Coinbase has officially enabled full support for Bitcoin Cash (BCH) on its exchange and wallet services, fulfilling its promise to integrate the cryptocurrency by the end of 2017. This move allows users to buy, sell, send, and receive Bitcoin Cash alongside other major digital assets like Bitcoin, Ethereum, and Litecoin.
The decision to add Bitcoin Cash followed months of evaluation. Coinbase assessed factors such as network security, developer activity, market stability, and community support before proceeding. The integration marks a significant step for the cryptocurrency, which originated from a hard fork of the Bitcoin blockchain in the summer of 2017.
However, the rollout encountered initial challenges. Shortly after launch, the price of Bitcoin Cash on Coinbase briefly surged to an unprecedented $8,500—far exceeding its typical market value of around $3,500 at the time. The exchange attributed this volatility to a technical glitch and responded by canceling all orders placed at the inflated rate. Trading was temporarily paused to stabilize the market.
To maintain trust, Coinbase emphasized its strict internal trading policies. Company employees had been prohibited from trading Bitcoin Cash for several weeks prior to the launch to prevent any potential conflicts of interest or insider trading allegations.
Full functionality for sending and receiving Bitcoin Cash was restored quickly. Buying and selling options became available after sufficient liquidity was established on GDAX, Coinbase’s professional trading platform, with support for multiple fiat currencies including USD, EUR, GBP, CAD, AUD, and SGD.
What Is Bitcoin Cash?
Bitcoin Cash is a cryptocurrency that emerged from a hard fork of the original Bitcoin blockchain. It was created to address scalability concerns by increasing the block size, allowing for more transactions per block and lower fees. While it shares much of its history with Bitcoin, it operates as a separate digital asset with its own community and development roadmap.
Why Did Coinbase Support Bitcoin Cash?
Coinbase’s decision to support Bitcoin Cash was driven by careful analysis of its market maturity and technical robustness. The exchange evaluated:
- Network Security: Ensuring the blockchain was resistant to attacks.
- Community and Developer Engagement: Assessing ongoing support and updates.
- Liquidity and Trading Volume: Confirming sufficient market activity.
- Price Stability: Monitoring volatility trends to protect users.
This cautious approach aims to provide a secure and reliable trading environment for customers.
How to Use Bitcoin Cash on Coinbase
Users can now interact with Bitcoin Cash through Coinbase’s web platform and mobile apps. Available functions include:
- Buying BCH with fiat currency
- Selling BCH for supported fiat
- Sending BCH to external wallets
- Receiving BCH from other users
For those looking to dive deeper into cryptocurrency trading strategies, you can explore advanced exchange features designed for both new and experienced users.
Frequently Asked Questions
Is Bitcoin Cash the same as Bitcoin?
No, Bitcoin Cash is a separate cryptocurrency that split from Bitcoin via a hard fork. While they share a common origin, they differ in technical parameters like block size and have independent development teams.
Why did Bitcoin Cash’s price spike on Coinbase at launch?
The initial price surge was due to a technical glitch within the Coinbase exchange system, which caused abnormal trading activity. The issue was quickly addressed, and affected orders were canceled.
Can I trade Bitcoin Cash with any fiat currency on Coinbase?
Yes, Coinbase supports buying and selling Bitcoin Cash with several fiat currencies, including USD, EUR, GBP, CAD, AUD, and SGD.
Are Coinbase employees allowed to trade Bitcoin Cash?
No, Coinbase enforced a strict internal policy that prohibited all employees from trading Bitcoin Cash in the weeks leading up to and following the launch to prevent insider trading.
What is required before buying or selling Bitcoin Cash on Coinbase?
The exchange requires sufficient liquidity on its GDAX platform to enable smooth trading. This ensures fair pricing and execution for all users.
How does Bitcoin Cash improve upon Bitcoin?
Bitcoin Cash features a larger block size, which allows it to process more transactions per second and typically results in lower transaction fees compared to Bitcoin.
The addition of Bitcoin Cash to Coinbase represents a notable expansion of the platform’s offerings, providing users with more options in the evolving cryptocurrency landscape. As with any new asset, users are encouraged to conduct their own research and consider market risks before trading. For those ready to take the next step, you can discover more trading tools and resources to enhance your crypto experience.