH is capped to a limited supply of 21 million coins. However, BCH is distinguished from BTC as it has an increased block size of 32 MB vs BTC’s 1 MB. This means more transactions can be handled in a single block, which in turn creates shorter waiting times and lower transaction processing fees.
History Of Bitcoin Cash
In 2008, Satoshi Nakamoto published the famous whitepaper called “Bitcoin: A Peer to Peer Electronic Cash System”. The original Bitcoin software ran smoothly until it became increasingly unreliable and expensive between 2016 and 2017. Members of the Bitcoin community felt that the limited block size would leave the crypto as an investment vehicle rather than a transactional currency and medium of exchange. As a result of usability problems, the dominance of Bitcoin dropped from 95% to 40%.
During the controversy, the Bitcoin community could not reach a consensus on a scalable but compatible coin. Thus, came the official launch date of Bitcoin Cash on 1 August 2017. A group of crypto activists, investors, entrepreneurs and developers created a hard fork, splitting the Bitcoin ledger and Bitcoin Cash in two. Bitcoin Cash’s block size was initially 8 MB but was later increased to 32 MB in 2018. Anyone who held the original Bitcoin at the time it was forked automatically got the matching value of BCH to 1 BTC.
According to CoinGecko, Bitcoin jumped to an all-time high of $3,785.82 soon after the fork in December 2017. As Bitcoin Cash is designed to be a medium of exchange, its historical price is more stable compared to Bitcoin. Nonetheless, with the volatile nature of cryptocurrencies, it’s hard to create long-term forecasts or price predictions for 2024 or 2025, let alone 2030.
Bitcoin Cash Trading Chart
Why Trade Bitcoin Cash
- Low transaction fees – The Bitcoin Cash blockchain operates with larger blocks vs Bitcoin. This means more transactions can fit into a single block of up to 32 MB. In turn, this creates less demand for users to get transactions into the next block, creating fewer outbidding wars with higher fees. The network fee for a typical transaction is around $0.20. If you wish to convert BCH into a fiat currency i.e. USD, the costs are still lower than credit card processing.
- Quick transaction times – Due to larger block sizes, the Bitcoin Cash blockchain is capable of higher transaction outputs per second. Bitcoin can perform around 7 transactions per second, while Bitcoin Cash can perform as many as 24 transactions per second.
- Growing cryptocurrency – Bitcoin Cash was the most popular Bitcoin fork at the time. Additionally, many Bitcoin owners were automatically credited with equivalent Bitcoin Cash. The instant prominence of BCH meant that many popular exchanges and platforms offered the coin. In fact, Bitcoin Cash has a rapidly growing trading volume of $5.94B and a market cap of $14.1B.
Risks Of Trading Bitcoin Cash
Before investing your savings into Bitcoin Cash, you should be aware of the potential drawbacks:
- Dangers of volatility – While day traders can certainly profit from the volatile price swings of BCH, users should ensure that they only risk the amount of money that they’re willing to lose. Generally, it is advised never to invest more than 1% of your account value on a single trade.
- Unpredictable future – Bitcoin Cash and cryptocurrencies, in general, are an emerging market. This makes their future somewhat uncertain. We still don’t know how governments will react or whether they will choose to impose regulations. Governments from all around the world are already drafting up legislation on the supervision of cryptos. These regulations could impede the whole philosophy of decentralisation.
- Security – Unlike Bitcoin, there is a smaller development team with less experience supporting Bitcoin Cash. The slower development of security features may leave the network exposed to attacks. In 2019, there were security concerns around a miner controlling 51% of the network’s hash rate. If one person or group has majority control, they can effectively control the entire network. At the time, BCH developers simply recommended avoiding transacting on or with BCH until it was resolved.
Bitcoin Cash Trading Strategies
Utilising Volatility
Compared to stocks that don’t see as much price change in one day, day traders can profit from the wild Bitcoin Cash price swings that can occur in a 24-hour period. Historical prices of Bitcoin Cash shows that it has fluctuated up to 20% in a single day. Traders can buy into the market when starting prices are low and cash out when the price is at its highest. However, this strategy brings risks. Thus, it’s important to look at data that can signal volatility and to plot entry and exit points on your trading graphs.
