How To Buy Bitcoin Diamond | Ultimate Guide To Buy BCD
Bitcoin launched on the heels of a financial crisis, and some saw it as a viable replacement for the troubled fiat currency system. Soon, Bitcoin was knee-deep in its own problems, such as slow transaction rates and the network consumed lots of power. In 2017, an anonymous group of developers established Bitcoin Diamond, a fork of Bitcoin.
Since the fork occurred, Bitcoin Diamond (BCD) has attracted legions of enthusiasts into its fold. It could be that you wish to join the Bitcoin Diamond ecosystem, and you need some critical details. If so, you are at the right place.
5 Steps to Buy Bitcoin Diamond with eToro Now
Buying any cryptocurrency with eToro is easy, simply follow the steps below:
1Sign up for free with eToro, entering your details in the required fields.
2Fill out the questionnaire, this is both educational for you and eToro.
3Click 'Deposit', you'll then be asked how you want to fund your account.
4Choose your required payment method, follow the simple steps to link your payment.
5Enter the amount you want to deposit and you're good to go!
Our Recommended Platform to Buy Bitcoin Diamond
Bitcoin Diamond is a popular digital currency. As of Thursday 20, 2021, CoinMarketCap ranked BCD at position 108 out of 9,975 cryptos. There is a chance that the token is not new to you and that you hoped to get some quick information on where to buy it. In that case, here is a list of our recommended platforms:
Where to Buy Bitcoin Diamond in 2021
Let us begin with distinguishing between buying and owning Bitcoin Diamond and trading BCD's price movements.
When someone says they will buy an item, the implication here is that the new item will become the person's possession. To buy and own BCD, you will need to open an account with a cryptocurrency exchange that supports Bitcoin Diamond. Through the account, you will acquire the tokens at the prevailing market price. After that, you will decide whether to let the coins stay in the exchange's wallet or transfer them to your private crypto wallet.
Trading Bitcoin Diamond's price movements is another thing altogether. It means the primary focus is to speculate the price fluctuations without owning the underlying digital asset. If you decide to go down this road, then Bitcoin Diamond brokers are where to get the services. The brokers enable clients to participate in the cryptocurrency market through derivative products called Contracts for Difference or CFDs.
How to Buy Bitcoin Diamond with a Broker
Plenty of online brokers operate in the cryptocurrency market, ready to show you how to trade Bitcoin Diamond CFDs. The question is, how do you select the right Broker for getting exposure to BCD? First, ensure the broker's fees are within the industry average. Second, ensure the Broker employs top-notch security protocols to protect clients' funds and personal information. Third, check the regulatory status of the business because only regulated brokers are legitimate, and this quality boosts your safety.
1. Register with the Broker
Creating an account is the first point of contact with your preferred broker. Thankfully, most brokers have kept this process easy and straightforward. For example, Pepperstone only requires an email address for you to get started. Alternatively, you could use your Facebook or Google account to log in without any further questions.
Opening an account with Plus500 is just as easy. All you need is an email address. Plus500 also provides the alternative login option of using third-party authentication service providers, including Apple, Google, and Facebook.
2. Verify your Identity (KYC Process)
All reputable brokers require that you jump through various hoops before the account registration process succeeds. The "Know Your Customer” (KYC) verification process is the most critical of all the stages.
The KYC process is designed to stop money launderers and a plethora of other criminals in their tracks. Successful completion of the KYC process helps brokers avoid severe financial and reputational penalties instituted by regulators.
Strict adherence to the verification process is especially vital for brokers because money laundering and financial fraud are inherent risks in the cryptocurrency industry. If the brokers can steer clear of the hazards, the probability of Bitcoin Diamond entering the mainstream use becomes more likely.
3. Deposit Funds with your Preferred Payment Method
The verification process is strict, usually for your benefit. Having cleared the phase, next comes the account funding stage. First of all, funding the account helps the Broker know that you are serious about trading Bitcoin Diamond. Some brokers wait for this stage before they can activate your account.
