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.
Compare Exchanges to Buy Bitcoin Cash (BCH)
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 Exchanges to Buy Bitcoin Cash (BCH)
(Step by Step) How to buy Bitcoin Cash on eToro?
As you will have seen in our eToro review, eToro is one of our top-rated places to buy Bitcoin Cash. Founded in 2007, eToro is a trusted broker that’s been in business for over 10 years. The service features a newbie and user-friendly interface, fast account opening, social trading features, and plenty of payment methods to fund your account. Regulated in multiple countries – including top-tier regulators, such as UK’s FCA -, eToro is considered a safe broker to do business with.
What’s different about eToro from other brokers who offer coin trading is the fact that the service is offering outright Bitcoin Cash trading. It means that you own the actual BCH you are trading on the platform. On the other hand, your coins are held in a Bitcoin Cash wallet.
Step 1: Register
The first step to start trading on eToro is to register an account at the broker.
Head to the website of the company and click “Sign Up.”
Fill in the form with your email address, your desired password, and your phone number.
Be sure to choose a strong password that you will remember.
You can also use Google+ and Facebook to register an account faster on eToro.
Step 2: Verification
After creating your account, you need to verify it to start trading on the platform.
Fill in the questionnaire and send the broker clear images of your documents that verify your identity (passport, government ID) and your residence (utility bill, bank statement, etc.).
Step 3: Deposit
When your verification is successful, you’ll be able to start trading.
However, a deposit is required first to make Bitcoin Cash USD trades.
So, the first step is to add funds to your eToro account.
The platform allows plenty of payment methods to fund your account, including PayPal, credit and debit card, Neteller, Skrill, bank transfers, and more.
Fortunately, deposit is free on eToro, so the company won’t charge you anything for adding money to your account.
Step 4: Buying
Now, it’s time to buy Bitcoin Cash. Use the search bar on the top of the screen to search for BCH. After you have found the cryptocurrency, click “Trade” and choose how much Bitcoin Cash you want to buy.
Always check the chart before to ensure the best Bitcoin Cash rate. If you are ready, execute the transaction to trade BCH to USD.
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 eToro and 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.
Plus500 is a CFD broker founded in 2008. With its headquarters in Israel, the company is regulated in many countries, including the UK and Cyprus. Plus500 is listed on the Main Market of the London Stock Exchange, which gives users on the platform additional safety. The service features an easy-to-use platform with low spreads and a fast, fully digital account creation process.[/one_half_last]
Plus500 is a broker that offers Bitcoin Cash trading via CFDs. Therefore, you don’t need a BCH wallet to execute crypto trades on the platform. Let us show how you can do that with our step-by-step guide below.
Step 1: Register
Firstly, navigate to Plus500’s website and register an account. To do that, click the “Start Trading Now” button and fill in the form with your details. Plus500 accepts integrations with your Google+, and Facebook accounts for a faster sign up process.
Step 2: Verification
Once you have signed up, it’s time to verify your account. To start, fill in the questionnaire and verify your email account as well as your phone number. Upload clear images of the documents required to verify your identity and address. Continue with proceeding to the next step.
Step 3: Deposit
Such as eToro, Plus500 accepts multiple payment methods for deposits, and the whole process is free of charge. Choose “Deposit” from the menu in the top left part of the page, choose your desired payment method (credit card and PayPal payments are accepted) and the amount of funds you want to send to your account.
Step 4: Buying
After your funds have arrived on your account, you can start trading Bitcoin Cash. Search for Bitcoin Cash ABC (the coin is named like this on Plus500) and choose whether you want to buy or sell the cryptocurrency. Then select the amount of coin you want to trade for BCH to USD to finish the process.
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 eToro. Along with choosing the broker as the best exchange for Bitcoin Cash in this article, eToro 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 eToro and Plus500) 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 eToro and Plus500 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, eToro 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.
While many of the properties of Bitcoin Cash are based on the protocol of the Bitcoin blockchain, there are some major differences between the two cryptocurrencies. When comparing Bitcoin vs Bitcoin Cash, the most important factor to consider is the block size limit of the two coins. But first, let us explain to you what the block size limit is. The block size limit restricts the maximum size of transactions that can be processed by a cryptocurrency’s network in each second. This setting was first introduced by Bitcoin’s creator Satoshi Nakamoto to prevent malicious parties from attacking the network of the coin. However, as the cryptocurrency’s system has been upgraded (including Bitcoin Cash’s network), this problem has been fixed. So, there’s no need to keep the initial 1 MB block size limit to protect the network from hackers. As the block size limit is restricting the number of transactions processed in each minute, it means that miners are allowed to process only a certain number of transactions. If the transactions reach the limit, the ones that are beyond the limit are put into the mempool for the miners to process them at a later time. If many users are active in the system, that could lead to a congested network. The result of that could be higher fees and slower transaction processing times. So, how is the block size limit related to the Bitcoin vs Bitcoin Cash debate and the two cryptocurrencies? Because this was the reason why BCH was born in August 2017. During a long debate on the scaling issues of Bitcoin, the cryptocurrency’s community has been divided into two camps. The first one supported a decision in which Bitcoin’s network would be upgraded by increasing the block size limit. On the other hand, others have denied this solution and proposed upgrades that would solve Bitcoin’s scaling issues via lowering the size of the transactions via a feature called SegWit that could lead to additional upgrades via the Lightning Network (a network featuring off-chain 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 that featured an initial block size limit upgrade of 8 MB (which has been upgraded to 32 MB). Critics of Bitcoin argue that implementing SegWit and the Lightning Network could result in a more centralized ecosystem. On the other hand, supporters of the upgrade state that the Lightning Network helps Bitcoin scale much better than BCH and transactions will be cheaper and faster if the upgrade is ready.
