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 designed to be the digital equivalent of cash, while Bitcoin is more of a store of value, like digital gold. Bitcoin Cash has a larger maximum block size (32MB) compared to Bitcoin's 1MB, enabling more transactions per second and lower costs.

There are several ways to invest in Bitcoin Cash. You can buy it on a cryptocurrency exchange, such as Coinbase, Kraken, or CEX.IO, or through a stock brokerage or payment app like PayPal. You can also buy it directly from another individual in person or over the web, or from a crypto ATM. When buying Bitcoin Cash, you will typically need to create an account, verify your identity, fund your account, and then place your order.

Using a credit or debit card

Step 1: Research the card and the exchange

Not all credit cards support the purchase of cryptocurrencies, so it is important to research the card and payment company before proceeding. Some popular exchanges that allow credit card purchases include Binance, Kucoin, Coinbase, eToro, and BitPay.

Step 2: Sign up for an account

You will need to create an account with the chosen exchange or platform. This usually involves providing personal information and verifying your identity. Some platforms may also require you to complete Know Your Customer (KYC) or anti-money laundering (AML) checks.

Step 3: Link your card and add funds

Once your account is set up, you can link your credit or debit card as a payment method. You may also need to add funds to your account, depending on the platform.

Step 4: Purchase Bitcoin Cash

After your card is linked and your account is funded, you can proceed to purchase Bitcoin Cash. Simply select the amount you wish to buy and choose the option to pay with your card.

Step 5: Store your Bitcoin Cash

Once you have made your purchase, you will need to store your Bitcoin Cash in a secure wallet. You can use a crypto wallet, such as the one offered by the exchange, or a third-party wallet of your choice.

It is important to note that using a credit card to buy cryptocurrencies can incur high fees and interest rates. Some exchanges may charge additional fees for credit card transactions, and credit card companies may treat these purchases as cash advances, resulting in higher fees and interest charges. Therefore, it is essential to carefully review the fees and charges associated with the chosen exchange and credit card before making a purchase.

Using a payment app

There are several payment apps that allow you to buy Bitcoin Cash (BCH) and other cryptocurrencies. Here is a step-by-step guide on how to do so using a payment app:

Payment apps such as Venmo, PayPal, Cash App, BitPay, and Coinbase are popular options that allow you to buy, sell, and hold Bitcoin Cash. These apps usually have straightforward sign-up processes and are easily accessible.

Step 1: Sign Up and Verify Your Account

To get started, download your chosen payment app and sign up for an account. You will typically need to provide personal information such as your name, email address, and phone number. Some apps may also require additional verification, such as a valid ID, proof of address, or other supporting documents to confirm your identity. This process may take longer, depending on your location.

Step 2: Add a Payment Method

Once your account is set up, you will need to connect a payment method. Most apps accept bank accounts, debit cards, or wire transfers. Some apps may also allow you to use credit cards or third-party payment services.

Step 3: Choose Bitcoin Cash as the Cryptocurrency

In the app, select Bitcoin Cash from the list of available cryptocurrencies. You may need to search for it by typing "Bitcoin Cash" or "BCH" in the search bar.

Step 4: Enter the Amount and Finalize the Purchase

Use the app to input the amount you want to spend in your local currency. The app will convert this into the equivalent amount of Bitcoin Cash. Review the details of your purchase, including any fees, and then confirm the transaction.

Additional Considerations

It is important to note that not all payment apps offer the same features for crypto trading. Some apps may have limited options for buying, selling, or exchanging cryptocurrencies. Additionally, there may be restrictions or regulations in your jurisdiction that impact the use of payment apps for cryptocurrency transactions. Always ensure you understand the fees, risks, and legal implications associated with these transactions.

Using a bank account

Investing in Bitcoin Cash requires an account with a service or a cryptocurrency exchange, as well as a way to store your purchases safely. A valid method of Bitcoin payment is through your bank account.

To invest in Bitcoin Cash using your bank account, you can use a cryptocurrency exchange such as Coinbase, Kraken, Binance, or Crypto.com. These exchanges allow you to connect your bank account directly and some even offer the option to link a debit or credit card.

