You can buy Bitcoin cash on Cryptocurrency Exchange, which doesn’t take more than a few minutes, you will be able to buy Bitcoin Cash (BCH) with a credit & debit card instantly in several different fiat currencies.
Bitcoin (BTC) was invented as a peer-to-peer cryptocurrency for daily transactions. As the Bitcoin network grew over the years, it became a store of value, instead of a currency.
Want more than just to buy BCH? Access dozens of different cryptocurrencies buying guides 2022 here.
What is Bitcoin Cash (BCH)?
Bitcoin Cash (BCH) is a proof-of-work blockchain network and cryptocurrency that’s faster and cheaper to use than Bitcoin (BTC). The asset was created via a hard fork of the Bitcoin blockchain network and has since developed its own community. Like its predecessor, Bitcoin Cash is accepted at certain merchants, can be bought on PayPal and represents another way to transact value.
BCH was meant to solve many of Bitcoin’s long-standing issues — but such a solution caused a rift in the crypto community. While the two can easily coexist, many argue over which will be the asset of the future.
The first Bitcoin block, the genesis block, was officially mined on Jan. 3, 2009. Since then, the asset has exploded in popular culture. However, Bitcoin — the world’s first cryptocurrency — still suffers from scalability issues and long transaction times. This is where Bitcoin Cash comes into play.
The idea of Bitcoin Cash came to be in 2017 as a solution to Bitcoin’s transaction speed issues. It’s a hard fork of the Bitcoin blockchain, meaning the network “split” in two at a certain block — in this case, block 478,558. That block holds a fundamental protocol change that invalidates all previous blocks, requiring nodes to “upgrade” to the new chain to continue using it.
It’s essentially an enormous software update through which the previous network goes on in a direction separate from the new one. In this case, that previous network is Bitcoin, while the Bitcoin Cash fork forged its own future.
The fork was decided on by various miners and developers within the Bitcoin network who were hoping to get rid of its limitations. After all, many assume Bitcoin is meant to be used for digital transactions as opposed to as a store of value. How can Bitcoin appeal to the mainstream if said transactions take minutes or even hours at a time? And that’s not to mention high transaction fees.
Read More: What is Bitcoin Cash (BCH)?
How Does Bitcoin Cash (BCH) Work?
Due to its code being so similar to Bitcoin’s code, the two cryptocurrencies have much in common. The way a user operates Bitcoin Cash is no different from a user operating Bitcoin.
The difference is found only in its scaling preferences; where Bitcoin chooses to opt for technologies that would help it scale without the increase in block size, Bitcoin Cash opts to use an increased block size, while dismissing all scaling efforts done through integrating new technology.
Bitcoin Cash also operates on the same proof-of-work consensus mechanism as Bitcoin, utilizing what is called a Secure Hash Algorithm (SHA).
Unlike Litecoin, which tries to act as a sibling of Bitcoin, Bitcoin Cash is Bitcoin’s direct competitor. Its uniqueness comes from its scaling solution being the increased block size rather than Bitcoin’s SegWit or Lightning Network.
At the moment, Bitcoin Cash can process up to 61 transactions per second, meaning that its current network transaction ceiling is much higher than Bitcoin’s.
There is no difference between how Bitcoin’s network is secured from how Bitcoin Cash’s network is secured. Both networks operate under the same set of rules, and both have the same consensus mechanism.
The structure of the proof-of-work algorithm and a set of miners that utilizes it to verify transactions are at the forefront of Bitcoin Cash’s security.
Read More:
How to Make Money with Bitcoin Cash (BCH)?
How to Earn Free Bitcoin Cash (BCH)?
Why Buy Bitcoin Cash (BCH)?
Proponents of Bitcoin Cash believe that by lowering transaction costs, the cryptocurrency can gain market share in a wider variety of consumer finance and payments use cases.
Users of BCH may find their transactions are approved more quickly, with lower fees. However, users should note the costs of operating a node and storing the full version of the Bitcoin Cash transaction history may be higher.
How to Buy Bitcoin Cash (BCH) in 4 Simple Steps
- Step 1: Decide where to buy Bitcoin Cash (BCH).
- Step 2: Think about how to store your Bitcoin Cash (BCH).
- Step 3: Make your purchase.
- Step 4: Manage your investment.
How to Buy Bitcoin Cash (BCH) on a Crypto Exchange
1. Coinbase
- Step 1. Create a Coinbase account
Download the Coinbase app and start the sign up process. You will need a valid ID and may be asked for proof of address in order to transact, so be sure to have those ready. Verifying your ID may take longer than a few minutes, depending on where you live.
