Bitcoin Cash (BCH) was launched in 2017 after a hard fork of Bitcoin. It raised the block size compared to the original network, allowing more transactions to be handled and enhancing scalability.  The larger block size helped bring Bitcoin Cash to the attention of crypto enthusiasts. Today, BCH sits among the top 20 cryptocurrencies and has become one of the better-known Bitcoin forks.

At the same time, Bitcoin Cash keeps several core traits in common with Bitcoin. It is deflationary, featuring a capped supply of 21 million coins that can be created, and it continues Bitcoin’s 10 minute block production interval. BCH also uses the same mining approach as BTC, both relying on the SHA-256 hashing algorithm.

What are BCH key features and how does it work?

On the technical side, Bitcoin Cash operates in a similar way to Bitcoin. Both networks have a hard cap of 21 million coins, rely on nodes to validate transactions, and use a PoW consensus model. With PoW, miners confirm transactions using computational power and earn BCH rewards for their work.

Bitcoin Cash, however, is designed to be faster and to charge lower transaction fees than its predecessor due to the larger block size. That makes it more suitable for moving smaller amounts of data. BCH also includes support for smart contracts, which Bitcoin does not provide.

Bitcoin Cash also stands apart from bitcoin because it does not use Segregated Witness (SegWit). SegWit aims to increase the blockchain’s effective block size limit by removing signature information from transactions. By doing so, it creates space for additional smaller transactions and can lead to quicker processing.

How can you mine Bitcoin Cash?

Bitcoin Cash runs on the Proof-of-Work consensus mechanism, so miners can generate new BCH to help secure the network and earn rewards. The mining reward is reduced every 4 years or when 210,000 blocks have been mined-whichever happens first. Miners also collect the transaction fees paid by users.

Bitcoin Cash can be mined in multiple ways: on your own, by joining a Bitcoin Cash mining pool, or through cloud mining.

Some miners repurpose older laptops. In that case, the right software matters-miners should select tools that can best leverage their hardware performance against BCH’s SHA-256 algorithm. ASIC machines are able to mine BCH efficiently.

That said, because advanced mining software is built to achieve very high hash power, solo mining is unlikely to be profitable without investing in a high-end mining setup or running a full node. For solo miners to compete for block rewards, the system needs an extremely strong hash rate.

In many cases, pool mining or cloud mining offers the best earning potential. Pool mining means you run mining software and contribute your computing power by joining a pool. With combined hash power, the pool typically has a better chance of finding blocks. However, because you’re only contributing a portion, your reward share is smaller-though it can be paid more regularly. 

Cloud mining generally avoids upfront spending on mining software. Instead, you lease computing power from another person or organization and pay recurring fees. Typically, you purchase a contract for a set length of time, while the ASIC owner carries out the mining, and rewards are defined in the agreement.

Where can you buy BCH?

BCH can be purchased on the listed CEXs and DEXs here. HitBTC and DragonEX are among the most popular choices, noted for high trading volume.