How To Short Bitcoin Cash (BCH)

    • James Page

James HeadshotAuthor: James Page - Last Updated on June 28, 2022

Summary: Shorting Bitcoin Cash is pretty straightforward, all you need is a crypto broker that allows for short selling. While there are a few exchanges out there that have added the ability to short crypto, our recommendation is to use eToro. They’re well-known, have a global presence, and are trusted by millions of users from 100+ countries.

We’ll be using eToro in our guide, you can sign up with one of the sign-up buttons below.

Global: Sign up with eToro

USA: Sign up with eToro US

Bitcoin Cash

Before we get started, let’s quickly explain what shorting is (for those that are new to it). Shorting is the practice of selling a cryptocurrency hoping it will drop in price so you can buy it back later for cheaper… which, if successful, will give you a net profit.

It might sound a bit complex but don’t worry, it’s a lot easier than you might think.

How to Short Bitcoin Cash

Shorting Bitcoin Cash can be done in 4 steps:

  1. Find a crypto trading platform
  2. Sign up with the exchange
  3. Fund your account with fiat or crypto
  4. Short Bitcoin Cash

1. Find a crypto exchange

As mentioned before, for this guide we’ll be using eToro as they offer the ability to short the most common cryptocurrencies.

You can, of course, use any other crypto broker that allows for short selling.

etoro crypto

2. Sign up with the crypto trading platform

Let’s start with creating an account on eToro.

Global: Sign up with eToro

USA: Sign up with eToro US

 

eToro sign up form

The sign-up process is very quick, as is the verification that needs to be completed afterwards so you can get started.

3. Funding your account

Next is funding your account. You have several deposit methods to choose from when depositing funds into your eToro Account. These include a bank transfer, credit card, debit card, PayPal, and more.

4. Short Bitcoin Cash

These are the steps to follow to execute a short sell:

  1. Go to the search bar at the top, find Bitcoin Cash by entering the name.
  2. On the crypto page/section, on the right side, hit the TRADE button to enter the trading interface.
  3. At the top of the trading interface: Click on sell to short the crypto.
  4. Enter the amount for which you want to sell Bitcoin Cash and click on “Open Trade”.

Once you’re ready to close the trade, hopefully when the value of Bitcoin Cash has dropped, go to your Portfolio, find the Bitcoin Cash trade, and click on the red cross to close the trade.

If your assumption/prediction was right, then the profit will be added to your account after closing the trade. If you were wrong on the other hand, you’ll incur a loss which will be debited from your eToro account.

Congratulations, now you know how to short Bitcoin Cash!

Global: Sign up with eToro

USA: Sign up with eToro US

 

Disclaimer: Trading, investing, and dealing with digital and cryptocurrencies might involve a lot of risks. Their prices are volatile and performance is unpredictable. Their past performance is no guarantee of future performance.

Affiliate Disclosure: This site is supported by its users. We may receive commissions for purchases made through the links on our site. This does not impact our reviews, guides or comparisons.

 

Where to Short Bitcoin Cash (BCH)

Aside from eToro, the other major exchange you can use is Binance.

While Binance tends to be a bit more advanced when compared with eToro, they do have a lot more digital assets to trade with.

 

Frequently Asked Questions

Can I short Bitcoin Cash on Binance?

Yes, you can short Bitcoin Cash on Binance. They have over 300 cryptocurrencies on offer, have a decent phone app and a lot of advanced trading features.

About Bitcoin Cash

Bitcoin Cash (BCH), which is a form cryptocurrency, is similar to Bitcoin. Bitcoin Cash was in fact a fork from Bitcoin. It happened because a few Bitcoin developers felt dissatisfied about Bitcoin's overall scaleability.

By a hard fork in November 2018, Bitcoin Cash would be further divided into Bitcoin Cash and Bitcoin SV. Calvin Ayre supported the second group and proposed a different software version called Bitcoin Satoshi Vision. This would reduce block size to 128MB.

The Bitcoin Cash fork occurred on November 15th, 2020. Bitcoin Cash ABC (BCHA), was born as a result of the block #661647 hard fork. Bitcoin Cash ABC has a miners' fee where 8% mining rewards will go to BCHA developers for funding protocol development.

Simply put, the Bitcoin Cash development team was initially unhappy with the decisions regarding Bitcoin's future development. They were dissatisfied about the implementation Segregated Witness. SegWit was viewed by Bitcoin Cash developers as a compromise to decentralization. They believe that Bitcoin could have grown as a currency by increasing its block size. This group created Bitcoin Cash and a plan for a split from the Bitcoin blockchain. It has a block capacity limit of 8MB. Bitcoin decided to implement SegWit. The newly forked Bitcoin Cash however, did not implement SegWit. The Bitcoin Cash block size limit increased from 8 to 32 megabytes on May 15, 2018.

Bitcoin Cash had its chain split on 15 November 2018 within its own network, which resulted in Bitcoin SV. Bitcoin SV's creators argued Bitcoin Cash is not staying true to its original vision and decided to split off to create their coin.

Bitcoin Cash is the result of a Bitcoin Cash Chain Split. This means that it shares many of Bitcoin Cash’s fundamental workings. They even share the exact same history.

All on-chain data from before the split is completed will be inherited due to it being a bitcoin fork. If you were the owner of 1 bitcoin before Bitcoin Cash was created, you will now have 1 BTC, 1 BCH, and both can be signed using the exact same private keys.
Bitcoin Cash is interoperable with Bitcoin Cash. Bitcoin Cash and Bitcoin Cash are not compatible. Two sets of blockchains now hold your bitcoin cash and Bitcoin Cash.

Bitcoin Cash has a different block size limit than Bitcoin Cash. Also, Bitcoin Cash charges a transaction fee. Bitcoin Cash has more blocks than Bitcoin Cash and is therefore easier and quicker to send Bitcoin Cash over the network. Bitcoin Cash advocates claim that Bitcoin Cash serves as a faster and cheaper form of digital money.

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