Introduction
After learning everything about trading Bitcoin in eToro, you now need to understand all the details involved in trading Bitcoin Cash, another cryptoasset that is available on their platform.
Remember: Bitcoin Cash is different from Bitcoin and this article will discuss everything about this specific cryptocurrency including its history, function, investment opportunities and how you can trade this asset with eToro.
77% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
Cryptoasset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
What is Bitcoin Cash?
Just like Bitcoin, Bitcoin Cash is a cryptocurrency that has its own set of blockchain. It operates similar to a digital currency wherein a new BCH is created from Bitcoin Cash mining.
It was developed in August 2017, from a fork of Bitcoin. A "fork" is generated after the original code of a blockchain of Bitcoin is updated but only after a few the nodes—not all—accepted the update.
This results into a creation of a new node that split from the original blockchain (Bitcoin). The new blockchain (Bitcoin Cash) becomes a separate and unique coin.
Holders of Bitcoin or the original coin during the creation of the fork, will automatically receive a "forked version" of the Bitcoin they currently hold. So, when Bitcoin Cash was forked from Bitcoin, anybody who are keeping 20 Bitcoin (BTC) for example, will also be automatically given the same number of BCH.
Simply say: "Bitcoin Cash is like a new version of Microsoft Word, which generates documents that can no longer be opened via the older versions" as described by the Hong Kong newspaper South China Morning Post.
Because of the growing demand of Bitcoin among investors, Bitcoin Cash was created to allow a bigger block size as compared to Bitcoin. The creation of Bitcoin Cash allowed more transactions to be stored in a single block.
Bitcoin Cash may differ in philosophical functions than Bitcoin, both still share many technical parallels. Bitcoin and Bitcoin Cash applies the same "consensus mechanism" and has a supply cap of 21 million.
Bitcoin Cash Transaction
As Bitcoin transaction fees grew more expensive because of its 1MB block size limit, Bitcoin Cash has remedied this by able to increase the capacity of blocks to 8MB and 32MB, thereby allowing more processing of transactions per block.
In September 2018, for example, Bitcoin Cash registered a total of 25,000 transactions on the Bitcoin Cash blockchain as compared to the 1,500 capacities per block of Bitcoin.
Difference Between Bitcoin Cash and Bitcoin
To make things clearer, here are the summary of the difference between Bitcoin and Bitcoin Cash:
- Bitcoin Cash cost cheaper transfer fees at a low average of $0.20 per transaction. Obviously, investing and making transaction in BCH will help you save up more funds as opposed to transacting on Bitcoin (BTC).
- Bitcoin Cash has a faster transfer times
- Bitcoin Cash processes more transactions per second.
- Bitcoin Cash block (located in the blockchain) is eight times larger than a Bitcoin block.
However, despite these differences favoring Bitcoin Cash, Bitcoin is still the most popular cryptocurrency representing 57.3% of the whole crypto currency industry.
Bitcoin Cash Fork
In November 2018, Bitcoin Cash undergone a hard fork, that resulted into the creation of two new splits of Bitcoin Cash: Bitcoin Cash ABC and Bitcoin Cash SV.
Trading Bitcoin Cash on eToro
Aside from trading Bitcoin on eToro, you can also trade Bitcoin Cash by using the app on your mobile phone, desktop computer and tablet.
How to Learn Trading Bitcoin Cash by Using the App?
By using eToro, you can easily gain knowledge on how to trade Bitcoin Cash by applying the following:
- Follow countless successful and skilled Bitcoin Cash traders by using the CopyTrader feature
- Participate in live discussions about Bitcoin Cash and crypto market trends
- Maximize the use of your $100,000 virtual fund in your practice account
- You can have access to video tutorials, read blog posts and join live hangouts discussing topics involving Bitcoin Cash
How to Trade Bitcoin Cash on eToro?
To start trading Bitcoin Cash on eToro, simply follow these steps:
- On your eToro dashboard, click "Discover".
Clicking "Discover" on eToro - Select "Crypto".
Selecting "Crypto" on eToro's platform - Scroll down to look for "BCH".
Looking for Bitcoin Cash on eToro's list of crypto assets - Click "Buy" and set the amount you want to invest.
 on eToro's platform.webp)
Buying Bitcoin Cash (BCH) on eToro's platform - Click "Open Trade".
Executing BCH buy order on eToro
Withdrawing Bitcoin Cash
You can withdraw Bitcoin Cash and other eToro-traded cryptocurrencies on the platform to an external storage via the eToro Wallet. This digital wallet is an app available for both Android and iOS devices.
Bear in mind: Your eToro Wallet username and password should match your trading account's login credentials.
Bitcoin Cash Wallet
The eToro Wallet is a crypto wallet that can store Bitcoin Cash securely.
eToro’s Bitcoin Cash wallet can also be used to send and receive BCH other supported cryptocurrencies from other wallets. Take note that this is an online wallet and not the same as a hardware wallet, which is offline by nature.
Bitcoin Cash (BCH) Spread
The spread of Bitcoin Cash on eToro is at 1.90% for both real cryptocurrency and crypto CFD trading.
Minimum Withdrawal of Bitcoin Cash and Withdrawal Fee
The minimum withdrawal of Bitcoin Cash in eToro is 0.18 BCH and the withdrawal fee is 0.001 BCH.
Bitcoin Cash CopyTrader
You can also use the CopyTrader feature of eToro when investing and trading Bitcoin Cash. The patented CopyTrader technology of eToro will allow you to mimic the trading strategies of the most successful and knowledgeable traders using the app.
Bitcoin Cash Insights
When you start trading Bitcoin Cash on eToro, you will get the freshest updates from eToro's partner financial news sources as well as access to trading insight reports from eToro's Bitcoin Case market analysis team.
Is Bitcoin Cash a Scam?
Definitely not. All Bitcoin Cash trading-related activities on eToro follows all regulations and laws and licensed by various financial regulators worldwide.
Trading Hours for Bitcoin Cash
The trading hours for cryptocurrencies such as Bitcoin Cash, happens 24 hours, 7 days a week on the eToro platform. This is different to stocks, ETFs, commodities, indices and currencies, which have specific opening and closing hours.
Bitcoin Cash (BCH) Value
You can get real-time updates on the price of Bitcoin Cash (BCH) on your eToro dashboard by simply searching for it or viewing it on your portfolio if you already invested on it, 24 hours and 7 days a week.
eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.
Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
Past performance is not an indication of future results. Trading history presented is less than 5 complete years and may not suffice as basis for investment decision.
Copy Trading does not amount to investment advice. The value of your investments may go up or down. Your capital is at risk.
Cryptoasset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.