Currently, Bitcoin Cash (BCH) is the sixth largest coin, even though the cryptocurrency has experienced a recent community split (the November 2018 Bitcoin Cash hard fork). Due to the network upgrades, the coin features low-cost transactions and a community that’s determined to increase the adoption of the cryptocurrency by constantly developing new solutions as well as partnering with new merchants to accept BCH for payments.
If you were carefully checking Bitcoin Cash news, this wouldn’t be new to you. The birth of the coin dates back to August 2017 when a debate between two developer teams resulted in the creation of Bitcoin Cash. The first group – the ones who had stuck with the original Bitcoin (BTC) – argued that they have to implement off-chain solutions to improve the scalability of the network. On the flip side, Bitcoin Cash supporters wanted to upgrade the network by an on-chain method (increasing the block size limit). As the community could not discuss this debate properly, it resulted in the BTC blockchain splitting in two on August 1, 2017: Bitcoin and Bitcoin Cash.
In November 2018, a proposed upgrade of the BCH network split the community in two: Bitcoin Cash and Bitcoin SV (Satoshi’s Vision). Although two cryptocurrencies were created from one coin, Bitcoin Cash managed to keep its place in the top 10 digital currencies.
Many traders, investors, and crypto enthusiasts made good profits from Bitcoin Cash. In 2017, the coin managed to climb up to over $4,000 from $500 in less than two months.
The disagreements within the community did not change the fact that Bitcoin Cash is still a hot asset. Most of the services that allow users to buy Bitcoin also offer BCH trading too. Now, the question stands: where to buy Bitcoin Cash? In this guide, we’ll show you how to buy Bitcoin Cash using brokers and exchanges, comparing the different service providers as well as the payment methods.
Please note that due to the November 2018 Bitcoin Cash chain split, BCH is sometimes abbreviated as “BCHABC” or named “Bitcoin Cash ABC” on some exchanges and brokers.
How to create a Bitcoin Cash Wallet
Best Platforms to Buy Bitcoin Cash (BCH)
CryptoRocket is one of our most recommended exchanges when it comes to cryptocurrency trading. Other than offering a great variety of cryptocurrencies it offers popular trading platforms MetaTrader4 and WebTrader as well as a user-friendly interface, reduced fees and much more.
CryptoRocket certainly is one of the best platforms you can find if you wish to trade BCH. Have a look at our guide to help you through the registration process on the exchange.
Step 1: Registration
To register on CryptoRocket you will have to click on the sign up button on the top right corner of the home page of the website. You will then be redirected to a short registration form. It will take up to 1 minute of your time to fill it in because you will only be required to provide your name, email address and to create a password.
Step 2: Opening Trading Account
Once you’ve signed up, you will have to open a trading account if you actually want to start trading. Before opening a real account, you will be suggested to open a demo account. That will help you get familiar with how the exchange and the trading platform work so that you won’t have any surprises once real money gets involved.
Step 3: Deposit funds
Whenever you feel confident and ready to trade with real money, you can make your first deposit. You will have to deposit a minimum of $10 which is much lower than most other exchanges. You will be able to pay via debit or credit cards of MasterCard and VISA circuits. You can also use Bitcoin to make your deposit.
Step 4: Buying
Once you make the deposit, you will be able to switch from demo account to a real account. You will be given login credentials to access your real account at a later time. Once you log into the platform, you will be able to start trading BCH. You will find the asset on the left side of the platform. Once you find it you can select the asset and choose to buy or sell.
Binance CEO Zhao Changpeng co-founded the BCH exchange in 2017 with the company’s CMO, Yi He. Firstly, the exchange was headquartered in China. However, after the cryptocurrency ban in 2017, Binance has moved its operations to Japan and Malta. The company features a crypto to crypto exchange with a wide variety of coins and four base currencies (BNB, stablecoins, BTC, ETH). You can choose between two trading views (basic, advanced) to trade Bitcoin Cash on Binance.
Now, you know the upsides and downsides of the exchange. Let’s continue with our step-by-step guide on how to buy BCH on Binance. We modified the steps in this guide, leaving out the verification part as Binance has high limits (a daily limit of 10 BTC for withdrawals), which will be sufficient for normal trading. We replaced the verification step with a security measure (2FA).
