How to Buy Bitcoin Cash: A Complete Guide

Most people are familiar with bitcoin, but fewer have heard of bitcoin cash, which was created as an alternative to bitcoin.

Although it may share parts of the same name as bitcoin, these two cryptoassets are very different. Bitcoin cash operates on its own blockchain and aims to be a faster and more efficient digital cash system than bitcoin.

Read: 3 Things You Must Do When Your Savings Reach $50,000

What is Bitcoin Cash?

In 2017, some of the original bitcoin developers believed that the Bitcoin blockchain was too slow and inefficient. They wanted to build a more scalable alternative.

As a result, they changed the code and the original Bitcoin blockchain was split into two separate blockchains – Bitcoin and Bitcoin Cash. This event is referred to as a “hard fork” and resulted in the creation of a new cryptocurrency, bitcoin cash (BCH).

BCH operates on a decentralized network and can be used to make peer-to-peer transactions without the need for intermediaries such as banks.

According to the developers, the Bitcoin Cash blockchain offers several benefits to users, including:

• Ultra low fees: The network fee for a typical BCH transaction is less than $0.01.
• Speed ​​and reliability: BCH transactions are smooth and take only seconds.
• Safety: BCH operates on a proof-of-work blockchain, which is considered one of the most secure blockchain protocols in the world.
• Fixed supply: BCH has a cap of 21 million tokens, which ensures that the supply is limited and therefore more resistant to inflation.
• Privacy: Using BCH can offer more privacy than traditional banking methods, as blockchain transfers are done anonymously.

How can I buy Bitcoin Cash?

Like other cryptocurrencies, there are several ways to buy bitcoin cash, such as using cryptocurrency exchanges, peer-to-peer networks, or crypto ATMs.

Cryptocurrency exchange

A cryptocurrency exchange is an online platform where users can buy, sell and trade cryptocurrencies such as bitcoin cash. These exchanges act as intermediaries between buyers and sellers, and they make money by charging fees on transactions.

A good crypto exchange has a good reputation, high security, has an intuitive user interface, offers low fees and has high liquidity for your preferred crypto assets.

For example, Coinbase is a popular cryptocurrency exchange that supports bitcoin cash. You can buy, sell and store bitcoin cash on Coinbase, along with many other cryptocurrencies. Other reputable cryptocurrency exchanges include Binance, Kraken and OKX.

To buy bitcoin cash on a crypto exchange, you need to create an account, verify your identity and deposit money. Once you have funds in your account, you can place an order to buy BCH.

P2P networks

It is also possible to buy cryptocurrency directly from others on peer-to-peer exchanges. Some advantages of P2P networks include more payment options, no transaction fees and greater flexibility in terms of legal restrictions.

However, P2P trading can also be risky. There are many fraudsters on these networks who take advantage of the lack of a central authority to manage transactions. In addition, P2P marketplaces often have lower liquidity, so trades can take longer to complete.

Crypto ATMs

Crypto ATMs are convenient options if you happen to have one in your area. They allow you to buy bitcoin cash and other cryptocurrencies with cash, debit card or credit card.

An advantage of crypto ATMs is that they offer a high degree of anonymity, especially for users who buy with cash. However, they usually have much higher fees than online exchanges. Additionally, they may not offer access to as many cryptocurrencies as online exchanges.

Is Bitcoin Cash safe to buy?

As with any investment, buying bitcoin cash involves risk. As shown by BCH’s price history, it is a highly volatile asset that has experienced many sudden rises and falls in price. BCH’s value may follow events in the cryptocurrency market and the economy as a whole or be directly related to its own development as a digital asset.

Before deciding whether to buy bitcoin cash, it is important that you do your research and fully understand the potential risks.

If you are comfortable with the risk involved and have done your due diligence, there are steps to secure your investment. For example, buying bitcoin money on a reputable cryptocurrency exchange or P2P network with strong security measures in place helps reduce the risk of fraud or hacking.

It is also important to store your bitcoins in a secure wallet, such as a custodial wallet offered by a trusted crypto exchange or an offline hardware wallet. Explore different options to protect yourself from potential theft.

Is it better to buy Bitcoin or Bitcoin Cash?

When it comes to deciding whether to buy bitcoin or bitcoin cash, there is no right answer as it will ultimately depend on your investment strategy and financial goals.

Both bitcoin and BCH have pros and cons, so you should do your research and consider factors such as transaction speed, fees, and overall market performance before making a decision.

On the one hand, bitcoin is the more recognized cryptocurrency and has a much larger market capitalization and mainstream adoption than bitcoin cash. With a current market cap of over $400 billion, it is the world’s most valuable cryptocurrency and may have greater potential to preserve its long-term value.

On the other hand, bitcoin cash has some technical advantages over bitcoin, such as faster transaction times and lower fees. So if your goal is to use cryptocurrency as a secure digital payment method rather than a long-term investment, bitcoin cash may be a better option.

Important takeaways

Bitcoin cash is an established cryptocurrency that shares many of the same characteristics as bitcoin, with some notable improvements to its technical capabilities. If you are interested in buying bitcoin cash for the first time, make sure you know how to securely transact and store crypto assets.

By taking these precautions and staying informed about the cryptocurrency market, you can make an informed decision about whether buying bitcoin cash is a safe investment for you.

The information is accurate as of March 7, 2023.