Bitcoin Cash is a virtual asset that has become highly popular due to its faster transaction time. Built on the same consensus protocol as the premier digital asset Bitcoin, BCH is a fork with a more elaborate plan to increase block sizes, enabling faster block finality. If you are searching for a comprehensive guide on what Bitcoin Cash is all about and what platforms you can buy Bitcoin Cash through, you have come to the right place. eToro - Our Recommended Crypto Platform Our Rating ASIC, CySEC and FCA regulated - 20 Million Users Worldwide Buy with Bank transfer, Credit card, Neteller, Paypal, Skrill, Sofort Free Demo Account, Social Trading Community Free Secure Wallet - Unlosable Private Key Staking Rewards for holding ETH, ADA or TRX Copytrade Winning Crypto Traders - 83.7% Average Yearly Profit Buy Crypto 68% of retail investor accounts lose money when trading CFDs with this provider. On this Page:Contents [show] Best Places to Buy Bitcoin Cash in January 2022 Before we go ahead, let’s explore some of the best places to buy Bitcoin Cash this year. Our top choices include: eToro Capital Libertex Plus500 Coinbase Binance AvaTrade Revolut CryptoRocket Changelly While this list is not exhaustive, these platforms have been carefully reviewed and selected and are the best brokers you can buy Bitcoin Cash through. Some of the considerations we put in our review are user-friendliness, reasonable fee structure, payment options, security, and customer support. How to Buy Bitcoin Cash – Quick Guide to the Best Brokers for Buying Bitcoin in January 2022 If you are looking for a short guide to buy Bitcoin Cash immediately, then the following steps should get you started in no time. Follow the steps below to buy Bitcoin Cash in less than five minutes from our recommended broker eToro. Open an account: You’ll first need to open an account with a trusted cryptocurrency broker. We recommend eToro, as the platform is heavily regulated, supports multiple deposit options with super-low fees. Upload ID: As a regulated brokerage site, eToro will ask you to upload a copy of your government-issued ID. Deposit: You can now deposit funds with a debit/credit card, Paypal, Neteller, Skrill, or a bank wire. Buy Bitcoin Cash: Search for ‘BCH’ and click on the ‘Trade’ button. Enter the amount of Bitcoin Cash you wish to buy ($25 minimum) and confirm the order. You will now have Bitcoin Cash in your eToro portfolio. Most investors will keep their Bitcoin Cash funds on the eToro platform until it’s time to cash out. You can also withdraw your crypto funds to the eToro crypto wallet. How to Buy Bitcoin Cash – eToro Tutorial If you are looking for detailed steps to buy Bitcoin Cash on the eToro platform, this section should provide the needed answers. Step 1: Open an Account Getting started on eToro is super-easy as the platform is time conscious. Leveraging cutting-edge technology, eToro only needs to verify your details and this is done in minutes. To create a free trading account, navigate the eToro website and click on the ‘Join Now’ button to reach the signup page. Buy Bitcoin Cash Now 67% of retail investor accounts lose money. Invest responsibly. Here, you will need to provide a first and last name, choose a username, a valid email address, and input a strong password. You can forgo this process by just signing up with your Facebook or Google account. Step 2: Upload ID eToro is a regulated entity with operational licenses from tier-1 bodies like the FCA, CySEC, ASIC, and FinCEN. To verify your account, you will need to submit a copy of your: Passport, driver’s license, or national ID card Utility bill or bank account statement issued within the last three months Although you can forgo this verification process and head on to fund your account, you will be placed on restrictions and will not be able to deposit or withdraw more than $2,250. Step 3: Fund your Account The next step is to make a fiat deposit before buying BCH. eToro only supports the US Dollars. You can choose to fund your account using: Debit/credit card (Visa, MasterCard, Maestro) Paypal Skrill Neteller Local bank transfer (country-specific) International bank wire Deposit fees are set at a low flat rate of 0.5% across all the payment options. This is a great deal as it trumps several platforms that charge as high as 5% of the total transactions for deposits. Step 4: Search for Bitcoin Cash Now that your trading account is funded, you can proceed to invest in Bitcoin Cash. To do this, type ‘BCH’ into the search bar on the top of the dashboard and click on the ‘Trade’ button. To learn what other investors think about the digital asset, you can look at the ‘Feed’ section and also research its historical price performance with the ‘Chart’ option. Step 5: Buy Bitcoin Cash Buy Bitcoin Cash Now 67% of retail investor accounts lose money. Invest responsibly. The last step is to buy Bitcoin Cash which you can do when you click on ‘Trade’ on the right-hand corner of the page. You will be shown an order page where you need to fill in how much you want to invest (the base amount is $25). You can also select your preferred leverage and set a stop loss (SL) and take profit (TP) parameters. Once you are ready, click on the ‘Open Trade’ button to buy Bitcoin Cash. Where to Buy Bitcoin Cash There are several platforms that offer support for Bitcoin Cash trading. However, you should lookout for a couple of factors like safety, fees, payment option, support, and if the platform is regulated. This section covers our top reviewed brokers to buy Bitcoin Cash through with our recommended broker coming up first. 