5 Things to Consider if you Want to Buy Bitcoin Cash
In particular, the following five considerations regarding buying Bitcoin Cash could be particularly important. It is vital to take safety and security into account when making any investment in cryptocurrencies, or for that matter any financial investment whatsoever.
Carefully choose your preferred secure payment method
First things first, choosing an appropriate payment method is obviously particularly important. This isn’t necessarily as straightforward as it sounds. Different locations around the world will have various payment methods available, meaning that you should definitely bear in mind the speed and cost of each payment system available.
Will you need to set up your own wallet?
It’s also very important to implement your own Bitcoin Cash wallets before purchasing the crypto coin. Bitcoin Cash customers need a wallet system in order to appropriately secure their funds. There are wallet systems built into cryptocurrency exchanges, but these can be vulnerable to theft. However, later in this article we will be discussing the options available for Bitcoin Cash users when they choose a wallet solution.
Another thing to bear in mind is that users entering into CFD agreements via recommended brokers do not need wallets, as this contract will effectively secure any transactions and funds associated with Bitcoin Cash.
Fees and costs are always extremely important, of course, and this definitely applies to Bitcoin Cash and other cryptocurrencies. However, it should be noted that using a cryptocurrency as a form of payment and transfer is considerably more affordable than traditional methods. So any fees or costs associated with Bitcoin Cash are always likely to be negligible.
Safety and security
Safety and security are obviously absolutely key with any cryptocurrency system, and thus the provisions made with Bitcoin Cash are obviously extremely significant. It should firstly be understood that Bitcoin Cash was initiated due to the concern of both the community and developers that the market-leading cryptocurrency would struggle to scale effectively in the future. This means that blocks on the Bitcoin Cash network can potentially be eight times larger than those of Bitcoin, which adds to its security potential.
Ownership of Bitcoin Cash is established through digital keys, Bitcoin Cash addresses, and digital signatures. Keys are created and stored in user wallets, which are completely independent of the Bitcoin Cash protocol. And Bitcoin Cash is a decentralised system, which implements a cryptographic-based security model in order to secure coins.
Every Bitcoin Cash transaction requires a valid signature in order to be included in its overarching blockchain, and this can only be generated once valid digital keys have been created. Bitcoin Cash aims to fulfil the original promise of Bitcoin as peer-to-peer electronic cash by ensuring that users pay lower fees than with its BTC cousin, while gaining access to more reliable confirmations and faster transactions.
Can you understand and navigate the platform?
The founders of Bitcoin Cash have made ensuring that the system is user-friendly one of their top priorities. And this is largely reflected in its operation. Some people, though, have questioned the branding of Bitcoin Cash, which can tend to cause confusion with Bitcoin, particularly for those uninitiated with the medium.
Ultimate Beginner’s Guide to Trading Bitcoin Cash
What is a Bitcoin Cash Broker?
Bitcoin Cash brokers work as intermediaries for investors, executing trades and ensuring that you do not need to have a huge technical grasp of the market in order to participate in the cryptocurrency revelation. Brokers have become massively more prominent due to the explosion of internet trading.
Because Bitcoin Cash has achieved a good deal of attention due to its relationship with the market-leading Bitcoin, most crypto brokers will embrace the token.
What is a Bitcoin Cash CFD?
CFD is an acronym for Contract for Difference, and refers to one of the most popular trading mechanisms within the financial system. These are particularly useful for cryptocurrencies, as Bitcoin Cash CFDs enable investors to speculate on the change in the price of the altcoin, regardless of the direction in which it is heading.
This means that Bitcoin Cash investors can take a selling position in the cryptocurrency, which is obviously a massive market advantage. Another attractive aspect of CFD trading is that it makes margin trading possible, meaning that you can use money that you have borrowed to potentially increase your profits.
What is the Benefit of Regulation?
Cryptocurrency regulation helps create a safer environment for investors in the market. Financial regulators have moved to pass a considerable amount of legislation in the cryptocurrency niche since it became more popular, and this has helped increase security for those interested in trading. This has also meant that cryptocurrency has become more credible as a trading platform, which obviously is beneficial to both investors and owners of cryptocurrency.
What is the Best Payment Method for Buying Bitcoin Cash?