- Step 2. Add a payment method
Tap on the payment method box and connect a payment method. You can use a bank account, debit card or initiate a wire.
- Step 3. Start a trade
Press button then select “Buy” from the list of options.
- Step 4. Select Bitcoin Cash (BCH) from the list of assets
Search for Bitcoin Cash (BCH) by typing “Bitcoin Cash (BCH)” into the search bar. When you see Bitcoin Cash (BCH) show up in the results, tap it to open up the purchase screen.
- Step 5. Enter the amount you want to buy
Use the number pad to input the amount you want to spend in your local currency. The app will automatically convert that into a Bitcoin Cash (BCH) amount.
- Step 6. Finalize your purchase
Tap “Preview buy” when ready. You’ll be shown the details of your purchase. Make sure everything looks good and then confirm your purchase. That’s it, you’ve bought Bitcoin Cash (BCH).
2. eToro
- Step 1: Find a crypto exchange or trading platform that offers Bitcoin Cash (BCH)
There are a number of exchanges that will let you trade your funds for Bitcoin Cash (BCH). One of them is the eToro trading platform.
- Step 2: Sign up
If you’d like to buy Bitcoin Cash (BCH) through eToro, all you need to do is sign up, verify your account and make a deposit. From there, you’ll be able to buy and sell Bitcoin Cash (BCH) easily.
- Step 3: Buy Bitcoin Cash (BCH)
Bitcoin Cash (BCH) can be purchased fractionally, so you don’t need to buy a full Bitcoin Cash (BCH) to own some. For example, if Bitcoin Cash (BCH)’s price is $10,000, you can purchase 0.1 Bitcoin Cash (BCH) for $1,000.
3. Bitfinex
- Step 1. Log in to your account or sign up to Bitfinex.
- Step 2. Go to Deposit, choose Payment Cards.
- Step 3. Select the payment processors.
- Step 4. Choose the crypto and enter the amount.
- Step 5. Select the destination wallet and proceed payment
4. Binance
- Step 1: Create your Binance Account
Sign up with your email address or mobile phone number, and choose a strong password. Or, download the Binance crypto trading app from the App Store or Google Play store and open an account there.
- Step 2: Start Buying Bitcoin Cash (BCH)
There are two main ways to buy Bitcoin Cash (BCH) on Binance using cash: you can link your debit/credit card or bank account, or buy crypto directly from other users on Binance P2P.
Linking your debit card, credit card, or bank account (available in many regions) is one of the easiest ways to buy Bitcoin Cash (BCH). Through this method, you can buy Bitcoin Cash (BCH) for a minimum. (This amount varies depending on the currency you use.)
Buy Bitcoin Cash (BCH) directly from other Binance users with your local fiat currency via Binance P2P. Browse a variety of Bitcoin Cash (BCH) listings to shop the best offers on Bitcoin Cash (BCH) from other users. With thousands of merchants and hundreds of payment methods available, Binance P2P caters to many regions in the world right now.
5. KuCoin
- Step 1. Sign Up for KuCoin Account
- Step 2. Secure Your KuCoin Account
- Step 3. Verify Your Identity
- Step 4. Connect Your Account to Funds Fund Your Account
- Step 5. Start Trading on KuCoin
How to Buy Bitcoin Cash (BCH) With PayPal
- Step 1. Login to Paypal and Select Cryptocurrency
In Paypal website, you should see the option for cryptocurrency in the top right of the dashboard, next to ‘Send’ and ‘Request’.
- Step 2. Select ‘Bitcoin Cash (BCH)’
Or choose any of the other coins listed.
- Step 3. Select ‘Buy’
- Step 4. Choose How Much You Want to Buy
Enter an amount of dollars you want to spend on Bitcoin Cash (BCH) or choose a pre-set amount below.
- Step 5. Select Payment Method
You likely already have you bank account linked to you Paypal account, but you can also hook up another method if you don’t want to use your bank account.
- Step 6. Hit the ‘Buy’ button
After finalizing your purchase, you will be taken to a confirmation screen and you should see your coins reflected in your Paypal account dashboard.
How to Buy Bitcoin Cash (BCH) With a Credit Card
Not all platforms will allow you to use a credit card to make your cryptocurrency purchases. If you do choose a platform allowing such transactions, keep in mind that there may be extra fees associated with the purchase. Many credit card companies process cryptocurrency purchases via credit card as cash advances, which can incur high interest rates, among other fees.