1. eToro – Overall Best Broker to Buy Bitcoin Cash eToro is known globally as a top broker to buy financial instruments through. Founded in 2007, eToro has quickly established itself as an investor favourite. The platform is home to over 20 million global users. eToro is a global contract for difference (CFD) provider, covering well-known asset classes like exchange-traded funds (ETFs), commodities, FX currency pairs, shares, and bonds. Besides the easy purchase of Bitcoin Cash, eToro enables traders to buy large-cap cryptocurrencies like Bitcoin, Ethereum, and Cardano offering support for over 20 digital assets and CFD trades for over 100 of such virtual assets. A few things put eToro above several of the competing brokers on this list. First is the zero-commission trading on stocks trading and low-fees for crypto trading assets like Bitcoin Cash. This increases purchasing power and the chances of you withdrawing a large portion of your profit. Another is the fact that is user-friendly as the platform is built with the beginner in mind. To help increase chances of success, eToro also offers CopyTrade functionality which enables less experienced traders to copy successful trades of more experienced traders. Diversifying your portfolio is also automatically handled by eToro through the CopyPortfolio feature as your investments are seamlessly spread across several industries and regions. This minimizes risk and keeps your portfolio healthy in the long term. Other clear takeaways are useful trading tools and charts spiced with dozens of technical indicators and fundamental analyses by investors holding a given asset. This can help convince you as to the viability of an investment before committing. Payment methods are also fluid and dynamic and you can choose among a list of bank wire transfers, debit/credit cards, PayPal, Neteller, Skrill, and Klarna. In terms of regulation and safety, eToro has operational licenses from a group of recognized global brands, including the UK’s Financial Conduct Authority and the Australian Securities and Investment Commission (ASIC0. Also, it is regulated by the Cyprus Securities and Exchange Commission (CySEC) and the US Financial Conduct and Enforcement Network (FinCEN). Pros Heavily regulated Buy Bitcoin Cash on low fees Beginner-friendly Low minimum deposit of only $50 Offers a full repository of financial assets besides cryptocurrencies CopyTrade and CopyPortfolio functionality Cons Standard deposit fee of 0.5% Withdrawal fee of $5 Visit Etoro Now 67% of retail investor accounts lose money. Invest responsibly. 2. Capital.com – Trade Bitcoin Cash Commission-Free Another alternative broker you can use to buy Bitcoin Cash with no hefty fees is Capital.com. Much like the eToro platform, Capital.com is regulated by global bodies like the CySEC, the FCA, and ASIC. It also offers commission-free trades, thereby significantly boosting your purchasing power. Aside from cryptocurrencies, Capital.com caters to traders interested in commodities, ETFs, CFDs, stocks, bonds, and FX currency pairs, enabling them to enjoy low FX and stock CFD trades. However, Capital.com offers only CFD trading meaning you only trade the price movement of an underlying asset without worrying about storing the asset itself. In the aspect of user experience, Capital.com is one of the top performers and uses patented artificial technology to make the experience both smooth and easy for an array of investor types. You can choose between a web-based trading platform or using the popular Meta Trader 4 (MT4) option. This furnishes you with a wide array of technical indicators, charting tools and support for automated trading via expert advisors. Capital.com offers maximum leverage of 1:20 and this should be used sparingly given the financial losses a bad trade may incur. The platform is also rich in beginner-friendly materials as newbies can go through financial articles, glossaries, and industry-specific content to better understand the financial space. Demo accounts are also on offer. Pros Low FX and stock fees Rich educational resources Multiple trading platforms 0% commission trades Heavily regulated by tier-1 bodies Tight spreads Cons Only CFD trades on offer Does not support custom investment strategies Visit Capital Now 71.2% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. 3. Binance – World’s Largest Crypto Exchange Founded in 2017, Binance is a popular crypto exchange and processes over $40 billion on average in daily transaction volume. Of Chinese descent, the Bitcoin exchange has become a popular destination for virtual asset enthusiasts given its low fees and easy-to-use platform. Solely interested in virtual assets, Binance has quickly established itself as a top crypto exchange given the rapid pace at which it lists top-performing digital assets. In addition, Binance has also introduced more traditional financial services through its Binance Earn platform. Here, users can generate passive income from their crypto holdings through flexible and locked savings. Also, its decentralized finance (DeFi) staking is a popular choice due to the high-interest rate on offer. Split into ‘Guaranteed’ and ‘High-yield,’ users can earn between the range of 4.23% to 45% on their holdings. Binance operates much like a traditional brokerage firm which makes it more familiar to traders. You can trade crypto assets like Bitcoin and Bitcoin Cash on margin trading, futures trading, and different zones. The cryptocurrency exchange sports one of the largest repositories of cryptocurrency trading and its web and mobile trading platform is user-friendly and suitable for various skill levels. To crown it all, Binance operates one of the lowest fee structures in the crypto industry as it charges a 0.10% commission for every trade on the platform. Large trades can also be slashed further down to 0.06% depending on the user’s account. Pros