Invest in Bitcoin Cash in 2023
Many cryptocurrencies have suffered issues when it comes to scaling on a particular blockchain, which has resulted in several altcoins looking to fix those issues. One of the most popular is Bitcoin Cash (BCH).
The value of 1 BCH to USD declined quite significantly in 2021, which prompted the curiosity of many cryptocurrency enthusiasts. Is it worth buying, and if so, where can you purchase it? Keep reading, and we’ll reveal the answer.
Best Way To Invest in Bitcoin Cash in 2023
Like its older sibling Bitcoin, you can buy Bitcoin Cash in several places online. To help you make a better decision, we’ve listed the best brokers to purchase BCH from below.
What Is Bitcoin Cash - Quick Overview
Name and ticker Bitcoin Cash (BCH)
Date launched August 2017
Circulating supply | max supply: 18,965,725 | 21,000,000
Blockchain network Bitcoin blockchain
Use-cases Remittance, borderless transactions, NFTs, blockchain scalability
Famous backers Roger Ver
What Is Bitcoin Cash – Explained
When newbies in the cryptocurrency space first get involved, it’s easy to get confused between Bitcoin and Bitcoin Cash – and assume that they’re one and the same. However, this is not the case.
While Bitcoin remains the most popular cryptocurrency on the planet, Bitcoin Cash has emerged into one of the more desirable “altcoins”. It was created as a breakoff from Bitcoin, and in the space of just under five years, the currency has become the 28th-largest crypto in the world.
At the time of writing in late January 2022, Bitcoin Cash has a market cap of over $5.7 billion. In terms of overall dominance, it takes up 0.33% of the total cryptocurrency market.
For much of its existence, Bitcoin Cash’s value compared to the USD has declined from its early highs. However, many are hopeful that it will prove to be a worthy long-term investment.
Why Was Bitcoin Cash Created?
Bitcoin Cash was created as a breakaway from Bitcoin and developed using the Bitcoin blockchain. At the time its idea came around, BTC was struggling with several issues.
Although BTC was originally designed primarily for facilitating transactions between users, the currency became popular with investors. As that happened, its price increased – and the blockchain struggled with scalability.
After a hard fork, Bitcoin Cash came into the world in 2017 – just as BTC began really taking off.
Are There Any Famous Bitcoin Cash Backers?
When you research cryptocurrencies, you’ll notice that several of the main ones – and some smaller coins – have their share of famous backers. You don’t need to have Twitter to know all about Elon Musk’s support for Dogecoin, and YouTube star Logan Paul is embarking on a crypto project of his own. Other famous people who’ve spoken positively about cryptocurrencies include the rapper Snoop Dogg and boxing legend Mike Tyson.
While Bitcoin Cash doesn’t have as many famous backers as its older sibling, the currency has still been spoken about in good terms with numerous high-profile individuals. Arguably the most prominent BCH backer is Roger Ver, who is the CEO of bitcoin.com. In 2019, Ver went as far as saying that Bitcoin Cash could surpass BTC’s market cap one day.
What’s the Purpose of Bitcoin Cash?
Bitcoin Cash’s primary purpose is to solve the problems that Bitcoin users face when using the currency. The currency’s main aim is to ensure that transaction times remain consistently fast as the crypto scales in the future.
While many investors hold Bitcoin Cash, and it’s entirely possible to do so, BCH was designed for spending. You can use the currency at several places online, along with sending money to your friends and family – regardless of where they are in the world (as long as cryptos are legal where they’re based).
Does Bitcoin Cash Have a Large Social Media Following?
Many cryptocurrencies have loyal online followings, which is made easier by their presence on social media platforms. But in comparison to some of the other crypto projects, Bitcoin Cash hasn’t created profiles on many networks as of yet.
Bitcoin Cash has a subreddit where you can connect with fellow enthusiasts on a daily basis. As of 26th January 2022, this forum has 93,100 members.
If you want to do more with Bitcoin Cash, you’ll find plenty of content on GitHub too.
How To Buy Bitcoin Cash
In the early days of Bitcoin Cash, many cryptocurrency exchanges were reluctant to list the coin on their marketplaces. Things have changed since then, though, and you can buy BCH in several places online.
When you’re ready to purchase Bitcoin Cash, you’ll have two options: owning the token outright and buying derivatives. If you choose the first option, you’ll be able to use your coins not only for investing – but also to make purchases online and in real life.