You have several options for making a deposit, and each Broker provides a varying range of choices. If you decide to use Plus500, you can deposit via debit/credit card, PayPal, bank transfer, and Skrill. Each payment method offers specific transaction speeds, charges differently, and offers varying security levels. As such, always compare the payment methods based on these factors to ensure you get the best service available.
Comparing the payment methods is not enough when it comes to security. Your computer could be a security risk if you fail to take proper precautions. For example, ensure the computer has the right and up-to-date antivirus to avoid sniffers.
4. Open a Position to Long/Short Bitcoin Diamond
Trading Bitcoin Diamond essentially boils down to two primary strategies – taking a long or short Bitcoin Diamond position. A clear understanding of these concepts is essential if your trading activities are to be meaningful.
What is the meaning of going long on Bitcoin Diamond? Going long (or long position) refers to buying the digital asset. An investor takes this position hoping for the BCD price to rise. If the price does rise, the investor will earn a profit.
On the opposite side of the long position is a short position. An investor takes the short position hoping for the BCD price to drop. The more the BCD price falls, the more gains the investor hopes to achieve.
Each one of the strategies carries benefits and downsides. The primary merit of a long position is that the profit potential of the trade is unlimited. In case of a loss, you only stand to lose your capital, nothing more. However, this position takes fewer risks, meaning the profit margin is less than what you could gain if you took a short position.
The short position grows more profitable as the BCD price lowers closer to zero. The downside here is that the trade's profitability stops at the $0 mark. On the other hand, the risk of loss from this position is unlimited because the BCD price can climb to infinity.
5. Close your Position
The key takeaway from the above section is that every position has to close, whether it is profitable or loss-making. As we have seen, a long position has unlimited profit potential. But how much profit is enough? Each investor should have a profit target and set up a take profit order to automatically execute when the desired profit level is reached.
We also discussed that short positions have unlimited loss-making potential. As such, it is prudent to put a stop-loss mechanism in place. The tool executes automatically once the market price reaches a predetermined point.
Sometimes you are happy with the profit made so far and wish to exit the market. You do not need the take profit mechanism in such a case because you can initial the exit process manually. The same is true when you think the loss made so far is all you can bear. If you feel you cannot tolerate any further loss, exit the market manually without a stop-loss mechanism.
How to Buy Bitcoin Diamond with an Exchange
Unlike brokers, cryptocurrency exchanges enable clients to buy/sell Bitcoin Diamond directly. For this reason, those who wish to own the BCD tokens can get them from such platforms. With many exchanges vying for your attention, it isn't easy to find the best platform.
To get the best deal, it helps to compare the fees that each exchange charges and the security level of the trading platform. Also, find out if the exchange has the proper licenses before opting in.
1. Set up a Bitcoin Diamond Wallet
You would open a cryptocurrency exchange's trading platform most likely to buy a token for long-term keeping. You have two options for storing the Bitcoin Diamond (BCD): leave them in the custody of the exchange or transfer them to a private cryptocurrency wallet.
If you intend to use a private wallet, you have to set it up first. A Bitcoin Diamond wallet lets you store the coins and retrieve them at your convenience. A cryptocurrency wallet is a safe place where you keep the private keys that decrypt the BCD stash.
The two primary wallet choices are software and hardware wallets. Software wallets are installable code that runs on a desktop or smartphone – they could be a desktop or smartphone app.
- Web wallets are accessible via a browser, meaning you do not have to install anything on the computer.
- Desktop wallets are only accessible after downloading and installing them on the computer. Unlike web wallets, desktop wallets let you control the private keys.
- Mobile wallets are a version of desktop wallets compiled as smartphone apps. Mobile wallets are the most convenient because you can make transactions by scanning QR codes.
On the other hand, hardware wallets are heavily encrypted physical devices. The devices generate private and public keys using the random number generator (RNG) technique. Once generated, the device stores the keys on its memory. Hardware wallets offer the best security because they operate offline.
