Bitcoin is the world's most renowned cryptocurrency, yet it has faced significant challenges. In May 2017, debates around Bitcoin's scalability reached a peak. Users experienced slow transaction speeds and soaring fees, with costs averaging around $30 per transaction.
This led to the creation of Bitcoin Cash (BCH) later that year. Born from a hard fork of Bitcoin, BCH aimed to enhance efficiency and address scalability by increasing block size. The developers succeeded in launching a cryptocurrency capable of handling more transactions at lower costs.
Shortly after its release, Bitcoin Cash gained rapid market traction, climbing to become the fourth-largest cryptocurrency by market capitalization. If you're interested in acquiring BCH, this guide will walk you through the process step by step.
Preparing to Buy Bitcoin Cash
Before purchasing Bitcoin Cash, you’ll need a secure wallet to store your tokens. Wallets come in various forms, each with unique advantages.
Types of Wallets
- Hardware Wallets: Physical devices like Ledger and TREZOR offer high security by keeping your private keys offline.
- Software Wallets: Applications such as Exodus, Edge, and Electron Cash provide convenience for everyday use.
Exodus stands out with its built-in exchange feature via ShapeShift, while Edge is a mobile-friendly option supporting iOS and Android. Electron Cash, a derivative of Electrum, is tailored specifically for Bitcoin Cash.
You can find these wallets and others on the official Bitcoin Cash website.
How to Buy Bitcoin Cash on Exchanges
Once you have a wallet, the next step is to choose a cryptocurrency exchange that supports BCH trading. Below are some popular platforms.
Using Coinmama
Coinmama is a longstanding exchange that allows users to buy Bitcoin Cash using credit cards, debit cards, or SEPA transfers. It serves customers across most countries. To get started, create an account, complete identity verification (KYC), and deposit funds.
Using CEX.io
CEX.IO has built a strong reputation since 2013. The platform offers both brokerage services for beginners and an advanced trading interface for experienced users. It accepts credit cards, bank transfers, and SEPA payments.
Using Coinbase
Coinbase is a well-known platform offering a user-friendly interface, a built-in wallet, and the Coinbase Pro trading service. It also provides a Bitcoin Cash debit card for spending your tokens.
Using Bitstamp
Bitstamp supports BCH purchases in USD or EUR. While direct purchases are available, note that buying with cash may come at a premium.
Using eToro
eToro enables BCH purchases through multiple payment methods. However, it does not allow token withdrawals or external transfers—users can only buy and sell within the platform. As a result, you won’t need an external wallet if using eToro.
👉 Compare exchange features and fees
How to Sell Bitcoin Cash
Selling Bitcoin Cash involves a similar process to buying, though options may be more limited due to its relatively recent emergence.
Selling on Major Exchanges
Only a few major exchanges support selling BCH for fiat currencies like USD, EUR, or GBP. Platforms such as Coinbase, Kraken, and CEX.io allow withdrawals via bank wire, SEPA, or SWIFT transfers. Some, like CEX.io, also support direct card withdrawals.
Note that selling typically requires linking a bank account, completing identity verification, and paying transaction fees. Withdrawal limits may apply but can be raised for fully verified users.
Instant Exchange Services
For those avoiding traditional exchanges, instant swap platforms like Changelly and ShapeShift allow quick conversions between BCH and other cryptocurrencies.
Trading for Other Cryptocurrencies
You can also trade BCH for digital assets like Bitcoin (BTC), Ethereum (ETH), or Tether (USDT) on global exchanges such as Poloniex and Bittrex.
Peer-to-Peer Sales
Platforms like LocalBitcoinCash enable direct sales between individuals. Users can create or respond to offers and even arrange offline transactions. However, always exercise caution—peer-to-peer platforms may involve higher risks.
Frequently Asked Questions
What is Bitcoin Cash?
Bitcoin Cash is a cryptocurrency created in 2017 from a fork of Bitcoin. It was designed to offer faster transactions and lower fees by increasing block size.
Is Bitcoin Cash a good investment?
Like all cryptocurrencies, BCH carries investment risks. Its value can be volatile, and it's important to research thoroughly and consider your financial goals before investing.
Can I use Bitcoin Cash for daily transactions?
Yes, many merchants and service providers accept BCH. Its low transaction costs make it suitable for everyday purchases.
How do I store Bitcoin Cash securely?
Hardware wallets are considered the most secure option. Software wallets are convenient but should be used with strong passwords and two-factor authentication.
What’s the difference between Bitcoin and Bitcoin Cash?
Bitcoin Cash offers larger block sizes, resulting in faster and cheaper transactions. Bitcoin prioritizes security and decentralization, which can sometimes lead to slower processing times.
Are cryptocurrency exchanges safe?
Reputable exchanges implement security measures like encryption and two-factor authentication. However, users should also take personal precautions, such as using strong passwords and enabling withdrawal limits.
Remember, cryptocurrency investments may not be suitable for everyone. Regulations vary by country, and it’s essential to understand the risks involved. Always use trusted platforms and keep your assets secure.