How to Buy Bitcoin Cash: Your Ultimate Guide in 2024
You’ve heard the buzz about Bitcoin Cash (BCH), and you’re ready to jump in. But where do you start? No stress, consider me your safety net. As someone who’s been there and done that, I want to share my insider tips on how to buy Bitcoin Cash like a pro.
First things first, let’s talk about why BCH is worth your attention. With transaction speeds that leave BTC in the dust paired with minimal fees, there’s no mystery behind the growing interest in this cryptocurrency. Plus, with a growing number of merchants accepting BCH, it’s becoming more practical for everyday use.
Read More: What is the Difference Between Bitcoin and Bitcoin Cash?
As always, this is informational only and none of this is financial advice. So, are you ready to join the Bitcoin Cash revolution? Let’s dive in and discover how you can get your hands on some BCH today.
Table Of Contents:
Create an Account
Verify Your Identity
Bank Transfer
Other Payment Options
Confirm Order Details
Transfer to Your Wallet
Zapit P2P Exchange
Crypto ATM
Bitgree
Sideshift
Hardware Wallets
Software Wallets
Best Practices for Securing Your Bitcoin Cash
Reporting Capital Gains/Losses
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Choose a Cryptocurrency Platform
When you’re ready to buy Bitcoin Cash, the first step is finding the right cryptocurrency platform. And let me tell you, there are a ton of options out there. But don’t worry, I’ve got your back.
The key is to compare fees and features across different exchanges. You want to find a platform with competitive trading fees, a user-friendly interface, and robust security measures.
Look for exchanges that support the payment methods you prefer, whether that’s a bank transfer, credit card, or debit card. Some platforms even offer additional features like staking or lending, which can be a nice bonus. Popular and reputable cryptocurrency exchanges include Kraken, Coinbase, and CoinEX.
Create an Account
Once you’ve found the right platform, it’s time to create an account. This usually involves providing your email address, creating a strong password, and agreeing to the platform’s terms of service. Depending on the exchange, you may need to give additional info like your full name, date of birth, and phone number.
Verify Your Identity
Most reputable cryptocurrency exchanges require users to complete a Know Your Customer (KYC) process. Whether you agree with it or not, this is to comply with anti-money laundering regulations that financial businesses must obey. You’ll need to submit proof of identity, like a government-issued ID or passport, and proof of address, such as a utility bill or bank statement. The verification process can take a few days, so be patient.
Select a Payment Method
Now that your account is set up and verified, it’s time to add a payment method so you can start buying Bitcoin Cash. The options available will depend on the platform you chose, but here are some of the most common: Many cryptocurrency platforms allow you to buy Bitcoin Cash instantly using a credit or debit card. This is often the quickest way to get your hands on some BCH, but it usually comes with higher fees compared to other payment methods. When using a card, you’ll need to provide your card details and complete any necessary verification steps required by your card issuer.
Bank Transfer
Buying Bitcoin Cash via bank transfer is another common payment method offered by exchanges. This involves linking your bank account to the platform and initiating a transfer from your account to the exchange. Bank transfers typically have lower fees than credit/debit card purchases, but they can take several days to process, depending on your bank and the exchange.
Other Payment Options
Some cryptocurrency platforms support additional payment methods for buying Bitcoin Cash, like PayPal, Apple Pay, or Google Pay. These options can be more convenient for certain users, but they often come with higher fees. It’s important to review the available payment methods and associated costs on your chosen platform before making a purchase.
Enter Your Bitcoin Cash Order Details
You’ve chosen your payment method, and now it’s time to enter the details of your Bitcoin Cash order. Here’s what you need to do: First, decide how much Bitcoin Cash you want to buy. Most platforms allow you to specify the amount in either BCH or your local currency. Keep in mind any minimum or maximum purchase limits imposed by the exchange, and make sure you have sufficient funds available in your account.
Confirm Order Details
Before hitting that buy button, take a moment to carefully review your order details. Double-check the amount of Bitcoin Cash you’re buying, the price per coin, any applicable fees, and the total cost of the transaction. If everything looks good, go ahead and confirm the order.