Step 1: Registration
Creating an account on Binance is easy.
If you prefer anonymity or semi-anonymity, Binance is a good choice as the exchange will only ask for your email address.
Click “Register” on the home page and proceed with creating your account.
After you opened your account, don’t forget to check your inbox and verify your email.
Step 2: 2-factor authentication (2FA)
Setting up 2FA is essential to protect your account from attackers.
After your first login, Binance will ask you to set this security measure up.
Do that by either using your phone number (the Bitcoin Cash converter will send a text message every time you log in) or Google Authenticator.
Please don’t proceed to the next step without setting up 2FA.
Step 3: Deposit
After your account is secured via 2FA, it’s time to continue with depositing funds.
Please note that Binance only accepts cryptocurrency deposits. Therefore, you need to own coins before you can start trading on the exchange as the Bitcoin Cash exchange does not accept fiat deposits.
Head to the “Deposits” tab under “Funds,” choose your desired cryptocurrency, and send funds to the address shown on the page.
Make sure to double and triple check the wallet address before sending funds to avoid any mistakes.
Step 4: Buying
You can start trading as soon as your coins have arrived at Binance. If you have deposited any of the four base currencies (BNB, BTC, ETH, USDT), select Bitcoin Cash from the list under your base currency as well as the amount of BCH you want to buy, and execute the trade.
In case you added a cryptocurrency that’s not a base currency, you have to exchange it to a base currency on the platform before you can buy Bitcoin Cash.
Fortunately, Bitcoin Cash is one of the handful of coins that are supported by the San Francisco-based cryptocurrency exchange Coinbase. Hooray! So, you are able to trade BCH on the crypto exchange’s newbie and user-friendly platform. Among all of the major cryptocurrency exchanges, Coinbase has one of the lowest credit card processing fees (about 1.5%), and using this payment method is really easy as well as convenient on the service.
Step 1: Registration
Step 2: Verification
As Coinbase is operating in the US, the cryptocurrency exchange is subject to strict regulations that require the company to request Know Your Customer (KYC) documents from its customers. Therefore, you need to raise your account limits by verifying your phone number and identity before you can proceed to buy Bitcoin Cash.
To verify your account, head to the “Account Levels” tab under “Settings.” The verification page will show your current account limits and what is left of those limits as well as different features that are either enabled or disabled for your account. When you are on this page, you’ll see that there are two levels. While the first will raise your limits that will allow you to buy Bitcoin Cash on the platform, you will need to complete level two to have access to unlimited buying and selling on the service. Level one will need you your phone number and a photo ID, while the next level will require you to provide additional personal information to the operators of the cryptocurrency exchange.
Now, let’s verify your phone number – by typing in the code that the exchange has texted you in the related fields – and your identity. For the latter, crypto exchanges typically accept government ID, driver’s license, and passport. Take a clear photo of either document and submit it to Coinbase. Wait for a while until the team verifies your document and either proceed to the next step or complete verification for level two.
Step 3: 2-factor authentication (2FA)
As you are planning to hold Bitcoin Cash (at least for a while) in a cryptocurrency wallet, it is essential to turn on 2-factor authentication (2FA). Fortunately, Coinbase supports 2FA in the form of text messages. Every time you log into your account, you’ll get a code from the company, which you have to type in the related fields. Also, Coinbase has an option to set a certain amount – like 1.2 BTC. If that’s reached, 2FA will be activated.
To set up 2FA on your Coinbase account, navigate to the “Security” tab inside “Settings.” You’ll find a section about 2-factor authentication. Click the blue button stating “Enable Authenticator.” Also, we recommend you to choose the setting in which a verification code will be sent to your phone if any amount of digital currency is moved.
Step 4: Buying
Now, it’s time to buy some Bitcoin Cash. Please note that we are using credit card as the payment method in this tutorial. This method does not require you to funds your account with money before you can trade as the credit card transactions will be processed almost instantly. However, if you wish to credit your account with fiat via bank transfer, you need to first wait for the deposit to arrive before you can buy BCH.
