What is Bitcoin Cash? Is it the same as Bitcoin? What’s the difference between the two? A lot of people who are starting out in the market of cryptocurrency might get confused with these questions. In this article, we’ll break it down to make it simpler for you. So, let’s begin.
Bitcoin Cash, also known as BCH is nothing but an alternative form of the original Bitcoin. It’s one of the hard fork coins, that is, it’s similar to the original but not identical. Bitcoin Cash and several other Bitcoin versions are actually the results of contested Bitcoin updates which resulted in newer versions of the coin which stemmed from the original coin but are different forms of it.
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During its creation in August 2017, this hard fork Bitcoin revolutionized the cryptocurrency market. Bitcoin Cash (BCH) provided lower fees and faster transaction speed. It became an immediate favorite and has currently developed into one of the five largest cryptocurrencies in the world.
But how to get Bitcoin Cash? For that, there are several steps to follow. Before we proceed, ask yourself: is investing in Bitcoin Cash worthwhile? It’s essential to keep in mind before investing in a cryptocurrency, it’s good to acquire as much information as possible. Now, let’s get cracking.
If you were in possession of Bitcoins before August 2017, there are ways to claim the same number of tokens that you previously owned in Bitcoin Cash. If you’ve forgotten to claim your Bitcoin tokens after the hard fork branching of the original Bitcoin, don’t worry as your tokens are safely stored in your Bitcoin wallet and you can claim them any time you want. The process of claiming varies depending upon your type of wallet. Now, let’s walk you through all the various processes.
Bitcoin Cash Wallet
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In simple terms, this is a digital wallet that exists either in the user’s computer or in the cloud. You’ll need a Bitcoin Cash wallet if you want to buy or claim your Bitcoin tokens. The sheer range of wallets sometimes make it difficult for people to choose where to securely store their money. But we’ll help you with that in the later section.
If you want to claim your Bitcoin tokens, you must already have a Bitcoin wallet. Depending on the type of wallet, your claiming procedure will differ.
1.Full Node Wallet
A full node wallet is one in which you are required to download the complete Blockchain. It downloads every block and transaction to check them against Bitcoin’s consensus rules. So, if you have this kind of a wallet, follow these steps:
· Select ‘Backup Wallet’ from the Menu and backup your entire wallet.
· Once you backup, you’ll notice a wallet.dat file
· Import that file into a full node Bitcoin Cash wallet.
· Now, your Bitcoin tokens will be automatically transformed into BCH tokens.
· Collect and invest as you wish.
Some full node Bitcoin wallets are Bitcoin Knots or Bitcoin Core. And Bitcoin Cash wallets are Bitcoin ABC, for example.
Tip: it’s important to note that there are several conflicting full node wallets. So, you run a risk of losing your Bitcoin wallet data once you install a Bitcoin Cash wallet which is in conflict with the former. For example, Bitcoin Core and Bitcoin ABC’s default data directory are the same. So, if you install Bitcoin ABC, you instantly run the risk of Bitcoin Core’s data to be overwritten.
Also, if your private keys are not backed up, you may lose both your Bitcoin and Bitcoin Cash tokens forever. There’s a way to avoid both these issues. Install your Bitcoin Cash wallet which is similar to your full node Bitcoin wallet from a different PC.
2.Simplified Payment Verification Wallet
For this type of wallet, you don’t need to download the full Blockchain. The previous method can be time and space consuming. But this is a shorter method to claim your Bitcoin Cash tokens.
Simplified Payment Verification (SPV) wallets mostly use recovery seeds. These recovery seeds contain your previous Bitcoin private keys. Insert this seed into your Bitcoin Cash wallet and it will automatically get you your Bitcoin Cash tokens.
This process is simpler but this varies from wallet to wallet. So, before inserting your recovery seed, read through the instructions provided by each Bitcoin Cash wallet to be on the safe side.