High liquidity for all listed virtual assets Low commission fees and drops even further Supports multiple payment methods, including P2P Beginner-friendly and also useful for experienced traders Cons Not regulated by recognized global brand Largely in private hands Visit Binance Now Your Capital is at risk. 4. Coinbase – Top Listed US Crypto Exchange Coinbase is a crypto big wig in its own right. The US-based Bitcoin exchange is the only cryptocurrency trading platform that is publicly listed on the trading floor of Nasdaq. Coinbase has made a name for itself solely due to its user-centric approach to cryptocurrency trading. The Coinbase app is highly intuitive and user-friendly and is a destination point for most US crypto investors. Aside from facilitating trades for retail investors, Coinbase also services large institutional investors seeking exposure to cryptocurrencies as it helps them store their digital holdings in offline cold storage demographically distributed. Coinbase also operates a Pro variant of its platform which is a favourite destination for experienced traders. Benefits are lower fees and more charting and analytical tools. However, the Bitcoin exchange has always been criticized for its high trading fees and other charges. Coinbase charges a whopping 4% commission on deposits with as much as 25% on other varying charges. Meanwhile, the exchange is a host to several large and small-cap cryptocurrencies and is the second most tradable exchange behind only Binance. Pros Highly intuitive and user-friendly interface Multiple platforms for different users Large repository of digital assets Low minimum balance High liquidity Cons Expensive trading platform Complex fee structure Visit Coinbase Now Your Capital is at risk. 5. Libertex – Popular Choice For Stocks and CFDs Libertex is a CySEC-regulated trading platform that allows you to trade stocks, cryptocurrencies like Bitcoin Cash, ETFs and commodities. The CFD trading platform was launched in 1997. It now has more than 2 million clients spread across 110 countries. Unlike other platforms, Libertex specializes in a few niche asset classes. It covers only 213 markets. Every financial market on Libertex can be traded with leverage. Libertex leverage is capped at 1:30 for UK traders. That means if you have a £100 account balance, the broker would give you access to £3000 in trading capital. One standout feature of Libertex is the zero spread offering. This feature is quite rare for CFD brokers and it ensures traders can earn more profits when trading. However, there are still some complications around the platform’s commission charges. Libertex is not overly transparent on its charges and you might find yourself digging deep to find the required information. Pros No deposit fees Trade Bitcoin Cash on low commissions Regulated broker Cons Commissions not transparent Limited markets offered Visit Libertex Now Your Capital is at risk. 6. Plus500 – Regulated Platform Offering Different Asset Classes Plus500 is a top brokerage platform that started as a means for people to trade contracts for difference (CFDs). Listed on the London Stock Exchange, the platform has been available since 2008. Today, Plus500 operates in over 100 countries and offers access to a broad range of asset classes – including cryptocurrencies. One of the many benefits of Plus500 is that it’s regulated. The platform operates under licenses from several tier-1 regulators, including the U.K.’s Financial Conduct Authority (FCA) and the Australian Securities and Investments Commission (ASIC). Like the stock exchange, it discloses information and has a relatively healthy relationship with regulators. Account opening on Plus500 is quite seamless. The process is entirely digital, and you should be able to get everything ready in a few minutes. With Plus50, you get to pay no fees for withdrawals, deposits, and account maintenance. But, you should know that the platform charges $10 per quarter after three months of inactivity. Plus500 also offers impressive research and analysis tools, allowing you to make more informed trades. In general, this is a very good platform for you to trade Bitcoin Cash. Pros Regulated platform Quick account opening process Low minimum deposit Cons Not available in the United States and Canada Charges an inactivity fee Visit Plus 500Now Your Capital is at risk. 7. AvaTrade – Legacy Crypto Trading Platform for Investors While it might not be famous in crypto investor circles, AvaTrade is a top option for anyone looking to trade the broader stock market. Founded in 2006, AvaTrade is regulated by several top regulators – including the ASIC and Japan’s Financial Services Authority (FSA). so, as far as regulation goes, the platform checks huge boxes. AvaTrade offers access to several asset classes. While it offers crypto trading too, you should note that this is only available through CFDs. the fact that CFDs aren’t available to retail traders in some jurisdictions means that you might not be able to access AvaTarde’s Bitcoin Cash offering at all. Once you can get past the CFD restrictions, however, AvaTrade is a great platform. Its commissions on trades are comparatively lower than many other trading platforms, and it offers a proprietary AvaaTrade Web trader service to its users – reviews for that have been stellar. You also get impressive research tools, with in-house materials and third-party options available on AvaTrade. So, if you need the information to guide your trades, you can get them here. Pros Impressive research tools Free deposits and withdrawals Proprietary trading software Cons Limited range of tradable assets High inactivity fees Visit AvaTrade Now Your Capital is at risk. 8. Revolut – Personal Finance Service With Crypto