Head to the “Buy/Sell” tab where you’ll see a list of cryptocurrencies. Firstly, choose BCH from the list. Now, you need to proceed by adding your credit card as the payment method you will use to buy Bitcoin Cash on Coinbase. When you are done with that, select the amount of BCH you want to purchase on the cryptocurrency exchange. Then finish the process by executing the trade.
Changelly is a cryptocurrency exchange that features near-instant transfers with reasonable fees. Unlike at brokers, such as Plus500, you need a cryptocurrency wallet to buy Bitcoin Cash on the exchange. While you can’t sell coins for fiat, the service accepts credit card payments on its platform (though they will cost you a lot).
At Changelly, the deposit process is completely left out (one of the reasons for the fast transaction times). Moreover, for trading normal amounts of coins, you don’t need to verify your account, so we’ve left out that step from the guide. Let’s focus on setting up 2FA instead.
Step 1: Register
You only need an email address to register an account on Changelly.
Click the “Join” button in the top right corner of the page, fill in the details with your email and desired password and continue to the next step.
You can use Google+, Facebook, and Twitter to register an account faster.
Step 2 2-factor authentication (2FA)
The next step is to set up 2FA on your account.
Changelly accepts Google Authenticator, which you can download to either iOS or Android using the links inside your account’s settings tab.
Download the app and set 2FA up for your own security, then proceed to the next step.
Step 3: Buying
On the home page of the website, you’ll find a converter.
Choose Bitcoin Cash ABC (BCHABC) and the fiat currency you want to use to buy BCH.
Set the amount of Bitcoin Cash you want to purchase.
After that, you need to provide your credit or debit card details to initiate the trade.
Buying Bitcoin Cash in Your Country
Europe is a crypto-friendly continent with over thousands of service providers present in the region. Among all of these European countries, Bitcoin Cash (along with other cryptos) is quite popular in the United Kingdom. As there are plenty of services that offer BCH trading, it can become hard to choose the best for UK citizens.
And this service is Binance. Along with choosing the broker as the best platform for Bitcoin Cash in this article, Binance is the best solution for UK citizens to buy BCH as well. The broker offers outright Bitcoin Cash trading with an FCA regulated service. The platform is easy to use, newbie-friendly, featuring a lightning fast registration and verification process, social trading features, and multiple payment methods (including PayPal and credit cards) that you can use to fund your account.
Checking the stats, North America is the top crypto-friendly continent in the world. There are over 2,000 payment services that are offering solutions for cryptocurrencies – Bitcoin Cash included – and blockchain technology. As a part of digital currency exchanges and brokers are focusing on European customers – and some of them exclude US and Canadian citizens due to the strict regulations in both countries – it is crucial to choose the best exchange for the locals in both countries.
As we have tested the services of numerous digital currency exchanges and brokers who offer coin trading, we have selected the best solution for US and Canadian citizens. And this service is Coinbase, the perfect platform for both newbies and expert traders. Bitcoin Cash is one of the handful of coins Coinbase supports. The cryptocurrency exchange offers credit card purchases with one of the lowest fees on the crypto market.
Oceania is not a continent flourishing with cryptocurrency and blockchain service providers. However, there are plenty of Aussies that are interested in this new tech and the coins – including Bitcoin Cash. The biggest markets of cryptocurrency exchanges are concentrated in North American and Europe. Therefore, many services focus mainly on the citizens of these regions. So, here comes the question – which is the best exchange for Aussies?
We’ve tested a number of crypto exchanges and brokers, and we ranked Binance in the first place for Australian citizens. Why? The crypto-to-crypto specialized service offers high limits for its users – so there’s no need to verify your account if you are trading normal amounts of coins -, the trading fees are low, and the exchange supports a wide variety of coins. And – of course – Australian citizens can register a free account on Binance.
Differences Between Buying and Trading Bitcoin Cash
- You own the Bitcoin Cash, you have the right to move it, sell it, and transfer it as you wish.
