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How to buy Bitcoin Cash online
This page explains how to get started with Bitcoin Cash. Read on to discover everything you need to know about the project including its history, pros and cons, investment prospects, and the considerations you should make before investing.
Compare where to buy Bitcoin Cash, and open an account
If you just want to find a trading platform, choose one of the options from our list of preferred brokers below. They offer low fees and the widest variety of coins. To learn more about the cryptocurrency, simply scroll down.
What is Bitcoin Cash?
Bitcoin Cash is a cryptocurrency designed to be used for everyday transactions. Rather than being controlled by a central governing body like regular money, Bitcoin Cash is decentralised, meaning it governs itself using blockchain technology.
You may already be familiar with the big brother of Bitcoin Cash, Bitcoin. In 2017, a group of developers decided that Bitcoin took too long to process transactions, meaning it wasn’t viable as a currency. This resulted in the creation of Bitcoin Cash, a fork of Bitcoin. Furthermore, Bitcoin Cash is designed to be spent, whereas Bitcoin is designed to be held as a long-term investment.
Some feel Bitcoin Cash is a superior cryptocurrency for payments because of the reduced transaction times and costs that are associated with the coin. In the long-term, the aim appears for Bitcoin Cash to play a key role in the formation of a new, cashless society.
How does Bitcoin Cash work?
By using blockchain technology – which is like a big digital ledger – Bitcoin Cash is able to verify transactions and balances without the need for a central presiding authority. Instead, cryptocurrency miners take care of the system, validating transactions and receiving rewards as a result.
Transactions made with Bitcoin Cash are grouped on the blockchain into individual segments known as blocks. Bitcoin Cash blocks have a size limit that is 8 times larger than regular Bitcoin blocks, meaning a greater number of transactions can be processed in less time for each block. This makes Bitcoin Cash suitable for electronic payments because it has the scalability to cope with more transactions.
How to buy BCH – a step-by-step guide
Step 1. Find an exchange
There are plenty of crypto exchanges to choose from. Refine your search by checking out our reviews or selecting an option from the table at the top of the page. Bitcoin Cash is supported by the vast majority of them, though some are better than others. Two of the best exchanges are listed below.
- Binance: As one of the largest players in the cryptocurrency trading space, Binance allows users to efficiently trade hundreds of different cryptocurrencies, including BCH. Sign up to Binance today >
- Changehero: Changehero manages to combine a user-friendly interface with a level of reliability usually found on larger exchanges. Open a ChangeHero account now >
Step 2. Sign up and fund your account
When using cryptocurrency exchanges, you commonly need to sign up for an account and prove your identity. This is simple, and you usually need to provide a few contact details or a copy of photo ID.
Once that is verified, it is time to fund your exchange account. Many exchanges accept fiat money like GBP and USD, though you can also use Bitcoin. If you would rather start out with crypto, go to Coinbase and purchase some Bitcoin. Then you can load the funds into your account.
Step 3. Purchase
When your exchange account is set up, verified and funded, you can start exchanging the funds in your account for BCH. If your account is loaded with Bitcoin, go to the exchange and check the current price of BCH in the BCH/BTC cryptocurrency pair. If you have GBP funding your account, find the BCH/GBP pair. You can then execute your transaction.
Step 4. (Optional) Get a suitable wallet
For enhanced security, especially if you plan on holding Bitcoin Cash for the long term, consider opening a hardware or software wallet. These act as a security measure for storing your investment, and they can help protect it from fraud and theft.
- Freewallet: This is one of the most popular online crypto wallets. It supports over 100 different cryptos and is fast and easy to set up. Open a Freewallet today >
- Infinito Wallet: Viewed by many as one of the most secure crypto wallets on the market, Infinito Wallet is a great option for storing your Bitcoin Cash securely. Create an Infinito wallet now >
How to trade Bitcoin Cash – step-by-step guide
If you’re interested in trading BCH instead of buying it for the long term, you should consider signing up to a reliable broker. These are platforms that allow you to quickly and conveniently open and close trades, making them ideal for trading Bitcoin Cash.
Step 1. Find a broker
If a broker offers cryptocurrencies, it is bound to offer Bitcoin Cash, which is one of the most popular coins around. However, not all brokers are equal. You can find our two favourites below.
