How To Purchase Bitcoin Cash

Bitcoin Cash was created in 2017 and has many characteristics with the world's most well-known crypto-asset, Bitcoin. However, the two are as unlike as apples and oranges.

Do you want to get on the bandwagon and purchase this digital currency for yourself? You are not the only one who feels this way.

Despite the fact that Bitcoin Cash has only been operating for a little more than three years, it is still one of the top twenty cryptocurrencies to purchase. The nicest part is that almost any Joe Public may join in.

In this complete beginners tutorial, we will go through the ins and outs of purchasing Bitcoin Cash. Not only that, but we will go through possible fees to look out for, investing strategies, and how to choose a solid site to purchase Bitcoin Cash online.

How to Purchase Bitcoin Cash (BCH) in 5 Simple Steps

To purchase Bitcoin Cash BCH, establish an account with a licensed exchange, deposit money, choose BCH from the trading platform list, and finally verify and confirm that Bitcoin Cash coins have been loaded to your Wallet.

Below is a 5-step walkthrough:

Step 1: Open an account with a licensed Bitcoin Cash broker.

Step 2: Make a deposit into your account.

Step 3: Navigate to and choose 'Bitcoin Cash' from the site's list of cryptocurrencies.

Step 4: Determine how much Bitcoin Cash to purchase and enter the amount in the appropriate box.

Step 5: Confirm that all of the information you provided is valid, and then submit your order.

Step 1: Locate a Bitcoin Cash (BCH) Broker or Exchange Online

As you can see from the preceding stages, you will need to join up with a platform before you can purchase Bitcoin Cash.

Alternatively, if you get BCH coins via a third-party cryptocurrency exchange, you may trade them for another cryptocurrency, like as Ethereum or Ripple. Nonetheless, these transactions are usually uncontrolled.

Check out the list of variables below to help you choose a platform that suits your trading style and financial demands.

Also Read:  Key Info On Cryptocurrency Market

Regulation

In the preceding part, we discussed regulation. To be clear, we suggest that you only join up with a licensed Bitcoin Cash service.

Without them, you are solely responsible for the security of your own cryptocurrency wallet. In the past, these wallets have been known to be hacked. Regulation exists to distinguish between shady businesses and reputable ones, as well as to offer better overall service to crypto-asset investors and dealers.

You may be possible to apply for leverage at an exchange or unregulated Bitcoin Cash brokerage, but we would not advocate putting your personal money at risk in such a potentially dangerous atmosphere.

Payment Options

You should not have any problems with payment methods. Buying Bitcoin Cash is simple in this day and age, since most cryptocurrency brokers allow a range of payment methods.

In its early days, you may have only had one option: wire transfer via an unregulated exchange. This took days or weeks at a time, and there were reports of customers not receiving their Bitcoin Cash at all.

Commissions and Fees

Bitcoin Cash platforms, like any other company, need to generate money in order to continue providing you with a service. Typically, this is accomplished by charging customers commissions and other expenses.

The amount you will be asked to pay will be totally determined by the BCH broker of your choosing and might vary greatly.

We discovered that the vast majority of Bitcoin Cash brokers offer customers varying fees. For those who are unaware, this is commonly expressed as a percentage of your position. Coin base, a popular cryptocurrency exchange, will charge you 1.49 percent for each transaction.

Because the charge is changeable, it is easy to calculate that if you spend $1,000, you will have to pay $14.90 in fees to join the market. If you quit the market at, say, $1,800, Coin base will charge you $26.82. And so on.

Below is a simple illustration of how fees might impact your Bitcoin Cash purchase. To keep things simple, we will employ a 1% commission rate.

Assume you place a $1,000 purchase order on Bitcoin Cash.

Your broker charges a 1% fee, which amounts to $10.

If your BCH coins were valued $1,800 when you sold them, your fee would be $18.

In our hypothetical scenario, your commission fees were $28.

Fees like these, although they seem to be modest, may soon eat into your earnings. Coin base also charges a 3.99 percent fee on all debit/credit card deposits. As a result, if you constantly deposited $100, you would have to pay $3.99 each time.

Other Critical Factors

In the preceding section, we discussed the significance of regulation and fees.

However, there are some additional considerations to bear in mind when purchasing Bitcoin Cash via an online broker, such as those stated below.

Also Read: Day Trading Strategy For Cryptocurrencies

User-friendliness: When looking for a platform to acquire Bitcoin Cash, examine how user-friendly the website is. Sign up with a platform that you find straightforward to use and where you feel comfortable placing orders.

Minimum Investment: Before enrolling with a broker, you should always be informed of the minimum Bitcoin Cash investment. If you are new to cryptocurrency, it is best to begin with tiny deposits. As a result, if your digital currency platform required a minimum purchase price of $300, you may find it impractical in the long run.

