Learn Where & How to Buy Bitcoin Cash (BCH) - A Beginner's Guide
Introduced in 2017, Bitcoin Cash (BCH) is a fork of the original Bitcoin cryptocurrency that solves the problem of slow transaction processing by increasing the size of the block. A bigger block can accommodate and process more transactions making Bitcoin Cash a more viable digital currency alternative.
If you are looking to buy and sell Bitcoin Cash tokens that are denoted by BCH, you need to ensure that you have a robust strategy to hold your coins in a secure manner. This guide will take you through the process of how to purchase Bitcoin Cash.
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3 Things to Consider Before Buying Bitcoin Cash
Although Bitcoin is the most popular cryptocurrency right now, it has become more of an asset as compared to a currency due to expensive and slow transaction processing. This is why Bitcoin Cash has more future potential when it comes to playing the role of a digital currency and substituting fiat money. Just like Bitcoin, BCH is also decentralised with no central authority controlling the network and its affairs.
While volatility is common in cryptocurrency markets, Bitcoin Cash is one of those rare tokens that are comparatively stable and have seen consistent growth over the last few months. It means that while it may not provide the sudden surges and falls for a short-term investment, it is well-suited for a long-term investment strategy where traders want to hold on to the BCH coins for months or even years to maximise their profits.
Loyal & Dedicated Community
Being the offspring of the original cryptocurrency, i.e. Bitcoin, BCH also comes with a highly loyal and committed community of software engineers, developers, supporters, and investors who firmly believe in the BCH token and its success. This means that Bitcoin Cash will have exceptional financial and strategic backing in the near future, which makes it a great investment prospect.
Where to Buy Bitcoin Cash in 2021?
When it comes to cryptocurrencies such as Bitcoin Cash, you need to understand that there are more than one ways to invest in altcoins. The first group of investors is those who believe in the project and hold onto their tokens for a long time to materialise big gains. The second group of traders are day-to-day investors who want to use the volatility of the market to make quick profits in the short term.
If you are a long-term strategic investor who wants to buy BCH coins, you need to keep the following points in mind:
You will need to choose a reliable and regulated crypto exchange
You will need to have a dedicated crypto wallet for secure BCH storage
You will require a disciplined investment strategy
If you are a short-term day-to-day trader who wants to buy and sell BCH tokens for quick gains, you have to comply with the following guidelines:
You will need to pick a reliable and regulated crypto broker
You will need to research and do your homework about BCH
You will need to control your emotions so you can manage your risk
Our Tutorial to Buy/Trade Bitcoin Cash in 5 Steps
The following steps will tell you how you can start buying Bitcoin Cash, both with crypto brokerages and crypto exchange platforms.
Step 1: Find an Appropriate Platform to Buy/Trade Bitcoin Cash
If you are a long term investor, you will need to own the BCH token for which you will need to choose a regulated and feature-rich cryptocurrency exchange. The platform will sell you Bitcoin Cash which you can hold, own and sell anytime you want. On the other hand, if you are a day trader looking to earn a secondary income, you will need to choose a regulated and reliable brokerage website. Here, you will not own the BCH tokens. Instead, you will deal with financial instruments like contracts for difference (CFDs) and options.
For example, eToro and Plus500 are two of the most prominent crypto brokers, while Binance and Coinbase are famous crypto exchanges. But all of them are somewhat different from each other when it comes to key features. You will need to learn about service quality, regulatory compliance, fee structure and reputation before you select a crypto platform to find the best place to buy/trade Bitcoin Cash for you.
Step 2: Registration / Create a New Account
After deciding which cryptocurrency broker or exchange you are going to go with, you will need to sign up on the platform using your name, password and other credentials. If it is a regulated platform, they will also ask you to prove your identity through a document such as an ID card or driver's license.
Keep in mind that there are cryptocurrency exchanges and brokers that don't require as much documentation, but they are quite risky as well as they don't comply with legal regulations.
Step 3: Deposit Funds
After registering your account with your preferred cryptocurrency exchange or broker, you need to deposit funds to start investing. Bear in mind that all the platforms offer a wide variety of payment methods including debit and credit cards, wire transfer and online payment modes. You have to assess the cost, ease of use and processing time of each payment mode before you make your final decision.
You also need to be aware of the fact that different crypto platforms set a different minimum deposit limitation. For example, Skilling has a minimum deposit limit of $100, while Pepperstone doesn't ask for any deposit at all.
Step 4: Start Trading or Buying Bitcoin Cash
Once you have gone through all the above steps, it is time to buy your BCH tokens. If you are going for a short-term investment strategy, your broker will offer you a variety of financial instruments such as CFDs of Bitcoin Cash. On the other hand, if you have gone with the long-term investment plan, you can directly buy and own BCH tokens from your preferred cryptocurrency exchange.
It is interesting to note that some platforms such as eToro have established themselves as a cryptocurrency broker as well as an exchange. It means that whether you have a short or long term investment plan, you can trade on a single platform. Just make sure that you are not using advanced features like leveraged trading that allows you to put more money on the line than you have deposited.