Complete the Purchase and Receive Your Bitcoin Cash
You’ve confirmed your order details, and now it’s time to complete the purchase and receive your shiny new Bitcoin Cash. Here’s what happens next: After reviewing your order details, you’ll need to confirm the transaction by following the prompts provided by the exchange. This may involve entering your card details, authorizing the transaction through your bank’s online banking system, or scanning a QR code for mobile payments. Once the payment is confirmed, the exchange will start processing your order.
Transfer to Your Wallet
Once your payment has been successfully processed and verified, the exchange will release the purchased Bitcoin Cash to your designated wallet address. If you provided an external wallet address, you should see the BCH arrive in your wallet within a few seconds to a few hours, depending on exchange policies. If you’re using the exchange’s built-in wallet, the BCH will be credited to your account balance.
Key Takeaway:
When buying Bitcoin Cash, start by selecting a cryptocurrency platform based on factors like fees, features, and supported payment methods. After creating an account and verifying your identity through the KYC process, choose a payment method that suits your needs, considering factors like speed and fees. Enter the details of your Bitcoin Cash order, ensuring you’re within any purchase limits set by the exchange. Review and confirm your order details before completing the purchase. Once the transaction is confirmed, your purchased Bitcoin Cash will be transferred to your designated wallet address, either external or within the exchange.
Alternative Methods of Buying Bitcoin Cash
Let’s say you want to acquire some Bitcoin Cash, but you don’t want to go through the traditional method of purchasing from an exchange. Don’t worry; we’ve got you covered with some alternate routes to getting some of that sweet Bitcoin Cash.
Zapit P2P Exchange
The Zapit wallet is here to allow you to purchase Bitcoin Cash peer-to-peer. No need to go through a financial institution and give up your personal information. The Zapit P2P exchange makes it easy to connect with BCH sellers. Simply choose an offer or create your own, detailing the quantity and transaction amount. Once the seller sends the BCH into escrow, you’ll receive payment information. Once you complete the payment and the seller confirms, the Bitcoin Cash will be sent to your wallet.
Crypto ATM
Cryptocurrency ATM’s are a popular way to obtain Bitcoin Cash when you can’t be bothered with an exchange. While each ATM will have its distinct way of doing things, they all essentially function the same way. Many of the kiosks require some personal information, so be ready to provide a phone number and perhaps your ID. Have a Bitcoin Cash wallet ready as the ATM will need to scan the QR code of a BCH address. When prompted, provide your payment. This may be in the form of cash or card. Once the payment is verified, your Bitcoin Cash will be sent to your wallet.
Bitgree
Bitgree is a site that allows users to make or facilitate intermediated Bitcoin Cash purchases on Amazon and other online stores. Each user is either purchasing a product for BCH or using their own fiat currency to obtain BCH. For every purchase, two users cooperate. For example, User A wants to buy a product on Amazon using their Bitcoin Cash and User B can use their USD to make the purchase, send it to user A, and receive Bitcoin Cash in return.
To earn Bitcoin Cash on Bitgree, simply make a purchase proposal on another user’s “wish”. You can even choose the price of your proposal. If the other party approves, their BCH will be sent to escrow. After you purchase the product, it will ship directly to the other party and their BCH will be sent to your wallet. The end result is that you provide a simple service with your fiat currency and you get Bitcoin Cash in return, all without having to provide any personal information.
Sideshift
If you want to buy Bitcoin Cash with another cryptocurrency, and you don’t want to use an exchange with KYC, Sideshift is your answer. While you may have to use a VPN to access the site, exchanging other coins for BCH is a cinch.
You can choose from over 100 cryptocurrencies to exchange and then select either a fixed rate or variable rate. A fixed exchange rate will lock in your rate for 15 minutes and will require exact amounts while a variable rate can be updated until your funds are sent.
Next, input the desired amount to shift and your Bitcoin Cash address (from a wallet you control). Click “Shift” and the next screen will give you the payment information for the cryptocurrency you’ve chosen to exchange. Your funds will be sent and the shift will be complete once the required confirmations have occurred. Enjoy your new Bitcoin Cash, free of KYC requirements.
