When you first heard of Bitcoin Cash (BCH), you may have thought it was just another way to refer to the standard version of Bitcoin. However, Bitcoin Cash and Bitcoin are actually two different cryptocurrency tokens with separate trading values.
While you can buy Bitcoin from almost every cryptocurrency exchange, when looking to buy Bitcoin Cash you may find it is not as widely available. Knowing exactly where and how to buy Bitcoin Cash is a vital first step in acquiring the token.
On this page, you’ll learn the difference between buying and trading Bitcoin Cash, important considerations to keep in mind along the way, and more helpful information to guide you in your cryptocurrency journey. So, without further ado, let’s get started.
Best Brokers to Buy Bitcoin Cash From in 2022
With various places to buy Bitcoin Cash, seeking which one is the best option for you can seem overwhelming. But don’t worry, we’re here to walk you through all of your options so you can make an informed decision. We’ve put together the table below to showcase the differences between the various brokers you can buy Bitcoin Cash from:
1
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What Is the Difference Between Buying and Trading Bitcoin Cash?
One of the first things you’ll need to learn about cryptocurrency before buying Bitcoin Cash is the difference between buying and trading tokens. Below is a brief explanation of the differences between the two:
Buying Bitcoin Cash: You own the coin outright after purchasing
Trading Bitcoin Cash: When trading Bitcoin Cash, you use the asset to sell on the market and make a profit
How to Buy Bitcoin Cash Online
Signing up for a cryptocurrency exchange is the easiest way to buy Bitcoin Cash online. To sign up for an exchange, just follow the below steps:
Step 1: Find a cryptocurrency exchange
Step 2: Sign up for an account
Step 3: Decide how you want to trade
How to Trade Bitcoin Cash
Some people prefer to trade Bitcoin Cash rather than buying the coins outright. If this is you, the initial setup steps are a little different:
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Step 1: Find a broker
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Step 2: Deposit money into your account
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Step 3: Decide how you want to trade
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Step 4: After putting together your strategy, start trading Bitcoin Cash by following the instructions within the platform
What Are the Different Ways to Pay for Bitcoin Cash?
When you’re ready to pay for Bitcoin Cash, you can use various payment methods. There is no wrong choice. The right choice is the method you feel most comfortable utilizing and is available within your broker or exchange of choice.
Below, you’ll find a selection of the best ways to pay for Bitcoin Cash:
Bank Transfer
Bank transfers are arguably the most reliable way to pay for Bitcoin Cash. Almost every exchange, broker, and P2P marketplace will accept this as a payment method.
Pros
Cons
PayPal
PayPal is a popular digital wallet and allows users to buy and sell cryptocurrencies from within their digital wallet. However, the options available within PayPal are limited, so you may want to use PayPal to buy directly from an exchange or brokerage instead.
Pros
Cons
ATMs
Like the primary version of Bitcoin, you can buy Bitcoin Cash at land-based ATMs. You can use either a card or cash to do this. After making the purchase, the coin is stored in a digital wallet.
Pros
Cons
Cash
Some marketplaces will let you buy Bitcoin Cash using physical fiat currencies.
Pros
Cons
Debit /Credit Cards
Most cryptocurrency exchanges and brokers will allow you to fund your account using a debit or credit card. When you do this, the process isn’t much different from depositing funds into a betting account. Once you’ve chosen how much you wish to deposit and verified the payment, the money will appear in your account.
Considerations When Buying Bitcoin Cash
When buying Bitcoin Cash, you need to consider several factors. To help you prepare accordingly, we’ve listed some key things to keep in mind below:
Value: Bitcoin Cash is a lot less expensive to buy than Bitcoin, but its market value is also currently lower. With this in mind, buying Bitcoin Cash is more of a long-term investment.
Volatility: Cryptocurrencies are well-known for their volatility. While Bitcoin Cash is stable compared to others, it still fluctuates regularly.
Fees: When buying Bitcoin Cash, you’ll need to keep several costs and fees in mind including when you deposit and withdraw funds.
Long-term Holding (HODL): To hold on for dear life, also known as HODL, means keeping your coins for the long term. It’s often used as an investment strategy to maximize profits.
Short-term Holding: Short-term holding refers to buying and selling coins based on short-term market speculation.
Is It Safe to Buy Bitcoin Cash Online?
If you use a reputable cryptocurrency exchange, buying Bitcoin Cash online should be safe.
It should also be safe if you choose to trade instead and use a regulated broker. However, security threats are a constant, and you need to be mindful of the security of the sites you’re visiting, the information you’re providing, and the funds you’re utilizing. Some ways you can be mindful of your safety when buying Bitcoin Cash include:
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Only asking for help on official websites
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Passing only the necessary know-your-customer (KYC) checks
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Using hard-to-guess passwords
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Adding two-factor authentication (2FA) to your accounts
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Using secure digital wallets for storing your Bitcoin Cash if you don’t plan to sell it soon
When buying Bitcoin Cash, it’s also worth reading customer reviews for any platforms you use.
How to Store Bitcoin Cash
After buying Bitcoin Cash, you can keep it in your exchange account. However, we recommend that you use a digital wallet. If you keep your Bitcoin Cash in your account and someone hacks the network, you’ll probably lose your coins without any way of retrieving them.
Different types of wallets you can store your Bitcoin Cash in include:
Cold Wallet: These wallets are offline and can either be on a hardware drive or on a piece of paper with a code. Cold wallets are the safest type of wallet you can use, but you need to remember their sign-in details which can be lengthy.
Online Wallet: Several online Bitcoin Cash wallets exist. You can use these to access your coins from anywhere, you just need to verify your identity when you sign in.
How to Sell Bitcoin Cash
When you’re ready to sell your Bitcoin Cash, you can do so in various ways. You’ll find the most popular methods below:
Cryptocurrency Exchanges
Selling Bitcoin Cash on cryptocurrency exchanges works in a similar way to buying coins, but rather than setting up a buying order, you’ll set up a selling order.
Often, you’ll sell your Bitcoin Cash for fiat currencies. However, some exchanges will let you sell Bitcoin Cash for other cryptocurrencies.
Pros
Cons
Decentralized Exchanges
You can also sell Bitcoin Cash using decentralized exchanges. In practice, these don’t work too differently from centralized exchanges with the only real difference being that no middleman exists in the sale.
Pros
Cons
CFD Brokers
Contract for difference (CFD) brokers allow users to buy cryptocurrency assets rather than own the coin outright while also allowing users to sell these assets later. Several CFD brokers exist, with one notable example being eToro.
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Cons
ATMs
Some cryptocurrency ATMs allow you to sell your Bitcoin Cash for fiat currency cash. Doing so is simple, so you don’t need to worry about complicated processes if you’re a beginner.
Pros
Cons
Is It Worth Buying Bitcoin Cash Right Now?
Cryptocurrency markets are volatile, and buying any coin carries risk. When purchasing, remember that you’re fully responsible for what happens.
With that being said, Bitcoin Cash might be a strategic long-term investment. While its price is relatively low at the moment, as more people look for more Bitcoin alternatives, this could be a token to watch.
Conclusion
Bitcoin Cash might have a similar name to its more famous counterpart, but it’s a currency in its own right and should be treated as such. In this guide, we showed where to buy Bitcoin Cash safely and how to do it. At the time of writing, the most convenient option is to use a bank transfer which is widely accepted on cryptocurrency exchanges.