Bitcoin Cash for beginners:
Step-by-step guide

Bitcoin Cash is the first example of democracy in the world of cryptocurrencies at play.

Prashant Rajkhowa • 25 Sep, 2020
Last updated: 23 Mar, 2022
A gold coin with mechanical details engraved.

Bitcoin Cash came about in 2017 when members of the Bitcoin community split off the Bitcoin blockchain creating their own, independent blockchain or “fork” and named it Bitcoin Cash. As a result of the new blockchain, anyone owning Bitcoin also became owners of the new Bitcoin Cash.

What is Bitcoin Cash?

Bitcoin Cash is a cryptocurrency that was designed to be used as currency to facilitate the exchange of goods and services. Similar to how Bitcoin was designed to decentralise control of global currencies and transactions between people, Bitcoin Cash was also designed for people to be able to exchange Bitcoin Cash between one another without any institution, like a bank, in between.

What’s the difference between Bitcoin and Bitcoin Cash?

Bitcoin Cash came about in 2017 as a reaction to problems with the Bitcoin blockchain. A group of individuals felt that things like the higher transaction fees and slow transfer rate were problems with Bitcoin that needed to be fixed. There were others, however, that believed that the high transaction fees allowed Bitcoin to become as valuable as it is and therefore was part of its appeal.

The disagreement grew further when you brought in the reason why Bitcoin came into existence in the first place. Bitcoin was designed as a currency that was meant for exchange – it was never meant to be purely a store of value, which it has now become. In order for it to function as a currency, it needed to be fast and cheap, otherwise it was no different from the current state of global currencies. This is another reason why Bitcoin Cash broke away from the original Bitcoin blockchain and grew as its own cryptocurrency.

Today, Bitcoin Cash continues to live up to its vision of being a currency to facilitate exchange and it continues to be faster than Bitcoin with lower transaction fees than Bitcoin. The only advantage Bitcoin has over Bitcoin Cash is that Bitcoin is far, far more valuable.

What can I do with Bitcoin Cash?

Bitcoin Cash was designed to be a currency that facilitates payments for goods and services globally. Therefore, Bitcoin Cash currently works exactly like you would expect any kind of currency to work (minus the centralised control of course).

Bitcoin Cash as currency

Several online stores both within Australia and globally, offer the ability to buy goods and pay for them using Bitcoin Cash, exactly like you would with PayPal or a credit card.

Pay your bills with Bitcoin cash

With the Living room of Satoshi, you can pay your regular bills directly using your Bitcoin Cash wallet. Similar to buying things with Bitcoin Cash, the online experience of paying your bills with this cryptocurrency is exactly what you’d expect from any other currency.

Something to invest in

Investing in Bitcoin Cash works exactly the same way as you would invest in gold, shares or Bitcoin. Similar to how you would buy gold, shares or Bitcoin for a certain price and hope that it would become something that could be sold for a higher price, you would do the same with Bitcoin Cash. In this way, Bitcoin Cash is acting like a store of value and the expectation is that that value would increase over time.

How to buy Bitcoin Cash in Australia?

You can buy Bitcoin through any digital currency exchanges. All digital currency exchanges in Australia are regulated by AUSTRAC.

Chillur is an Australian digital currency exchange, registered and regulated by AUSTRAC that simplifies the process of buying Bitcoin in Australia.

You can buy Bitcoin Cash in Australia using Chillur in two easy steps.

Step 1: Create an account

Create your Chillur account using an email address and password. You will then need to verify your identity using either your passport or drivers licence.

Step 2: Transfer funds to your account

Use your banking app or web banking to transfer funds to your Chillur account.

Once the funds settle (1-2 business days), the system will automatically buy Bitcoin Cash (and 9 other cryptocurrencies)

Congratulations! You now own Bitcoin Cash in your Chillur account.

How to invest in Bitcoin Cash?

Investing in Bitcoin is the process of buying Bitcoin Cash today with the expectation that it will go up in value in the future.

Portfolios with Bitcoin Cash have seen returns of 200% after 3 years.

You can invest in Bitcoin Cash using Chillur in three easy steps.

Step 1: Create an account

Create your Chillur account using an email address and password. You will then need to verify your identity using either your passport or drivers licence.

Step 2: Buy the Chillur 10 bundle

Chillur offers bundles of cryptocurrencies. What this means is that rather than picking and choosing which cryptocurrency to buy and at what price, you are able to buy 10 cryptocurrencies in a go. Chillur handles how much and the purchase price.

Step 3: Track your investment performance

Simply login into your Chillur account and track the performance of your portfolio either through a laptop or your mobile phone.

Where do I store my Bitcoin Cash?

Cryptocurrencies storage devices are known as wallets. Broadly, there are two kinds of wallets, hot and cold – Hot wallets are those that are part of the exchanges that you buy the cryptocurrency from and cold wallets are physical devices that have incredibly high encryption allowing you to store your cryptocurrency offline. You can essentially store your cryptocurrency in the safest place in your house – the back of your socks drawer.

At the time of writing this article, there were well over a dozen different types of cold wallets and several dozen more hot wallets that come as part of the cryptocurrency exchange. Bitcoin Cash does not have its own wallet nor does it recommend a specific kind of wallet to store the token. You have the option to store BItcoin Cash in one of several dozen different options including mobile apps and desktop computer apps.

A cryptocurrency cold wallet.

What’s next for Bitcoin Cash?

The Bitcoin Cash roadmap is their defined pathway to Bitcoin Cash to “become sound money that is usable by everyone in the world.” The technical improvements that are currently being worked on include the ability for BItcoin Cash to handle lower and lower transaction fees.

The north star for the Bitcoin Cash roadmap is the ability for the Bitcoin Cash blockchain to be able to handle 5 million transactions per second, up from the current 100 transactions per second. They define this ability as their “mankind scale”. They also plan to secure transactions within 3 seconds with the same low transaction fees and ultimately, Bitcoin Cash wants to allow businesses and developers to be able to trade all kinds of assets on the Bitcoin Cash blockchain.

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