A Complete Guide to Bitcoin Cash (BCH) 💰
Introducing Bitcoin Cash (BCH)
Bitcoin Cash is a cryptocurrency that was created by separating from Bitcoin (BTC) in August 2017. Many people wonder, ""Why did another coin come out of Bitcoin?"", but it's similar to creating a new road because the highway was blocked.
Key Points: Bitcoin Cash is a cryptocurrency that maintains the advantages of Bitcoin while focusing on faster transaction speeds and lower fees. The block size was increased from 1MB to 8MB, allowing for more transactions to be processed at once.
If you actually use Bitcoin Cash, you will feel that transactions are processed faster. Think of it as a significant reduction in waiting time when buying coffee at a cafe or shopping online.
Bitcoin Cash's Birth Background and History
2017 was a year of great change for the Bitcoin community. As Bitcoin users increased rapidly, the network began to become congested. It was like a traffic jam on a normally quiet road suddenly filled with cars.
Two solutions were proposed to solve this problem. One was the technically complex method called 'SegWit', and the other was the simple method of increasing the block size. Eventually, due to differences of opinion, Bitcoin Cash was split into an independent cryptocurrency on August 1, 2017.
Interesting fact: When Bitcoin Cash was created, people who had existing Bitcoins were able to receive the same amount of Bitcoin Cash for free. This was called an 'airdrop', and it felt like receiving a bonus!
How Bitcoin Cash Works and Technical Features
Bitcoin Cash basically uses the same blockchain technology as Bitcoin. However, there are some important differences.
Block size difference: While Bitcoin uses 1MB blocks, Bitcoin Cash initially used 8MB and now can use up to 32MB. This is like using a wider door instead of a narrow one, allowing more people to pass through at the same time.
Transaction fees: Since the block size is larger, there is less competition for transactions, so the fees are relatively low. They are usually a few cents to a few tens of cents, which is much cheaper than bank transfer fees.
Real-life analogy: To understand how Bitcoin Cash works, think about a courier system. If the existing Bitcoin is a method of sending small delivery trucks multiple times, Bitcoin Cash is a method of transporting more items at once with a large truck.
Actual uses and utilization of Bitcoin Cash
Bitcoin Cash is not a theoretical concept, but is actually used in various places. It is already accepted as a means of payment in many stores and services overseas.
Online shopping: You can purchase Amazon gift cards, make payments at various online shopping malls, etc. It is especially convenient when purchasing directly from overseas because you can pay immediately without a currency exchange fee.
Restaurants and cafes: Thousands of restaurants and cafes around the world accept Bitcoin Cash payments. Just scan the QR code and the payment will be completed immediately.
Remittance Service: When you need to send money overseas, you can send it directly without going through a bank. It can save a lot of time and money, especially when sending money to Southeast Asia or South America.
Practical Tips: If you want to find a store that accepts Bitcoin Cash, try the 'AcceptBitcoinCash' website. You can check the map of stores that accept Bitcoin Cash around the world!
Guide to Major Bitcoin Cash Exchanges
When trading Bitcoin Cash, it is important to choose a reliable exchange. I'll introduce you to major domestic and international exchanges.
Domestic exchanges:
• Upbit: It is the largest exchange in Korea, boasting high trading volume and stability. The user interface is intuitive, so even beginners can use it easily.
• Bithumb: It is an exchange with a long history, offering various events and promotions.
• Coinone: It is famous for its excellent security and good customer service.
Overseas exchanges:
• Binance: The world's largest exchange, offering low fees and a variety of trading pairs.
• Coinbase: A leading exchange in the United States, offering a beginner-friendly interface.
Caution: When choosing an exchange, you should comprehensively consider not only fees, but also security, customer service, withdrawal limits, etc. It is also safer to diversify your investments rather than keeping all your assets in one exchange.
Active Bitcoin Cash Community and Ecosystem
Bitcoin Cash is more than just a cryptocurrency, it has an active community and ecosystem. Developers, investors, and users from all over the world are participating together.
Main community platforms:
• Reddit: The r/btc community is full of the latest news and discussions.
• Telegram: You can communicate with users from all over the world through real-time chat.
• Discord: A space for technical discussions with developers.
The Bitcoin Cash community in particular focuses on 'Adoption'. We are working to make it a currency that can be used in real life, not just for speculation purposes.
How to contribute to the community: You can contribute to the Bitcoin Cash ecosystem even if you have no development experience. Just suggesting that stores introduce Bitcoin Cash payments or letting people around you know about it can be a huge help!
Guide to choosing a safe Bitcoin Cash wallet
Choosing the right wallet is important to keep your Bitcoin Cash safe. There are various options depending on your usage and level of security.
Software wallets:
• Electron Cash: This is the most widely used Bitcoin Cash wallet. It supports both PC and mobile, and is easy to use.
• Bitcoin.com Wallet: It provides a beginner-friendly interface and can be easily downloaded from the App Store.
Hardware Wallet:
• Ledger Nano S/X: A hardware wallet that provides high security and is suitable for storing large amounts of Bitcoin Cash.
• Trezor: A hardware wallet that is easy to use and highly secure.
Wallet selection tips: If you frequently use small amounts, I recommend a mobile wallet, and if you want to store them for a long time, I recommend a hardware wallet. And be sure to write down your backup phrase (seed phrase) in a safe place!
Things to know when investing in Bitcoin Cash
If you are considering investing in Bitcoin Cash, there are a few important things to know in advance. Cryptocurrency investment has different characteristics from existing stock or real estate investments.
Volatility Risk: The cryptocurrency market operates 24 hours a day and the price fluctuations can be very large. It is common for prices to fluctuate by 10-20% in a day, so it is important not to react emotionally.
Checklist before investing:
• Invest only with spare funds that do not affect your living expenses.
• Constantly monitor market news and technological developments.
• Consider splitting your purchases rather than investing a large sum at once.
• Set your investment goals and stop loss in advance.
How to gather information: Gather information through reliable news sites, official announcements, communities, etc. In particular, be careful not to be swayed by rumors or speculative information on social media.
Long-term perspective: The value of Bitcoin Cash depends not simply on speculative demand, but on the expansion of actual usage and technological advancements. Therefore, it is important to consider the long-term outlook rather than short-term price fluctuations.
This concludes our complete guide to Bitcoin Cash (BCH)!
I think Bitcoin Cash is more than just an investment; it is an important technology that will lead the future digital economy. If you have any questions or need more information, please leave a comment at any time! I support your cryptocurrency journey! 🚀💎