Buy Bitcoin Cash | How To Buy Bitcoin Cash in the UK For Beginners

How to Buy Bitcoin Cash in the UK – Detailed & Explained in Full

We have now reviewed the very best brokers that allow you to buy Bitcoin Cash in the UK. In the next section of our guide, we are going to walk you through the investment process step-by-step. This will show you how to open an account with FCA-regulated broker eToro, deposit funds, and finally – complete your BCH purchase.

Step 1: Open a Crypto Broker Account

To get started with eToro – visit the provider’s homepage and open an account. You’ll be asked to provide a range of personal information – such as your name, address, email, telephone number, and national insurance number.

You will also need to choose a username and strong password – which will be required when you attempt to log into your account.

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Step 2: Verify Your Identity

Much like you would when using a traditional stockbroker – eToro, is legally required to verify your identity. This should only take you a couple of minutes – as it’s just a case of uploading a clear copy of your:

• Passport or driver’s license
• Utility bill or bank account statement

Your proof of address document must have been issued within the past three months. Once you upload the documents, eToro can usually verify them instantly. If, however, you do not have the required KYC documents to hand in, you can do this at a later date. This needs to be done before you can deposit more than $2,250 or make a withdrawal, though. As such, if possible, it’s best to do it now.

Step 3: Deposit Funds

The next step is to make a deposit into your eToro account. As we briefly covered earlier, the broker offers a vast range of convenient payment methods to choose from. This is inclusive of:

• Debit card
• Credit card
• Paypal
• Neteller
• Skrill
• Bank Transfers

Apart from the bank account option, all other supported payment methods at eToro are instant. This means that by opting for a debit/credit card or e-wallet, you can buy Bitcoin Cash in the UK instantly.

Although the minimum BCH investment is $25, you will need to deposit at least $200 if this is your first time using eToro. After that, you can make a minimum deposit of just $50. Furthermore, there is a 0.5% deposit fee applied to all payment methods. This is actually super-competitive, as Coinbase and Binance charge 3.99% and 1.8% on debit/credit deposits, respectively.

Step 4: Search for Bitcoin Cash

You are now ready to buy Bitcoin Cash in the UK! To go to the relevant investment page, enter ‘Bitcoin Cash’ into the search box and click on the ‘Trade’ button.

Step 5: Buy Bitcoin Cash UK

The final step is to place a buy order on Bitcoin Cash. As you will see in the image below, you need to enter your stake in the ‘Amount’ box. When you do, the number of Bitcoin Cash tokens that you receive will automatically update.

In our example, we are buying $25 worth – which is the minimum. At current prices, this means that we will get 0.05 BCH tokens. To confirm your buy order – click on the ‘Open Trade’ button. eToro will then execute your order instantly and your newly purchased Bitcoin Cash tokens will appear in your portfolio!

Buy Bitcoin Cash – Best Place to Buy Bitcoin Cash in the UK

In choosing the best way to buy Bitcoin Cash in the UK – you will need to think carefully about the provider you opt for. In most cases, this will be a choice between a cryptocurrency broker or an exchange.

Below we explain how each option works so that you can buy Bitcoin Cash in the UK in the best way for you.

Online Cryptocurrency Broker

There are several online brokers in the UK that allow you to buy Bitcoin Cash in a safe and simple way. This is because the broker will allow you to buy BCH tokens directly – which in turn, means that it must have the required regulatory remit to do so. In the case of eToro, for example, the broker is regulated by the FCA, ASIC, and CySEC.

In turn, this means that the platform can sell your Bitcoin Cash tokens at the current market rate. It also means that you will have access to a fiat currency facility – so you can easily deposit and withdraw funds via debit/credit cards, bank transfers, or e-wallets. You can also sell your Bitcoin Cash tokens back to your chosen online broker – when the time to cash out eventually comes.

Cryptocurrency Exchange

The vast majority of online platforms giving you access to Bitcoin Cash come in the form of a cryptocurrency exchange. These are platforms that match you with other market participants. In other words, you will be buying Bitcoin Cash from somebody that wishes to sell. On the one hand, the best cryptocurrency exchanges in the market offer super-low fees and huge levels of liquidity and volume.

You will also have access to a much broader selection of cryptocurrencies when using an exchange. However, as most cryptocurrency exchanges do not support fiat currency, this allows them to operate without a regulatory license. As a result, buy using an exchange to buy Bitcoin Cash in the UK – you can never be 100% sure that your money is safe.

Ways to Buy Bitcoin Cash UK

You also need to think about the many ways to buy Bitcoin Cash in the UK – in terms of payment methods

Your options include the following:

Buy Bitcoin Cash With Debit Card

You can buy Bitcoin Cash with a debit card from all of the brokers that we discussed in our reviews earlier. This is inclusive of eToro, Coinbase, OKEx, and Binance. The process will initially require you to upload a copy of your driver’s license or passport – as per KYC regulations.