Step 2: Create an Investment Strategy for Purchasing Bitcoin Cash

Creating an investing strategy for your Bitcoin Cash purchases is an important component of managing your money. Of course, you can only plan so much in such a dynamic situation, but it surely helps keep you on track.

To clarify the air, examine the following list of factors to consider while purchasing Bitcoin Cash from the comfort of your own home.

Long-Term vs Short-Term

When contemplating your Bitcoin Cash purchase goal, do you want to invest in the short or long term?

Some online traders, for example, hope to benefit from short-term Bitcoin Cash price fluctuations. This is frequently accomplished by purchasing and selling within minutes, hours, or days.

Most cryptocurrencies' values have historically fluctuated by double-digit percentages in a single day of trade, and Bitcoin Cash is no exception. There is a possible profit opportunity when there is such volatility.

When it comes to the long term, this is known as a 'buy and hold' approach. As the name implies, you will be holding your Bitcoin Cash for months or years in this case. This is ideal for newcomers since there is no need to be concerned about short-term volatility!

Bitcoin Cash Price Prediction

Many people utilize a target Bitcoin Cash price method.

For example, if you purchase Bitcoin Cash for $400, the only chance to double your investment is if the price rises to $800.

Bitcoin Cash reached an all-time high of $4,355 in December 2017. Only 5 days ago, BCH hit an all-time low of $75.03 USD. This is a significant 5-day gain in the value of the digital currency. Those who successfully timed the market undoubtedly achieved some spectacular profits!

Consider recurring investments.

Given the potentially large price swings seen by Bitcoin Cash, frequent investments may be a viable choice for newcomers.

Buying Bitcoin Cash and profiting from it is not easy since you have to make judgments based on market emotion. This is why it is a good idea to invest in this digital currency in small amounts and on a regular basis.

You can simply retain control of your budget and plan by purchasing a little number of BCH coins on a regular basis, say weekly or monthly.

Would you think about investing in Bitcoin Cash?

Step 3: Create a Bitcoin Cash (BCH) brokerage account.

After you have opted on a Bitcoin Cash broker, you will need to join up. Simply go to the cryptocurrency provider's website and seek for the 'sign up' option. If you have ever traded forex, equities, or commodities, you will recognize this section.

You must identify yourself to the platform in accordance with KYC regulations enforced by regulatory organizations. Filling out a simple form with your complete name, address, phone number, and email address is required.

You will also be required to provide valid picture identification, such as a driver's license or passport.

You will also need to authenticate your identity and residence by emailing a copy of a utility bill or bank account statement from the previous three months. All of this is typical process for any online financial business, mostly to prevent financial crime and fraud.

Some Bitcoin Cash dealers need up to a week to personally verify ID paperwork.

Step 4: Make a Deposit

After successfully establishing your broker account, you must fund it in order to purchase Bitcoin Cash. As a result, before registering with a cryptocurrency site, you should investigate the deposit options available.

If you want to acquire Bitcoin Cash right away after creating your new account, we recommend avoiding a wire transfer. This is without a doubt the most time-consuming option to begin purchasing Bitcoin Cash via your broker.

There will inevitably be a minimum deposit amount necessary to begin started, which is often between $0-$1,000, but may be more. This is why it is critical to research the BCH provider's minimums before joining up.

Step 5: Set Up A Trading Order 

How to Buy Bitcoin Cash, Bitcoin Cash Trade Order

After you have financed your brokerage account, you will be able to purchase Bitcoin Cash. To begin, you must inform the broker of your goals for the transaction by placing a buy/sell order.

If you have ever traded other assets, you will understand how this works.

For individuals who have never traded in any capacity, we have outlined the most significant orders for you to employ when deciding how to acquire Bitcoin Cash.

Purchase Order

The purchase order is the one you will use the most when buying BCH coins since it is the most common way to join the crypto market.

We used the word "usually" since certain Bitcoin Cash brokers allow customers to benefit even if the underlying financial asset loses value. A sell order is used to do this.

In a word, if you believe the price will climb, you would place a purchase order with your BCH broker. If you believed the reverse, you would need to place a sell order.

Limit Order or Market Order?

As we have previously said, the price of Bitcoin Cash does not remain constant for long.

Its value changes every second of every day due to supply and demand. This is something to keep in mind while seeking to profit from short-term BCH price changes.

If you like the price you are offered on Bitcoin Cash, you should execute a 'market order.' This implies that you want your broker to execute your order as soon as possible.

You must, however, account for the previously specified pricing changes. If you see a price of $380 and click 'confirm,' you may really get $379 or $381. This is an inherent distinction.

