Ready to invest in Bitcoin Cash? You can buy BCH on Coinbase, eToro or Robinhood.
Bitcoin Cash, a decentralized cryptocurrency that emerged from the Bitcoin network, has captured the attention of investors and tech enthusiasts alike. Its fast transaction times and lower fees make it an appealing option in the ever-evolving landscape of digital currencies. While many top cryptocurrencies have reached new all-time highs this year, Bitcoin Cash has yet to reclaim prices near its top in 2017. It's current price is down by over 90% from its ATH of $4,355.62. This could suggest potential for future gains. Yet, investor sentiment appears bearish due to Bitcoin Cash's limited recent traction. This decline can be attributed to fierce competition from other cryptocurrencies. Many of these competitors benefit from having more active developers than Bitcoin Cash (BCH).
To learn more about how to buy Bitcoin Cash, follow our guide on how to go about purchasing digital assets today.
How to Buy Bitcoin Cash (BCH)
Ready to learn how to buy Bitcoin Cash? Here's a quick guide on how to get started investing in BCH today.
1. Open an Online Account
If you don't already have a cryptocurrency exchange account, you'll need to make one in order to buy Bitcoin Cash. As an investor in digital assets, your top priority should be security. Some U.S based crypto exchanges with top-tier security are Coinbase, eToro, Robinhood and Gemini. Coinbase is a great option for new investor, as it has an easy to use interface. Plus, the Coinbase Learn program pays you in cryptocurrency for watching short informational videos on blockchain technology.
2. Fund Your Account
After verifying your account, you need to fund it. Funding options vary across different exchanges. Some options include funding through a wire transfer, ACH transfer, debit card or credit card. For a wire transfer, you will send money directly from your bank account to the brokerage. ACH transfers can be made using third-party applications, which help facilitate secure bank account logins for transferring funds. While these transfers are typically slower (taking 2-3 business days), they can also be more cost-effective.
3. Buy Bitcoin Cash (BCH)
To buy Bitcoin Cash, simply place a market or limit order on your chosen cryptocurrency exchange. Market orders will purchase your BCH within a few seconds at market price. Whereas, limit orders only execute if the asset in question dips to a certain, pre-specified price.
What Is Bitcoin Cash (BCH)?
Bitcoin Cash (BCH) is a peer-to-peer electronic cash system that emerged as a fork of Bitcoin in August 2017. The primary motivation behind the creation of Bitcoin Cash was to address the scalability issues faced by Bitcoin. By increasing the block size limit from 1 MB to 8 MB (and later on increasing it even further), Bitcoin Cash aims to facilitate faster transactions and lower fees. This makes it more practical for everyday use.
Origin of Bitcoin Cash (BCH)
Despite having similar names, Bitcoin and Bitcoin Cash are two separate cryptocurrencies that run on two distinct blockchains. Bitcoin Cash came about after a disagreement arose about Bitcoin's block size. During summer 2017, several high-profile Bitcoin miners had a problem. Bitcoin had increased in popularity and millions of new participants entered the space. With so many new traders, transactions without timestamps kept piling up. Blocks were limited to 1MB and miners began having difficulty processing all the new data efficiently.
The results were constant processing delays and increased fees for buyers who wanted their data moved to the front of the line. Some Bitcoin miners argued that 1MB was simply too small and more size was needed to handle the excessive transaction volume.
On August 1, 2017, a group of miners altered the Bitcoin code to create the offshoot (or hard fork) currency, Bitcoin Cash. Unlike its original counterpart, Bitcoin Cash capped block size at 8 MBs and recorded its transaction data outside the Bitcoin network. For each Bitcoin owned prior to the hard fork, 1 Bitcoin Cash was credited proportionally to the amount of Bitcoin one owned at the time.
What's the Difference Between Bitcoin Cash and Bitcoin?
Bitcoin and Bitcoin Cash primarily differ in block size limits and transaction processing. Bitcoin has a 1 megabyte block size, leading to slower transactions and higher fees. Bitcoin Cash has an initial block size of 8 megabytes, allowing for faster and cheaper transactions. Additionally, Bitcoin is seen as a store of value, whereas Bitcoin Cash is focused on being a peer-to-peer electronic cash system.
Bitcoin Cash now trades as a completely different entity than Bitcoin, and has arguably been left behind in the recent 2021 cryptocurrency bull market. Like its predecessor, Bitcoin Cash cannot be traded on any stock exchange. However, you can trade Bitcoin Cash from certain stock brokerages, such as Robinhood.
Where to Buy Bitcoin Cash (BCH)
Don't have a cryptocurrency exchange account yet? Here are some of the top crypto exchanges available to U.S investors that offer plenty of cryptocurrency investments on their platform.
- Best For:Buying & selling DogecoinVIEW PROS & CONS:securely through Robinhood Crypto's website
How to Store Bitcoin Cash Safely
While you don't need a cryptocurrency wallet to buy Bitcoin Cash, it's a good idea to use one once you've made your purchase. Centralized exchanges hold custody over your digital assets, making exchanges huge targets for cryptocurrency hackers. To mitigate this risk, use a cryptocurrency wallet. Software wallets are free to use, but hardware wallets offer the best security possible. Hardware wallets store your digital assets offline, making it impossible for your funds to be stolen by online hackers. If you're in the market for a hardware wallet, look no further than the leader in the space –– the Ledger Nano X.
- Best For:ERC-20 tokensVIEW PROS & CONS:securely through Ledger Hardware Wallet's website
Is Bitcoin Cash Worth It?
Bitcoin Cash is still available on most of the same cryptocurrency exchanges as Bitcoin. It has been trading somewhat in lockstep with its big brother since the August 2017 hard fork. Bitcoin Cash is a speculative investment with many competitors looking to steal market share from it. It's performance in the past year has been characterized by periods of volatility and notable price fluctuations. More likely than not, you can find higher returns from other digital assets currently available to trade on several large cryptocurrency exchanges.
Frequently Asked Questions
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About Dan Schmidt
Dan Schmidt is a finance writer passionate about helping readers understand how assets and markets work. He has over six years of writing experience, focused on cryptocurrency. His work has been published by Vanguard, Capital One, PenFed Credit Union, MarketBeat, and Fora Financial. Dan lives in Bucks County, PA with his wife and enjoys summers at Citizens Bank Park cheering on the Phillies.