The Ultimate Guide To Investing In Bitcoin Cash

Bitcoin Cash (BCH) is a cryptocurrency that was created as a consequence of a Bitcoin hard fork in August 2017. It was formed to offer an alternative to Bitcoin (BTC) by lowering transaction costs and increasing transaction speed. Bitcoin Cash is a peer-to-peer electronic cash system that aims to become a sound global currency with fast payments, micro fees, privacy, and high transaction capacity.

There are several ways to invest in Bitcoin Cash. You can purchase it directly from another individual in person or over the web, or use a cryptocurrency exchange such as Coinbase, Kraken, or CEX.IO. These platforms allow you to buy Bitcoin Cash with a variety of payment methods, including credit and debit cards, bank accounts, and payment apps. When using an exchange, you will typically need to create an account, verify your identity, fund your account, and then place an order to buy Bitcoin Cash.

Before investing in Bitcoin Cash, it is important to do your own research and understand the risks involved. Cryptocurrencies are highly volatile and can fluctuate in value.

Using a credit or debit card

There are several platforms that allow you to buy Bitcoin Cash with a credit or debit card, including:

• Paybis
• BitPay
• Binance
• Kucoin
• Coinbase
• EToro
• Crypto.com
• Kraken

The process for purchasing Bitcoin Cash with a credit or debit card is relatively similar across the platforms. Here is a general step-by-step guide:

• Sign up for an account on the platform and verify your identity.
• Add your credit or debit card as a payment method.
• Deposit funds (if required).
• Choose Bitcoin Cash as the cryptocurrency you wish to purchase.
• Enter the amount of Bitcoin Cash you want to buy and your wallet address.
• Finalize the payment.

It is important to note that some platforms may have additional requirements or steps, so be sure to review the specific instructions provided by the platform you choose.

Additionally, when using a credit or debit card to purchase Bitcoin Cash, there may be associated fees and charges, including transaction fees, card processing fees, and network fees. These fees can vary depending on the platform and card type, so be sure to review the fee structure before finalizing your purchase.

It is also worth noting that some credit card companies may treat cryptocurrency purchases as cash advances, which can result in additional fees and higher interest rates. Therefore, it is essential to understand the policies and potential costs associated with your specific card before proceeding with a purchase.

Using a payment app

A payment app is a convenient way to buy Bitcoin Cash. Cash App, for example, is a peer-to-peer money transfer app that allows users to buy, sell, send, and receive Bitcoin. It's built on a secure platform with advanced security features to protect your personal information and transactions. Here's a step-by-step guide to buying Bitcoin Cash using Cash App:

• Install the App and Create an Account: Download the Cash App and set up an account by providing your personal details. You will need to link the app to your bank account to make purchases.
• Go to the "Buy Bitcoin" Screen: On the Cash App home screen, tap "USD" and select the "Buy Bitcoin" option from the menu.
• Add Purchase Details: Enter the amount of Bitcoin Cash you want to buy. You can use the number pad to input the amount in your local currency, which the app will automatically convert to Bitcoin Cash.
• Finalise the Transaction: Review the transaction details, including any fees. Confirm your purchase by entering your PIN and completing the confirmation process.
• Store Your Bitcoin Cash: Cash App acts as a custodial wallet, allowing you to store your Bitcoin Cash within the app. However, for added security, you can transfer your Bitcoin Cash to a separate cryptocurrency wallet.

It's important to note that Cash App currently only supports Bitcoin transactions. If you're looking to invest in other cryptocurrencies, you'll need to explore other platforms or exchanges. Additionally, remember that investing in cryptocurrencies carries risks, and the price of Bitcoin Cash can be volatile. Always do your research and understand the tax implications before investing.