2. Choose and Join an Exchange that sells Bitcoin Diamond
Bitcoin Diamond is reasonably famous, and various exchanges support the digital currency. You can buy BCD on exchanges such as Coinmama, Poloniex, OKEx, Huobi, and Binance. It would be essential to check out each of the exchanges to arrive at a better-informed choice.
As with the differences in features, the crypto exchanges differ in terms of the registration process. Some exchanges subject their clients to rigorous verification processes, while others are a bit laxer. The difference comes down to the regulatory status of the exchange. Our advice here is that adequately regulated exchanges offer the safest platform to buy Bitcoin Diamond.
3. Choose Your Payment Methods to Buy Bitcoin Diamond
Most of the exchanges mentioned in the section above support the direct purchase of BCD using fiat currency. It means there isn't the need to deposit funds in your account.
It is critical to note that the payment method you choose determines how fast you receive the BCD coins after purchase. Our review of online testimonials shows that transactions using credit cards are the fastest.
Besides the speed of transaction, the security of the specific payment method is paramount. Bank transfer is one of the most secure avenues for paying for BCD on exchanges. Thankfully, most exchanges allow clients to integrate the bank accounts into their trading profile for seamless transfer. However, bank transfers are slow, which sometimes takes five business days to complete the transaction.
Some exchanges accept cryptocurrency such as Bitcoin (BTC) as a payment method. This payment channel is convenient and the fastest. Because of minimal third-party participation, paying via BTC expedites the transfer of BCD tokens substantially.
4. Place an Order to Buy BCD
Purchasing Bitcoin Diamond can be done in three simple steps, starting at creating an account with your preferred cryptocurrency exchange. Please be informed that the registration process varies among different exchanges. While some platforms might only ask for your email address and name, others might ask for identification details such as ID card, passport, and even bank statements.
The second stage of the process involves transferring funds into the account. This is a requirement, especially when you open an account with exchanges that do not support direct purchases using fiat currency. The deposited funds will be used to buy another cryptocurrency like Bitcoin (BTC) or Ethereum (ETH), which is then exchanged for Bitcoin Diamond (BCD).
Lastly, navigate to the "Markets" tab on the exchange's website (some platforms label this section as "Exchanges"). If you acquired ETH for the purchase, navigate to the ETH/BCD pair, specify the BCD amount you wish to receive, and check out.
5. Safely Storing Your Bitcoin Diamond in a Wallet
The next step is to store the BCD tokens in a private cryptocurrency wallet. Please note that this step does not need to happen if you do not wish to keep the coins for a long time. Transferring the coins to a private wallet is simple and could be complete in less than three steps.
First, navigate to the "Withdrawals" or "Balances" section of the trading platform and select 'Withdraw.' Next, specify the BCD amount you wish to transfer and then supply your wallet's public address. Verify that all the information provided is accurate, go through the two-factor authentication process, and complete the transaction.
Should you Buy or Trade Bitcoin Diamond?
New BCD buyers often consider whether to buy the coins for ownership or trade them. Usually, the confusion stems from the lack of clarity between holding the coins for a long-term strategy and trading for a short-term strategy.
The long-term strategy suits investors who subscribe to the principles of value investing. In such a case, you might want to buy the BCD coins and keep them in a private wallet. The place to buy the coins to fulfil the long-term trading strategy is through an exchange.
Another user profile is that which sticks to short-term trading. Some might want to get out of a market position in under an hour. If you belong to this user profile, the place to get BCD is through professional brokers.
What's the Difference Between a Bitcoin Diamond Exchange and a Broker?
As discussed earlier, a Bitcoin Diamond exchange provides a platform where users interact on a peer-to-peer basis, and the price of BCD is market-determined. The exchange does not interfere in the market: instead, it matches buyers with sellers and vice versa.