• Choose a Cryptocurrency Exchange: Research and compare the fees, features, and security of different exchanges. Popular options include Coinbase, Kraken, and Binance.
• Sign Up and Verify Your Identity: Complete the registration process on your chosen exchange, which may include identity verification.
• Connect Your Bank Account: Provide your bank account details to connect your account directly to the exchange.
• Buy Bitcoin Cash: Navigate to the "Buy Crypto" or similar section of the exchange, select Bitcoin Cash as the cryptocurrency you want to buy, and choose your bank account as the payment method.
• Complete the Purchase: Follow the instructions provided by the exchange to verify the payment and confirm your order.
• Store Your Bitcoin Cash: Consider storing your Bitcoin Cash in a secure digital wallet, either provided by the exchange or a third-party hot or cold wallet provider.

It is important to note that when using a bank account to purchase Bitcoin Cash, there may be fees involved, including deposit fees, transaction fees, and withdrawal fees. Additionally, the time it takes for the purchased Bitcoin Cash to reach your account may vary, typically taking a few days.

Using a crypto exchange

Investing in Bitcoin Cash requires an account with a cryptocurrency exchange and a way to store your purchases safely.

To invest in Bitcoin Cash using a crypto exchange, follow these steps:

Step 1: Choose a Crypto Exchange

Select a reputable and secure crypto exchange, such as Coinbase, Binance, Kraken, Gemini, or Crypto.com. These platforms offer a variety of cryptocurrencies and features for trading. It is essential to research the fees, consumer protections, and regulations associated with each exchange before choosing one that suits your needs.

Step 2: Create an Account and Verify Your Identity

Sign up for an account on your chosen crypto exchange. You will likely need to provide personal information, such as your name, email address, and password. Some exchanges may also require you to verify your identity by submitting documents like a driver's license or passport. This process helps comply with Know Your Customer (KYC) regulations.

Step 3: Connect a Payment Method

Link a payment method to your account. You can typically connect your bank account directly or use a debit or credit card. However, using a credit card may incur additional processing fees and interest charges. It is important to review the fees associated with different payment methods before proceeding.

Step 4: Place a Buy Order for Bitcoin Cash

Once your account is set up and funded, you can place a buy order for Bitcoin Cash (BCH). Specify the amount of fiat currency you want to spend or the amount of Bitcoin Cash you want to purchase. Review the order details carefully before finalizing the transaction.

Step 5: Store Your Bitcoin Cash in a Wallet

After purchasing Bitcoin Cash, consider transferring it to a secure crypto wallet for safekeeping. You can choose between hot wallets, which are online and convenient for small amounts of cryptocurrency, and cold wallets, which are offline and more secure for long-term or large holdings. Examples of cold wallets include hardware wallets, such as a USB drive, or paper wallets, where your public and private keys are printed on paper and stored safely.

Remember that investing in cryptocurrencies like Bitcoin Cash carries inherent risks due to market volatility. Always do your research, understand the fees involved, and consider consulting with a financial advisor before making any investment decisions.

Using a crypto ATM

• Find a crypto ATM near you: You can use online tools like Coin ATM Radar, Bitcoin ATM Map, or CoinATMFinder to locate a nearby crypto ATM.
• Set up a digital Bitcoin Cash wallet: Before visiting a crypto ATM, it is essential to install a mobile Bitcoin wallet on your smartphone. A blockchain (Bitcoin) wallet is available for both iPhone and Android and has a web version. This wallet will allow you to store, send, and receive Bitcoin Cash.
• Choose the type of cryptocurrency: At the crypto ATM, select the type of cryptocurrency you want to buy, in this case, Bitcoin Cash.
• Select the amount: Choose the amount of Bitcoin Cash you wish to purchase.
• Scan your wallet's barcode: To receive the Bitcoin Cash, scan the QR code or barcode associated with your Bitcoin wallet address.
• Insert cash: Put the cash into the ATM's bill acceptor.
• Confirm the transaction: You may need to confirm the transaction on the ATM screen or your phone.
• Wait for the transaction confirmation: It may take a few moments for the transaction to be confirmed and for the Bitcoin Cash to appear in your wallet.

It is important to note that not all crypto ATMs are identical. They can be unidirectional (one-way) or bidirectional (two-way). Unidirectional ATMs only allow users to purchase cryptocurrencies, while bidirectional ATMs enable users to both buy and sell cryptocurrencies. Additionally, transaction costs for using crypto ATMs can vary, typically ranging from 7% to 25% of the transaction value. Therefore, it is advisable to research different ATMs and their associated fees before using their services.

Frequently asked questions