So you’ve decided to buy Bitcoin Cash. There are several options available to you, but first, you’ll need a wallet that supports BCH.
In this guide, we will take you through the steps necessary to acquire a BCH wallet and how to buy Bitcoin Cash.
Different Types Of Bitcoin Cash Wallets
These wallets provide offline storage solution, which makes one of the most secure storage options available. Hardware wallets allow users to have control of their private keys and provide 2-factor authentication support, and verification of transactions is done on display screens.
The hardware wallets that support Bitcoin Cash include Ledger Nano S, KeepKay and Trezor.
This is a forked version of Electrum wallet. Electron Cash is available in both mobile and desktop version for Linux, OX X, and windows systems.
Electron Cash is very easy to use and allows users control of their keys, and backup for their wallet with a mnemonic seed phrase.
This is among the most popular mobile, and web wallets backed up by Bitmain Technologies. The wallet is secure and easy to use.
BTC.com is a hierarchical deterministic wallet that allows users to use a master “seed” to back up their holdings. The wallet supports multiple signature transactions and 2-factor authentication.
This is a popular wallet that supports multiple digital currencies. The wallet is user-friendly and contains a convenient user-interface, which makes it among the best wallets for BCH.
This is a paper wallet that is available for anyone who finds this solution the best option for storing Bitcoin Cash. It is rated among the best Bitcoin Cash wallets for storing it for a long time. However, if you forget where you’ve hidden your keys, you’ll lose the private key.
This is a digital web-based virtual currency wallet that requires zero transaction fee but charges a small fee for transactions. One of the best features about this wallet is that it supports multiple digital currencies and its visibility.
The wallet was recently integrated with BitGo, which made it one of the most secure wallets. A vault feature was added to protect the cryptocurrencies from hackers.
How To Buy Bitcoin Cash (BCH)
First, get a BCH wallet. The methods of buying BCH will vary depending on the type of wallet you use.
For instance, if you have a full node wallet (a wallet that requires users to download the entire blockchain), backup the wallet to generate a wallet.dat file, which you can import into a full node BCH wallet, where the tokens will be availed for you.
However, if you’re using a Simplified Payment Verification wallet, which does not require downloading the entire blockchain, you can still claim your BCH tokens.
Once you have your BCH wallet, you’ll need your BCH address. Since some users may be confused and may start sending BTC to BCH wallets, and vice versa, a new format was invented for BCH. The new format contains 42 characters, and begins with a “p” or a “q.”
Note: Cash addresses are just a representation of the original tokens. As such, the same address can be represented in two different ways.
Second, although BCH is among the largest digital currencies, it is not supported by every major exchange.
Even though more exchanges continue to list more coins, only a few exchanges have listed Bitcoin Cash. They are eToro, Coinmama, CEX.io, and Coinbase.
eToro allows you to purchase BCH from around the world with different payment methods. The exchange doesn’t give you actual access to your coins, so you can’t send BCH from the exchange to other users. The only thing this exchange allows you to do is trade BCH for fiat currency.
If you’re using eToro, you don’t need a wallet since you won’t access your coins.
Coinmama is among the oldest exchanges. The exchange allows you to purchase Bitcoin Cash with a debit and credit card. The exchange accepts users from almost all countries.
CEX.IO is also another old exchange, as it has been around since 2013. The exchange is a brokerage service, thus user-friendly but more expensive. The exchange accepts wire transfer, credit, and debit cards.
Coinbase is one of the biggest exchanges at the moment and provides support for BCH trading. The exchange allows you to get competitive rates if you live in a country that it operates in.
There are other exchanges like Bitfoliex that don’t require much from new users to purchase BCH. The platform strives to maintain the privacy of its clients, and new users need only an email address to get started with buying and selling crypto on the exchange.
However, if you’re a beginner, you should consider using a brokerage service, which is a bit expensive by easier. However, if you’re an advanced user, you can use Coinbase Pro to purchase BCH at lower fees.
Keep in mind that most exchanges will require you to verify your identity before they allow you to start trading. Additionally, you’ll need to link your exchange account with your bank account. These steps mostly take several business days.
