How to Buy Bitcoin Cash UK – Beginner’s Guide
Bitcoin Cash is the 11th biggest cryptocurrency by market cap and a popular alternative to Bitcoin.
In this guide, we’ll show you how to buy Bitcoin Cash in the UK in 2021.
What is Bitcoin Cash?
Bitcoin Cash is a cryptocurrency that has a lot in common with Bitcoin. In fact, Bitcoin Cash was created when a group of developers initiated a ‘hard fork’ from the Bitcoin blockchain in 2017. This means that Bitcoin Cash copied the existing Bitcoin blockchain to create an independent blockchain – in effect, a new cryptocurrency.
The main reason that Bitcoin Cash split from Bitcoin is that developers wanted a way to make transactions faster. One of the biggest hurdles to the adoption of Bitcoin has been slow transaction processing. As a result, it can be time-consuming or expensive to buy and sell Bitcoin or to buy real-world items using Bitcoin.
Bitcoin Cash made some changes to the Bitcoin blockchain that enable it to process transactions more quickly. Bitcoin can take up to 60 minutes to process a transaction, while Bitcoin Cash takes around 10 minutes. For reference, Litecoin takes around 2.5 minutes and Ethereum takes around 15 seconds.
Why Buy Bitcoin Cash in the UK?
Bitcoin Cash is currently the 11th-largest cryptocurrency in the world by market cap, with over $17 billion worth of coin in circulation. While that pales in comparison to Bitcoin’s $1 trillion market cap, it still indicates that traders and investors are very excited about Bitcoin Cash.
The number one reason to consider buying Bitcoin Cash is that demand for this coin is increasing. Over the past year, the price of Bitcoin Cash has soared from around $200 per coin to over $900 per coin. On top of that, a number of major cryptocurrency investors including Roger Ver – known in the crypto community as ‘Bitcoin Jesus’ – have rallied behind Bitcoin Cash.
A lot of the excitement over Bitcoin Cash is that it shares so much in common with Bitcoin, but is easier to use. Faster and cheaper transaction processing means that Bitcoin Cash can be more easily used for day-to-day purchases and global money transfers than Bitcoin itself. So, Bitcoin Cash is a more viable candidate to replace traditional fiat currency than Bitcoin.
Of course, there’s a long way for Bitcoin Cash to go. But the fact that this cryptocurrency shares Bitcoin’s name is a plus, and cryptocurrency watchers are clearly enthusiastic that the coin could become mainstream. If that happens, expect the price of Bitcoin Cash to shoot upwards.
How Much Does It Cost to Buy Bitcoin Cash?
You can buy Bitcoin Cash in the UK through a cryptocurrency exchange. Crypto exchanges such as Coinbase or Binance may charge high spreads as well as commissions. It’s important to look closely at the fee structure of the platform you want to use to buy BCH.
How to Buy Bitcoin Cash with PayPal
PayPal offers Bitcoin trading, but it does not offer Bitcoin Cash trading at this time. However, you can still buy Bitcoin Cash with PayPal by using a crypto broker that accepts PayPal for payments.
How to Buy Bitcoin Cash with Bitcoin
You can also use Bitcoin to buy Bitcoin Cash at most cryptocurrency exchanges. Simply fund your trading account using Bitcoin instead of a bank account or debit card. You will need to link your Bitcoin wallet to your exchange account in order to fund your BCH trade.
Buying Bitcoin Cash Safely
The best way to buy Bitcoin Cash safely is to use a regulated cryptocurrency exchange. It’s also important to think carefully about the crypto wallet you’re using to store your Bitcoin Cash. Many exchanges offer their own wallets, which can have varying levels of security. Ideally, you should use a crypto wallet for which only you have the encryption key and that has well-documented security measures in place.
Risks of Buying Bitcoin Cash in the UK
As for when you buy cryptocurrency, there are some risks to buying Bitcoin Cash in the UK.
The number one risk is that you could lose money on your investment. If Bitcoin Cash fades in popularity, the coin’s price could drop and you may sell it for less than you paid for it.
