How our Bitcoin Cash calculator works
Bitcoin Cash came into existence to solve some of the major problems with Bitcoin – essentially low transaction speed and scalability. It is meant to be used as peer-to-peer cash – with low fees and reliable confirmation.
As the process of using Bitcoin Cash is meant to be quick, it is important to have a tool where you can find out the price equally promptly. Our Bitcoin Cash calculator allows you to access information on prices instantly in comparison to world currencies. You can either find out how much your Bitcoin Cash is worth – by multiplying your number of Bitcoin Cash tokens with the value – or you can find out how much it would cost to buy a certain number of Bitcoin Cash.
Obviously, the mathematics behind our Bitcoin Cash calculator is simple. However, the importance of this tool is that it offers real-time data and is therefore up-to-the-minute accurate. In the volatile world of cryptocurrencies nothing can be more important. The Bitcoin Cash calculator takes information direct from the exchanges and does the sums instantly – meaning you have the information you need to make judgements about your investment.
What does converting Bitcoin Cash mean?
Bitcoin Cash (BCH) is a fork from Bitcoin (BTC) and they work independently of each other. Like with Bitcoin, the process of converting is essentially a matter of buying and selling the token. There is a practical application for Bitcoin Cash. The idea is that you should easily be able to pay for services, goods and wages to employees using the currency – now that transactions are quicker and cheaper.
The holding of Bitcoin Cash, like all cryptocurrency, is a speculation and can feel a lot more like the purchase of stocks and bonds than the storing of digital currency. The point of buying and selling is hope for an appreciation in the value of the token. This is the only way you would profit from the Bitcoin Cash – as there are no other pay outs available.
Bitcoin and Bitcoin Cash are slightly different from other tokens in that it is becoming increasingly common for people to be able to use the currency within transactions. This means it becomes a lot more like the dollar bill than other digital assets. Therefore, your Bitcoin Cash wallet can act almost like a bank account.
How can you convert your Bitcoin Cash?
Buying and selling – or the act of converting your Bitcoin Cash – tends to happen at an exchange. An exchange is an online site that facilitates peer-to-peer transactions. It is from these exchanges that the current price for an individual token is determined and therefore it is from such a site that the information for the Bitcoin Cash calculator is obtained.
When using an exchange, it is important to do your research to check you have a valid site for your transaction. Cryptocurrency can feel something like the Wild West at times – and therefore it is important to be vigilant regarding the organisations you work with.
When researching your exchange, you need to consider reliability, trust and liquidity. Most trusted and reliable exchange sites will inform you of the regulatory body that oversees their work. The sites are not like the currencies themselves, they should not resist regulation. Most US-based sites will be regulated by state-level financial bodies, for instance.
Another concern should be the level of protection offered by sites against hacking and security breaches. Some well-known sites have been brought down by criminals who have wiped clean people’s stores of digital tokens. Therefore, it is important that your site has either security features, insurance against loss – or both.
Most sites will have some form of cold storage. This sounds a little archaic in the digital world – as archaic as storing codes for digital currency in paper wallets – but it happens! Cold storage is the process of holding details of the Bitcoin Cash offline, well away from the prying hands of the hackers and thieves. Most sites will store up to and beyond 95% of all assets this way. This might make liquidity an issue – as tokens may not be available for transactions. However, with billions in circulation it is unlikely your transaction will cause too many problems.
To convert your Bitcoin Cash, you will also need a wallet within which to store your currency and then later sell it on. This is standard for cryptocurrencies.
Another way to convert your Bitcoin Cash is to use a Bitcoin Cash convertor – this essentially means that you are using an exchange – but you are likely to have to make less clicks of the mouse!
When should you convert your Bitcoin Cash?
This is a difficult question to answer. The biggest issue facing Bitcoin and Bitcoin Cash users is that the other coin exists. Bitcoin Cash was created to solve the scalability and transaction speed issues of its Big Brother. However, having both exist, with Bitcoin Cash being a major fork from Bitcoin, could cause future depreciation.
Currently, the renown and the usability of Bitcoin Cash means that its value, like any other cryptocurrency, has spiked. If you had been using your Bitcoin Calculator you would have seen the value of a single Bitcoin Cash token rise and rise. However, how long this can continue – with both currencies competing for the same space – it is hard to predict. Therefore, this makes the question of when to convert your Bitcoin Cash difficult to gauge. However, with organisations allowing transactions in BCH, with some people being paid wages in the currency and with a constant drip of supply into the system, it is likely that the currency will continue to appreciate for some while.
The reason to use our Bitcoin convertor would be to give you access to the latest information, which would then empower you to make the best judgement possible about your investment.