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Bitcoin Cash (BCH)

Trading Term

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Bitcoin Cash emerged in 2017 as a fork of Bitcoin to allow higher transaction throughput. It is mined and primarily used for everyday digital payments. Unlike Bitcoin, it prioritizes lower fees and transaction capacity over scarcity. Some investors are attracted to Bitcoin Cash for its focus on payment utility rather than long-term value storage. Trades settle on the Bitcoin Cash blockchain, generally within about an hour.

For example, BCH may be used for low-fee, daily payments, such as buying a cup of coffee using 0.001 BCH. BCH transactions occur on a Bitcoin Cash blockchain with larger block sizes than Bitcoin, reducing fees and speeding up confirmations; it is optimized for faster, cheaper payments than BTC.

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Bitcoin Cash (BCH) is a payment‑focused digital asset subject to high price volatility, adoption and network risks (including forks and upgrades), irreversible transactions reliant on private keys and cybersecurity, variable fees and confirmation times, evolving regulatory treatment, and potential liquidity constraints.

Trading in digital assets, including cryptocurrencies, is especially risky and is only for individuals with a high risk tolerance and the financial ability to sustain losses. For more information about the risks surrounding the trading of Digital Assets please see the “Disclosure of Risks of Trading Digital Assets“.

IB is not party to any transactions in digital assets and does not custody digital assets on your behalf. All digital asset transactions occur on the Paxos Trust Company (“Paxos”) or Zero Hash LLC (“Zero Hash”) exchanges. Any positions in digital assets are custodied solely with Paxos or Zero Hash and held in an account in your name outside of IB.

Digital assets held with Paxos or Zero Hash are not protected by SIPC.

For more information about eligibility to trade digital assets with Paxos or Zero Hash, please see the FAQ.

Zero Hash LLC and Zero Hash Liquidity Services LLC are licensed to engage in Virtual Currency Business Activity by the New York State Department of Financial Services.

INTERACTIVE BROKERS LLC IS A MEMBER OF NFA AND IS SUBJECT TO NFA’S REGULATORY OVERSIGHT AND EXAMINATIONS. HOWEVER, YOU SHOULD BE AWARE THAT NFA DOES NOT HAVE REGULATORY OVERSIGHT AUTHORITY OVER UNDERLYING OR SPOT VIRTUAL CURRENCY PRODUCTS OR TRANSACTIONS OR VIRTUAL CURRENCY EXCHANGES, CUSTODIANS OR MARKETS.

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