Another risk is that Bitcoin Cash itself becomes susceptible to a hack. This seems unlikely to happen since Bitcoin Cash uses the same underlying blockchain security as Bitcoin, which has proven very safe. However, it is a risk whenever investing in a decentralized currency like BCH.
Finally, there is always a risk that your cryptocurrency exchange could be hacked or go out of business. If you have your own crypto wallet, this is not a huge problem since you control your own coins. In addition, if you use an FCA-regulated broker, any cash in your account will be protected by the Financial Services Compensation Scheme for up to £85,000.
Selling Bitcoin Cash
If you want to sell Bitcoin Cash, either to realize a profit or invest in another cryptocurrency, you can do so through a cryptocurrency exchange. Any exchange where you can buy BCH also allows you to sell BCH. Just log into your exchange account, link your crypto wallet, and enter an order to sell Bitcoin Cash.
Since Bitcoin Cash is such a popular cryptocurrency, you should have no liquidity issues when selling your coins.
Where to Buy Bitcoin Cash UK
The easiest way to buy Bitcoin Cash in the UK is to use a cryptocurrency exchange. To help you find the best stock broker for you, we’ll review 2 of our top picks.
1. Coinbase – Best Bitcoin Cash Trading Platfroms for Beginners
In the digital asset industry, Coinbase has an excellent reputation as a cryptocurrency broker and exchange founded in 2012. It supports the exchange of Bitcoin, Ethereum, Litecoin, Dash, Ethereum Classic, Bitcoin Cash, and many other ERC-20-based digital currencies.
For inexperienced investors interested in buying cryptocurrencies for the first time, Coinbase is ideal. It is as simple as opening an account, uploading some ID, depositing funds with a debit card, and you can purchase your chosen digital asset immediately.
It is the largest cryptocurrency exchange by client count – with over 35 million users. Coinbase recently went public on the Nasdaq, hosting its IPO. At the time of writing, just under $50 billion is the market capitalization of Coinbase.Pros
- A great reputation since its launch in 2012
- Digital currencies are available in a good selection
- Cryptocurrencies are easy to buy and sell
- Bank transfers and debit cards are supported
- The top-rated mobile app
- Provides a wallet for crypto assets
- Buying crypto with a debit card will cost you 3.99%
- Trading commissions are 1.49% as a standard
- Trading tools are limited
- There are no copy-trading or social trading features
Your Money is at Risk.
2. Binance – Best Bitcoin Cash Trading Platform for Advanced Traders
For advanced cryptocurrency traders, Binance is one of the best exchanges around. To start, this exchange offers an incredibly sophisticated trading platform. It includes dozens of technical indicators, complex order types, and full access to the order book and order history for all cryptocurrencies.
While it’s built for experienced traders, Binance also has a lot to offer beginners. The platform has an extensive library of tutorials and training videos to help you ease into cryptocurrency trading. There’s also a trader forum where you can ask questions and get advice from professional traders.
Binance currently offers trading on more than 50 digital coins, including Bitcoin Cash. It also has its own stablecoin, BNB, and you can get a discount on your trading fees if you convert cash in your account to this currency.
Trading costs at Binance start at 0.10% per trade, and you can reduce your fees by 40% simply by holding BNB. However, note that if you use Binance’s instant funding options rather than deposit funds ahead of time, the platform can be much more expensive. Binance accepts credit cards, debit cards, and bank transfers for payment.
Binance is regulated by the UK FCA. However, it’s worth noting that this exchange has a history of deceiving regulators in the US. So, be cautious when using this exchange. You will need to connect your own crypto wallet, as Binance does not provide one.Pros
- Very advanced trading platform
- Trading tutorials for beginners
- Very low spreads for BCH trading
- Accepts credit and debit cards
- Regulated by the UK FCA
- Mixed regulatory history
Your capital is at risk.
Our guide has reviewed Bitcoin Cash, and the available exchanges that allow investors to purchase this cryptocurrency in the UK. Users can start investing in this cryptocurrency by accessing the Coinbase and Binance exchange.
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