With 'limit orders,' you may set your own price at which to purchase Bitcoin Cash.

Consider the following example:

Assume Bitcoin Cash is worth $380. However, you do not want to join the market until it hits $400.

By putting a limit order for $400, your broker will execute your order when the price hits this level.

Your order will remain outstanding until you cancel it or Bitcoin Cash reaches $400.

Overall, since market orders are so easy to understand, they are ideal for novices. Limit orders are an excellent approach to purchase Bitcoin Cash at the desired price.

Stake

When you place your order with your preferred broker, you will be asked how much you want to stake on your position. This refers to how much Bitcoin Cash you want to purchase.

You are free to purchase as much Bitcoin Cash as you like; it is your money. However, as previously said, it is prudent to proceed cautiously, maybe sticking to the minimal investment for the time being.

Order Confirmation

Simply confirm the position when you have completed all of the information necessary to conduct your first Bitcoin Cash transaction, including a buy/sell order, limit/market order, and your stake.

When you are completed, your Bitcoin Cash coins will be securely saved in your new account wallet.

Step 6: Keep Your Bitcoin Cash Safe (BCH)

When it comes to keeping Bitcoin Currency, it is not done in the same way that real cash is. Digital currencies, on the other hand, are held on a decentralized ledger known as the 'blockchain.'

When it comes to your own Bitcoin Cash coins, they may be kept in a cryptocurrency wallet. If you opt to go this way, your crypto-wallet may be downloaded to both your mobile and desktop devices.

Although this seems to be a simple task, you will be solely accountable for your money. As a result, if your desktop or mobile wallet is hacked, you will lose your whole Bitcoin Cash amount.

Step 7: Get Rid of Your Bitcoin Cash (BCH)

As you are aware, while evaluating how to acquire Bitcoin Cash, you must first consider market timing. If you accurately estimate the price direction of BCH, you may be able to profit while selling it. After all, that is the entire idea of investing!

We have discussed both BCH brokers and third-party crypto exchanges, as well as the differences between the two.

However, for the sake of clarification, if you utilize an exchange, the cryptocurrency cashing out procedure is a bit more time-consuming. You must first transfer the digital currency from your crypto wallet to the BCH exchange platform's wallet.

You must then trade your Bitcoin Cash into a physical money, such as US dollars, British pounds, or Euros - you get the idea. Almost typically, there is a price associated with this conversion.

No two brokers are similar, but most current bitcoin brokers can do this in a matter of minutes, if not seconds. According to KYC regulations, you will most likely need to have the cash transferred to the same payment method you used to purchase Bitcoin Cash.

Other Options for Purchasing Bitcoin Cash (BCH) in 2022

Throughout this beginner's tutorial, we have extensively addressed the bulk of what purchasing Bitcoin Cash entails.

Having said that, there are various ways to purchase this top ten digital currency - see below.

Purchase a Bitcoin Cash Debit Card

Some cryptocurrency buyers purchase Bitcoin Cash using a debit card. This is generally done immediately. When it comes time to cash out, the funds will be deposited back into the same debit card that was used to make the transaction.

To acquire Bitcoin Cash in this method, just enter your debit card information and load your account with as much money as you like. Of course, you must fulfil the broker's minimum investment amount.

Credit Card for Bitcoin Cash Purchase

However, be mindful of any extra costs levied by your credit card company. This is due to the fact that, like gambling transactions and ATM withdrawals, investment-related deposits are often seen as a 'cash advance.'

We discovered that the typical cash advance cost levied by credit card companies is roughly 3% of the transaction amount. They might differ depending on, so always verify with your individual provider.

PayPal Bitcoin Cash Purchase

PayPal is unquestionably the most well-known e-wallet for secure online transactions. As a result, purchasing Bitcoin cash using PayPal is not only safe, but also quick.

ATM for Bitcoin Cash

In addition to the aforementioned options, did you know that you may purchase Bitcoin Cash from an ATM? About be clear, the terminals we are referring to are not your typical ATMs. Instead, you may purchase cryptocurrencies in person.

Bitcoin Cash ATMs may be found at a variety of locations across the globe, including businesses, airports, and streets. Simply put, you will be entering real money into the machine. After that, the machine will inform you how many BCH coins you may acquire for your money.

It is worth noting that certain cryptocurrency ATMs charge up to 20% for the exchange, making this one of the most costly methods to acquire Bitcoin Cash.

The Verdict on Buying Bitcoin Cash (BCH) 

On the issue of how to acquire Bitcoin Cash, we have covered a wide range of topics. You should now be ready to begin purchasing the digital asset.

Before you begin, you will need to choose a reputable and licensed broker.