- Traditionally associated with longer-term (Multiple months to years)
- Assets can be used just as fiat currencies are; for purchases, or for payments
- Somewhat safer than trading directly using margin or with borrowed funds
- BCH trades use contracts for difference (CFDs)
- You don’t actually own BCH, you own a representation of Bitcoin Cash which is in the form of a contract
- Traditionally associated with shorter-term positions or ideologies about Bitcoin Cash because using margin accrues fees very quickly
- Higher risk is implied because you’re buying contracts on margin (Borrowed money from the broker)
Alternative Methods to Buy Bitcoin Cash (BCH)
As shown in the previous step, it is possible to buy Bitcoin Cash with credit card. While bank transfers can be slow and inconvenient, credit card payments are the fastest way to buy BCH. When using a credit card to purchase cryptocurrency, your funds will arrive almost instantly. On the flip side, card transactions cost more than bank transfers or crypto to crypto payments.
The big question is: which provider should you use? As seen in the previous step, using a credit card on Changelly comes with high fees (almost 10%). If you want to use a Bitcoin Cash exchange, we recommend Coinbase for credit card transactions as the service has a 3.99% for card deposits, which is reasonable compared to its competitors on the Bitcoin Cash market. Using a broker is a good option too (such as Binance) as both services offer cost-free credit card deposits.
PayPal is a popular payment service that is used by over 244 million customers from all over the world. Many companies, especially e-commerce sites, accept transactions via PayPal as paying via the payment service is super easy and fast. On the flip side, the company has high fees and strict policies. The latter has an effect on the cryptocurrency industry as PayPal does not like coin transactions.
Therefore, Bitcoin Cash exchanges can’t accept payments via PayPal. So, if you want to buy Bitcoin Cash with PayPal, you have to use workaround methods. You can’t directly send Bitcoin Cash to PayPal and vice versa. One method is to use a third-party service, such as Localbitcoins.com, that will connect you with local customers who will sell you Bitcoin Cash to PayPal. However, that would cost you a nice fee and could result in PayPal disputing your account as it is against its policies. Furthermore, local transactions are not as safe as using brokers or exchanges.
So, that’s left us with another option, which is using brokers to buy Bitcoin Cash with PayPal. As brokers like Binance accept PayPal deposits, you can fund your account with the service. Then use your balance to buy Bitcoin Cash. That’s basically an indirect method to buy Bitcoin Cash with PayPal.
In some cases, you don’t want to use fiat currency to buy Bitcoin Cash. Why use your credit card, PayPal, or bank account when you have some BTC sitting in your wallet? As Bitcoin is the top cryptocurrency among all coins, it is widely accepted as a base currency on different cryptocurrency exchanges.
One of these exchanges is Binance, a crypto-to-crypto specialized service that we have chosen as the best for buying Bitcoin Cash with Bitcoin. You can easily transfer your BTC to your Binance wallet, choose the BCH/BTC trading pair, and exchange the two coins in the matter of a few minutes. And it won’t even cost you much. If you need more details on the buying process of Binance, read back to see our step-by-step tutorial.
We’ve listed you the very best brokers and exchange where you can buy Bitcoin Cash. You also know how to buy BCH with different payment methods and what are the pros and cons of having a wallet. Now, it’s your choice to choose between the different options and solutions as well as to set your goals.
From all the services we tested, Binance comes out as the winner. The broker’s social trading platform is easy-to-use, newbie friendly, featuring plenty of payment methods to choose from. Account creation is fast, and you own the actual coins you are trading as the service offers outright Bitcoin Cash trading.
Bitcoin vs Bitcoin Cash: what’s the difference?
When comparing Bitcoin vs Bitcoin Cash, the most important factor to consider is the block size limit of the two coins. The block size limit restricts the maximum size of transactions that can be processed by a cryptocurrency’s network in each second. There were debates as to whether Bitcoin’s network should be upgraded by increasing the block size limit. Others however, have denied this solution and proposed upgrades that would solve Bitcoin’s scaling issues via lowering the size of the transactions. As neither parties could agree on one joint solution, the Bitcoin blockchain has split. SegWit and Lightning Network supporters stayed with BTC, while the others went with creating Bitcoin Cash.
What is a Bitcoin Cash Hard Fork?