Moreover, the transactions times also vary depending on an exchange. However, most Bitcoin Cash operations are almost instantaneous.
Buy Bitcoin Cash On Binance
There are two ways of buying BCH on Binance; through crypto or fiat. (Bitcoin Cash has the tinker of BCHABC on the exchange)
The fiat option was introduced recently after the addition of credit card purchases on the platform. When it comes to fiat, the platform allows BCH purchases in USD and EUR with a minimum/maximum purchase being $50 and $20,000.
Steps of Buying BCH Using A Credit Card On Binance
1. Create an account on Binance if you don’t have one by visiting the official website (binance.com). Click Register and fill in the necessary details. If you already have an account click Login.
2. Head over to the Funds section on top of the page and choose the “Buy with Credit Card” option.
3. Select BCH and enter your order amount. On the second bar, you will see the total amount you will be charged, including the fees, which is usually 3.5%.
4. Confirm your order by checking the “I have read and agreed the disclaimer” section which you should read to ensure you understand the purchasing process better. Then click on the go to payment.
5. The purchase is processed through Simplex and you will have to provide your personal details if the order is to go through. Once you are done filling the details, check the “Terms and Conditions” box and click on “CONTINUE.”
Simplex will now ask you to verify your phone number through a four-digit code and email address through a verification link sent to your email.
6. When done with the verification, you will be asked to provide details about your Visa or Mastercard details to complete the purchase.
It usually takes between 10 to 30 minutes before the crypto coins appear on your Binance account.
Steps Of Buying Bitcoin Cash On Binance Using Crypto
1. Create an account and if you have one proceed to login.
2. Deposit crypto in your account. Bitcoin (BTC) and Ethereum (ETH) are two of the most convenient cryptos to deposit since both have many trading pairs with a vast majority of other cryptocurrencies that are listed on Binance. To make the deposit, go to Funds and click on Deposits.
3. Select the coin to deposit by searching on the search bar that appears. The platform will provide you with a deposit address for the crypto coin you selected. Copy the address and paste it on your wallet. Then send the amount you would like to deposit to the address you just copied. The funds can take up to 30 minutes before they appear on your Binance account. Ethereum deposits are faster. Also, it’s advisable to start with small amounts on your first deposit. Trying to deposit from one exchange to another can be limited by restrictions and its advisable to deposit directly from your wallet.
4. Go to the navigation bar and check your balance.
5. On the navigation bar, go to the Exchange section and select Basic. On the top right corner, select BTC and search for BCH where the BCH/BTC trading pair will appear.
A price chart will appear when you click on the trading pair. To buy BCH when it’s at a specific price, use the Limit order. Enter the desired price in BTC and the amount of BCH you wish to purchase and then click on the Buy BCH button.
6. To buy BCH at its current price, click on the Market tab and enter the amount of BCH you intend to purchase. The order will be executed immediately, and the BCH will appear in your balance.
Alternatively, you can use this option to buy some Bitcoin Cash. One example of a peer-to-peer trading platform is LocalBitcoinCash. This platform enables users to trade BCH for fiat currency directly with each other.
Users can place an offer and wait for an interested trader to respond, and it provides an escrow service. However, many people have expressed concerns about whether this platform can be trusted.
To be safe, bear in mind that you’ll be dealing with individuals, unlike in exchanges where you deal with reputable companies. This automatically increases the risk of fraudulent behavior.
Additionally, when trading peer-to-peer ensure you always confirm the amounts, the current exchange rate, and your address, as well as that of the recipient. Finally, never give your private key to anyone.
Also, you can schedule face-to-face meetings and trade with the individual. However, this option is very risky, since the individual may be a thief and rob you off of your BCH or even harm you. Confirm a person’s identity before agreeing to meet with them for the exchange. You can bring a friend and meet in a public place to maintain your safety.
BCH has not been fully accepted by the crypto community, compared to its older brother BTC.
Nonetheless, the coin has been accepted by several major exchanges and is quite accessible to the average user.