What is Bitcoin Cash (BCH) and how is it different to the main Bitcoin? To understand this, you’ll need to know the difference between a soft and hard fork in the world of cryptocurrency.
Breaking away from the original codebase of Bitcoin’s underlying technology, the hard fork that became Bitcoin Cash was created to solve a very specific issue with the slow payment processing speed of the original blockchain. Does this make it a worthwhile investment? We discuss whether or not this Bitcoin spinoff is worth putting your money into.
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eToro is the leading CFD provider when it comes to cryptocurrencies and buying Bitcoin Cash. They were one of the first to launch Bitcoin Cash on their trading platform and continue to be a market leader in the cryptocurrency space. If you’re looking to buy Bitcoin Cash, then look no further than eToro, see below our 3 step process to getting started!
eToro is free to sign up and has a demo account that you can use to practice before buying Bitcoin Cash for real. To sign up, click the button below and fill out the form; name, email, phone and then you’ll need to create a password. Next you’ll be required to verify your account by clicking the link in your confirmation email.
Once you’re account is verified, you’ll need to deposit funds into your account to make it live. We recommend starting with the minimum of $250, start small to get used to it and then begin to add more over time. Choose your payment method, eToro offers several options, pick your favoured and then fill out your details and click submit.
Once you have funded your account, it’s time to buy Bitcoin Cash. eToros platform is easy to use, to find Bitcoin, click ‘Trade Markets’ on the left, then you’ll see ‘Crypto’ at the top. Once in this section, you will see eToros full list of cryptocurrencies. Hit Bitcoin Cash and then ‘Trade’. A ticket will open, manage your risk and then ‘Open Trade’.
Highly rated and new CFD provider, Investous, has burst onto the market and established itself with a solid reputation. It’s smooth and streamlined platform makes trading easy for any beginner looking to take the dive into the world of cryptocurrencies. It offers over 270 different assets and a great range of coins, including Bitcoin Cash.
Signing up is simple, click the link below and once on their homepage, hit the ‘Sign Up’ button in the top right. Add your name, email and phone number, choose the account type and then click ‘Start Trading’. You’ll receive an email to verify your account before you can deposit into your account.
Once you have created an account, you will login and be required to fill out a questionnaire. Once complete you will be asked to choose how much you want to deposit and the payment method you intend to use. We always recommend sticking with the minimum amount before adding more once you get used to the platform.
Now you have deposited, to buy Bitcoin Cash you will see the list of assets Investous offers on the left. Use the filter option and choose ‘Cryptocurrencies’, you will then find Bitcoin Cash. Click and you will have the option to buy and sell. Decide how much you want to risk, click buy and then ‘Trade’.
In January 2009, an anonymous person – or group of persons – going by the name of Satoshi Nakamoto launched Bitcoin (BTC). The objective was to create a peer-to-peer exchange system for electronic transactions that did not depend on centralised trust. The cryptocurrency has grown exponentially over the years and has become the leading coin in value and market capitalisation.
However, Bitcoin had a glaring issue and still does. It could only process seven transactions per second. This is much slower than Visa’s 24,000 transactions per second. Though this was not a concern at the beginning, its affects manifested as the number of Bitcoin users increased.
The first solution was to have users pay higher fees to increase processing speed. Unfortunately, this rendered it useless as a payment method for small charges. The remedy was to either increase the block size or maintain the status quo and declare the coin as “not a payment solution for a cup of coffee.” The developers and miners could not agree on any of the options.
The impasse resulted in a hard fork in 2017 that split the blockchain into two; Bitcoin and Bitcoin Cash. Bitcoin Cash increased the block size from 1MB to 8MB, which in turn increased the transactions from half a million to two million per day. Apart from the shared codebase, it operates completely independently from Bitcoin.
To many users, the creation of Bitcoin Cash offered a solution to their issues with Bitcoin. As a result, Bitcoin Cash has gained significant popularity, value, and market base in its few years of existence. It is among the leading top five cryptocurrencies, rivalled only by Ethereum, Ripple, and its namesake, Bitcoin.
Bitcoin Cash is a promising investment vehicle in the cryptocurrency world. However, it is essential to remember that the market is highly volatile and speculative. Consequently, past performance is not to be a basis of determining future outcomes. It is possible for BCH to have between £0 to incredible market value over the next few years.
PayPal and cryptocurrencies do not go hand in hand, which makes it hard to buy Bitcoin Cash with an exchange using your PayPal account. However, the BCH peer-to-peer exchange offers a way to circumvent this obstacle. You can find a seller on the platform who accepts PayPal payments.