Some credit card companies allowing cardholders to make crypto purchases treat the purchases as a cash advance (cash advances usually involve a cardholder using a credit card to withdraw money from an ATM). This has several critical disadvantages.
- Cash Advance Fees: Some cards treat a cryptocurrency purchase as a cash advance. This means each crypto purchase is subject to a cash advance fee. A typical fee of either $10 or 5% (whichever is greater) would be charged. These fees are in addition to fees charged by the vendor or exchange.
- Cash Advance Interest Rates: Most cards have a higher Annual Percentage Rate (APR) for cash advances—often over 25%. This is a variable interest that changes with the market. Interest will start to accrue on the day the purchase is made and will continue to accrue until the credit is paid off. By comparison, cardholders have up to 25 days to pay off a regular credit card charge before accruing any interest.
- No Credit Toward Rewards orBonuses: Credit used to purchase crypto (and thus make a cash advance) typically doesn’t qualify for any purchase rewards nor toward spending that would normally apply to a welcome bonus.
- Lower Credit Limits: Cash advances often have a lower credit limit than the cardholder’s overall credit limit that applies to the card itself. Cardholders hoping to make big crypto buys may find themselves limited by the cash advance terms and limitations.
Read More: How to Sell Bitcoin Cash (BCH)?
Buying Bitcoin Cash (BCH) FAQs
What is a Bitcoin Cash (BCH) Wallet?
The entire transaction history of any particular cryptocurrency is stored on the blockchain.
With a wallet you can prove that you are the owner of your coins. Your wallet holds the private keys that grant you access to your coins. You could compare your wallet to a keychain. The coins themselves aren’t stored in your wallet, they are stored on the blockchain. You use your wallet to manage the coins, and send or receive them.
There are many wallets that support bitcoin cash. Each type of wallet has its own characteristics and is different in terms of usability and security. For example, there are mobile wallets, software wallets, and hardware wallets.
Have you just started trading or do you already have experience with cryptocurrency? Do you want to buy a small amount or invest a large sum? In the overview below you can see which wallet is most suitable for your situation:
- Mobile wallet: Managing your coins using a smartphone
- Software wallet: Managing your coins using a computer
- Hardware wallet: Managing your cryptocurrencies from a physical device
Can You Sell Bitcoin Cash (BCH)?
Your two main options for selling bitcoin cash into local currency are:
- Using an exchange service
An exchange service is a regulated business that interacts with the traditional banking system. An exchange service may take the form of a simple website with limited crypto asset exchange functionality, a digital wallet with banking connections, or a full-service cryptocurrency exchange with order book, market makers, etc.
- Selling peer-to-peer
When you sell peer-to-peer, you can bypass the traditional banking system to a certain extent by, for example, taking payment in cash, using a payment app like PayPal, or settling the transaction with goods or services. There are a number of platforms that act as a matchmaking service, helping sellers find buyers and vice versa. Buyers and sellers then negotiate trades on a peer-to-peer basis.
Read More: How to Sell Bitcoin Cash (BCH)?
What is a Bitcoin Cash (BCH) Address?
You can find your Bitcoin Cash (BCH) or Bitcoin (BTC) address for receiving payments into your Bitcoin.com wallet by tapping “Receive” on the bottom toolbar of your wallet. Your address will be the long string of numbers and letters directly below the QR code for that address.
If the person/company is sending you BCH then select one of your Bitcoin Cash (BCH) wallets. If they are to send you BTC, please make sure you provide them with an address from your Bitcoin (BTC) wallet.
You can switch between your BTC and BCH wallets at the bottom of the page by tapping/clicking on the wallet name and selecting the one you wish to receive bitcoins to.
All Bitcoin (BTC) addresses will start with the number “1” or “3”.
What can make things a little confusing sometimes, is that Bitcoin Cash (BCH) addresses can also start with either a “1” or “3” if being displayed in the old “legacy” format. (This is because BCH is a fork off the BTC chain).
To help cut down on confusion a new BCH address format was introduced called the “cash address” format (or cashaddr for short).
All BCH addresses using the new “cash address” format, will start with either the letter “q” or “p”
(If providing an address to receive Bitcoin Cash (BCH), we highly recommend that you provide a BCH in the “cash address” format. This is so that nobody will accidentally send BTC to your BCH address).
