Kraken is arguably one of the best crypto exchange platform out there, and in this guide, we will demonstrate to you how to buy Bitcoin Cash on the platform.
Launched in 2017, Bitcoin Cash (BCH) is a newer cryptocurrency that intends to offer an alternative to the world’s oldest and most widely traded cryptocurrency, Bitcoin (BTC).
Bitcoin Cash was created when users elected to run an alternative version of the software with features that were no longer compatible with Bitcoin. This effectively split Bitcoin into two seperate blockchains (Bitcoin and Bitcoin Cash) and two separate assets (BTC and BCH).
At the time of the fork, everyone who owned BTC was awarded Bitcoin BCH.
So, if you missed out on the launch (or are simply seeking to diversify your portfolio), you’ve come to the right place. We’ve put together this guide to quickly (and easily!) walk you through how to buy bitcoin cash for the very first time.
Why buy BCH?
Proponents of Bitcoin Cash believe that by lowering transaction costs, the cryptocurrency can gain market share in a wider variety of consumer finance and payments use cases.
Users of BCH may find their transactions are approved more quickly, with lower fees. However, users should note the costs of operating a node and storing the full version of the Bitcoin Cash transaction history may be higher.
Where can you buy BCH?
- Direct Purchase
You can purchase it directly from another individual in person or over the web.
- Crypto ATM
You can try to locate a crypto ATM near you that offers BCH. However, the ATM rates can be exorbitant and there is no guarantee that you can find a counterpart to make the trade with.
The easiest way to buy bitcoin cash is through a digital asset exchange, like Kraken. You can trade other cryptocurrencies like bitcoin and ethereum for it or you can use your local fiat currency to purchase BCH.There are a number of things to consider when choosing an exchange, including: fee structure, volume, reputation and (most importantly) security.
Cryptocurrency exchanges are a constant target for hackers and bad actors, so before you trust your money with one, be sure to read up on their security measures.
How to buy BCH on Kraken
Buy bitcoin cash safely and easily with the following steps:
- Create an account
Pick a username and password, provide your email address and you’re ready to go.
- Become verified
With “Starter” verification, you can purchase bitcoin cash with other cryptocurrencies. All you need to do is provide your name, date of birth, country and phone number. If you’d like to use fiat currencies, like USD or EUR, you’ll need to further provide some supporting documents confirming your identity. Click this link to learn more about our verification levels.
- Fund your account with crypto or fiat
Depositing crypto to Kraken is as simple as sending it to a friend. Just generate a new deposit address in your Kraken account to receive funds from your crypto wallet. Funding your account with fiat currencies for trading can be done in a number of ways, including SWIFT, SEPA and domestic wire transfers. The option you select will be based on your location and preference.
- Buy BCH!
Once your account is funded, you’re ready to buy your first BCH. Simply open the New Order page, fill out the order form and click BUY. All Kraken accounts of any tier level have access to our custom charting tools and 24-hour client support.
Where to keep your BCH
Once you’re done buying BCH, you should look for a way to secure it. The best way to do this is with a wallet. A wallet is a device or software application that stores your crypto but also allows you to spend it.
Mobile and web-based wallets make frequent transactions easy. Hardware wallets are best suited for secure, long-term storage. When you’re choosing a crypto wallet, think of what you plan to do with your tokens. What you choose is up to you, and it will depend on your individual preferences regarding security vs. ease of use.
Learn about the best wallets to store your Bitcoin Cash here.
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