Greetings, fellow crypto enthusiasts! My name is Katie, and I’ve been involved in the cryptocurrency scene for many years. With the recent buzz surrounding Bitcoin’s most popular fork, Bitcoin Cash (BCH), I’ve decided to conduct some research about the various methods to purchase this online token. The fruit of my labor is this guide, wherein I’ll reveal where to purchase BCH and with which methods. Additionally, I will provide answers to the most common questions regarding how to buy, trade, and store this virtual coin.
Exchange | Fees | Processing Time | |
---|---|---|---|
Up to 0.25% | Instant | Register on Site | |
0.20-0.50% | Same-Day Funding | Register on Site | |
0.10% | Less than 24 hours | Register on Site | |
0.10% | Less than 12 hours | Register on Site | |
Up to 0.50% | 5-30 minutes | Register on Site |
Before we begin, allow me to indicate the major differences between the original Bitcoin and the Bitcoin Cash variant. Because the names and abbreviations are similar, new users often get the two confused. To settle the debate, allow me to present you with a table comparing their features.
Bitcoin | Bitcoin Cash | |
---|---|---|
Concept | Digital money | Hard fork of Bitcoin (Aug. 2017) |
SegWit | YES | NO |
Market Cap | ~$47 Billion | ~$4.5 Billion |
Blocksize Limit | 1 MB -> 2 MB (planned) | 1 MB -> 8 MB |
Replay Protection | None | Opt-in methods |
Best Ways to Buy Bitcoin Cash
There are many ways to buy Bitcoin Cash. Below, I will detail the top processes, compare and contrast their features, as well as display all advantages and disadvantages to each method.
Purchase Bcash with Credit Card
At the moment, it is possible to purchase BCH with your usual credit/debit card on a number of exchanges. Many users love using their card because it is easy, convenient, and the steps are usually straightforward. Simply create an account with the exchange, add your card as a payment option using any indicated personal information, and load money onto the exchange.
Once you have a balance, purchasing BCH is as easy as a few clicks. While this method allows an average user to use fiat currency to buy crypto, but fees as high as 5% are not uncommon for this convenience.
Card Name | Limit | Transaction Time | Restricted Countries |
---|---|---|---|
€10,000 | 3-5 Business Days | ||
€10,000 | 3-5 Business Days | |
Buy BCH with Wire Transfer
Purchasing BCH via wire transfer is easy. By providing information to your bank about your exchange of choice, such as their SWIFT code, IBAN code or account number, most exchanges can process your deposit during the next business day. While this method is faster than using a standard credit/debit card, it is a little bit slower than the SEPA system.
The great thing about both SWIFT and SEPA is that deposit limits are usually uncapped. The bad thing about using wire transfers is that if a mistake is made and money is transferred to the incorrect account, returning those funds is nearly impossible. Be sure your information is correct before doing any wire transfer!
Method’s Name | Limit | Transaction Time | Restricted Countries |
---|---|---|---|
Unlimited | ~2 Business Days | ||
Unlimited | ~1-2 Business Days |
Purchase BCC with E-Wallets
While many users would like to purchase BCH with E-Wallets, the infrastructure is not currently available on most cryptocurrency exchanges. Utilizing electronic wallets such as PayPal proposes too much of a risk for exchanges, because refund options can trigger long outstanding balances, and fraudsters may attempt to game the system by initiating false refunds.
While it is very difficult to deposit money from an E-wallet, many exchanges will allow you to withdraw currency to your wallet of choice. This one-way transfer is quick, usually only taking one business day, which is much less time than withdrawing to a bank account. The leading wallets, including PayPal, Skrill, and Neteller, are all working on methods to facilitating transactions with cryptocurrency exchanges. When they do, you can be sure E-wallets will be the most used option around!
Get Bitcoin Cash with Other Cryptocurrency
As a last case scenario, it is possible to purchase BCH on your exchange of choice with another cryptocurrency. This is particularly the case when the exchange does not allow the uploading of fiat currency with which to purchase BCH. The number of cryptocurrencies these days is an endless list, but the most popular cryptos to exchange for BCH are Bitcoin, Ethereum, Ripple, Litecoin, Monero, and Cardano.
