Buying Bitcoin Cash: Complete Guide

/Buying Bitcoin Cash: Complete Guide

Buying Bitcoin Cash: Complete Guide 2018-02-13T12:07:04+00:00

What is Bitcoin Cash?

Bitcoin Cash (BCH) is a new and upgraded version or hardfork of Bitcoin or Bitcoin Core. It was hardforked or split apart from Bitcoin Core as of block 478559. This version of Bitcoin was developed and released on August 1, 2017, as an improvement of its predecessor.

  • It has increased its blocksize limit to about 8mb making it faster in terms of transactions than Bitcoin.
  • It is also way cheaper in terms of transaction fees than Bitcoin.
  • It uses the same code base as Bitcoin and aims at achieving the original purpose of Bitcoin which was to act as digital money for peer-to-peer transactions.

How and Where to Buy Bitcoin Cash?

Create or Register for Digital Wallet

Buying bitcoin cash should not be much of a hassle. In order to buy Bitcoin Cash, you need a wallet in which to store your coins. A wallet is a digital platform where you store your cryptocurrencies. You will have a public address and a private key. It is free and easy to register online. You just need to identify a reliable platform. Here are some of the best BCH wallets.

  • Ledger Nano S (Hardware Wallet)- This is one of the safest since you own all your private keys offline.
  • Coinomi (Mobile Wallet)- This wallet allows you to store Bitcoin and other coins. It also allows you to control your private keys. It is currently only compatible with Android.
  • Jaxx (Mobile and Desktop Wallet)- It is a multi-currency wallet that also allows you to manage your private keys.
  • Electron Cash (Desktop and Mobile Wallet)- This wallet was forked from Electrum. It enables you to back up your digital wallet using mnemonic seed phrase.
  • BTC.com– This is a very secure web and mobile wallet backed up by Bitmain. It has been operating since 2015 and is very popular.

These are just some of the many available wallets. Carry out more research on each of them to determine the best among them.

How to Choose a Bitcoin Cash Exchange?

So where can you buy bitcoin cash? Once you have a wallet, you now need to identify a Bitcoin Cash exchange from where to buy your coins. Here are some open exchanges you can buy BCH from. Please note that you need to carry out due diligence.

Cex.io

This is another popular London based exchange platform. Cex.io Developed in 2013, it now has just over 700,000 users across the world.

Advantages

  • Supports bank transfers, credit cards, vouchers and withdrawals to personal wallets
  • Open to many countries
  • Supports dollars, euros and Russian rubles
  • No commission for bank deposits
  • Reliable customer support

Disadvantages

  • Credit cards might not be available in some countries.
  • There is no phone support.
  • No cash withdrawals.
  • High fees for buying and selling Bitcoins and other cryptos. Buying Bitcoins costs you 7% of your money.

Coinbase

Coinbase is a popular American exchange platform that allows Americans to buy various digital coins including Ethereum, Bitcoin Cash, Litecoin as well as Bitcoin. This exchange platform is based in San Francisco and is now available in about 32 countries across the world with over 7.4 million users.

Advantages

  • It has an instant buy feature.
  • It is easy to use.
  • Supports various crypto-currencies.
  • Has a high liquidity.
  • Provides wallet and merchant services.
  • Allows bank transfers, debit and credit cards as well as bank wires.
  • It is very secure. Coins stored in Coinbase Vault.

Disadvantages

  • Transferring crypto to another platform is charged.
  • Bank transfers take 3-5 days.
  • Implements weekly buy and sell limits on all accounts but you can increase this by uploading your photo ID.
  • Its system follows the traditional banking system which clients find skeptical.

Exmo

Exmo is another crypto exchange platform which also doubles up as a Bitcoin wallet. It has its headquarters in Polegate, England and is available in more than 100 countries globally and has about 450,000 users. It was developed by financial and technical professionals from different regions across the globe.

Advantages

  • Allows users to trade Bitcoin into fiat currencies.
  • Supports altcoins such as DASH, Litecoin, and DOGE among others.
  • Allows for fast deposits and withdrawals.
  • Strong security features. Provides SSL, 2-factor authentication and stores coins in cold storage wallets.
  • Low commissions on deposits and withdrawals.
  • User-friendly interface that makes trading easy.
  • It has a cashback option for frequent traders.

Exmo is a relatively new platform that provides a simple means of trading crypto. Make sure you research more about it before making a decision to use it.

