How to Buy Bitcoin Cash - Beginner’s Guide 2021
How to Buy Bitcoin Cash BCH: A Step-by-Step Guide
Bitcoin Cash was launched in 2017 and bears a lot of similarities to the best-known crypto-asset in the world - Bitcoin. However, like apples and oranges, the two are quite different.
Interested in jumping on the bandwagon and buying this digital coin yourself? You’re not the only one.
Although Bitcoin Cash has been around for just over three years, BCH remains one of the top 20 cryptocurrencies to buy. The best bit is - just about any Joe Public can get onboard.
In this comprehensive beginners guide, we are going to dive into the ins and outs of how to buy Bitcoin Cash. Not only that, but we are going to detail potential fees to keep an eye out for, investment plans, and how to choose a good platform to buy Bitcoin Cash online.
Buy Bitcoin Cash in 5 Steps
To buy Bitcoin Cash BCH, the first step is to Open an accout with a regulated exchange, depost funds, select BCH from the trading platform list, and lastly check & confirm Bitcoin Cash coins have added to your Wallet.
Find a 5-step walkthrough below:
Step 1: Sign up with a regulated Bitcoin Cash broker
Step 2: Deposit funds into your account
Step 3: Find and select ‘Bitcoin Cash’ from the list of cryptocurrencies on the site
Step 4: Decide how much Bitcoin Cash to buy and enter the amount in the relevant box
Step 5: Confirm all of the information entered is correct and place your order.
Step 1: Choose an Online Bitcoin Cash Broker or Exchange
As you can see from the above steps, before you can buy Bitcoin Cash - you will need to sign up with a platform.
If you decide on crowd-pleasing social trading platform eToro - you can buy the digital coins directly.
Alternatively, if you obtain BCH coins via a third-party crypto-exchange, you can swap Bitcoin Cash with another cryptocurrency, such as Ethereum or Ripple. Nevertheless, these exchanges are typically unregulated spaces.
As such, electing to sign up with a licensed broker such as eToro is not only more convenient, but it also offers you a safety net against the financial sharks in the space. It’s also a much easier end-to-end experience for those of you that are inexperienced.
To help you select a platform that meets your own trading style and financial needs, check out the list of considerations below.
We touched on regulation in the section above. To clarify - we recommend you only ever sign up with a regulated Bitcoin Cash provider.
Without them, you are responsible for the safety of your own crypto-wallet. These wallets have been known to be hacked in the past. Regulation exists to separate dodgy companies from respectable ones - and provide better service across the board for crypto-asset investors and traders alike.
You may be able to apply for leverage at an exchange or unregulated Bitcoin Cash brokerage - but we wouldn’t recommend risking your own capital in such a potentially unsafe environment.
eToro is superb in that respect. In fact, the online Bitcoin Cash provider is regulated by multiple regulatory bodies. This includes the FCA (UK), CySEC (Cyprus), and ASIC (Australia). For those of you in the USA, eToro is also registered with FINRA, so you can buy Bitcoin Cash legally and safely.
When it comes to payment methods, you shouldn’t have any issues. In this day and age buying Bitcoin Cash is a doddle, as most crypto brokers accept a variety of payment types.
In its infancy years, you might have only had one option - wire transfer, via an unregulated exchange. This took days or weeks at a time - and there were stories about people having never received their Bitcoin Cash at all.
Bitcoin Cash providers like eToro accept everything from credit and debit cards to super convenient e-wallets like PayPal, Skrill, and Neteller.
Fees and Commissions
Like all businesses, Bitcoin Cash platforms need to make money so they can continue to offer you a service. This is usually achieved by charging clients commissions and other fees.
The amount you will be expected to pay will depend entirely on the BCH broker of your choice and can vary quite dramatically.
We found that the lion’s share of Bitcoin Cash brokers charge clients variable fees. For those unaware, this is usually a percentage of your position. Popular cryptocurrency site Coinbase will charge you 1.49% for every trade.
As the fee is variable, you can easily figure that if you spend $1,000, you will have to pay $14.90 in fees to enter the market. Hypothetically, if you exit the market at say $1,800 - you will pay Coinbase $26.82. And so on.
You will see below a quick example of how fees can affect your Bitcoin Cash purchase. We are going to use a 1% commission rate for simplicity.
- Let’s say you create a $1,000 buy order on Bitcoin Cash.