Bitcoin Cash can be bought via several different payment methods, and each of them have their own merits and disadvantages. They can also differ depending on the location of purchase.
Buying Bitcoin Cash with PayPal
PayPal is a hugely popular digital payment system and becoming increasingly common. But it should be borne in mind that not all exchanges accept PayPal, nor is it available in every country.
Fees associated with PayPal are higher than some other payment methods, but the convenience of the system does attract many investors.
Purchasing with Cash
Cash would certainly be an attractive way to purchase Bitcoin Cash, were it not for the fact that it is almost impossible! You may be able to enter into a private agreement with someone who already holds BCH, but purchasing with cash is otherwise completely unrealistic.
Via Bank Transfer
Buying Bitcoin Cash with a bank transfer is also attractive due to a lack of fees, but it can be time-consuming and is not necessarily accepted by all exchanges.
Buying Bitcoin Cash with Credit Cards or Debit Cards
Credit and debit card transactions are the most convenient and ubiquitous way to purchase BCH, but credit cards attract higher fees than any other payment methods. Nonetheless, you can always rely on credit and debit cards to fund your account.
The Verification Process for Trading
Bitcoin Cash is not one of the anonymous cryptocurrency platforms available and does require users to confirm their identity. This verification process typically involves confirming your address and offering some form of government-approved identification. This is generally a quick and painless process, but it will lead some investors to prefer other cryptocurrencies that allow anonymity in some respect.
Long vs Short Term Investment
There is always a debate over long and short-term strategy for any investor, and that definitely applies to Bitcoin Cash. Buying the coin with a short-term investment strategy means to buy and sell dips in the market. This is never an easy proposition, but it can result in very quick returns.
Conversely, a long-term investment strategy in the coin requires an investor to hold for a certain period of time. There are still challenges involved in relation to exiting the investment, even though the strategy implies a much more stringent belief in the long-term fundamentals of the Bitcoin Cash project.
Why Buy, Rather than Trade?
Anyone investing in Bitcoin Cash, or for that matter any cryptocurrency, has the option of purchasing the coin or trading it. The latter is definitely very popular, but there are also serious advantages to purchasing Bitcoin Cash as well.
Firstly, BCH can be held as a physical commodity, much as many investors choose to hold similar commodities such as gold and silver. This can then be used as a unit of exchange, while such commodities are also thought to be hedges against fiat currency depreciation.
Buying Bitcoin Cash also means that investors are less vulnerable to rapid market fluctuations. This can certainly be an issue in the cryptocurrency space, as the market remains relatively volatile. Those trading Bitcoin Cash will be interested in making short-term gains, and those purchasing the token will be more concerned with market fundamentals.
Another obvious advantage of purchasing Bitcoin Cash is that it enables you to retain control over all of your tokens. This does not apply when you store the Bitcoin Cash token in an exchange, as these are very much vulnerable to the previously mentioned fluctuations in the market. It is definitely not unheard of for cryptocurrency exchanges to crash, so this should definitely be taken into consideration.
Holding a token over a period of time also means that you attract fewer fees and costs. But purchasing Bitcoin Cash is certainly a relatively complicated process, and this shouldn't be taken lightly. You must educate yourself on every aspect of setting up wallets and understanding online security related to Bitcoin Cash, while system software compatibility is also a major issue.
What Fees Are Involved?
Purchases of Bitcoin Cash do attract fees, particularly when using popular digital exchanges. While most fees associated with the cryptocurrency are negligible, you should take the following into consideration before making any purchases.
Transaction fees associated with BCH are so negligible as to be virtually non-existent, costing a tiny fraction of one cent. Some exchanges will charge dynamic fees for holding Bitcoin Cash in wallets, so you should definitely confirm this before choosing a particular exchange.
Any deposit fees associated with Bitcoin Cash are dependent on brokers, and so shopping around is always a viable strategy.
Withdrawal fees associated with Bitcoin Cash are also dependent on exchanges, but it should be noted that many do not charge withdrawal fees whatsoever, so seeking out one of these particular exchanges is certainly to be recommended.
Safely Storing Your Bitcoin Cash
In order to safely store Bitcoin Cash, it is absolutely essential to set up a wallet. These offer layers of security which mean that it is extremely difficult for hackers and thieves to gain access to your funds. And there are several wallet options available for every BCH purchaser and investor.