Using a bank account

• Choose a conversion service: Research platforms like Coinbase, Kraken, Binance, or Crypto.com and be mindful of varying fees.
• Sign up and verify your identity: Provide the necessary information, such as your name, email, and mobile number, to create an account. You may also need to complete Know Your Client (KYC) procedures, including providing personal identification documents.
• Deposit funds: You can deposit funds into your account via bank transfer or by purchasing a stablecoin first and then using it to buy Bitcoin Cash.
• Buy Bitcoin Cash: Navigate to the "Buy Crypto" section on the platform and select Bitcoin Cash as the cryptocurrency you want to purchase. Choose your desired payment method, such as a debit/credit card, Google Pay, Apple Pay, or bank transfer. Confirm the order and payment details.
• Store your Bitcoin Cash: Once you have purchased Bitcoin Cash, you can choose to store it in your personal crypto wallet or keep it in your exchange account wallet.
• Withdraw to your bank account: If you want to convert your Bitcoin Cash back into fiat currency and withdraw it to your bank account, navigate to the withdrawal section on the platform. Select the amount you want to withdraw and choose your bank account as the payout method. Keep in mind that you will likely need to withdraw to the same bank account that you used for depositing funds.

It's important to note that when using a bank account to invest in Bitcoin Cash, there may be longer processing times compared to other payment methods. Additionally, there may be associated fees for deposits, withdrawals, and currency conversions, which can vary depending on your location. Always review the fees and transaction limits before proceeding.

Remember to prioritize security and privacy when dealing with cryptocurrencies. Enable two-factor authentication and use strong passwords to protect your accounts.

Using a crypto exchange

Step 1: Choose a Crypto Exchange

Firstly, you will need to select a crypto exchange platform that suits your needs. Examples of popular crypto exchanges include Coinbase, Kraken, Binance, and eToro. It is important to research the different exchanges and consider factors such as security, fees, and the cryptocurrencies offered. Some exchanges may also have requirements for registering, such as providing proof of identity or meeting certain regulatory standards.

Step 2: Register and Create an Account

Once you have chosen an exchange, you will need to register and create an account. This typically involves providing personal information such as your name, email, and sometimes proof of identity to meet know-your-customer (KYC) standards.

Step 3: Fund Your Account

After your account has been approved, you can deposit funds into your account. This can be done by transferring fiat currencies (e.g. USD, EUR) or other cryptocurrencies into your account. Different exchanges may offer different methods for depositing funds, such as bank transfers, credit/debit card payments, or third-party payment services.

Step 4: Purchase Bitcoin Cash

Now that your account is funded, you are ready to buy Bitcoin Cash. Navigate to the exchange's trading platform and select Bitcoin Cash from the list of available cryptocurrencies. Specify the amount you want to purchase, either by inputting the amount in your local currency or the number of Bitcoin Cash tokens. Review the details of your purchase, including any associated fees, and confirm the transaction.

Step 5: Store Your Bitcoin Cash in a Wallet

Once you have purchased Bitcoin Cash, consider storing it in a secure wallet. Crypto exchanges usually provide built-in wallets, but you may want to transfer your Bitcoin Cash to a separate wallet for added security. There are several types of wallets available, including software wallets, hardware wallets, and paper wallets. Each type of wallet has its own advantages and security considerations, so be sure to research and choose one that suits your needs.

It is important to note that investing in cryptocurrencies carries risks, including volatility and the potential for loss. Be sure to do your own research and understand the risks before investing.

Using a crypto ATM

To use a crypto ATM, you will need to locate one near you. You can use online tools like Coin ATM Radar, Bitcoin ATM Map, or CoinATMFinder to find one in your area. Crypto ATMs are often located in high-traffic areas like airports, malls, and urban environments, and there are thousands of them worldwide.

Once you've found a crypto ATM, the process is relatively simple:

• Select the type of cryptocurrency you want to buy. In this case, you would choose Bitcoin Cash.
• Choose how much Bitcoin Cash you want to purchase.
• Scan the QR code or barcode from your crypto wallet to receive the Bitcoin Cash.
• Insert your cash into the ATM.
• Wait for the transaction confirmation, which will be sent to your phone or email.

It's important to note that not all crypto ATMs are the same. Some are unidirectional, meaning they only allow you to purchase cryptocurrencies. Others are bidirectional, enabling you to both buy and sell. Additionally, transaction costs for using crypto ATMs can be high, ranging from 7% to 25% of the transaction value. Therefore, it's essential to research the fees and policies of the crypto ATM you plan to use.

Another thing to keep in mind is that crypto ATMs may require verification for larger transactions. This could include scanning a government-issued ID, such as a driver's license or passport, or providing your mobile phone number for text verification.

Frequently asked questions