Bitcoin Cash began as a fork of Bitcoin. It was created following a chain split when core Bitcoin developers disagreed over scalability plans. Following the split, Bitcoin Cash increased its block sizes from 8 MB to 32 MB, improving its speed and lowering fees.
So, how do you invest in Bitcoin Cash BCH? Payment providers like PayPal offer an alternative to more expensive methods like credit cards while still preserving convenience.
While PayPal is one of the world’s leading payment providers, it is not currently possible to buy cryptocurrencies like BCH with your PayPal account directly.
Generally, you have to deposit funds to an exchange or broker to trade and acquire cryptocurrency.
Buying exposure to Bitcoin Cash price movements via a broker is one of the easiest methods, as many of them accept PayPal. When you buy Bitcoin Cash via a broker, you are actually trading CFDs, a type of trading instrument.
These offer advantages for buyers and sellers, such as less slippage and no blockchain fees.
This way traders can speculate on price movements without having to own the coins and store them in a Bitcoin Cash wallet.
If you do wish to own the coins, you will need to purchase them on a Bitcoin Cash exchange. Brokers, however, are more likely to offer PayPal as a payment method than exchanges are.
Bitcoin Cash has good trading liquidity, so it’s available for purchase on many exchanges and brokerage platforms worldwide.
PayPal is not the cheapest method to buy Bitcoin Cash, but it is one of the fastest and most convenient.
If you are considering depositing and withdrawing funds to a platform with regularity, a bank transfer remains the most affordable and practical.
If, however, you simply want to make a one-time convenient transfer, then the PayPal app could be more convenient to use.
Exchanges and brokers are charged fees by PayPal for receiving payments. These fees are often passed on to customers in the form of ‘convenience fees’ when PayPal is the chosen payment method.
Convenience fees rarely range above 5%, but it’s important to check these with the exchange and broker you are depositing to.
While PayPal fees are normally low for bulk purchases, it is a good idea to calculate the transaction fee as they do vary.
If you are looking to make a one off deposit to an exchange or broker and purchase Bitcoin Cash quickly and with a minimum of hassle, then using your PayPal digital wallet is a good option. If however, you want to actively trade Bitcoin Cash and deposit to and from the platform regularly, consider a transfer from your bank account.
Credit cards offer greater convenience than PayPal, but the associated fees can add up over time and eat into your investment.
PayPal is the best choice for traders who want to buy Bitcoin Cash quickly but don’t mind paying a little bit more to get ahead of the market.