Step 5: Optional Steps
Now that you have started to invest in Bitcoin Cash, you need to be aware of the available options:
- Moving funds to a wallet:
For day-to-day traders, it may not be necessary but long-term investors may want to move their BCH funds to software or a cold wallet for better security.
- Participate in staking:
If you believe in the Bitcoin Cash network and what the community has been doing, you can put your BCH tokens in certain wallets in order to financially support the operational and development aspects of the BCH network.
- Sell high, rebuy low:
For making as much profit as possible, you need to observe the BCH market and prices closely. Never buy any cryptocurrency, including BCH when there is a price surge and let the market cool down. Once the price has hit the floor, it's a better time to invest in Bitcoin Cash. Then when the price of Bitcoin Cash goes up, you can sell your coins to make money. You may continue this process with high precision for consistent profits.
Available Payment Methods for Buying Bitcoin Cash
There are many payment modes available that are supported by a wide range of cryptocurrency exchanges and brokers. Some of the most popular and highly used payment modes to buy Bitcoin Cash include the following:
- Buy Bitcoin Cash with Cash
If you are looking to buy Bitcoin Cash with cash, you need to find the nearest Bitcoin Cash ATM or teller service to do so. Use CoinATMRadar.com to locate the nearest ATM and buy your tokens.
- Buy Bitcoin Cash with Credit / Debit Card
- Buy Bitcoin Cash with Bank Transfer
For buying Bitcoin Cash with bank transfer, you will need to check whether the crypto platform you have chosen supports the payment method in your region or not. That being said, Coinmama has the widest accessibility and supports almost all countries.
- Buy Bitcoin Cash with Cryptocurrency
- Buy Bitcoin Cash with PayPal
Although many investors would love to pay with PayPal for buying BCH, unfortunately, the digital payment service isn't available in many countries due to regulatory issues. The US citizens can, however, use PayPal services for purchasing cryptocurrencies.
What Are the Fees for Buying Bitcoin Cash?
It depends on where you live and which crypto platform and payment method you choose. Bank transfer is usually the most affordable payment mode, but it can also be time-consuming. You will pay up to a 2% transaction fee. If you want quick processing and convenience of credit and debit cards, you can do so, but it can set you back up to 10% of the order amount. You have to keep these expenses in check to ensure your profit margins are not being cannibalised.
Expert Tip to Buy and Sell Bitcoin Cash“ Whether you are an amateur crypto investor or just starting out, if you want to become a master in your field, you need to do your homework and refrain from making instinctive calls that are driven by pure emotion. If you miss an opportunity, don't beat yourself up for it. The crypto market is highly volatile, and the next opportunity will be knocking on your door in a day or two. Wait out the price instead of getting caught up in FOMO (fear of missing out) and try to sell as high as possible. Whatever you do, always manage and minimise your risk. ”
How to Find the Best Time to Buy Bitcoin Cash
There is no one best time to buy Bitcoin Cash or any other cryptocurrency. You have to identify your moments by learning about the digital currency you are interested in and watching price movements. After you have done so for a while, you can start practising trading with small amounts, and you will find yourself getting better and better at identifying trends, and reading charts.
What Drives the Coin’s Price?
There are a variety of factors that drive the coin price but keep in mind that there is no single central regulatory authority that controls or influences the price in any way. It is always dictated by market forces including demand and supply and social as well as political factors such as views of opinion leaders, rumours, political news and new social developments.
How to Sell Bitcoin Cash
If you think the time has come to sell your Bitcoin Cash to make a profit, you can sell your BCH tokens in three different ways:
Cryptocurrency Exchange - If you are holding BCH tokens, you can sell them on your preferred cryptocurrency exchange for fiat money or other cryptocurrencies.
Trading/Broker Websites - If you have invested in BCH options or CFDs, then you can sell them off on your preferred crypto broker’s platform.
Peer-to-peer Network - These are basically marketplaces that facilitate buyers and sellers of Bitcoin Cash and other cryptocurrencies to buy and sell digital assets.
Frequently Asked Questions
No, it’s a decentralised platform which means no single individual or central authority has any influence over the coin’s price.
BCH isn’t as popular as Bitcoin and Ethereum, but some websites accept the token as a valid payment mode.
Yes, but you will have to ensure you have taken all the necessary steps to maximise the security of your BCH tokens.
Bitcoin Cash is still in its development and growth phase, with a huge amount of promise.
Subject to the working capital you put in and your investment strategy, only you can know how much you can earn by trading BCH. Ensure that you are minimising your risk.
You will need to check the tax laws of the country you live in to find the answer.
The price of any cryptocurrency is determined by market forces such as demand and supply, the sentiment of the community, and social as well as political developments.
Although nobody can give you a sure shot guarantee when it comes to crypto trading, it is highly unlikely to happen if you are trading BCH since it is supported by the official Bitcoin community which has been functional for more than a decade.