Support Revolut is an innovative digital banking and currency exchange service that has been making waves over the past few years. The service is based in the United Kingdom, and it was launched in 2015. With a broad range of features, Revolut is one of the world’s fastest-growing digital banks. Unlike the other platforms on this list, Revolut doesn’t actually offer crypto trading. Instead, the service focuses more on currency conversion. With Revolut, you will be able to convert cash to crypto quickly and seamlessly. Revolut offers an in-platform wallet for coin custody. However, there are restrictions. Users of the Revolut Standard service tier won’t be able to receive coins or send them outside of the platform. Revolut also adds a 2.5 percent markup to its volume-weighted average price (VWAP), meaning that you will have to pay even more if you’re looking to trade. Pros Seamless account opening Easy-to-use interface A broad range of cryptocurrencies Cons Restrictions for Revolut Standard users Higher service fees Visit Revolut Now Your Capital is at risk. 9. CryptoRocket – Newbie Crypto Trading and Exchange Platform CryptoRocket is an online brokerage service. Launched in 2018, it has grown to become quite prominent among crypto traders. The company is based in St. Vincent and the Grenadines, and it is currently not regulated in any top jurisdiction. Besides cryptocurrencies, CryptoRocket offers access to stocks, currencies, and more. The service offers a low minimum deposit of $10, but its deposit channels are limited. Users will only be able to deposit money using Bitcoin, bank transfers, and cards. However, CryptoRocket offers same-day withdrawals for credit card transactions – an attractive quality for traders. Another area where CryptoRocket does really well is with leverage. The platform offers up to 500:1 margins for traders, allowing you to maximize your returns on trades. CryptoRocket also allows you to trade institutional liquidity sourced from global investment banks, so you have access to top rates and can trade on tight spreads. Trading and educational tools are also abundant on CryptoRocket, so feel free to peruse the platform to see what you’d like. Pros Impressive research tools Same-day credit card withdrawals High leverage trading margins Cons Limited deposit channels Non-regulated platform Visit CryptoRocket Now Your Capital is at risk. 10. Changelly – Nifty Exchange for Instant Bitcoin Purchases Changelly is a cryptocurrency exchange and trading platform that was launched in 2015. The service is owned and run by Fintechvision Ltd. – a company registered in Hong Kong and based in Malta. Changelly’s objective is to make it easier for people to exchange between different cryptocurrencies. The platform offers access to over 150 assets, allowing exchanges in just a few clicks. Its main feature is an instant exchange feature, which offers swift exchanges in just a few minutes. Besides this feature, Changelly offers leveraged trading with up to 10x margins on coins. But, this feature isn’t available to everyone. Changelly also has a competitive fee structure, charging a flat fee of 0.25% on crypto-to-crypto trades. These fees are automatically factored into its rates, so you don’t need to worry about manual accounting. If you’re looking to purchase or sell crypto for fiat, Changelly charges a 5 percent fee. The fee is also flat, so it doesn’t depend on the currency or your residence. As expected, deposits and withdrawals are free, and Changelly offers different channels for transactions. Pros A flat crypto exchange fee Impressive security features Broad deposit and withdrawal channels Cons High fees for fiat trading Slow customer service Visit Changelly Now Your Capital is at risk. What is Bitcoin Cash? This section aims to demystify the value proposition of this popular crypto asset and what it seeks to achieve. So, what is Bitcoin Cash? Bitcoin Cash is similar to other crypto projects. Let’s look at the project and what it stands for. Known by the acronym BCH, the digital asset is a Bitcoin fork It is a digital currency and is also virtually tradable Bitcoin Cash uses a proof-of-work (PoW) consensus algorithm like Bitcoin The split blockchain network aims to solve the scalability issue surrounding the older blockchain Before we dig deep into what Bitcoin Cash is all about, we need to understand the back story behind the crypto project. Originally founded in a 2008 whitepaper by an anonymous group or individual named Satoshi Nakamoto, Bitcoin heralded the beginning of the virtual currency era. The Bitcoin network enables the transfer of value in a decentralized thereby eliminating central authorities like the banks or governments and is censorship-free. Given the digital asset’s deflationary tendencies, Bitcoin is seen as a form of ‘digital gold’ and is considered a better store of value than commodities like gold. However, there is a core component the original founder(s) did not factor in – scalability. With interests in blockchain technology and cryptocurrencies kicking in, more users have joined the Bitcoin network but the PoW consensus algorithm have been hard tasked to meet up with the demand. This has seen transactions on the network slow although security has remained top-notch. Also, new blockchain concepts like interoperability (where several blockchains communicate with one another) are missing in the Bitcoin network. Bitcoin Cash aims to solve one of these problems and that is the scalability. It gets a bit technical here but stay with us. The original BItcoin block size is meant to require 1 MB of storage space but there have been talks to increase this output. Adding more information to a transaction or data could spike the block size, thereby