Scalping
Scalpers profit from small moves that add up over time. Instead of holding, they exploit gaps in liquidity and profit off bid-ask spreads or inefficiencies in the market. It is common to see scalp traders entering and exiting a trade in a matter of seconds while using automated bots to increase the frequency of their trades. Scalping strategies are ideal in markets with higher liquidity like BCH. It is also suited to advanced traders with a deep understanding of the mechanics of the market.
Arbitrage
Arbitrage traders get money from buying BCH in one market for a lower price and selling it at a higher price on another exchange. The idea is to profit from the difference in listing prices on both platforms. The price difference can stem from the discrepancy of trading volumes between exchanges. However, individuals employing this Bitcoin Cash trading strategy must consider total exchange fees, as it might cancel out any profits made from the sale.
Technical Analysis
Day traders can get an edge using technical analysis. This is done by making market decisions based on live price charts or using historical market data to project future price movements. Candlestick charts, support and resistance levels, trend lines and others are essential tools that can aid technical analysis. Utilising this strategy with BCH can seem daunting at first, however, you can test your strategies on a demo account to get familiar with different charts and patterns.
How To Trade Bitcoin Cash
To start trading Bitcoin Cash, you need to buy BCH first:
- Crypto wallet – Purchasing BCH works similarly to any other cryptocurrency. Firstly, you need to get an e-wallet, where you can buy coins using a debit or credit card. When setting up your wallet, take note of the secret key and wallet address and keep it secure. You will need this to access your wallet and make deposits and withdrawals on exchanges.
- Trading exchange – You can also buy BCH with fiat currency, such as GBP, EUR or USD directly from exchanges. Trusted platforms that offer BCH include Coinbase, Binance, eToro and Revolut. If you own other cryptocurrencies, you can use these platforms to exchange them for BCH too.
- Withdrawal – Once you are ready to cash out your earnings, you can withdraw BCH to your wallet. If you leave it on the exchange platform, you may be exposed to security vulnerabilities. This is because the company has control over the private keys, which means your funds aren’t protected if there is an attack on their network. With a BCH wallet, you have full control of the private keys.
Final Word On Trading Bitcoin Cash
Bitcoin Cash’s disruptive upgrades to fill the gaps in Bitcoin have proven popular in recent years. While its future is still uncertain, there are many opportunities for day traders to earn fruitful profits. Make sure to utilise smart strategies, trading tools and keep up with the latest Bitcoin Cash news to gain an edge.
FAQ
Is Bitcoin Cash An Altcoin And What Is It?
Bitcoin Cash is a type of cryptocurrency and a peer-to-peer payment network. Bitcoin Cash is one of the many altcoins to Bitcoin. It is a hard fork that split from the original Bitcoin blockchain and was launched in August 2017 as a solution to BTC’s scalability issues. Bitcoin Cash runs on its own blockchain ledger.
Is Bitcoin Cash A Good Investment For 2021?
As the cryptocurrency market has rapidly grown, many argue now is a good time to invest in Bitcoin Cash. It is a top 10 cryptocurrency by market cap experiencing significant growth in trading volumes. Thus, the price of Bitcoin Cash may continue to climb. With that said, crypto trading is extremely volatile with no guarantee of profits. Appropriate risk management parameters should be put in place.
Why Is Bitcoin Cash Better Than Bitcoin?
Bitcoin Cash has several advantages over Bitcoin. Bitcoin Cash works more effectively as a decentralised transactional currency, which was the initial objective of Bitcoin. Bitcoin Cash has a larger block size of up to 32 MB vs Bitcoin’s 1 MB. This allows for higher transaction capacity, lower fees and faster processing times. Furthermore, Bitcoin Cash is less volatile than Bitcoin.
What Is A Bitcoin Cash Card And Wallet Address?
A Bitcoin Cash e-wallet allows you to buy BCH with fiat currency. It also securely stores your BCH coins, giving you access to private keys. A wallet address is a unique selection of numbers that enables you to receive payments and make deposits. Commonly, a QR code for the wallet address is also provided.
Is Bitcoin Cash Rising Or Going Down?
Because of the volatile nature of Bitcoin Cash, its price is frequently rising and dropping. Therefore, it is hard to make an accurate prediction of its future worth. You can make use of live price charts, historical data and news sources to estimate its value in the future.