Bitcoin
Bitcoin is the original cryptocurrency, and for that reason, it is widely available on every exchange. Almost every altcoin, including BCH, has a pair with Bitcoin that can easily be traded. Fees you’ll pay using the BTC/BCH pair depend on the exchange, but a 0.25% market processing fee is to be expected.
While exchanges like this are typically instant, going through the blockchain manually with a 3rd-party seller can incur hours of wait times and hefty fees, especially for small transactions. For this reason, I recommend sticking to a well-established exchange.
Ethereum
Ethereum is Bitcoin’s number two in the crypto world. Much like Bitcoin, it is widely available with an ETH/BCH pairing. Again, expect a small convenience fee from the marketplace on any order when purchasing ETH or trading it for BCH. If you have ETH and want to exchange it for BCH via a 3rd-party seller, the ETH blockchain boasts shorter wait times and less fees than Bitcoin, so smaller transactions are more realistic.
Manual on How to Buy Bitcoin Cash on Exchanges
The following is the most valuable information I’ll give you in this guide. Here, I’ll provide you with a manual on how to purchase BCH on exchanges. As an example, I’ll show you the processes on CEX.IO. Good luck!
1. Find the Right Exchange
Cutting out the middleman is best with cryptocurrency. After all, overseeing your own money is what the movement is all about, right? Therefore, choosing an exchange as the first step is very important. Some exchanges are untrustworthy or are into shady activities.
Others have higher transaction fees, deposit limits, and payment methods to purchase BCH. While the decision is up to you, I’ve found that CEX.IO is great for most users, as they offer low fees, good trading options, and a stellar security team.
Your first step is creating of the account, then passing a verification (2FA), which require you to submit some documents as ID, prood of address or mobile phone number and so on. This step is shown here:
2. Select Your Payment Method
The second step is to choose a payment method. We’ve discussed this earlier, but it’s worth reiterating. If you want convenience at a cost, go with the credit/debit card option. If you desire no deposit limits with fast transaction speeds, but want to jump through a few hoops, choose wire transfer. A bank transfer is a happy medium between the two, at least before e-wallets are enabled on most exchanges. On CEX.IO it looks like this:
3. Buy Bitcoin Cash
The third step is to purchase BCH on the exchange directly. Either set a market order or a limit order, pay any applicable fees, and you’ve made your first purchase of this coin! Storing your balance on the exchange is ideal if you plan to trade the swings.
However, be aware that exchanges are not secure wallets and can be hacked into. If you want to hold BCH for a longer period, consider transferring your balance to a cold storage or hardware storage BCH wallet.
Bitcoin Cash in Different Countries
Become familiar with how BCH operates in the world. Some countries allow cryptocurrency freely, others attempt to regulate it, and some ban the practice of virtual money. Below, we’ll look at the legality of Bitcoin Cash in different countries around the globe.
Buy BCH in the USA
Cryptocurrencies are considered a financial asset in the USA, which makes them a legal purchase with the territory. The government is attempting to regulate crypto, but little progress has been made. BCH, in particular, is supported by the two largest exchanges in the USA — Gemini and Gdax. Just be wary of taxes you’ll have to pay on profit if you cash out.
Get Bcash in Canada
USA’s sister to the north, Canada, also has not regulated or made crypto illegal. Canadas top exchange, Quadriga, offers a BCH/CAD trading pair which is very convenience for the new Canadian investor. While Canada does not recognize BCH as a legal form of tender, purchases made with it are considered taxable and legal.
Buy Bitcoin Cash in the UK
The UK currently does not have any laws specifically targeting BCH. However, there are rumors that in 2018 regulations including mandatory identity laws will go into effect. For now, though, trading anonymously is legal, especially with access to local and European exchanges.
Purchase BCC in Europe
The whole of the EU is in the same boat as the UK. Currently, neither the EU or individual countries have outlawed BCH. The future of regulation, however, is uncertain. Massive trading exchanges such as Kraken, Bitstamp, CEX.IO, and others support BCH trading, so doing so anywhere with an internet connection in Europe is acceptable.