Segwit and CEX.IO: How CEX Exchange Can Be Beneficial After Introduction of SegWit?
CEX.IO is a popular Bitcoin exchange platform and a former cloud mining provider. This platform was founded in London in 2013. It acts as an online exchange platform for digital currencies, namely Bitcoin and Ethereum.
On CEX.IO, you can trade bitcoins for fiat money, such as EUR, USD, RUB, and GBP. With the exchange fees ranging between 0% and 0.2% as commission for its trade operations, CEX.IO is a very affordable digital currency exchange.
What is SegWit?
Before we move on, let us explain you what SegWit really is and how it affects the digital currency industry. SegWit is a short form for Segregated Witness. In simple words, SegWit is the process by which the limit of block size on a blockchain is boosted by removing the data consisting of signatures from Bitcoin transactions. Through this, the space in a blockchain is freed up and thus it allows users to add more Bitcoin transactions to the Blockchain.
Wondering how SegWit or Segregated Witness got its name? Segregated means separated and Witness in Bitcoin transactions refers to the signatures of Bitcoin holders. So, when you separate signatures from the transaction, it is known as Segregated Witness or SegWit in short.
Advantages of SegWit to Bitcoin users
Now, the question is what you, as a user of digital currency, can expect from SegWit or how it can benefit you. There are a few benefits of SegWit. First of all, SegWit reduces the overall file size of Bitcoin transactions. This, in turn, allows users to add more Bitcoin transactions to one block.
And, since the file size of transactions is smaller, it results in faster confirmation of transactions. The small file size will also lead to low transaction fees for every Bitcoin transaction that users make. All of this will escalate the Bitcoin network.
August 1, 2017: The date when SegWit kicked off
Now that you know what SegWit is and how it can benefit you, let us discuss how CEX.IO is adapting to change after it. The whole cryptocurrency industry was gearing up for August 1, which potentially held an important stance for every Bitcoin user and holder. This was the date when SegWit was going to be implemented, hence improving the scalability of the Bitcoin network. However, SegWit was partially implemented on August 1st.
In spite of the fact that most of the community opted for BIP 91 blockchain, thus resulting in a smooth process and continuation of Bitcoin usage in the normal way, the hard fork has occurred and eventually split the Bitcoin blockchain into two different chains. And thus, a brand-new cryptocurrency called Bitcoin Cash has entered the scene. So, now we have “two Bitcoins”: original Bitcoin with the launched and now (since August 25) activated SegWit upgrade and Bitcoin Cash – a cryptocurrency coin with a separate blockchain and its own upgrades made by certain Chinese miners. Basically, Bitcoin Cash is just another cryptocurrency token on the market. The only difference is that both of them share the same transaction history before the hard fork, but have their ways parted after it.
How was hardfork felt by CEX.IO users?
CEX.IO provided Bitcoin splitting services to its users. This took away the stress associated with the hard fork. Bitcoin holders, who didn’t have a clue about how they had to split their Bitcoins and how they needed to adapt to SegWit after August 1, were given the possibility to feel at ease with CEX.IO.
Those who had deposited their Bitcoins 12 hours before the hard fork on CEX.IO, were provided with two versions of Bitcoin, as well as new private keys and wallets at the exchange. Moreover, CEX.IO credited the Bitcoin Cash tokens to their users’ accounts in accordance with the Bitcoin balance they had before the hard fork. Considering the fact that the price for Bitcoin Cash started at about $700, the coin split turned out to be somewhat free money for its users.
Bitcoin Cash services on CEX.IO
The situation on August 1 was far from being a standard one. All the decisions were made promptly. So, by the time coin split occurred, every CEX.IO user had a certain amount of Bitcoin Cash tokens in the wallet. The next step was to let users sell their BCH coins, or buy more if they wish to.
- Bitcoin Cash trading
CEX.IO was one of the first exchanges on the market to launch the trading of Bitcoin Cash for Bitcoin and fiat currencies, namely USD, EUR, GBP. The volatility of the “new Bitcoin” at its initial stages gave the traders an opportunity to make profit. That’s why it was a matter of great importance to launch BCH trading as soon as possible.
- Bitcoin Cash deposits and withdrawals
A while later, just after CEX.IO experts had been fully confident of the stability of the Bitcoin Cash network, the BCH deposits and withdrawals were enabled. So, now CEX.IO offers a full range of services related to Bitcoin Cash. You can easily deposit or withdraw it, try yourself in BCH trading, or simply hold it within the exchange. Let’s see, maybe soon we’ll have a possibility to double our trading profits if the exchange finds it profitable to launch Bitcoin Cash margin trading.
SegWit was activated on August 24: What should a user know about it?
The activation of SegWit was completed on August 24, but the exchanges and wallets needed some time to keep up with it. So, a couple days later CEX.IO updated its platform according to the SegWit.
Note that after the SegWit implementation the original Bitcoin addresses have changed! However, the users will have no worries with CEX.IO. The funds will be easily credited to your account even if they were deposited to the old Bitcoin addresses. Make sure you use new addresses from now on to reap the benefits of SegWit.
The hard fork and SegWit has made it clear that you don’t need to worry about anything if you hold your Bitcoins on CEX.IO. These were nonstandard solutions and no one was sure how all this would end. In this way, CEX.IO has proved the status of a trustworthy exchange that takes care of the funds of its users.