addressing scalability. Scalability is how long it takes to validate transactions on the Bitcoin network. The Bitcoin block size did increase momentarily spiking up 1.305 MB in February 2019. This enabled the Bitcoin network to average more than the seven transactions per second (TPS) it currently boasts of. This saw development teams come up with the idea of Segwit2x, which will see them incorporate Segwit technology alongside a higher block size. The fail-points of this concept led to the formation of Bitcoin Cash in 2017. It operates on a separate blockchain platform and the hard fork occurred on block number 478,559. Bitcoin Cash operates on the same consensus algorithm as the Bitcoin network and uses the PoW mining protocol. The difference between both lies in the block size. While the older blockchain uses a fixed 1MB storage size for data, BCH uses a whopping 8MB as part of its massive on-chain scaling approach. However, this approach has not really differentiated it from the Bitcoin network as it still averages a transaction speed of 10 minutes. However, while Bitcoin averages 7 TPS due to the larger network traffic, BCH averages 116 TPS. The failed vision of Bitcoin Cash led to a further split or hard fork in 2018 and the new project was named Bitcoin Satoshi Vision (BSV) in homage to the original idea of Nakamoto. Bitcoin Cash has not stopped increasing its block size and has a maximum storage size of 32 MB. According to BitInfo Charts, BCH had an average block size of 4.7105 MB at 2018. This astronomical figure has since tapered down and the forked network currently has an average block size of 297 KB as at August this year. From its humble beginnings, Bitcoin Cash sought to enable a faster peer-to-peer (P2P) electronic cash system with low fees and permissionless spending serving as its foundation. But the split protocol has not been able to displace the much older network and currently sits on the fourteenth position on the most valuable crypto asset chart with over $14.8 billion in market cap. It is tradable on several crypto exchanges globally and is popularly traded against US Dollars. Apart from this, you can trade it against the British Pounds, Euro, Korean Won, and the Japanese Yen. Why Buy Bitcoin Cash? Bitcoin Cash Analysis Bitcoin Cash may still be an underdog, but the digital asset has many things going for it. We itemize a few of those and show you why you should buy Bitcoin Cash. Bitcoin Cash Is Deflationary By Design Aside from the scalability issue which the Bitcoin Cash blockchain aims to address, the protocol is every bit another Bitcoin. This means it has a hard cap limit of only 21 million BCH coins that will ever be mined. Basic economic concept points out that a scarce commodity or asset is expected to rise with time, and with only 10% remaining, Bitcoin Cash could see its value triple in the future. So if you are searching for a store of value that is not too pricey, Bitcoin Cash should fit the billing. Another form of ‘Digital Gold’ Following on the deflationary mechanism of Bitcoin Cash is the store of value concept. Bitcoin gained crypto prominence following the view that it is a better store of value than traditional commodities like gold. This has largely driven institutional investment in the crypto space and garnered adoption for the benchmark crypto asset. Since Bitcoin Cash operates under the same premise, it is also a great store of value in the long term, and this can be something you can hedge your funds against fiat devaluation. With national banks printing billions to stem against the economic impact of the global pandemic, buying Bitcoin Cash can be a smart way to retain a large chunk of value with the upside of increasing with time. Fractional Ownership Small-cap cryptocurrencies are largely snapped up more easily than large-cap digital assets. With Bitcoin Cash going north of $800, several investors are priced out of owning the digital asset from the onset. However, there is still a means of owning Bitcoin Cash without coughing up the whole sum. With fractional investment, you can own a part of the digital asset without breaking the bank. Only a few online brokers offer this service, and we recommend using the eToro platform. The regulated broker offers exposure to any investment vehicle with just $25 as the minimum value. Is it Worth Buying Bitcoin Cash in 2021? Bitcoin Cash has been one of the standout performers in the crypto space, and it has traded on $200 on an average. Meanwhile, the P2P electronic digital currency has seen exponential growth in the last year. This is reflected in its market cap, which has more than quadrupled in twelve months from $1.5 billion in September 2020 to $14.33 billion as at press time. This shows that Bitcoin Cash still has a lot to offer in any given case. However, Bitcoin Cash has been plagued by inconsistencies prompted by the volatile streak of Bitcoin. Starting the year at $341.99, BCH surged to an outstanding value of $712.31 a month later and retained the price action for a few days. But the digital asset could not find support at this price level, and this saw it slide to $480 on March 24. Source: TradingView Bitcoin Cash has mostly aped the price action of Bitcoin, and rallies and dips have also been reflected in its price momentum. This is characteristically seen in the climax of the crypto boom, which was seen in early May when Bitcoin Cash surged to a record value of $1,542.43. Bitcoin’s subsequent slump also impacted BCH price action, and the digital currency struggled against the bears for three months reclaiming its $480 support. However, Bitcoin Cash, like several crypto protocols, has been swaying between the bears and bulls. In the bullish market, which began in August, BCH is