Bitcoin Cash (BCH) is an early competitor to Bitcoin (BTC) that arose through a hard fork initiated by Roger Ver, an early Bitcoin investor, in 2017. A hard fork is a technique of separating a blockchain to create a token with new features and capabilities in the cryptocurrency market. While BCH was designed to exceed Bitcoin in terms of transaction speed, the ecosystem’s mission statement and rising value have attracted a diverse group of investors worldwide. Many people are eager to invest in this successful cryptocurrency. This article aims to educate you on how to buy bitcoin cash.
People who held Bitcoin before the BCH hard fork were the first owners of Bitcoin Cash. Bitcoin investors were entitled to the same number of BCH tokens as they had before the split once the historic hard fork began. The Bitcoin fork established the price of BCH at around $600.
Even though BCH’s block size is eight times larger than BTC’s one-megabyte block size, both ecosystems use a proof-of-work mining method to confirm transactions. When compared to BTC, however, the larger blocks allow BCH to validate more transactions every 10 minutes.
Buying Bitcoin Cash vs Trading Bitcoin Cash
Buying Bitcoin Cash can be simple – depending on wallets and exchanges – but it’s not the same as purchasing foreign cash when traveling abroad. It does not, however, necessitate a great deal of knowledge. You will be required to select an appropriate wallet and the exchange and payment of crypto coins.
On the other hand, Bitcoin Cash trading is a more short-term endeavor; Getting into the market, remaining in it for a few months, then exiting when the price reaches its peak. As a result, Bitcoin Cash traders have a reputation for being price sensitive and fleeing the market when it becomes unprofitable.
Steps To Buy Bitcoin Cash Online
You need an exchange account to buy Bitcoin Cash, which is easier than you would believe. Here are the 5 easy steps you’ll need to follow to buy Bitcoin Cash quickly.
Choose which exchange or brokerage you want to use to buy Bitcoin Cash.
- Create a user account.
- Carry out the required KYC checks.
- Deposit into your account.
- Purchase Bitcoin Cash and keep it in a wallet.
How To Trade Bitcoin Cash
To invest in Bitcoin Cash, you do not need to buy it. You can exchange Bitcoin Cash instead if you prefer. Trading Bitcoin Cash is slightly different from buying it; follow the procedures below to trade Bitcoin Cash successfully.
- Look for a broker.
- Create a user account.
- Carry out the necessary KYC checks.
- Decide on a strategy.
Once you’ve determined how you want to trade, fill your account with Bitcoin Cash assets. You can use leverage to maximize your winnings but keep in mind that it also increases your risk of losses.
Various Ways To Buy Bitcoin Cash
Direct purchasing and trading of cryptocurrencies with another individual is referred to as peer-to-peer (P2P). Finding a firm that can connect you with people eager to sell their tokens for cash is the first step in this approach of purchasing BCH (local currencies). Lower transaction costs and speedier settlements are two of this method’s primary advantages.
A user will deposit a particular quantity of fiat cash with the platform, such as a crypto exchange, in regular P2P trade. The forum will then discover a suitable seller or sellers who want to cash out their BCH savings and facilitate a peer-to-peer transaction between the two parties.
Cryptocurrency exchanges are the best option for a first-timer to buy any cryptocurrency. BCH can be purchased with just a few clicks in exchange for local fiat currency (conventional money like the dollar, euro, or pound) or any other cryptocurrency, depending on the platform and services available in your jurisdiction.
Built-in wallets on cryptocurrency exchanges can support a variety of tokens, each with its address. Crypto exchanges offer many options for depositing fiat currency, which it will utilize to buy/trade cryptocurrencies on the platform, depending on the business area. Many regions have rules prohibiting residents from making deposits on cryptocurrency exchanges using debit or credit cards. However, they allow consumers to use third-party payment platforms like Cash App to make deposits.
Things To Consider Before Buying Bitcoin Cash
The deposit fees you pay will vary depending on the cryptocurrency exchange or brokerage. Although cryptocurrency transactions are usually cheaper, credit card and debit card fees are the most expensive. You’ll have to pay these fees every time you deposit or withdraw money from a cryptocurrency exchange.
Like maker and taker fees, trading fees are present on almost every platform. Most of them have a tier-based structure dependent on your monthly trading volume. Your charge percentage decreases as you trade more.
Volatility is another factor to consider. It refers to the quick change in the price of cryptocurrency tokens. If you acquire Bitcoin now at a specific price, it may be significantly higher or lower tomorrow.
You’ll need to follow various restrictions depending on where you are and what type of crypto exchange you use. As a result, many crypto exchanges will request KYC and AML documentation from you.
Long-Term Holding (HODL)
A HODL investment lasts for at least six months. You’ll adopt this technique when predicting the price to rise over time.
Any investment you can hold for less than a year is considered short-term holding. The goal with Bitcoin Cash is to sell as soon as the value rises rather than wait.
