How to Buy Bitcoin Cash: Complete 2023 Beginner’s Guide
Bitcoin Cash (BCH) has emerged as one of the most accessible cryptocurrencies for everyday transactions, offering faster processing times and lower fees than its predecessor. Whether you’re looking to invest or use it for payments, this step-by-step guide will show you exactly how to buy Bitcoin Cash securely. We’ll cover exchanges, payment methods, storage solutions, and essential security tips.
Step 1: Choose a Bitcoin Cash Exchange
Selecting a reputable exchange is crucial for your first Bitcoin Cash purchase. Consider these top platforms:
- Coinbase – Best for beginners with intuitive interface and instant card purchases
- Binance – Largest global exchange with advanced trading features
- Kraken – Top security with robust regulatory compliance
- eToro – Ideal for copy-trading and social investing
- Bitstamp – Trusted European exchange with low bank transfer fees
Key factors when choosing: Supported payment methods in your country, fee structure, security protocols, and user reviews.
Step 2: Create and Verify Your Account
Account setup involves three critical phases:
- Registration: Provide email and create strong password with 2FA authentication
- Identity Verification (KYC): Submit government ID and proof of address documents
- Security Setup: Enable Google Authenticator and whitelist withdrawal addresses
Verification typically takes 10 minutes to 2 business days. Exchanges like Coinbase often provide instant verification for limited purchases.
Step 3: Fund Your Account
Deposit options vary by exchange and region:
- Bank Transfer (ACH/SEPA): Lowest fees (0-1.5%) but 1-5 day processing
- Credit/Debit Cards: Instant access with 3-5% fees
- Cryptocurrency Deposit</strong: Transfer BTC or ETH to exchange for BCH
- PayPal/Apple Pay: Available on select platforms like eToro
Tip: Start with small test deposits before larger transactions to confirm processing times.
Step 4: Execute Your Bitcoin Cash Purchase
Two primary buying methods:
- Instant Buy:
- Simplest option for beginners
- Fixed price with immediate execution
- Higher fees (0.5-4%)
- Exchange Trading:
- Set limit/market orders on trading pairs (BCH/USD, BCH/BTC)
- Lower fees (0.1-0.5%)
- Requires basic trading knowledge
Always check current BCH price and network fees before confirming transactions.
Step 5: Secure Your Bitcoin Cash
Never leave large amounts on exchanges. Transfer to these wallets:
- Hardware Wallets (Most Secure): Ledger Nano X, Trezor Model T
- Mobile Wallets: Bitcoin.com Wallet, Exodus, Trust Wallet
- Desktop Wallets: Electron Cash, Atomic Wallet
Security essentials:
- Write down recovery phrases on physical paper
- Enable biometric authentication
- Verify receiving addresses before transfers
Frequently Asked Questions
Q: What’s the minimum amount of Bitcoin Cash I can buy?
A: Most exchanges allow purchases as low as $10-$20 worth of BCH. Some platforms like Binance support micro-transactions of just $1.
Q: Can I buy Bitcoin Cash anonymously?
A: Legitimate exchanges require ID verification. For greater privacy, use decentralized exchanges like Bisq or Hodl Hodl, but expect higher fees and complexity.
Q: How long does a Bitcoin Cash transaction take?
A: BCH transactions typically confirm in 10-20 minutes with average fees under $0.01. This is significantly faster than Bitcoin’s 10-60 minute confirmation times.
Q: What’s the difference between Bitcoin and Bitcoin Cash?
A: Bitcoin Cash increased block size to 32MB (vs Bitcoin’s 1MB) enabling faster transactions and lower fees. Both share the same transaction history until the 2017 fork.
Q: Can I earn interest on my Bitcoin Cash holdings?
A: Yes! Platforms like Celsius, BlockFi, and Crypto.com offer up to 6% APY on BCH deposits. Always research platform security before lending crypto.
Q: Is Bitcoin Cash a good investment?
A> While we don’t give financial advice, BCH offers practical utility for payments and has maintained top-30 market position since inception. Always research and never invest more than you can afford to lose.
Final Tips for Smart Buying
- Dollar-cost average purchases to mitigate volatility
- Monitor transaction fees during network congestion
- Keep software wallets updated
- Bookmark blockchain explorers like Blockchair for transaction verification
With this guide, you’re equipped to confidently navigate your first Bitcoin Cash purchase. Remember that cryptocurrency investments carry risk—start small, prioritize security, and welcome to the world of decentralized finance!