Bittrex

This platform was developed in 2014 by Bill Shihara, Richie Lai, Rami Kawach and Ryan Hentz all of who are security professionals and who have worked at reputable companies such as Amazon, Blackberry, Microsoft and Qualys among others. It has its headquarters in Las Vegas, USA.

Advantages

  • Provides maximum security with features such as 2FA, funds, and coins held in cold storage.
  • Requires minimum personal information for verification.
  • Supports more than 250 digital currencies.
  • Has no limit on deposits.
  • A flat fee of just 0.25%.
  • Withdrawals of up to $3,000 per day once you get verified.
  • It is available in many countries.
  • It is fully compliant and fully regulated by the US financial laws and has applied for the New York Bitlicense.

Disadvantages

  • Slow response to clients’ queries.
  • Invasive verifications requirements.
  • Relatively low liquidity.
  • It has some ongoing verification issues.

Binance

Based in Shanghai, China, Binance is one of the fastest and simplest cryptocurrency exchange available. It is managed by Changpeng Zhao and the Beiji Technology.  It began its operations in July 2017.  It has a range of charts and trading tools that allow users both professionals and armatures to carry out simple trades easily. It has more than 5 million users to date. Let’s check out some of its advantages:

Advantages

  • Offers basic and advanced exchange interfaces
  • Low trading fees and fast transactions processing. Can process 1.4 million orders per second.
  • Uses multi-tier and multi-cluster security system
  • Supports various browsers, HTML5, Android and other platforms
  • Supports multiple languages including English, Japanese, Korean and Chinese.
  • Accepts trading in multiple cryptocurrencies including BTC, BCH, LTC, and ETH among others
  • It is to start up or register an account.

Users praise this platform for its fast and efficient transactions, but you should do some more research to understand their operations and actual fees. This will help you make an informed decision.

Kraken

This is the fifth largest cryptocurrency exchange. It is based in San Fransisco in the U.S. and was founded in 2011 by Jesse Powell. It is available to investors in North America apart from New York, Japan, and Europe. It was the second largest platform by volume as of January 2017.

Advantages

  • Supports high volume cryptocurrencies and fiat currencies.
  • Very low fees
  • High transparency. Was the first to do a proof-of-services auditing
  • Free deposits for Canadian dollar, Japanese yen, and Euros
  • Fast withdrawals
  • Good security features. Has two-factor verification features.
  • Supports margin trading

Even though it is a good platform, Kraken also has its flaws just like all other exchanges. It had recently gone offline for maintenance causing panic amongst investors. However, the developers worked hard to restore the site and waived transaction fees for investors till the end of the month as an incentive. Let’s look at some of its disadvantages.

Disadvantages

  • Kraken’s user interface is not that user-friendly as compared to other exchanges.
  • Account verification is not that fast.
  • They occasionally close users accounts if they suspect fraud activity.
  • You’ll pay a $15 transaction fee for fiat deposits and withdrawals through banks.
  • Orders executions are sometimes bugged making them slow which might lead to loss of money during trading.
  • The customer support is not as responsive as it should be.
  • The site holds the private keys to your account which is not safe if in case they go under.

Bitfinex

It is among the most popular and the biggest exchanges. It is a suitable platform to buy and sell BCH. You can place BCH buy orders if you want to get these coins and then sell them when their price goes up. It allows several trading pairs including

BCH/ETH

BCH/BTC

BCH/USD

Advantages

  • It is open to altcoins in addition to Bitcoin and Bitcoin Cash. Other coins it supports are Ethereum, Ethereum Classic, and Monero among others.
  • It enables you to convert your coins to the same platform.
  • You can trade cryptocurrencies.
  • Has a peer-to-peer funding platform.
  • You can request for funding from the platform.
  • Has a two-factor authentication feature that provides adequate security.
  • Your coins are stored in a cold wallet/they are offline.
  • Depositing cryptocurrency is free.

Disadvantages

The only complaint is their taker and maker fees but it’s just at 0.20% and 0.10% respectively.

Review Summary

Now that you know about wallets and exchange platforms, you should consider parameters such as reputation, fees, ratings, payments, procedures, limitations and handling speed before deciding on a particular platform. Check the detailed information on the exchanges we’ve reviewed.

Bitcoin cash promises to bring back decentralization to the crypto market as it was the original idea of the Bitcoin Core. With its added security features and faster transactions, BCH has a promising feature if the developers maintain the original idea. You can buy BCH from the exchanges and store them in your wallet to speculate or trade it against other coins and fiat currency to earn some profit. All in all, check out more of our reviews to understand more of these world of blockchain technology. Thank you.