- Your broker charges 1% commission which equates to $10
- If at the time of selling your BCH coins they were worth $1,800 - your fee would be $18
- In our hypothetical situation - your commission fees totalled $28
Fees like this, although they sound reasonable, can quickly eat into your profits. Coinbase also charges 3.99% on each and every debit/credit card deposit. As such, if you always deposited $100, each time you would have to pay $3.99.
In stark contrast to this, eToro only charges 0.5%, and only if you fund your account with a currency other than US dollars. In terms of trading fees, eToro will allow you to buy Bitcoin Cash with 0% commission.
Other Important Factors
We’ve made you aware of the importance of regulation and fees in the section above.
But, there other important factors to think about when you buy Bitcoin Cash with an online broker, such as those listed below.
- User-friendliness: When you are on the lookout for a platform to buy Bitcoin Cash, you should consider how user-friendly the website is. Sign up with a platform you find easy to navigate and feel comfortable placing orders at.
- Minimum Investment: You should always be aware of what the minimum Bitcoin Cash investment is before registering with a broker. If you are a crypto-newbie, it’s better to start with small investments. As such, if your digital currency platform charged a minimum of $300 to buy, you might find that to be unrealistic in the long-term. eToro will let you buy Bitcoin Cash for a very reasonable minimum of just $25!
- Storage: We are going to talk more about storage shortly, but it is an important factor when choosing a Bitcoin Cash broker nonetheless. For instance, whilst BCH platforms like eToro look after and store your crypto-coins for you, others require you to store them in your own digital wallet. The latter means various transfers which could be too complex for a beginner.
Step 2: Come up With an Investment Plan
Coming up with an investment plan for your Bitcoin Cash purchasing adventures is a crucial part of looking after your capital. Of course, in such a volatile environment, you can only plan so much, but it certainly helps keep you on track.
To clear the mist, take a look at the list of considerations for you to think about when you buy Bitcoin Cash from the comfort of your home.
Long-Term or Short-Term
When considering your Bitcoin Cash buying objective, do you see yourself investing in the short or the long term?
For example, some traders in the online space aim to profit from short-term Bitcoin Cash price shifts. This is usually achieved by buying and offloading within minutes, hours or days.
Most cryptocurrencies have historically shifted in value by double-digit percentages in just one day of trading - and Bitcoin Cash is no different. Where there is such volatility, there is a potential money-making opportunity.
When it comes to long-term, this is usually referred to as a ‘buy and hold’ strategy. As the name suggests - in this instance you will be keeping a hold of your Bitcoin Cash for months or years. This is great for newbies as you don’t need to worry about short-term volatility!
Target Bitcoin Cash Price
Having a target Bitcoin Cash price is a strategy used by many.
For example, if you were to buy Bitcoin Cash at a price of $400 - the only way you can double this investment is if the coins increase to $800.
The all-time high of Bitcoin Cash was recorded in December 2017 at $4,355. Just 5 days earlier BCH experienced an all-time low of $75.03 USD. This shows a huge 5-day increase in value for the digital currency. Those who timed the market correctly no doubt made some impressive gains!
Consider Regular Investments
Bearing in mind the potentially sharp price shifts encountered by Bitcoin Cash - considering regular investments could be a sensible option for newbies.
Buying Bitcoin Cash and making a profit isn’t a walk in the park, as you’ve got to make decisions based on market sentiment. This is why it’s a good idea to invest little and often into this digital currency.
By buying a small amount of BCH coins on a regular basis, say weekly or monthly, you can easily keep control of your budget and plan. As we said, if you buy your Bitcoin Cash via eToro you can buy just $25 at a time.
Would you consider investing Bitcoin Cash?
Step 3: Open a Bitcoin Cash Broker Account
When you have decided on a suitable Bitcoin Cash broker you will then need to sign up. Simply head over to the crypto provider’s website and look for the ‘sign up’ link. This part will be recognizable to you if you ever traded forex, stocks or commodities before.
As per KYC rules imposed by regulatory bodies, you must let the platform know who you are. This involves filling in a basic form with your full name, address, telephone number and email address.
You will also be asked for your official photo identification, such as a driving license or passport. At eToro you won’t need to upload this ID until you a) spend over $2,250, or b) wish to make a withdrawal request (whichever comes first).
It will also be necessary for you to confirm your name and address by sending a copy of a utility bill or bank account statement issued in the last 3 months. This is all standard procedure with any online financial service - mainly to avoid financial crime and fraud.
Some Bitcoin Cash brokers take up to a whole week to manually check ID documentation. On the contrary, eToro uses automated ID technology - which allows you to complete the signup process in minutes.