rallying again and currently trades $763.53, down 2.24% in the last 24 hours. This bullish momentum is not expected to die soon as premier digital asset Bitcoin is still on an uptrend. Ways of Buying Bitcoin Cash Bitcoin Cash’s value proposition is interesting to several investors, and with the digital token making significant gains in the past weeks, interests in the secondary store of value are at an all-time high (ATH). If you want to buy Bitcoin Cash, we highlight some of the ways you can go about doing this effortlessly: Buy Bitcoin Cash with PayPal PayPal is recognized globally as the world’s top remittance and digital payment company. With the e-wallet provider recently allowing crypto purchases through its service, several investors are now picking interests in the nascent industry. You can easily buy Bitcoin with PayPal directly, but you can’t purchase Bitcoin Cash on the platform now. You can use PayPal as a funding option to purchase BCH on the eToro platform with low fees. Buy Bitcoin Cash with a Credit Card Since you can buy Bitcoin with a credit card, buying BCH using a credit card won’t be much of an issue. This payment method is available on a few brokerage websites like eToro. Most brokers and exchanges do not offer credit card support due to the underlying risk. However, you will need to consider the categorization of your crypto transaction on a credit card. Most credit card issuers group crypto purchases as a “cash advance”, which attracts a transaction fee between 3 and 5%. If you are only left with this option, ensure you know how much you may be billed before proceeding. Buy Bitcoin Cash with a Debit Card The third and most popular option is to buy Bitcoin Cash with your debit card. Several investors favour this due to the ease of payment processing and the low fees it attracts. However, you will need to consider a broker’s processing fee if you want to buy Bitcoin Cash with a debit card. Some brokers charge between 4 to 5% of the total transaction, which can eat into your capital. We recommend using more economical options like eToro as you will only be charged 0.5% for using this feature. What to Remember Before Buying Bitcoin Cash If you want to buy Bitcoin Cash, there are a few things to be wary of before taking the plunge: Price Swings Your friends may have told you that cryptocurrencies are generally unstable in their prices, and they are right. Digital assets are known to change course overnight, which could positively or negatively impact your portfolio. Volatility is an issue the emerging industry is grappling with, and sometimes you may see a 30% in a daily chart and a subsequent dip the next day. If you are up to the task and are not risk-averse, you should buy Bitcoin Cash. The digital asset is making a major recovery, and forecast websites like Wallet Investor put its Bitcoin Cash prediction at $1,005.840 by the year’s end. A five-year forecast will see BCH trade at $2,072.520. Blockchain Tech Is Publicly Viewable Unlike your traditional financial transaction between you and the bank, crypto purchases are viewable by anyone. Cryptocurrencies use distributed ledger technology (DLT) or blockchain, which records all transactions on a network. These activities are done in the open, meaning anyone can query the data to verify a transaction. If you are more comfortable with the conventional system of transacting business, then crypto assets like Bitcoin Cash may not be what you need. Transacting Parties Are Unknown Even though we mentioned in the previous post that blockchain tech is transparent, transactions are done on a wallet-to-wallet basis. Both transacting parties use wallet addresses which usually comprise several strings of numbers and letters and is generally unreadable. Also, personal details are excluded as funds are transferred and received through these addresses. Although cryptocurrencies are transparent, they are also pseudonymous. Choosing the Right Broker Deciding on the broker you want to buy Bitcoin Cash through is crucial as purchasing the asset. Given the importance of this step, we have itemized some key features you should look out for in a broker before settling for one: Fees A broker’s fee structure is very important as it will help you know how much you will have to trade after paying for fees. You can find broker information on certain review websites like Inside Bitcoins, where we cover broker’s deposit, withdrawal, and trading fees. This will help you know the ones that are retail-driven and economical. Safety It would help if you only used a crypto exchange or broker with strong security protocols. Some of the things you should check out is two-way authentication and a whitelist for funds withdrawal. If these are missing, then there is a high probability that the platform is unsafe. Customer Support Most crypto exchanges are user-friendly, and you should be able to find your way around easily. However, there are occasions where you run into difficulty completing a transaction. Great customer support will put you right in no time. Check out an exchange’s customer resolution time before signing up. Payment Methods Equally as important is an exchange’s supported payment options. You need to know what platforms you can fund your account with and the accompanying charges. This will help you find the right payment channel to maximize your capital utility. Liquidity level Check the broker’s trading volume for that particular asset before proceeding. A high liquidity pool shows that you can withdraw your funds anytime you want. Bitcoin Cash Price As we stated earlier, Bitcoin Cash is volatile, which means it is constantly rising and falling. The crypto market is driven mainly by market supply and demand, and the scarcity of an asset