By: Cooper HaywoodNoted Bitcoin Cash advocate Marc De Mesel summarized the coin's value proposition nicely when he said something along the lines of (we're paraphrasing); "this may be the last opportunity for everyone to own an entire Bitcoin. If you missed out on Bitcoin in 2013 or 2014, this is your second chance."
But if there's already Bitcoin, why do we need Bitcoin cash? For those familiar with the technology you might wish to skip to the next section. Otherwise, here is a brief Bitcoin cash overview.
What Is Bitcoin Cash (BCH)?
The problem with Bitcoin is that it has small blocks.
A small block cannot hold very many transactions, much the same way a two seat convertible cannot hold many people. The result is that Bitcoin is slow and transactions can be expensive.
Enter Bitcoin cash. BCH has a large block size, it's like a minivan to Bitcoin's convertible. Those large blocks allow more transactions and they reduce the fees, making BCH more suitable for everyday purchases.
Naturally there are downsides to the larger blocks on the BCH blockchain, like a decrease in decentralization. That has caused a split in the Bitcoin community. Both Bitcoin and Bitcoin cash advocates make good arguments but since you're reading this article we'll assume you believe Bitcoin Cash has the best solution.
Given that belief, you're probably wondering how to invest in Bitcoin Cash? The good news is that it's surprisingly easy. Let's find out how.
The Best Place to Buy Bitcoin Cash
How do I buy Bitcoin cash? By far the best place to do so is Coinbase. There are several reasons for this.
- Security - Unlike many of the other fly by night exchanges in the crypto ecosystem, Coinbase takes security seriously. They store a vast majority of their coins in cold storage and heavily encourage their users to implement Google Authenticator to keep their accounts secure.
- *Track record *- Coinbase has never been hacked or lost any significant amount of user funds. They have an excellent track record of keeping their users' Bitcoin safe.
- *It's easy to purchase Bitcoin cash *- With Coinbase buying Bitcoin cash is easy. You can use a wire transfer, bank transfer or debit card. It's also possible to turn Bitcoin to cash and deposit fiat back into your bank account.
Another advantage of buying Bitcoin cash on Coinbase is their integration with Coinbase Pro. It's free to transfer Bitcoin cash between Coinbase and Coinbase Pro. Once your Bitcoin is on Coinbase Pro it can be traded for a variety of different assets, like XRP, Ethereum or Stellar.
One of the downsides of acquiring Bitcoin cash on Coinbase is that they no longer support credit card purchases, only debit card. However, there are other options. If you'd like to know where to buy BCH with a credit card, please see the next section.
How to Get Bitcoin Cash with a Credit Card
In the past it was possible to use a credit card as a payment method for Bitcoin cash on Coinbase, however, for American customers at least that's no longer an option.
Many credit card companies felt that purchasing Bitcoin with a credit card fell into the same category as gambling, or taking a cash advance, and they pushed crypto exchanges to disallow the practice. Such a stance toward cryptocurrency is still common today, as evidenced by the Apple credit card's policy on Bitcoin.
Nonetheless it's still possible to use a credit card as payment for Bitcoin cash BCH, For crypto enthusiasts living outside of the USA we recommend registering on Binance. They are the most popular exchange worldwide (by trading volume) and millions of people trust them for all of their cryptocurrency needs.
How to Buy Bitcoin Cash on Binance
- *Create an account *- you'll need a valid email address.
- Complete the KYC verification - this is not needed if all you plan to do is trade coins and keep them in your Binance wallet. However, if you want to buy BCH with a card as payment, you must submit personal information like a proof of your address and other details to verify your identity.
- Buy BCH - Sign in to your Binance account and look towards the top left hand side for the menu item called "Fiat." Scroll over this and underneath click on "Buy Bitcoin." The process will begin, it's that simple!
After you've bought the BCH you have two choices. You can keep it on the exchange in a Binance wallet or you can withdraw the coins to your own wallet. We recommend that you withdraw the coins to your own wallet that you control.
Exchanges are frequently hacked, Binance suffered a $40 million loss in 2019, and it's always better to be safe than sorry. Once cryptocurrency is sent it's impossible to reverse the transaction.
Binance also offers a mobile app which offers much of the same functionality as their website.
How to Buy Bitcoin Cash for American Customers
Unfortunately, Americans cannot use Binance to purchase Bitcoin. Some clever Americans like to use a VPN to access the website and this can work for trading, however, since KYC is mandatory for all card purchases a VPN does not solve Binance's worldwide ban on Americans.
There is an American division of Binance, however, they only support debit card purchases as a payment method. So with all of these restrictions, how do you buy Bitcoin cash with a card in America? There are several methods but one of the easiest is to use Atomic wallet.
Atomic wallet is a versatile crypto wallet (available for desktop or as an app) that supports multiple currencies including BTC, BCH, ETH and many others. In addition to serving as a custodial wallet, they also allow their users to buy Bitcoin cash with a credit card. This is done via an integration with Simplex and the resulting fees are as low as 2%.
To get started simply download Atomic, create a new wallet and then click "Buy Crypto" on the left hand side. There is mandatory KYC for all purchases, however, that's standard for any Bitcoin cash purchase done with a card. If you'd like to avoid KYC altogether there is one final purchase option for Bitcoin cash that's worth considering.
How to Purchase Bitcoin Cash Locally
In the past Local Bitcoin was the only way to purchase Bitcoin in person, or to cash Bitcoin out without using an exchange. Whether through a bank transfer or cash in hand, Local Bitcoin made it possible to acquire BCH from a local seller for relatively low fees.
The most obvious advantage is anonymity. With Local Bitcoin the BCH passes between two people, not a centralized exchange that has your identity information. Also, Local Bitcoin is great for those living in countries where few exchanges operate but who nonetheless want to buy Bitcoin cash.
Given the success of Local Bitcoin, other websites and exchanges which offer the same type of service have begun to pop up.
LocalBitcoinCash, for example, is another website with low fees that lets its users buy Bitcoins cash in person. Websites like these are also helpful because it's possible to cash Bitcoin in when you want to sell it. No exchanges, just a local transaction.
One message of warning, however. When looking at the listings on the local BCH websites and asking where can I buy Bitcoin cash, keep in mind that some of the sellers may be scammers. Only buy BCH or cash Bitcoins out with trusted sellers and buyers who have good feedback from previous transactions.
Conclusion
One of the great things about the cryptocurrency ecosystem is that there are so many different coins to choose from. From Ripple to Monero to Bitcoin cash, the perspective investor can almost certainly find a blockchain project that matches their ethos.
While Bitcoin cash might not be quite as popular as its big brother, BCH has a lot going for it. Roger Ver is an outspoken and obviously passionate leader who has a personal interest in making BCH as successful as possible.
Further, given the relative stagnation of the lightning network, big blocks could prove to be the best scaling solution which would mean that Bitcoin cash has won the scaling war.
How it plays out in the end is still a mystery, however, if you're interested in investing in Bitcoin cash and want to know how to buy BCH, we hope this guide has been useful. Bitcoin cash, like many other cryptocurrencies, has a chance to appreciate massively in the future. Now is a great time to invest in BCH as it's difficult to make money buying near the top.
Just remember, whenever you buy a cryptocurrency, whether that's Bitcoin cash or some other currency, it's important to store it safely. Buy a Ledger or a Trezor hardware wallet and store your coins there so that they cannot be hacked. If you have BCH you definitely don't want to lose it.