Nonetheless, you can only do this offline, which has its security issues. Besides, the sellers who accept PayPal charge premium fees because of the high risk of buybacks.
Unless a friend, family member, or a trusted acquaintance is the one selling BCH for cash, it’s not advisable to purchase any cryptocurrency up front with cash. However, there are reputable peer-to-peer platforms that facilitate the purchasing of Bitcoin Cash with cash.
Although banks can block cryptocurrency transactions, there are quite a few exchanges and brokers out there that allow you to use credit cards as a payment option. It’s far easier to do so on broker platforms, as these are regulated by financial bodies and banks will have no issue in your investing in cryptocurrency on these platforms.
First, ensure that you understand the laws of your state or current residence concerning buying or trading in cryptocurrencies. Dealing in digital assets can earn you a jail term in certain countries. Besides, individual banks limit bank transfer payments to accounts in certain states.
Another issue to consider when buying Bitcoin Cash is the language used by the exchange. Fortunately, there are several English-based exchanges. Regional exchanges also offer better and faster transaction processing. It is specifically true if you are using a peer-to-peer exchange as you need to deal with a person, and you can physically meet if need be.
Again, most exchanges have location-based platforms that bring together people from the same country or state.
What is the Difference Between Buying and Trading in Bitcoin Cash?
Buying cryptocurrency offers you ownership. You can transfer the coins to your coin wallet. You can hold it, use them to purchase other cryptocurrencies, sell them to a friend, or use them as a payment method where vendors accept them. In short, you have complete control over your coins.
Trading, on the other hand, provides an opportunity for you to make profits by predicting the future prices of the cryptocurrency coin. However, you cannot withdraw the coins from the platform. All you can do is use them as leverage on your forecasts or sell them for profit.
The primary benefit of trading is that it exposes you to profitable opportunities, which is impossible if you are holding the coins in a private wallet. However, you can still convert your coins when you need them to fiat currency and withdraw to your bank account.
Successful trading, nonetheless, requires skills that take time to learn. Besides, the high volatility of the cryptocurrency market exposes your investment to high losses as well. Conduct your research before taking this step.
What Fees are Involved in Buying Bitcoin Cash?
There are different types of fees that you’re likely to encounter when trying to buy Bitcoin Cash. We’ve listed the main fees below;
If this article has given you the confidence to start investing in cryptocurrencies and you want to buy Bitcoin Cash, click the button to get started.
Mainly because it’s always good to diversify your investment portfolio. Having two or more investment vehicles will cushion you if Bitcoin Cash takes a hit from other competitors and market factors. Ideally, you want to spread your investments, and make sure you could profit on the growth of other technologies all whilst reducing losses if only one coin is failing.
In reality, buying cryptocurrency is actually relatively complex. The easiest way to invest in Bitcoin Cash is to use a broker platform to trade on the price. These have the simplest user interfaces, the best payment methods and the quickest turnaround times. Perfect for the beginner cryptocurrency investor.
Yes, but it is a convoluted process. The easiest way is to buy using other cryptocurrencies such as Ethereum instead of a credit card or a debit card and use a Virtual Private Network to mask your IP address. You’d also need to create an anonymous wallet and transfer your Bitcoin Cash across to this.
Yes. Bitcoin Cash is currently one of the top cryptocurrencies in the world, hence found in nearly all reputable exchanges.
Successful trading in cryptocurrencies requires continuous 24-hour monitoring, which you naturally cannot achieve. Alongside this, the skill set needed takes a lot of time to learn, meaning you could miss out on huge investment opportunities due to sluggish trading.
Trading bots are necessary if you plan to invest in trading on in BCH. Otherwise, if you need to buy your coins for another purpose, then you can do without the robots.
Most independent exchanges only allow a limited volume of Bitcoin Cash per transaction. This is because they gain from every transaction, hence the more the number of transactions, the better for business. The easiest option is to use a broker instead of buying through an exchange, as these rarely have any limits and allow you to purchase however much you want - but this flexibility does come at a slightly higher fee premium
The easiest way to do this is to return to wherever you purchased your BCH from in the first place and use their selling service. Usually, most exchanges, brokerages and trading platforms will have the option to sell your currency back to them or to other users.
Most independent exchanges only allow a limited volume of Bitcoin Cash per transaction. This is because they gain from every transaction, hence the more the number of transactions, the better for business. The easiest option is to use a broker instead of buying through an exchange, as these rarely have any limits and allow you to purchase however much you want - but this flexibility does come at a slightly higher fee premium.