Is It Safe To Buy Bitcoin Cash Online?
If you choose a crypto exchange with stringent security measures, buying bitcoin cash online is risk-free.
Before anything else, keep your coins separate from your exchange in a wallet. You can use two-factor authentication (2FA) to add an extra degree of security to your account.
We advocate using a hardware wallet to store your money when it comes to wallets. You’ll be able to keep them off the Internet— and away from prospective hackers — in this manner.
If you use a peer-to-peer P2P exchange, it’s also worth remembering that you should communicate to sellers before buying. Other measures you can take to safeguard yourself include:
- Not disclosing your account password to anyone.
- Only use authorized forums and websites to seek advice.
- Before selecting an exchange, read customer reviews.
- Not buying bitcoin on public internet connections.
How To Store Bitcoin Cash?
Private and public keys are two random strings of integers that run every crypto wallet, including all BCH wallets. As the name implies, a public key can be shared with the public and is used to receive payments. A private key is also required to access the digital assets stored in a crypto wallet. As a result, users should never reveal or lose their private keys for security reasons.
Users can choose a wallet that best meets their crypto storage and spending needs if they have some previous understanding of the BCH ecosystem. As a result, before committing to any technology, one must honestly analyze their unique use cases.
Mobile wallets have proven the most convenient way to store Bitcoin Cash and other cryptocurrencies. All you need is a smartphone and an active internet connection to get started. These wallets are available as free apps and do not require any initial investment.
Multiple tiers of passwords are required based on the inputs made on the app to safeguard crypto wallets on mobile. For example, when you sign up for the app, you’ll be given a secret backup/recovery phrase that you will use to validate new logins or recover an existing wallet account in the future. The private term is a random combination of 12 words that must be kept in a secure location unavailable to others.
Hardware wallets, which come in the shape of USB drive devices, are among the most secure ways to store Bitcoin Cash and other cryptocurrencies. Users may be able to store numerous cryptocurrencies with the latest offers, which are secured by private keys that are permanently kept within the wallet’s memory. Furthermore, specific hardware wallets can not only be designed to have configurable transaction fees but can also be controlled via Bluetooth using a mobile application.
Users’ private keys saved on hardware wallets are protected with a personal identification number (PIN) and an optional passcode. If a user’s hardware wallet is lost, the assets are backed up using a single seed phrase. A seed phrase, also known as a recovery phrase, is a string of words that enables a user to retrieve their private key. Users can move their keys to a different hardware wallet using their seed phrase.
Since their debut, software wallets have been in charge of holding and exchanging cryptocurrency. Software wallets are the first cold storage option, allowing secure peer-to-peer crypto transactions by storing private keys on the computer’s hardware. However, given the multiple backdoors exposed on a regular computer, such as dubious applications or websites, software wallets may be an easier target for attackers.
As the name implies, a paper wallet is a piece of paper that contains the basic information about a wallet address, such as the private and public keys.
A computer, a wallet generator, and a printer are required to get started with a BCH paper wallet. Paper wallet generators, a service for creating paper wallets, are available online, and many come with an offline version for a more secure experience. A wallet generator can generate a Bitcoin Cash address using the user’s randomized inputs (such as numbers or mouse movements).
How To Sell Bitcoin Cash
Crypto exchanges are one of the most often used sites for buying and selling cryptocurrency. A cryptocurrency exchange allows users to purchase or sell tokens.; this purchase and sale are made against other cryptocurrencies or local cash.
BCH may be found on most mainstream exchanges worldwide, owing to its prominence as an asset among investors. Selling BCH on a crypto exchange is simple:
- Transfer your BCH tokens to the exchange’s BCH wallet.
- Put a sell order against a trading pair of your choice.
- Wait for the transaction to be completed.
Users can exchange BCH tokens for local cash using a standard BCH P2P service. This type of business connects buyers and sellers in real-time, allowing them to trade more efficiently. Built-in escrow will ensure that the platform’s infrastructure protects the trade between the two entities.
Is It Worth Buying Bitcoin Cash Right Now?
Since the August 2017 hard fork, Bitcoin Cash has been trading in lockstep with its big brother on most of the same exchanges as Bitcoin. Its performance in the past years has not been much impressive. However, volatility is one constant thing in the cryptocurrency business, so you may take your chance with Bitcoin Cash. Bitcoin Cash is simple to obtain on Coinbase or through brokers like Robinhood.
BCH has become one of the most rewarding assets in the crypto industry due to its rising value. The enormous value of bitcoin makes it a tempting target for undesirable actors, sometimes known as hackers. Regardless of the method of transfer you use to sell your BCH holdings, crypto investors should make it a habit to double-check every component of the transaction (risk, return, order size, and so on).
The initial purpose of cryptocurrency was only to generate life-changing long-term profits, but investors are becoming more interested in learning about real-world applications of their investments. By the end of this guide, we’re sure you will be sufficiently familiar with how to buy bitcoin cash in 2022.