The crypto market has shown signs of strength recently, with Bitcoin reaching as high as $37,000 for the first time in well over a year.
As usual, bitcoin isn’t the only asset experiencing the rally, altcoins have followed suit, one of which is Bitcoin Cash (BCH). If you’re thinking of buying a top 20 crypto asset, BCH is definitely one you should consider.
Once among the top ten, the asset depreciated significantly and is now the 20th largest by market cap. What this means is that it has a lot of room to grow back to its former place, and this means profits for those who acquire the asset now before the big run begins.
Bitcoin Cash is also a popular alternative to Bitcoin for payments and buying online. It was forked from Bitcoin because its creators believed Bitcoin had fallen short of its purpose of existence, which was to serve as peer-to-peer electronic cash.
With a bigger block size, higher throughput, and lower transaction fees, many consider it to be a convenient Bitcoin alternative for all things crypto. If you’re thinking of buying BCH, here are the top ways you can do so.
Before Buying BCH
BCH like any other crypto asset requires a wallet to hold it in. Therefore, before you ever proceed to buy the asset, you need to have a crypto wallet that supports BCH ready. There are many types of wallets, but they are broadly classified as cold and hot.
Hot wallets are software wallets you can carry on your phones or laptops, while cold wallets are those that are in the form of hardware or paper, and are completely cut off from the internet. Hot wallets on the other hand are always connected to the internet as long as the device is connected.
It is cheaper to get a software or hot wallet because they are mostly free to get. However, they don’t offer the level of security that cold wallets offer. Cold wallets have to be paid for since they are physical hardware, but the long-term benefits far outweigh any cost of getting them.
Now if you have decided on which wallet to use, get it ready to hold your BCH once you finish buying it. You’ll send the BCH to the wallet, so if you’re ready, these are the options for buying the asset.
Centralized Exchange
Almost anyone who has been in crypto entered it through a centralized crypto exchange. These are the exchanges you know, like Binance, Coinbase, etc. you can create an account with an exchange of your choice and start your journey to buying BCH.
This will be much more convenient for you if you use a major fiat currency such as USD, GBP, or EUR, since you can directly deposit such on the exchange and then proceed.
The downside of using a centralized exchange however is that you’ll need to complete KYC before you can buy. This is true of most centralized exchanges, so chances are you’re not going to escape it if you use this method..
To be honest though, this is the best method to use for an absolute beginner because it is easier and safer than the other methods on this list.
Peer-to-peer (P2P)
P2P trading allows you to buy crypto assets using your local currency. It also allows you to buy BCH without needing a centralized exchange. If you’re comfortable with using this method, you can go for it using decentralized trading platforms such as Paxful.
You can even use this method on centralized exchanges that have dedicated platforms for P2P trading. The advantage of using such a platform is that the trading happens without any transaction fees.
However, the trade is still carried out using your local currency, which is a convenient way to start out. P2P trade can also take place physically with people or friends right in your neighborhood.