Then, you will need to enter your debit card details and the amount of BCH you wish to buy. In confirming the transaction, your chosen broker will instantly execute your order and the Bitcoin Cash tokens will be added to your portfolio.

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Buy Bitcoin Cash With Credit Card

Some brokers – including eToro, also support credit cards. If you do want to buy Bitcoin Cash with a credit card – just be wary of fees. This is because your issuer might charge a credit card cash advance fee – which can be as much as 5%.

Buy Bitcoin Cash With Paypal

We found that the only trusted broker in the UK allowing you to buy Bitcoin Cash with Paypal is eToro. All you need to do is log in to your Paypal account when prompted, confirm the deposit amount, and then the transaction will be processed instantly.

Buy Bitcoin Cash With Bitcoin

If you want to buy Bitcoin Cash in the UK without providing any personal details or KYC documents, then you will need to pay for your purchase with a cryptocurrency like Bitcoin. All you need to do is find an exchange that offers a crypto market on Bitcoin Cash – such as Binance.

The platform also offers BCH pairs with Ethereum and Tether. You will pay a small commission of 0.10% when buying Bitcoin Cash with crypto – which is super cheap.

Why Buy Bitcoin Cash UK?

If this is your first time buying Bitcoin Cash in the UK – we would suggest doing some independent research before taking the plunge. This means exploring fundamental and technical factors surrounding the digital token to ensure it is suitable for your financial goals and tolerance for risk.

The most important factors to consider when thinking of how to buy Bitcoin Cash in the UK are as follows:

Past Performance

Although Bitcoin Cash does have potential in terms of becoming the go-to blockchain for globalized payments, it should be noted that the project is nowhere near achieving this goal. Instead, the vast majority of people that decide to buy Bitcoin Cash in the UK do so because they hope to make money.

This goal is possible if the value of BCH increases above the price you originally paid. Although past performance is no sure-fire way of predicting the future, this at the very least allows us to assess what sort of returns might be possible. So, back in 2017 – which is when Bitcoin Cash was first launched, you would have paid $440 per token.

Just a few months later, Bitcoin Cash high highs of over $3,700. This means that those buying the digital currency when it was first launched would have been in profit by over 740%. On the other hand, Bitcoin Cash – at the time of writing in July 2021, is trading at $483 per token. This is only slightly above its initial listing price of $440 – so do bear this in mind.

Many Argue That Bitcoin Cash is a Better Payments System Than Bitcoin

When Bitcoin was first created and subsequently launched in 2009 – it was dubbed as an electronic payments system that could revolutionize the traditional financial system.

• However, more than 12 years since it was brought to the public domain, Bitcoin is still too sluggish to be seriously considered as a global medium of exchange.
• On the contrary, the digital currency now acts more like a store of value.
• In comparison, some market commentators argue that Bitcoin Cash is actually more suitable as a payments network.

Crucially, this is because the network has a maximum block size of 32 MB, while Bitcoin stands at just 1 MB. In Layman’s Terms, this means that Bitcoin Cash can handle more transactions than its Bitcoin counterpart.

After all, while Bitcoin can process 7 transactions per second, it is estimated that Bitcoin Cash can handle up to 116. Bitcoin Cash transactions are also cheaper, which again, potentially makes the network more conducive for facilitating global payments.

Buy the dip

We mentioned above that Bitcoin Cash is now trading at a price that is just a smidgen above its original listing value. With that said, many argue that BCH is simply in a prolonged period of stagnation – much like the wider cryptocurrency industry. This is because in the first few months of 2021 – Bitcoin Cash increased in value by a considerate amount.

For example, in early January 2021, you would have paid just $342 per token. Then, in May 2021, the same digital currency was trading at $1,589. This means that in just five months, the value of Bitcoin Cash increased by 360%. Ultimately, if you believe that Bitcoin Cash will eventually resume its prior upward trajectory – it’s best to enter the market now while the tokens are undervalued.

The Cost of Buying Bitcoin Cash

One of the main considerations that you need to make when thinking about how to buy Bitcoin Cash is the costs involved. This is because your chosen cryptocurrency broker will charge you a fee in return for giving you access to the digital asset markets.

The main Bitcoin Cash fees that you need to check before proceeding are as follows:

Deposit Fees

You might need to pay a deposit fee when buying Bitcoin Cash in the UK. This does, however, depend on the payment method that you decide to use.

• For example, if you are happy to deposit funds into the broker via bank transfer, then this is usually the cheapest option.
• For instance, both Coinbase and Binance offer fee-free bank transfers in the UK.
• If you want to buy Bitcoin Cash in the UK with a debit/credit card – then expect higher fees.

Although eToro is really competitive at just 0.5%, platforms like Coinbase charge 3.99%.