To date, Bitcoin Cash had two blockchain splits. The first one was the August 2017 hard fork when the cryptocurrency was born. The other happened in a little more than one year later. This is what’s known as the November 2018 BCH hard fork. Soon as the proposal for the November hard fork was released, critics have started appearing in the Bitcoin Cash community, which led to the so-called Bitcoin Cash “Hash Wars”, a conflict between the Bitcoin ABC and Bitcoin SV parties. That is when the price of BTC crashed and companies were affected by the whole debate and lost about $12 million worth of funds in trying to take control of the Bitcoin Cash blockchain.
Which service offers the most secure Bitcoin Cash wallet?
We have tried plenty of Bitcoin Cash wallet solutions, and we think that the best BCH wallet is the most secure one. As you are holding coins in a cryptocurrency wallet, your funds are not protected or guaranteed by any third-party service (like banks or payment processors). And - as hackers are actively targeting cryptocurrency users -, you need to find a secure solution where you can leave your coins without worrying about the attackers. Therefore, in our opinion, the best Bitcoin Cash wallet services are hardware wallets. These solutions come with a hardware device, which has a PIN pad for verifying outgoing transactions as well as logging into your wallet, making it hard for hackers to have access to.
What’s your Bitcoin Cash price prediction for 2019?
We can’t provide you with a precise Bitcoin Cash price prediction for 2019 and for the years after. And we think that no one can. The reason for that is the relatively high volatility of cryptocurrencies (including BCH). A coin’s price can increase by 10% in an hour and go down by the same percentage in the next. And, in the short and mid terms, no one - including expert traders and all-star investors - can predict that precisely.
How do I buy Bitcoin Cash anonymously?
As most of the cryptocurrency exchanges and brokers are requesting different documents (KYC and AML) from their users, it becomes harder to buy Bitcoin Cash anonymously. However, there are two methods that can be used to bypass the aforementioned obstacles. The first is to buy BCH using cash from a local seller. In case he or she does not request any documents from you, the whole transaction will be anonymous. The second option is to use a cryptocurrency exchange that does not request KYC and/or AML documents from you, neither any personal (sensitive) information from you. Binance and Changelly are two good options for such exchanges. If you don’t trade a large amount of coins every day, neither service provider will request any documents from you.
How do I buy Bitcoin Cash with Cash?
While a part of the crypto enthusiasts prefers to purchase coins via credit card and bank transfers, others prefer to buy Bitcoin Cash with cash. There are two options to buy the coin with cash. The first is to find a crypto ATM that supports BCH near you. You can use a cryptocurrency ATM finder service or just Google (Maps) to search for a Bitcoin Cash ATM in your area. The second option is to use an intermediary service - like Localbitcoincash - that will connect you with sellers in your area who are selling BCH for cash. Just head to the intermediary service’s website, choose a seller you prefer and contact him or her to exchange fiat to Bitcoin Cash.
What is the best way to buy Bitcoin Cash?
The best way to buy Bitcoin Cash depends on your goals and preferences. If you want to focus on quick transactions, your best choice should be to buy Bitcoin Cash via PayPal or credit card. While you need a workaround method to buy BCH with PayPal, both payment methods are almost instantly processed. The only problem is that credit card transactions cost more than bank transfers unless you use a broker like Binance, which does not charge credit card fees. If you choose to pay via bank transfer, be aware that you will have to wait a couple of days for your transfer to arrive.
Is Bitcoin Cash a scam?
As far as we know, Bitcoin Cash is not a scam. The coin has rewarded thousands of users with profits, and many people in the world pay their everyday expenses in BCH (at merchants where the coin is accepted). However, as the Bitcoin and Bitcoin Cash (as well as Bitcoin SV) communities are fighting each other, as well as there are websites spreading fake news, you may have read that Bitcoin Cash is a scam. But that’s certainly not true as the coin is completely legit.
Should I invest in Bitcoin Cash?
You should decide yourself whether to invest in Bitcoin Cash. If you are interested in the coin, have the money, and you are positive about the future of BCH, go for it.
Should I buy Bitcoin Cash this year?
As we are in early 2019 and there’s still a bear market present, a part of the crypto enthusiasts decided to wait until the market recovers to buy Bitcoin Cash this year. However, if you are bullish about the BCH price for this year and you have the required financial background, you may decide to buy Bitcoin Cash now. Hopefully, the price of the coin will go up, so as your investment.