Want to jump straight to the answer? You can buy BCD on Pionex.
Bitcoin Diamond, Bitcoin Cash and Bitcoin Gold are all hard forks of Bitcoin’s blockchain. Since Bitcoin is decentralized, no single entity can upgrade the parameters of the bitcoin blockchain. Each diverging blockchain has different parameters, such as the type of encryption used, the block size and the total amount of coins to be issued.
Bitcoin hard forks occur when a group of bitcoin miners want to change the parameters of the blockchain network. When a blockchain forks, the blockchain is split into 2 separate chains, leaving the original blockchain unchanged. The forked chain can then use the parameters proposed in the fork, and investors can decide to sell their Bitcoin for the new currency if they prefer the forked asset over Bitcoin.
So far, none of these hardforks have gained the majority of support among Bitcoin users. Bitcoin remains the most valuable cryptocurrency by market capitalization, as Bitcoin's robust blockchain network is trusted by millions of users.
What is Bitcoin Diamond?
Bitcoin Diamond is a fork from the original Bitcoin blockchain which occurred on Bitcoin’s 495,966th block. Forks are a branch from an original blockchain, allowing the technology to use different coding parameters. This wasn’t the first Bitcoin fork, however. The most prominent Bitcoin was the Bitcoin Cash fork, which came about from a similar dispute about Bitcoin’s block size back in August 2017.
Bitcoin Diamond aims to be more efficient than Bitcoin. Since Bitcoin Diamond’s code increases the block size of each block to 8 megabytes, its blockchain can handle about 100 transactions per second. While this is a great improvement over Bitcoin’s 7 transactions per second, other cryptocurrencies have a much higher transaction throughput, making some see Bitcoin Diamond as obsolete.
Bitcoin Cash, the 1st major hard fork on Bitcoin’s blockchain, can handle 116 transactions per second through its increased blocksize. While these cryptocurrencies aren’t the same, they're awfully similar, making some investors question whether Bitcoin Diamond was a necessary hardfork.
Brief History of Bitcoin Diamond
Bitcoin Diamond came about in November 2017, just 2 weeks after the Bitcoin Gold Fork. At this point, many cryptocurrency investors became skeptical about whether or not these forks were necessary. Since anyone who owns Bitcoin at the time of a fork is entitled to receive the new cryptocurrency, there is a clear financial incentive for Bitcoin holders to fork Bitcoin’s blockchain.
Transaction fees are generally lower, but the original features remain and transaction capacity increases. As a result, the token is a good move for certain Bitcoin holders who wish to diversify their wallet balances. Yes, this is a popular cryptocurrency, but it has been subject to the same troubles as any other crypto token.
How to Buy Bitcoin Diamond
- Open an online account.
To buy Bitcoin Diamond, you’ll need to sign up for an online account with a crypto trading platform. As Bitcoin Diamond is a small market cap coin, many exchanges don’t support the cryptocurrency. One of the best crypto exchanges that supports BCD is Pionex.
Making a Binance account is a quick and easy process. You’ll need to make a password, provide your email address, and enter your full name to make an account. Once your account is made, you’ll need to verify your account to abide by your government’s legislation. Common documentation needed to begin trading cryptocurrencies include your Social Security number, driver’s license and birthday. - Buy a wallet (optional).
When investing in cryptocurrency, it’s important to store your crypto assets in a safe place. While large exchanges are typically regarded as secure, many cryptocurrency exchanges have been hacked in the past. Cryptocurrency exchanges are prime targets for hackers, as if they find a way to breach the system they can seize the exchange’s funds.
To mitigate this risk, you should store your cryptocurrency on a hardware or software cryptocurrency wallet. Software wallets are typically free, and they’re computer programs that let you securely store your crypto assets. Hardware wallets are physical devices that store your crypto offline, making it the safest way for investors to store cryptocurrency. - Make your purchase.
Once you’ve made an account with a cryptocurrency exchange and decided where to store your Bitcoin Diamond, you’re ready to make your investment. You can buy Bitcoin Diamond in a similar way to buying stocks: as a market or limit buy order. A market order will purchase Bitcoin Diamond at the market price, usually in a matter of seconds. Conversely, a limit order for Bitcoin Diamond will only buy the asset once it drops to a certain price which you specify when placing your limit order.
You Can Buy BCD on Changelly and Pionex
Best Crypto Wallets for BCD
Check out 2 of the recommended software and hardware wallets for Bitcoin Diamond.
Best Hardware Wallet: Ellipal
Ellipal is one of the few cryptocurrency hardware wallets that supports Bitcoin Diamond. The hardware wallet features a touch screen display that lets you easily manage your cryptocurrency portfolio from the device. Ellipal also has mobile apps available on iOS and Android operating systems to use in conjunction with your hardware wallet.
Ellipal is a multicurrency wallet, meaning you can store a variety of cryptocurrencies in a single device. The Ellipal hardware wallet supports Bitcoin, Bitcoin Diamond, Ripple, Ethereum and several other cryptocurrencies.
Best Software Wallet: Atomic Wallet
Atomic Wallet is a decentralized and secure software wallet that holds a multitude of different cryptocurrencies. The wallet is available on Mac and Windows operating systems, but they also have a mobile wallet app for iOS and Android. The wallet is free to use, and Atomic Wallet even offers interest bearing accounts for certain cryptocurrencies.
Bonus:
Bitcoin Diamond hasn’t provided as high of returns as Bitcoin during this bull market. Bitcoin is much more widely seen as a store of value, and network effects make it hard for cryptocurrencies like Bitcoin Diamond to overtake large market capitalization cryptocurrencies.
Trade, Sell or Convert your Bitcoin Diamond
You’re able to trade, sell or convert your Bitcoin Diamond once your cryptocurrency is credited to your crypto exchange. Many investors who trade cryptocurrency compare their returns to the returns of Bitcoin, using it as the “average” return an investor should make when trading cryptocurrency assets. When you want to sell your Bitcoin Diamond, you’ll need to transfer your BCD to your crypto exchange and sell it as a market or limit sell order.
Current Crypto Prices
The current crypto market is colored with the struggles caused by the depegging of Terra and the collapse of FTX. Remember, the market can recover in the future, but there’s no way to know how or when. This may be a time to buy at the dip, but you must research investment to ensure that you feel it can recover its value and give you a positive result. Remember, the current price of the token may sit above its lowest price, but it can be difficult to determine at what rate the token will rise above its lowest level around 10 cents per token.
Is Bitcoin Diamond a Good Investment?
If you were to hold onto your Bitcoin Diamond since its inception, you would have lost most of your investment. While BCD has appreciated with the bull market, most active cryptocurrency projects have shown better returns than Bitcoin Diamond.
Given the risk of low market cap cryptocurrencies, you should expect higher returns during bull markets, as you’re taking on more risk than investing in larger cryptocurrencies like Bitcoin. This hasn’t been the case, and most investors prefer Bitcoin over Bitcoin Diamond due to its mainstream acceptance.