The first criteria to claim your Bitcoin Cash tokens from your Bitcoin wallet is to have Bitcoin tokens in the first place. But if you’re starting out, and you don’t have any Bitcoin Cash, you can buy some or even choose to go for peer-to-peer trading.
There are 2 ways you can buy Bitcoin Cash. They’re dealt with in the following section.
Buy Bitcoin Cash With USD
If you’re new in the cryptocurrency market, you must be asking this: how to buy Bitcoin Cash in the USA?
Well, buying BCH using USD is the simplest way to go about it. The steps are listed below.
The first step is to compare the number of platforms that allow you to deposit USD and get BCH exchanges in return. Check out several platforms before deciding which one to go with.
Open An Account And Register:
Once you’ve got your platform, register for an account there. For example, if you’re using Coinbase, open a Coinbase account and register there by providing your personal details like: name, email address, phone number and ID proof. To have a secure account, you can go for the two-factor authentication on your registered account.
Deposit USD Into Your Account:
Select ‘Settings’ on your account page and then go to ‘Linked Accounts’ and select ‘Link a new Account’. You can deposit your USD via debit card, wire transfer or from your bank account directly.
Once you’ve deposited the money, you can choose how much USD you want to spend to buy Bitcoin Cash. You can select your preferred amount of BCH that you wish to buy. Review your total cost before making the final transaction by clicking on ‘Buy Bitcoin Cash.’
Buy Bitcoin Cash With Another Cryptocurrency
You’ll find a range of platforms that enlists Bitcoin Cash among their list of cryptocurrencies. So, be sure to go through the platforms before making your choice.
There are a few steps to follow to get Bitcoin Cash from other cryptocurrencies. But here, we’ve used Bitcoin as an example as it is the most readily available. You can also use other cryptocurrencies and exchange them into BCH.
Buy Bitcoins (BTC):
Bitcoin is popular. So, you might find it readily available. Buying BCH using other cryptocurrencies is different from claiming your Bitcoin Cash tokens from Bitcoin wallets. If you don’t have Bitcoins, you can check out guides on how to get Bitcoins first.
Register For An Account:
Sign up using your email ID for an account and create a secure password. Proceed only after enabling two-factor authentication on the account you created. Verify your account using an ID proof. You’ll need this set a higher withdrawal limit on your account than 2 Bitcoins.
Deposit The BTC Into Your Account:
If you already have your Bitcoins in the account, then you can skip this step. But if you need to deposit your BTC in your account then go to ‘Funds’ and click on ‘Deposits’. Search for the cryptocurrency you want to deposit from the list of currencies supported by the wallet. In this case, you’ll look for Bitcoin. Then, scan the QR code or copy the wallet address to deposit your BTC.
Buy Bitcoin Cash:
Once you’re done with the previous steps, click on the ‘Exchange’ button and choose your preferred trading interface (‘Basic’ or ‘Advanced’). Now go to the search bar and look for your trading pair. Since we’re using Bitcoins as an example, the pair will be BCC/BTC. (BCH is also referred to as BCC in certain wallets). Mention the amount of BCH you want to buy, review your transaction and click on ‘Buy BCC’.
You can also go for peer-to-peer trading platforms which support Bitcoin Cash. These are places where users use fiat currencies to trade for BCH. This is an easier method but one which involves too many risks. Note that, you’re trading with individuals and not trusted companies. In these trading platforms, you can place your order and you’ll receive BCH accordingly.
Once you’re successful in the purchasing portion, you’ll need a secure place to store your currency. You can use the exchange wallets to keep your BCH, but you don’t own the private keys to those wallets. You need one where you have the control key so as to protect them from hackers. There are 3 types of wallets, namely:
· Hardware Wallets like Trezor or Ledger Nano S
· Multi-platform wallets, for example Jaxx
· Mobile Wallets, for example Coinomi.
Before buying Bitcoin Cash, consider a few factors like Supply, Distribution, performance of that cryptocurrency, usage according to current statistics, capabilities and competition. Once you understand these driving forces go for Bitcoin Cash purchasing.
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