Web wallets are built into brokerage and exchange platforms, and are usually considered to be extremely convenient. It’s certainly nice to have all of your functionality in one place, but there are also problems with web wallets as well. Exchanges are more likely to be hacked than other forms of wallet systems, while some have even gone out of business completely. So despite the convenience, this may not be the best Bitcoin Cash option for those planning on holding on to the coins for a longer period of time.
Mobile wallets are compatible with mobile devices, and have become increasingly popular as trading has become increasingly available. Security is stepped up in mobile wallets, but they can be vulnerable to other users gaining access to a particular mobile device.
Popular mobile wallets include Freewallet.org, Yenom, Jaxx, Copay, and IfWallet.
Desktop wallets are used with desktop computers and are therefore less obviously convenient than mobile wallets. However, they do have extra security built-in, with a range of virtually uncrackable protocols available, such as the well-known 2FA (2 Factor Authentication). This means that desktop wallets merit consideration, unless you really need to use a mobile device for your Bitcoin Cash transaction.
Electron Cash, Exodus, Bitpay, and Badger Wallet are all very popular wallets that are compatible with Bitcoin Cash.
Finally, hardware wallets are arguably the most secure of all options, as they have no software vulnerability. Hardware wallets use private keys in secure hardware devices, meaning that they are almost impossible to crack. These wallets are furthermore immune to computer viruses, and also make it possible for users to validate the entire operation of the wallet system.
Ledger, Trezor, and Coldlar are all popular hardware wallet options that are compatible with Bitcoin Cash.
What Other Coins Can I Trade or Use to Buy Bitcoin Cash?
Firstly, fiat currency can be used to purchase Bitcoin Cash, and this would apply to most commonly used currencies. This is encouraged across digital exchange platforms. But other cryptos can also be utilised for this process, most obviously it's cousin Bitcoin.
What’s the Smallest and Largest Amount of Bitcoin Cash I Can Buy?
In common with its relation Bitcoin, Bitcoin Cash makes it possible to buy an almost infinitesimal quantity of its coin. One Satoshi is the smallest amount of BCH that you can hold at any one time, and this is equal to 0.00000001 BCH. However, when purchasing it through exchanges, most will limit purchases to approximately 0.0001 BCH.
There is no upper limit on the amount of Bitcoin Cash that you can buy, but you must bear in mind that many of these tokens are already in circulation.
Can I Buy Anonymously with no ID? Is it Safe and Legal?
It is certainly safe and legal to buy Bitcoin Cash, but It is impossible to do this anonymously. BCH has been much more focused on delivering a fast and reliable system, to improve on some of the drawbacks that were associated with the niche in his early days.
Will Buying Bitcoin Cash Make Me Money?
Bitcoin Cash has certainly been a viable investment for many users. And the rapid increase in the value of this coin, coupled with its precipitous climb into the top five cryptocurrencies, is a testimony to its ethos and execution. Although its market capitalisation is nowhere near the level of Bitcoin, its founders have largely been vindicated in their vision.
In the longer term, Bitcoin Cash certainly has good underlying fundamentals. It has achieved a powerful and reliable blockchain, and many people expect to see investment in the cryptocurrency niche accelerate in the years to come. Many believe that this will be bullish for established coins such as Bitcoin Cash, but a note of caution is also required, as there are many competing cryptocurrencies available.
How to Spend Your Bitcoin Cash
BCH is not as recognised as its parent, BTC, but certain retailers do accept Bitcoin Cash as a payment medium. However, it is far more widely used online for payments, and can easily be exchanged for fiat currency, and even other commodities. In short, there are plenty of ways available to spend this particular cryptocurrency.
How to Sell Your Bitcoin Cash
Finally, there are several options available for selling Bitcoin Cash. Arguably the easiest is to sell the coin through a broker, which will handle all of the trading processes. But probably the most common way to deal with selling BCH is to use an exchange, which will take care of all of the difficult aspects of the sale, without charging excessive fees.
Of course, Bitcoin Cash is a medium of exchange, so it is always possible to arrange private transactions if you have the technical ability to do so. It is also more convenient to sell Bitcoin Cash that is already held in a CFD, as these contracts are widely traded within the financial world, and have an established pathway for selling.