Professional brokers, contrariwise, act as the bridge between Bitcoin Diamond exchanges and retail traders. The brokers create CFDs based on BCD's market price and then offer the contracts to clients. When a CFD closes in your favour, the broker compensates in cash, while you pay the broker when the CFD closes against you.
Bitcoin Diamond: Long Vs. Short Term Investment
A long-term investment is synonymous with buying an asset hoping for its price to rise in the future. You buy Bitcoin Diamond at the current market price, hoping that someone else will be willing to purchase the tokens from you at a higher valuation further down the line.
The short-term investment strategy anticipates the BCD price to deteriorate in the future. In this case, you borrow BCD tokens from a broker and promise to repurchase them at a lower price in the future. Another way to look at the short-term investment of BCD is where an investor buys the coins, leaves them in the exchange's custody for a short time then puts them up for sale when the price rises slightly. The holding period is concise, usually a day or less.
3 Tips to Buy Bitcoin Diamond
Here are our top tips when buying BCD:
1. Choose the Right Time and Do Your Own Research on Bitcoin Diamond
The only way to spot the opportune time to buy BCD is through extensive research. Please be advised that your chances of making the right decision increase when the investigation is original. It is okay to read many articles online, but they should only be a guide as you do your own due diligence.
2. Compare Costs to Buy Bitcoin Diamond
We already know that trading platforms charge differently for the opportunity to purchase Bitcoin Diamond. Therefore, it is prudent to compare the costs of each trading platform to ensure the one you select is the best deal available.
3. Safety and Security when Buying Bitcoin Diamond
An ideal trading platform employs encryption mechanisms such as SSL protocols to secure the activities of clients. You could boost security on your part by setting up a 2FA tool. The ultimate goal here is to remain protected from prying eyes on the internet.
What is the Best Payment Method for Buying Bitcoin Diamond?
- Buy Bitcoin Diamond with Cash – first, use the cash to buy Bitcoin (BTC) and then buy BCD.
- Buy Bitcoin Diamond with Credit Card – most exchanges support funding accounts with credit cards.
- Buy Bitcoin Diamond with Bank Transfer – some exchanges will let you attach your bank account to your trading account for seamless funds transfer.
- Buy BCD with Bitcoin – Bitcoin is the most preferred means for acquiring BCD on most exchanges.
- Buy Bitcoin Diamond with PayPal – PayPal offers convenience and fast transaction rates when funding the trading account.
Other Ways to Buy Bitcoin Diamond
Because Bitcoin Diamond is a Bitcoin fork, it is possible to get BCD through mining. The Bitcoin blockchain supports crypto mining using specially equipped tools such as Application Specific Integrated Circuits (ASICs). Also, you can get BCD via peer-to-peer (P2P) exchanges. The exchanges let you hand in any cryptocurrency for Bitcoin Diamond.
The possibility of BCD solving the issues that bedevil the Bitcoin community has made the project popular. For this reason, the BCD market cap is growing consitently.
Frequently Asked Questions
Bitcoin Diamond is a Bitcoin fork focused on improving the blockchain's transactions per second (tps). The BCD developers promised they would not alter the original features of the Bitcoin blockchain.
When the Bitcoin Diamond project was created, the developers multiplied the maximum supply of Bitcoin (BTC) by 10. If you had 10 BTC and joined the BCD community, you would have 100 BCD. Since the BTC maximum supply is 21 million, the BCD maximum supply is 210 million tokens.
No. Bitcoin Diamond is a unique blockchain project whose goal is to upgrade the Bitcoin blockchain and enable users to make daily payments faster. Also, the block size on the Bitcoin Diamond network is larger than Bitcoin's.
The answer to this question is not straightforward because we cannot predict the BCD price. As with other digital currencies, the BCD price is too volatile for anyone to offer actionable investment advice. Nonetheless, a little research should guide you on how to approach this issue.
Yes. You can choose to mine Bitcoin Diamond (BCD) individually (using a full node client) or join a mining pool.