Key Takeaway:
If you’re looking to buy Bitcoin Cash through alternative methods beyond traditional exchanges, several options are available. You can utilize the Zapit P2P exchange, which allows for peer-to-peer transactions without involving financial institutions, or explore Crypto ATMs, where you can obtain Bitcoin Cash using cash or card payments. Additionally, platforms like Bitgree enable intermediated purchases on online stores like Amazon, facilitating transactions between users without disclosing personal information. For those seeking to exchange other cryptocurrencies for Bitcoin Cash without KYC requirements, Sideshift offers a seamless solution, allowing users to select from a variety of coins and complete transactions quickly and securely.
Securely Store Your Bitcoin Cash
Congratulations, you’re now the proud owner of some Bitcoin Cash. But your journey doesn’t end here. It’s crucial to store your BCH securely to protect it from theft or loss. Let’s explore some options:
Hardware Wallets
Hardware wallets are physical devices designed to provide the highest level of security for storing cryptocurrencies like Bitcoin Cash. These wallets keep your private keys offline, making them immune to online threats such as hacking attempts or malware. Popular hardware wallet options include Trezor, Satochip, and KeepKey. When purchasing a hardware wallet, it is important to always buy new. Never purchase a used unit. When using a hardware wallet, make sure to follow the manufacturer’s instructions for setting up and backing up your device.
Software Wallets
Software wallets are digital wallets that can be installed on your computer or mobile device. These wallets offer convenience and ease of use but are generally considered less secure than hardware wallets. Software wallets are generally for more modest amounts of cryptocurrency. Examples of software wallets that support Bitcoin Cash include Electron Cash, Paytaca, and Flowee Pay. When using a software wallet, be sure to enable two-factor authentication if available and create a strong password to enhance security.
Best Practices for Securing Your Bitcoin Cash
To ensure the safety of your Bitcoin Cash holdings, follow these best practices:
Enable two-factor authentication on your exchange accounts and wallets.
Use a strong, unique password for each account/wallet and consider using a password manager.
Avoid storing BCH on exchanges; instead, transfer your coins to a secure wallet that you control.
Back up your wallet’s private keys or seed phrase and store them in a safe place (not on digital media); practice restoring a wallet so you know you can do it if necessary.
Be cautious of phishing attempts and never share your private keys or seed phrase with anyone.
Key Takeaway:
After acquiring Bitcoin Cash, prioritize its secure storage to safeguard against theft or loss. Consider hardware wallets like Trezor or KeepKey for the highest level of security, keeping private keys offline. Software wallets offer convenience but are less secure; use them for smaller amounts. Implement two-factor authentication, strong passwords, and avoid storing BCH on exchanges. Back up your wallet’s private keys or seed phrase offline and be vigilant against phishing attempts.
Understand the Tax Implications
Before we wrap up, it’s important to touch on the tax implications of buying and selling Bitcoin Cash. I know, taxes aren’t the most exciting topic, but you don’t want to ignore this part. In most countries, buying and selling cryptocurrencies like Bitcoin Cash is subject to capital gains tax. This means that if you sell your BCH for a profit, you may owe taxes on the gains.
The specific tax rate and reporting requirements vary by jurisdiction, so it’s essential to research the regulations in your country. Always assume that exchanges that know your identity will report your buying and selling activity to your government’s tax agency. Keep accurate records of your Bitcoin Cash purchases, sales, and trades to ensure proper tax reporting.
Reporting Capital Gains/Losses
Cryptocurrency exchanges are required to report user transactions to relevant tax authorities in many countries. For example, in the United States, exchanges must issue Form 1099-K to users who have more than $20,000 in transactions and 200 or more transactions in a given year.
Consult with a tax professional who has experience dealing with digital assets to help you understand your obligations, minimize your tax liability, and ensure compliance with all relevant regulations. Failing to properly report your cryptocurrency transactions can result in penalties and legal consequences.
Conclusion
Congratulations, you’re now equipped with the knowledge and tools to buy Bitcoin Cash like a seasoned pro. Remember, the key is to choose a reputable platform, select a payment method that works for you, and keep your BCH secure in a wallet you control.
But don’t just take my word for it. Explore the options, do your own research, and find the approach that aligns with your goals and risk tolerance. Whether you’re looking to invest, trade, or use BCH for everyday transactions, the possibilities are endless.
So go ahead, take that first step and buy some Bitcoin Cash today. Who knows, it could be the start of an exciting new chapter in your crypto journey. Happy buying!
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