Trading Commission

Depending on your chosen payment method – you might also need to pay a trading commission to buy Bitcoin Cash in the UK.

• For example, if you benefited from a low-cost bank transfer, you will then need to manually buy BCH tokens by placing a trade.
• At platforms like Coinbase, this will cost you 1.49%.
• Binance and OKEx are much cheaper at just 0.10%.

If, however, you elect to buy Bitcoin Cash instantly with a debit or credit card – the commission is usually included in the transaction fee. For instance, at Binance, you will pay 1.8% to buy BCH tokens with Visa or MasterCard – which is the all-in cost.

Risks of Buying Bitcoin in the UK

Instead of focusing entirely on your profit potential, you also need to consider the risks of buying Bitcoin Cash. We found that the risks listed below are the most prevalent – so bear these factors in mind before you proceed.

Overall Performance has Been Poor

We mentioned earlier that while Bitcoin Cash initially hit public cryptocurrency exchanges at $440 – as of July 2021, the digital token is trading at just $480.

• In simple terms, this means that in almost four years of trading, Bitcoin Cash has returned just 9%.
• Crucially, this is significantly less than other major cryptocurrencies in the UK.
• For example, on the same date that Bitcoin Cash was launched, Bitcoin was trading at $2,754.
• And in terms of its price at the time of writing – this stands at just over $32,000.

This means that during the same period, Bitcoin has returned over 1,000% – compared to Bitcoin Cash’s 9%.

Bitcoin is King

Although there are arguments to be made about Bitcoin Cash’s suitability as a global payments network – Bitcoin always had, and likely always will be – the de-facto cryptocurrency of choice. Not only in terms of its price and market capitalization – but newbie investors are simply more comfortable investing in BItcoin over other digital tokens.

Bitcoin Cash is a Carbon Copy of Bitcoin

Another important thing to remember is that Bitcoin Cash is simply a carbon copy of Bitcoin. Sure, the BCH project has since made improvements to the underlying blockchain.

But, when Bitcoin Cash was first launched in 2017 – this was in the form of a hard fork. In simple terms, this means that Bitcoin Cash copied the same blockchain code as used by its Bitcoin counterpart.

In fact, when you look at the Bitcoin Cash logo – you will notice that is extremely similar to that of Bitcoin. Under normal circumstances, this would be a clear case of copyright infringement.

Selling Bitcoin Cash: A Quick Overview

If you’re wondering how to sell Bitcoin Cash in the UK – you can usually do this through your chosen online broker. At eToro, for instance, your purchased BCH tokens will be kept in your online portfolio. This means that you have the option of cashing out at any given time by hitting the ‘Sell’ button.

If you are storing your Bitcoin Cash tokens in a private wallet, then you will first need to transfer them into an exchange or broker. Then, you can proceed to cash out your Bitcoin Cash tokens by placing an appropriate sell order.

How to Buy Bitcoin Cash UK – Conclusion

This guide has walked you through the process of how to buy Bitcoin Cash in the UK with a trusted and low-cost broker – eToro. This top-rated trading platform is authorized and regulated by the FCA and you can instantly fund your brokerage account via debit/credit card or e-wallet payment.

You only need to meet a minimum investment stake of $25 and you can sell your BItcoin Cash investment at any given time – 24 hours per day. Finally, when you buy BItcoin Cash in the UK at eToro – you only need to cover the spread.

eToro – Best FCA Broker to Buy Bitcoin Cash UK

FAQ

How to buy Bitcoin Cash in the UK?

If you want to buy Bitcoin Cash in the UK – it’s best to use a regulated broker. The likes of eToro, for example, is regulated in the UK by the FCA.

Where to buy Bitcoin Cash in the UK

We found that the overall best place to buy Bitcoin Cash in the UK is eToro – which allows you to invest on a spread-only basis. You will be able to deposit funds with a wide choice of payment methods – including debit/credit cards and Paypal. Plus, as the broker is authorized and regulated by the FCA, you can be sure that you are using a credible provider.

Is Bitcoin Cash a good investment?

The key issue with Bitcoin Cash is that the digital currency is only worth 9% more (as per July 2021) than it was when launching in 2017. Bitcoin, on the other hand, has increased in value by over 1,000% more during the same period.

Is Bitcoin Cash safe to invest in?

You can invest in Bitcoin Cash safely by using an FCA-regulated broker to complete the purchase. However, there are no safeguards in place in terms of performance – meaning that you will lose money if the value of BCH goes down and you decide to cash out.

How to sell Bitcoin Cash?

If you’re wondering how to sell Bitcoin Cash in the UK – the process works much the same as buying – but in reverse. If you decided to keep your BCH tokens stored at your chosen online broker, you can usually cash out by placing a sell order. Then, the funds will be added to your brokerage account balance.

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