How To Buy Bitcoin Cash (BCH)?
A common question you often see on social media from crypto beginners is “Where can I buy Bitcoin Cash?” Well, you’ll be happy to hear it is actually quite a simple and straightforward process. Thanks to its massive popularity, you can now buy Bitcoin Cash on most cryptocurrency exchanges, including Coinbase and Binance in 3 simple steps.
Step 1: Create an account on an exchange that supports Bitcoin Cash (BCH)
First, you will need to open an account on a cryptocurrency exchange that supports Bitcoin Cash (BCH).
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In order to sign up, you will need to enter some basic information, such as your email address, password, full name and, in some cases, you might also be asked for a phone number or address.
Note: On specific exchanges, you might need to complete a Know Your Customer (KYC) procedure in order to be able to purchase cryptocurrency. This is most commonly the case with licensed and regulated exchanges.
Step 2: Deposit funds into your account
Many cryptocurrency exchanges will allow you to purchase Bitcoin Cash (BCH) with fiat currencies, such as EUR, USD, AUD and others. Furthermore, they will also provide you with multiple deposit methods through which you can fund your fiat account, such as credit and debit cards, ewallets or direct bank transfers.
Note: Some payment methods will have higher fees than others, such as credit card payments. Before funding your fiat account on your chosen exchange, make sure to do your due diligence to find out the fees involved with each payment method to avoid unnecessary costs.
Step 3: Buy Bitcoin Cash (BCH)
This process is similar across almost every cryptocurrency exchange. All you have to do is find a navigation bar or a search bar, and search for Bitcoin Cash (BCH) or Bitcoin Cash (BCH) trading pairs. Look for the section that will allow you to buy Bitcoin Cash (BCH), and enter the amount of the cryptocurrency that you want to spend for Bitcoin Cash (BCH) or the amount of fiat currency that you want to spend towards buying Bitcoin Cash (BCH). The exchange will then calculate the equivalent amount of Bitcoin Cash (BCH) based on the current market rate.
Note: Make sure to always double-check your transaction details, such as the amount of Bitcoin Cash (BCH) you will be buying as well as the total cost of the purchase before you end up confirming the transaction. Furthermore, many cryptocurrency exchanges will offer you their own proprietary software wallet where you will be storing your cryptocurrencies; however, you can create your own individual software wallet, or purchase a hardware wallet for the highest level of protection.
For more in-depth instructions, our ‘Absolute Beginner’s Guide To Cryptocurrency Investing‘ will take you through the process step-by step. In addition to providing instructions for sending and receiving your cryptocurrency.
And if you’re completely new to crypto our beginner, intermediate and advanced level articles will get you up to speed with everything you need to know about the cryptocurrency space starting out.
What Is Bitcoin Cash (BCH)?
When politics happen to blockchains, hard forks can instigate new projects. Bitcoin Cash (BCH) was created by a group of developers, investors, entrepreneurs, and miners who were unsatisfied with Bitcoin’s development plans. Created in August 2017, Bitcoin Cash is a peer-to-peer electronic cash system that focuses on increased scalability and low transaction fees. The project is also referred to as Bitcoin ABC (Adjustable Blocksize Cap).
In 2017, Bitcoin was suffering from long transaction confirmation times and growing transaction fees, detracting from its initial premise of being near-instant payments with very low fees. Before the creation of Bitcoin Cash, there was a strong debate in the Bitcoin community about the implications of increasing the block size limit.
Since Bitcoin is decentralized, proposed changes to the protocol require widespread agreement. Therefore, all network nodes need to reach consensus when making changes and updates to the Bitcoin software.
The SegWit soft fork was planned before the BCH hard fork, but the Bitcoin Cash proponents believed that SegWit was an inferior alternative to increasing the block size limit. The Bitcoin Cash fork from Bitcoin was supported by some notable members of the blockchain industry, including Jihan Wu (co-founder of Bitmain) and Roger Ver (CEO of Bitcoin.com).
How does BCH work?
Unlike Bitcoin, Bitcoin Cash has an increased block size limit, which allows for more transactions to be included in each block. The block size limit was initially raised from 1 MB to 8 MB and then raised again in 2018 to 32 MB.
Both Bitcoin and Bitcoin Cash adjust their mining difficulty through the so-called difficulty adjustment algorithm (DAA). However, Bitcoin adjusts the difficulty every 2016 blocks, while the mining difficulty of Bitcoin Cash is adjusted after each block.
In the past, Bitcoin Cash also implemented an emergency difficulty adjustment (EDA) algorithm to decrease the mining difficulty and incentivize miners to join the network. However, the algorithm was later removed due to instabilities. The EDA implementation is one of the reasons why the BCH blockchain is thousands of blocks ahead of Bitcoin.
BCH key features
- The BCH source code was based on the original Bitcoin protocol.
- The supply is capped at 21 million.
- As a fork of Bitcoin, BCH also uses the Proof of Work (PoW) consensus mechanism to issue new coins.
- Increased block size from 1 MB to 32 MB.
- The community argues that the BCH ethos aligns more closely with Satoshi’s original plans.
- The BCH mining difficulty is adjusted after each block through the difficulty adjustment algorithm (DAA).
- BCH did not implement SegWit.
- BCH implemented Schnorr Signatures in 2019.
- Smart contract development built-in as a later update.
Day to day payments
The Bitcoin Cash community defends that BCH is designed to be used as money. You can use it to quickly send and receive money to and from anyone with a BCH wallet, both individuals and businesses. With fast transaction times and low fees, BCH can be more suitable for daily use than Bitcoin, especially when making small payments.
Official website: https://bch.info/en/
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