shows it would rise with time. This would see people: Buy if they believe the price would increase and this sentiment would propel the price upwards. Sell if they feel that the price is set for a major correction. This is what led to the price slump of Bitcoin Cash to $480 during the recent crypto market crash. Aside from the US dollars, you can trade Bitcoin Cash against a host of other fiat currencies like Pounds, Euro, and the Korean Won. Bitcoin Cash Price Prediction Price forecast for a particular asset is an ongoing phenomenon, with several websites and platforms predicting the growth potential of the asset. To help in making this decision, market experts rely on technical indicators to predict the price. This normally entails examining the historical pricing data of the asset. Even though this approach yields results, sometimes the forecasts do not add up at the expected time, given that digital currencies are speculative in nature. Source: TradingView Given this, we recommend researching the market sentiment for a particular asset. For example, if Bitcoin Cash is posting major returns, several investors will want to buy. If you can identify this buying position early on, you can make your entry and sell at the peak. Investing in Bitcoin Cash vs Trading Bitcoin Cash Trading in the crypto market will require you to adopt a strategy. But which one should you go for? We dissect both in this section: Investing in Bitcoin Cash Source: eToro Investing should be your beginning step if you are starting in the crypto space or have a limited idea of how the crypto market works. This would require you to buy and hold for upwards of a year. Once you are satisfied with the growth of your portfolio, you can decide to sell and cash in your profits. Trading Bitcoin Cash For Quick Returns This second option is ideal for experienced traders who understand complex concepts like futures trading, margin trading, leverage trading, and the accompanying risks and gains. If you have the expertise to detect major price movements and enter into profitable trades, you can quickly multiply your returns in a short period. So, Which is Better? Deciding on if to hold and compound your gains for a long period or trade to make quick gains solely lies with you. However, we list a few criteria you should consider before choosing between the two strategies. Your Schedule If you are a very busy person, you know that time is an invaluable asset, and you cannot afford to waste it. Trading Bitcoin Cash requires spending time to do background research and monitor market sentiment. If you do not have the time to do the needed research, buying and holding may be what you should consider. Reason For Buying Bitcoin Cash Your ‘why?’ will determine whether you should invest or trade Bitcoin Cash. If you support the project’s value proposition, you may likely want to buy and hold for a considerable period till the market is favourable. However, if you’re going to generate quick returns on your investment, then trading Bitcoin Cash may be the best route to take. Risk Appetite Cryptocurrencies are risky, and volatility could wipe off your investment in real-time. If you are risk-averse, investing in Bitcoin Cash for the long term guarantees that you will get something in return. However, if you are more open to risky investment, you can trade the price swings of Bitcoin Cash for quick returns. Taxation on Bitcoin Cash Earnings The crypto market has largely been unregulated in the last twelve years. However, federal regulators are already creating a framework to curtail the excesses of the emerging space. For now, your tax obligations on your Bitcoin Cash earnings fall under the Internal Revenue Service (IRS) definition of “property.” This means you will pay the same amount of tax as your capital gains for your asset. In addition, crypto earnings can also be taxed under the income tax bracket in some situations. In this section, we explore those instances and how you can maximize savings from long-term capital gains tax. Taxable events that qualify for capital gains tax in the United States include: Swapping crypto for fiat Making a payment with crypto Exchanging one crypto for another on an exchange or peer-to-peer (P2P) platform Events that qualify for income tax are: Receiving crypto from an airdrop Interests earned from lending to DeFi platforms Block earnings from crypto mining Accepting crypto for services rendered Newly minted digital coins earned from staking and providing liquidity Although this seems like the IRS has its hands in every available spot, you can still write off a large sum of your tax obligations up to $3,000. Calculating Your Capital Gains Tax Capital gains tax is pegged between 0 and 20% in the United States. Income tax, which ranges between 10% to 37%, will also determine how much of your crypto earnings you have to remit as taxes in your annual report. Having this at the back of your mind, you should be able to estimate your: Short-term Capital Gains This comes into consideration if you have only traded cryptocurrencies for less than a year. In this instance, your tax obligation will fall under your regular income tax bracket. However, you can reduce the impact on your taxable income up to $3,000 with an added option of post-dating your losses till the next year. We have prepared a comprehensive list in a separate guide. You can access that by clicking the highlighted link. Long-term Capital Gains If you have been a long-term crypto hodler, you can substantially save a lot as you will only be taxed up to 20% of your income tax bracket. Hodling crypto for the long-term can be a great way to reduce your tax payments. Bitcoin Cash Trading Robots Making massive yields from crypto goes beyond investing