- eToro: eToro is a CFD broker that allows you to speculate on the prices of numerous assets, including Bitcoin Cash. It is one of the most reliable and reputable platforms in Europe. Sign up with eToro today >
- Plus500: Plus500 is another CFD broker that supports Bitcoin Cash. It has an excellent range of assets and a user-friendly interface that make it a great choice. Join Plus500 now >
Step 2. Deposit money
Most platforms allow you to deposit fiat money such as USD, GBP, or EUR. Simply navigate to the deposit section of your chosen broker and choose the source of funds you want to use. Some brokers also allow you to deposit cryptos like Bitcoin, so check if this is possible if it is something you want to do.
Step 3. Decide how you’d like to trade
There are two methods: CFDs (contracts for difference) and crypto spread betting. Both methods essentially entail speculating on the price movements of your chosen currency. If you aren’t sure which option to go for, we recommend researching the differences between spreads and CFDs.
Step 4. Start trading
If you’re a complete novice we recommend starting with a demo account and familiarising yourself with the market and the platform. Cryptocurrency trading can be volatile, which means you can make and lose money very quickly.
When you trade you’re speculating on the currency’s price movements by taking a short (sell) or long (buy) position. If you think Litecoin will fall in value you should take a short position, if you think it will rise in value you should take a long position.
You may choose to incorporate leverage into your strategy. Leverage allows you to put up a fraction of the trade’s value as a deposit or ‘margin.’ However, this can be very risky, so you should avoid using leverage until you have much more experience.
If you remain undecided, make sure you take your time to mull things over. To help you make an investment decision, we have outlined the pros and cons of the Bitcoin Cash project below.
- Addresses Bitcoin’s scalability problem
- Should have more transactional potential than its predecessor
- More lucrative for miners than BTC
- Link to BTC gives BCH a big market boost
If you still aren’t sure about investing in Bitcoin Cash, here are 3 important questions.
1. Is it a good time to buy Bitcoin Cash?
That entirely depends on your own investment strategy and financial goals. If you believe in the Bitcoin Cash project and think it has the potential to prosper in the long term, it is rarely a bad time. Speculating on its long-term price could lead to substantial rewards.
Alternatively, if your focus is more about seeing returns in the short term, pay attention to the technical status of the market and look out for key indicators. That way, you can get a read on how the market is likely to behave and make predictions for the future. Make sure you take your time to study the latest market analysis to help you time your entry into the market.
Bitcoin Cash (BCH) price analysis: A correction or end of the rally?
Up or down? Bitcoin Cash (BCH) price prediction for March
Up or down? Bitcoin Cash (BCH) price prediction for December
What problem does Bitcoin Cash solve, and what are the coin’s investment prospects?
Bitcoin Cash solves some of the scalability issues of Bitcoin. By doing this, it becomes a more useful unit of exchange due to increased efficiencies, reduced fees and faster transaction times. It could very well be a better Bitcoin, though its current market value remains substantially less.
Moving forward, it remains to be seen how many investors who have doubled down on standard Bitcoin will be willing to make the transition over to Bitcoin Cash. The project needs to market itself successfully and distance itself from Bitcoin more clearly to emphasise its alleged technical superiority.
To stay up to date with the latest news concerning Bitcoin, the Invezz website is a great place to be. Click any of the links below to read about the latest events concerning BCH and how they may impact your investments:
Bitcoin Cash (BCH) price in recovery mode after undergoing Hard Fork
Bitcoin Cash (BCH) is up 9% on the week, tests key resistance
Do you want to hold Bitcoin Cash for the long term?
Bitcoin Cash can be seen as a long term investment because of its increased practicability when compared to regular Bitcoin, though it remains a volatile cryptocurrency that presents plenty of short-term trading opportunities. Check out the considerations you should make for each strategy below.
Considerations for a long term investment strategy
If you’re bullish about its long-term prospects, the best place to buy Bitcoin Cash is on a reliable exchange. In addition, it may be worth getting a crypto wallet to store your investment safely and securely.
Considerations for a short term trading strategy
For those with short term goals, your focus should be on technical factors like charts and other tools you can use to anticipate price movements. if you fall into this category, choose a broker with low fees to maximise your returns.
Fact-checking & references
Our editors fact-check all content to ensure compliance with our strict editorial policy. The information in this article is supported by the following reliable sources.
Invezz is a place where people can find reliable, unbiased information about finance, trading, and investing – but we do not offer financial advice and users should always carry out their own research. The assets covered on this website, including stocks, cryptocurrencies, and commodities can be highly volatile and new investors often lose money. Success in the financial markets is not guaranteed, and users should never invest more than they can afford to lose. You should consider your own personal circumstances and take the time to explore all your options before making any investment. Read our risk disclaimer >