On the flip side, derivatives mean that you do not own any tokens. Instead, you’ll use these to trade and attempt to profit based on the market rates.
The most obvious way you can buy Bitcoin Cash is from a cryptocurrency exchange. Many of the world’s most prominent platforms list the coin, and you can pick whether you want to buy them with fiat currencies (e.g. USD/EUR) or other cryptocurrencies.
To buy BCH on a cryptocurrency exchange, you’ll need to create an account. Doing so will require that you pass a know-your-customer (KYC) check, which involves submitting a copy of your photographic ID (i.e. your passport or driving license) – plus proof of where you live (e.g. a utility bill). These checks are necessary for legislative compliance and anti-money-laundering practices.
After signing up for the exchange, you can either deposit money into your account or buy directly from the “sell” page.
Another way to purchase Bitcoin Cash is through a brokerage. This is where you’ll buy derivatives instead; doing so is probably easier if you’re a beginner because you don’t need to deal with the technicalities of using a cryptocurrency wallet.
The process for buying BCH derivatives from an exchange is almost identical to purchasing tokens from an exchange. Some of the largest brokerages that sell Bitcoin Cash are eToro and Naga.
Another way to buy Bitcoin Cash is from an ATM. When you do this, you’ll pay with either cash or your debit/credit card. Once you’ve completed the transaction, your coins will be in an online wallet. Bitcoin Cash ATMs are available in several countries worldwide, including the US, Germany, and the UK.
How To Sell Bitcoin Cash
To sell Bitcoin Cash, you can use the same methods that you bought them from. On a cryptocurrency exchange, all you need to do is find the “sell” option and choose how much you’d like to part ways with. After that, you can use the fiat money to buy another cryptocurrency or transfer it elsewhere.
In addition to regular exchanges, you can sell your BCH on P2P marketplaces instead. Here, you’ll deal directly with the end user instead of going through an intermediary.
If you purchased Bitcoin Cash derivatives from a brokerage like eToro, you could use the same service to sell these at a later date. Again, all you need to do is find the “sell” option and select how much you’d like to exchange.
You can also sell your Bitcoin Cash at a dedicated ATM. It’s worth noting that some will only allow buying or selling, so you’ll need to do additional research to figure out where these are in your local area.
Alternative Ways To Invest in Bitcoin Cash
When you invest in cryptocurrencies, most people will go straight to exchanges and brokers. However, these aren’t the only places where you can attempt to profit from this cryptocurrency.
Below, you’ll find three additional options for investing in Bitcoin Cash.
Fiat Currency Wallets: Alternative payment methods are becoming more open to cryptocurrencies, and PayPal has been one of the big movers in this respect. You can buy and sell Bitcoin Cash using your wallet, though it’s worth remembering that you can’t transfer these somewhere else.
Cryptocurrency Wallets and Apps: Plenty of cryptocurrency-specific wallets let you store Bitcoin Cash, and some will even enable you to buy and sell your tokens directly within the app. If you use other cryptocurrencies, this is an excellent way to waive some of the higher fees involved with fiat currency to crypto investments.
Grayscale: Grayscale has trust funds for several cryptocurrencies, including Bitcoin Cash. Over $90 million worth of assets are currently under management; you’ll need to pay an annual 2.5% fee if you pick this option.
Is It Safe To Invest in Bitcoin Cash Right Now?
Before we continue, you must remember that the cryptocurrency market is almost always volatile, and buying any coin carries risks. Bitcoin Cash is one of the most unpredictable currencies, and its price fluctuates regularly. You can lose a lot of money if you aren’t careful; never invest more than you can afford to lose.
If we’re talking about safety from a profits perspective, BCH has potential – but it’s by no means guaranteed that you’ll make a profit. When we talk about security, investing in the currency is only as safe as the place you buy from.
When purchasing BCH, it’s crucial that you use a reputable exchange – such as the ones we’ve listed in this guide. However, you must remember that even if you do, these aren’t 100% foolproof.
Luckily, you can take additional precautions to maximize your safety levels online and ensure that you don’t run into significant threats.
Activate two-factor authentication (2FA) on your accounts and wallets. Almost all of the major platforms will have this capability.
Never ask for help away from an official website or forum.
Never share your account information with anyone. If you believe that someone has your details, change them as soon as possible.
Check with the platform you purchase from to see if they have protection guarantees.
Always double-check the recipient’s details when sending Bitcoin Cash to your wallet; cryptocurrency transactions are irreversible.