Step 4: Deposit Some Funds
After successfully setting up your broker account - you need to fund it so that you can buy Bitcoin Cash. As such, before signing up to a crypto platform, you should check what deposit methods are accepted.
If you would like to buy Bitcoin Cash soon after opening your new account, we would suggest avoiding a wire transfer. This is without a doubt the slowest way to start buying Bitcoin Cash via your broker.
eToro accepts wire transfer, but also the fastest and most convenient payment types. These include credit/debit cards, and e-wallets like Neteller, PayPal, and Skrill.
There will invariably be a minimum deposit amount required to get started, which tends to be between $0-$1,000, sometimes more. This is why it’s imperative you check out the BCH provider’s minimums before signing up.
Step 5: Set up a Trading Order
Once you have funded your brokerage account, you can then buy Bitcoin Cash. To begin the process, you need to let the broker know what you wish to achieve from your trade via a buy/sell order.
If you have traded other assets before, you will know how this is done.
However, for those who have never traded, in any capacity - we have listed the most important orders for you to use when considering how to buy Bitcoin Cash.
The buy order is one you will use the most often when purchasing BCH coins, as this is generally how you will enter the crypto market.
We said generally there because some Bitcoin Cash brokers enable clients to profit even if the financial asset in question loses value. This is accomplished by creating a sell order.
In a nutshell, if you felt the price was going to rise - you would place a buy order with your BCH broker. If you thought the opposite, you would need to place a sell order instead.
Limit or Market Order
As we have mentioned on numerous occasions - the price of Bitcoin Cash doesn’t stay the same for very long.
Its value shifts every second of every day on account of supply and demand. This is important to be mindful of when attempting to make gains from these short-term BCH price shifts.
In the case of a ‘market order’, this is to be actioned if you like the price you are quoted on Bitcoin Cash. This indicates you want your broker to execute your order immediately.
You must however take the aforementioned price shifts into consideration. If you see a price of $380 at the time of hitting ‘confirm’, what you might actually get is $379 or $381. This is an unavoidable difference.
In terms of ‘limit orders,’ you are able to dictate your own price at which to buy Bitcoin Cash.
See an example below:
- Let’s say Bitcoin Cash is valued at $380. But, you don’t want to enter the market until it reaches a price of $400
- By placing a limit order of $400, your broker will execute your order when it reaches this specific price
- Your order will remain outstanding until you either cancel it, or Bitcoin Cash hits the $400 mark
All in all, market orders are perfectly suited to beginners, due to the fact they are so simple to grasp. Limit orders are a great way to buy Bitcoin Cash at your desired price.
When placing your order with the broker of your choice, you will be asked how much you wish to stake on your position. By this we mean - how much Bitcoin Cash you wish to buy.
You may buy as much Bitcoin Cash as you wish, it’s your money. But as we previously suggested, it’s advisable to go steady, perhaps stick to the minimum stake for now.
As we mentioned, eToro will enable you to buy Bitcoin Cash for as little as $25 - an amount which is within reach for most people.
After you have completed all of the information required to place your first Bitcoin Cash trade - including a buy/sell order, limit/market order, and your stake - simply confirm the position.
When you have finished, you will see that your Bitcoin Cash coins are safely stored in your new account wallet.
Ready to dive into Bitcoin Cash market?
Step 6: Storing Your Bitcoin Cash
In terms of storing Bitcoin Cash, they aren’t held in a traditional sense like physical cash. Digital currencies are instead kept on a decentralized ledger called the ‘blockchain’.
When it comes to your personal Bitcoin Cash coins, they can be stored in a crypto-wallet. Your crypto-wallet, should you decide to take this route, can be downloaded to both your mobile and your desktop.
Although this sounds fairly uncomplicated, you will be 100% responsible for your coins. As such, were your desktop or mobile wallet hacked by a bad actor, you would lose your entire Bitcoin Cash balance.
For this reason, we strongly advise using a highly respected Bitcoin Cash broker like eToro, whom as we said is fully regulated by various jurisdictions.
This is because eToro will look after your coins in a safe space, and you can cash out whenever you like. This saves you from having to worry about keeping your decentralized crypto wallet safe from hackers or making multiple transactions.
Step 7: Selling Your Bitcoin Cash
As you know, when considering how to buy Bitcoin Cash - you need to start by timing the market. If you correctly predict the price direction of BCH, you can potentially make a profit when you sell it on. After all, that’s the whole point of making an investment!
We have told you about both BCH brokers, third-party crypto exchanges, and the difference between the two.