or trading the market yourself. You can make good returns on your investment without exerting too much effort in doing so. Automated trading robots are sophisticated trading software programmed to scour the market for the best trades. They set stop-limit orders, take profits, and conduct technical and fundamental analyses. Utilizing cutting-edge technologies, they are able to get a ‘full picture’ of the market while eliminating emotions in doing. This helps in setting loss margins and enables you to make maximum returns in winning trades. However, there is only a handful of genuine trading software as the sector is largely unregulated. Below, we list some of the best trading bots in the market at the moment: Bitcoin Miner Bitcoin Prime Bitcoin Trader Cryptosoft Best Bitcoin Cash Wallet Cryptocurrencies are virtual assets and need to be stored for safekeeping. There are hundreds of these digital wallets that offer top-notch security for your crypto funds. The majority of them can be accessible as a mobile app or on your desktop. Some are accessible as separate hardware devices. However, not all of them support multiple currencies at once. Below, we highlight the best crypto wallet in the crypto space at the moment. eToro Crypto Wallet The eToro crypto wallet supports over 120 cryptocurrencies including Bitcoin Cash. It is also handy and user-friendly for inexperienced crypto investors as it demystifies the storage of crypto with more conventional tools. The eToro Crypto Wallet is available on Android and iOS devices and you swap one crypto for another on the digital wallet without needing to use a third-party app. The crypto wallet is regulated separately from the parent company, eToro, by the Guernsey Financial Services Commission (GFSC). eToro - Our Recommended Crypto Platform Our Rating ASIC, CySEC and FCA regulated - 20 Million Users Worldwide Buy with Bank transfer, Credit card, Neteller, Paypal, Skrill, Sofort Free Demo Account, Social Trading Community Free Secure Wallet - Unlosable Private Key Staking Rewards for holding ETH, ADA or TRX Copytrade Winning Crypto Traders - 83.7% Average Yearly Profit Buy Crypto 68% of retail investor accounts lose money when trading CFDs with this provider. FAQs How do you buy Bitcoin Cash? There are over 400 crypto exchanges and hundreds more traditional exchanges that offer support for digital assets like Bitcoin Cash. We recommend using eToro due to a combination of platform safety and regulation, low fees, and a social trading experience. Should I Buy Bitcoin Cash? Bitcoin Cash has remained one of the top performers in the crypto space despite making few fundamental changes. However, you can still generate returns from these price swings but make sure you only invest what you can afford to lose. How does Bitcoin Cash work? Bitcoin Cash operates much like Bitcoin and facilitates the trustless transfer of value between transacting parties. It is built on blockchain technology which ensures that all transactions are immutable and permanently stored on the network. Is it Safe to Buy Bitcoin Cash? Bitc Bitcoin Cash is volatile, much like Bitcoin and Ether. However, the digital asset’s long stay in the public eye shows that it is a safe investment. While several other cryptocurrencies have gone into oblivion, Bitcoin Cash has continued to rise in value and is one of the top 20 cryptocurrencies by market cap. How do I Make Money with Bitcoin Cash? There are three ways you can earn Bitcoin Cash or make money from it. One way is to build a validation center where you compete to solve the complex mathematical puzzles needed to unlock block rewards. Another is by investing or buying Bitcoin Cash and holding for the long term. Holding for the long term means you plan on selling when the profit threshold is acceptable to you. The last way is to actively trade Bitcoin Cash on an exchange like eToro. What are the Benefits of Buying Bitcoin Cash? Bitcoin Cash's sporadic growth this year has seen it retain its position on the most valuable crypto ranking. However, if you are keen to hedge your funds against fiat inflation, Bitcoin Cash can serve as a suitable option. It's deflationary like Bitcoin and operates under the same consensus algorithm. What are the Best Payment Methods to Buy Bitcoin Cash with? We suggest using debit cards due to the ease and low costs they generally incur. Other payment options offered by brokers like eToro are PayPal and Skril. What are the Best Bitcoin Cash Brokers? There are numerous brokers that allow you to buy Bitcoin Cash. We recommend social trading platform eToro due to its ease of use, low fees and regulation. How can I Buy Bitcoin Cash Instantly? To buy Bitcoin Cash instantly, first you need to open an account with a regulated broker. Once your account is verified, you will be able to invest or trade Bitcoin Cash. How can I Buy Bitcoin Cash with USD? The best way to buy Bitcoin Cash with US dollars is through a reputable broker or crypto exchange. The greenback is the most recognized currency brand in the world and most platforms support it. What are the Taxes for Trading Bitcoin Cash? Tax rates vary depending on the jurisdiction where you are residing. The only way to know your tax obligation is by perusing relevant government websites. How much is Bitcoin Cash worth? Bitcoin Cash is fluid, meaning the price changes often. Meanwhile, the Bitcoin fork is currently trading at $549.39, down 1.09% in the last 24 hours. How Do You Mine Bitcoin Cash? Bitcoin Cash is intrinsically the same as Bitcoin at its core. This means the only way you can gain block rewards and profit from the exercise is by utilizing application-specific integrated circuits (ASIC) miners. This increases your chances of gaining BCH from mining.
