Bitcoin Cash began as a fork of Bitcoin. It was created following a chain split when core Bitcoin developers disagreed over scalability plans. Following the split, Bitcoin Cash increased its block sizes from 8 MB to 32 MB, improving its speed and lowering fees.
Bitcoin Cash remains over 94% down from its all time high of $3,587, so it could be worth buying ahead of the next bull season.
So, how do you invest in Bitcoin Cash BCH? Payment providers like PayPal offer an alternative to more expensive methods like credit cards while still preserving the convenience.
Buy Bitcoin Cash with PayPal on eToro
eToro is one of the first cryptocurrency providers that allow you to buy using many payment methods as well as other services. The actual process is very simple as well and one of the reasons we do recommend eToro for both beginners and experts.
Step 1: Registration
To get started, you'll need to register with eToro. It is free to sign up and you don't need to deposit right away, which means you can get used to the platform before going live.
Step 2: Deposit
Once you're happy with the platform and ready to buy for real, it is time to deposit some money into your account. Click the deposit button in the bottom left, then choose PayPal. Enter the amount you want to deposit, we'd recommend starting low before adding extra over time.
Step 3: Start Trading
Now your account is live and ready to go, the process is like any other CFD provider, you will need to search for the coin you want to buy, be it bitcoin, ethereum or whatever your preferred choice is. Hit the 'Buy' button and then 'Trade', make sure you understand your risk parameters before you jump in.
Other Methods of Buying Bitcoin Cash with PayPal
While PayPal is one of the world’s leading payment providers, it is not currently possible to buy cryptocurrencies like BCH with your PayPal account directly.
Generally, you have to deposit funds to an exchange or broker to trade and acquire cryptocurrency.
Buying exposure to Bitcoin Cash price movements via a broker is one of the easiest methods, as many of them accept PayPal. When you buy Bitcoin Cash via a broker, you are actually trading CFDs, a type of trading instrument.
These offer advantages for buyers and sellers, such as less slippage and no blockchain fees.
This way traders can speculate on price movements without having to own the coins and store them in a Bitcoin Cash wallet.
Bitcoin Cash has good trading liquidity, so it’s available for purchase on many exchanges and brokerage platforms worldwide.
Advantages and Disadvantages of Buying Bitcoin Cash with PayPal
Buying Bitcoin Cash with PayPal Fees
PayPal is not the cheapest method to buy Bitcoin Cash, but it is one of the fastest and most convenient.
If you are considering depositing and withdrawing funds to a platform with regularity, a bank transfer remains the most affordable and practical.
If, however, you simply want to make a one-time convenient transfer, then the PayPal app could be more convenient to use.
Exchanges and brokers are charged fees by PayPal for receiving payments. These fees are often passed on to customers in the form of ‘convenience fees’ when PayPal is the chosen payment method.
Convenience fees rarely range above 5%, but it’s important to check these with the exchange and broker you are depositing to.
While PayPal fees are normally low for bulk purchases, it is a good idea to calculate the transaction fee as they do vary.
Is Buying Bitcoin Cash with PayPal the Best Method
If you are looking to make a one off deposit to an exchange or broker and purchase Bitcoin Cash quickly and with a minimum of hassle, then using your PayPal digital wallet is a good option. If however, you want to actively trade Bitcoin Cash and deposit to and from the platform regularly, consider a transfer from your bank account.
Credit cards offer greater convenience than PayPal, but the associated fees can add up over time and eat into your investment.
PayPal is the best choice for traders who want to buy Bitcoin Cash quickly but don’t mind paying a little bit more to get ahead of the market.
Frequently Asked Questions
Firstly it is scarce. Like the original chain, Bitcoin Cash has a fixed supply with the protocol ensuring there will never be more than 21 million coins in existence. Bitcoin Cash is available around the clock — much like the internet — and offers more privacy than traditional payment networks.
Bitcoin Cash is more private than credit cards and bank transfers because it is difficult to work out the identity of address holders. However, it is not entirely private, as every transaction is recorded on the public blockchain.
As the very first cryptocurrency, Bitcoin set out to be P2P currency exchange. However, in subsequent years, Bitcoin pivoted towards being a ‘digital gold’ with small block sizes, slow transactions and expensive fees. The Bitcoin Cash community has its sights set on becoming a globally transacted currency with the capacity for greater scale; this is thanks to its upgrades after hard forking from the original chain.
The entire cryptocurrency market has been seeing a resurgence with the recent decline in the value of the US dollar. This has coincided with the rise of DeFi (Decentralized Finance), which has seen money flooding back into the space after a long bear winter.
In a climate where governments are printing money endlessly to stimulate the economy, the fiat money supply is becoming inflated. When this happens, the value of fiat currencies can become inflated and worth less for goods and services. Bitcoin Cash has a fixed supply like Bitcoin does, which could see an increase in value, especially if fiat currencies continue to fall.
With the price of Bitcoin Cash down over 90% from its all time high, BCH could represent a bargain choice for the coming bull cycle. The last few months has seen the collective value of cryptocurrencies rise in value and this trend could continue.
Trading with a broker is just like trading on an exchange, only you will be trading CFDs and not need to manage your coins. For example, if the price of BCH doubles while you hold a BCH CFD, you will double the value of your investment. This is attractive for traders, as brokers typically charge fewer fees.
Exchanges vary greatly in terms of security, with some of the smaller ones having been hacked in the past. Brokers avoid this problem as they don’t store coins on their servers. Brokers are often regulated by leading global authorities.
Like many cryptocurrencies, Bitcoin Cash is notoriously volatile. Some smart traders are capitalising on this volatility, actively buying and selling the peaks and troughs of Bitcoin Cash’s price movements. While many traders begin their trading journey on an exchange, they soon learn that blockchain fees and exchange fees can eat into trading profits. Brokerage platforms offer a solution to this problem, with fewer fees and no price slippage, enabling traders to keep more of their profits.
In determining whether BCH is a good investment, you need to study the coin’s roadmap and price history. With the launch of BCH 3.0, Bitcoin Cash now offers higher throughputs, improved stability and enhanced security. With cryptocurrency entering a bullish market cycle, Bitcoin Cash has a chance to begin its ascent to its previous all time highs when one BCH traded for US$3,780.