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. Now, let’s see the major events and disagreements that have led Bitcoin Cash’s second split. In August 2018, the developer group Bitcoin Cash Adjustable Blocksize Cap (Bitcoin Cash ABC) announced an upgrade for November the same year that would feature two important goals. Firstly, the developers sought to introduce non-cash transactions to the Bitcoin Cash blockchain (smart contracts and oracle prediction services). The second upgrade for the November 2018 hard fork was to change the ordering of the transactions in the BCH network from topological to canonical ordering. Soon as the proposal for the November hard fork was released, critics have started appearing in the Bitcoin Cash community. This group argued that the main goal of BCH is to deal with payments only, so there’s no need to prioritize non-cash transactions on the Bitcoin Cash blockchain. One of the main critics of the upgrade was Craig Wright, a developer who has earned notoriety in the crypto community by claiming that he is Satoshi Nakamoto – Bitcoin’s creator. The other major critic was Calvin Ayre, a billionaire who is the CEO of one of the largest Bitcoin Cash mining pools, Coingeek. Wright and Ayre both opposed to the canonical transaction ordering as well as they wanted the block size limit of BCH to be increased to 128 MB. Furthermore, Wright did not see the value that incorporating smart contracts and oracles into the BCH blockchain could add for the cryptocurrency. The supporters of the November 2018 Bitcoin Cash hard fork included Bitcoin.com CEO Roger Ver and Bitmain (the largest Bitcoin mining hardware manufacturer) co-founder Jihan Wu. Wu’s Bitmain also controls the mining pools Antpool and BTC.com. Disagreeing with the Bitcoin ABC upgrade, the Wright and Ayre-led opposing party had created its own proposal: Bitcoin SV (Satoshi’s Vision). Wright argued that this proposal contains the original visions of the Bitcoin creator Satoshi Nakamoto. This has led to the so-called Bitcoin Cash “Hash Wars.” In this conflict between the Bitcoin ABC and Bitcoin SV parties, both parties used their mining pools and resources to disconnect (and connect more) rigs from mining BTC to supporting the BCH ecosystem. The goal for one party was to acquire the most hash power, so their blockchain would be the longer – therefore they would “win.” However, neither party’s decisions were rational from a financial point of view. While the price of BTC has crashed soon after the Hash Wars have started, the companies that were affected by the whole debate have lost about $12 million worth of funds in trying to take control of the Bitcoin Cash blockchain.
We have tried plenty of Bitcoin Cash wallet solutions, and we think that the best BCH wallet is the most secure one. Why? 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. Let us tell you why this feature of hardware wallets give your coins extra security. If a hacker tries to steal your funds that are on a hardware wallet, he has to first hack the software side of the wallet. Then he has to acquire both your PIN and your hardware device. In case the attacker manages to do all of the aforementioned actions, that would make a great story for an action movie about a mastermind hacker. But – in real life -, the attacker would have a really-really hard time stealing funds from a hardware wallet. So, we are recommending you to buy a great hardware wallet like Ledger, Trezor, or KeepKey. All of the aforementioned brands are trusted and widely used in the crypto community. However, in case you want to stay with using a software or web-based wallet (and don’t want to pay for using a Bitcoin Cash wallet), good solutions include the Blockchain.com Wallet and Infinito. All of the solutions support BCH as well as other cryptocurrencies.
- 1 Buy Bitcoin Cash in 5 steps
- 2 Compare Exchanges to Buy Bitcoin Cash (BCH)
- 3 Best Exchanges to Buy Bitcoin Cash (BCH)
- 4 (Step by Step) How to buy Bitcoin Cash on eToro?
- 5 Buying Bitcoin Cash in Your Country
- 6 Differences Between Buying and Trading Bitcoin Cash
- 7 How to trade Bitcoin Cash with a trading robot?
- 8 Alternative Methods to Buy Bitcoin Cash (BCH)
- 9 How to sell Bitcoin Cash?
- 10 FAQ