However, in the name of clarity - if you use an exchange, the crypto cashing out process is a little more tedious. You would first have to transfer the digital coins from your crypto wallet to the wallet of the BCH exchange platform.
You are then required to exchange your Bitcoin Cash into a tangible currency such as US dollars, British pounds, Euros - you get the gist. This conversion almost always comes with a fee.
The aforementioned process only makes buying Bitcoin Cash via a regulated broker seem all the more simple. As noted, when cashing out your Bitcoin Cash via a platform like eToro - all you have to do is sign into your account and click on ‘sell’.
No two brokers are the same but most modern cryptocurrency brokers will make this happen in a matter of minutes or even seconds. As per KYC rules, you will probably need to have the funds transferred to the same payment method you initially used to buy Bitcoin Cash.
Other Ways to Buy Bitcoin Cash in 2021
We have thoroughly covered the majority of what buying Bitcoin Cash entails throughout this beginner’s guide.
With that said, there are other options when it comes to buying this top 10 digital currency - see below.
Buy Bitcoin Cash Debit Card
Some crypto investors buy Bitcoin Cash with a debit card. This is usually carried out instantly. When it's time to cash out this will simply be transferred back into the same debit card used to fund the purchase.
In order to buy Bitcoin Cash in this manner, all you have to do is fill in your debit card details and you can fund your account with as much as you like. You must of course meet the broker’s minimum investment amount.
Buy Bitcoin Cash Credit Card
Should you prefer a credit card to buy Bitcoin Cash, this is supported by eToro.
But, be aware of additional fees charged by your credit card provider. This is because - much like gambling transactions and ATM withdrawals, investment-related deposits are usually considered to be a ‘cash advance’.
We found that the standard cash advance fee charged by credit card providers is around 3% of your transaction value. They can vary by so always check with your own provider.
Buy Bitcoin Cash PayPal
When it comes to e-wallets, PayPal is undoubtedly the most well known for safe online transactions. As such, buying Bitcoin cash using PayPal is not only secure - but instant.
Popular crypto broker eToro will enable you to buy Bitcoin Cash using various different e-wallets. On top of PayPal, this also includes Skrill and Neteller. All three are considered to be a fast, safe and secure way to buy Bitcoin Cash online.
Bitcoin Cash ATM
In addition to the above, did you know you can buy Bitcoin Cash via an ATM too? To clarify, the terminals we speak of aren’t your average ATMs. Instead, they allow you to buy cryptocurrency in-person.
Bitcoin Cash ATMs are scattered around the world at various shops, airports and streets. Put simply, you will be inserting real cash into the machine. The machine then tells you how many BCH coins you can get for your money.
It’s important to note that some cryptocurrency ATMs will charge as much as 20% for the exchange - making this one of the most expensive ways to buy Bitcoin Cash.
How to Buy Bitcoin Cash 2021 - The Verdict
We have talked about heaps of different factors on the subject of how to buy Bitcoin Cash. By now you should feel all set to start buying the digital asset.
Before you begin, you will need to find a decent and respected broker which is regulated. For this, we recommend eToro. The site is commission-free, easy to use, and regulated by multiple bodies the world over.
Finally, in terms of storing your Bitcoin Cash - you don’t need to worry about this at eToro. This is because the regulated broker will keep hold of your BCH coins for you. As such, you don’t need to do anything else until you decide to cash out!
eToro – Best Platform to Buy Bitcoin Cash BCH
eToro have proven themselves trustworthy within the crypto industry over many years – we recommend you try them out.
Virtual currencies are highly volatile. Your capital is at risk.
How easy is it to buy Bitcoin Cash?
It has never been more simple to buy Bitcoin Cash, especially if you do so via a licenced broker. Look for platforms with a beginner-friendly website and zero - if not low - commission.
What is the safest way to buy Bitcoin Cash?
By far the safest way to buy Bitcoin Cash is by signing up with a regulated brokerage firm such as newbie favourite eToro. This platform is regulated by the FCA (UK), ASIC (Australia) and CySEC (Cyprus). It is also registered with FINRA (US)..
Can I buy $100 of Bitcoin Cash?
Yes. You can buy $100 of Bitcoin Cash. At eToro, you can start buying digital currencies from $25 and up.
Can you lose money on Bitcoin Cash?
Yes. When buying or selling any financial asset there is the potential to make a loss at some point down the line. Crucially, if you predict the future value of Bitcoin Cash incorrectly, you make a loss.
What is the most Bitcoin Cash has been worth?
The most Bitcoin Cash has been worth is $4,355, which it hit in December 2017.