Bitcoin Cash has been one of the leading cryptocurrencies since it was forked from the original Bitcoin in 2017. As a cryptocurrency with a large following, it is understandable that virtually all crypto exchanges and trading platforms are offering Bitcoin Cash (BCH) trading services.
As a crypto trader or investor, there are certain features you have to consider when choosing the best Bitcoin Cash exchange in 2021. These exchanges differ in terms of trading fees, security measures, transaction limits and more. This article discusses these essential aspects and will help you find the best Bitcoin Cash exchanges in 2021.
Compare the Best Bitcoin Cash Exchanges
Bitcoin Cash (BCH) has always been a popular cryptocurrency which means that a wide range of cryptocurrency exchanges offer excellent Bitcoin Cash trading services to buyers and sellers. Here is our selection of the leading Bitcoin Cash exchanges and what they have to offer.
Understanding Bitcoin Cash Exchanges
Since BCH originated from Bitcoin (BTC), it was easier for most exchanges to list Bitcoin Cash.
The Bitcoin Cash exchanges enable anyone to trade the cryptocurrency with ease. These exchanges offer liquidity and operate 24/7, allowing users to buy and sell Bitcoin Cash whenever they desire. They connect buyers and sellers, making it easy for Bitcoin Cash transactions to take place.
How to get started on Bitcoin Cash exchange?
You have to register with a Bitcoin Cash exchange before you can start trading the cryptocurrency against a wide range of other assets.
The Bitcoin Cash exchange will ask you to provide certain details (for centralised exchange), while the decentralised exchanges don't need your details. When using centralised exchanges or peer-to-peer platforms, you will need to verify your ID by providing the necessary information and documents. The required documents could include your proof of ID, proof of residence, bank statement and more. These processes are necessary to protect you and your funds from bad actors.
Using platforms that don't require KYC is risky since you have no idea the people you are dealing with. After your ID verification, you can fund your Bitcoin Cash exchange using any of the platform's payment method. Usually, the Bitcoin Cash exchanges accept payment methods such as debit cards, credit cards, e-wallets, bank transfers and more.
The exchanges allow you to trade Bitcoin Cash against a basket of cryptocurrencies (majorly BTC and ETH), fiat currencies (USD, GBP and EUR) and stablecoins (USDT, PAX and others.) You can buy or sell BCH via the 'Buy' or 'Sell' orders.
Different types of Bitcoin Cash exchanges
- Centralised exchanges: They are the leading exchanges where you can easily buy/sell BCH. They provide a lot of liquidity and are highly regulated. These exchanges allow you to trade BCH against a wide range of fiat currencies and cryptos.
- Decentralised exchanges: These exchanges are perfect for people looking to buy/sell BCH anonymously. These exchanges are not controlled by any central entity, and transactions are facilitated using networks and protocols.
- Derivative exchanges: These crypto exchanges offer traditional investment vehicles like futures and options for BCH. These investment vehicles allow one to invest in a cryptocurrency without owning it.
- P2P exchanges: These are peer-to-peer exchanges that connect buyers and sellers, allowing them to negotiate and transact directly. The exchanges provide escrow services to ensure transactions go accordingly.
- Fiat vs. crypto exchanges: Fiat exchanges accept deposits or withdrawals in fiat currencies. Meanwhile, the crypto-only exchanges are those that accept deposits or withdrawals in cryptocurrencies only.
How to Choose a Bitcoin Cash Exchange?
Start by knowing a few things about cryptocurrency exchange. The features discussed below will help you to decide on how to choose an excellent Bitcoin Cash exchange.
- Usability – A Bitcoin Cash exchange must be easy to use so new users can navigate without much stress.
- Payment methods – Select a Bitcoin Cash exchange that offers numerous deposit and withdrawal methods and charges low transaction fees.
- Liquidity – A Bitcoin Cash exchange with substantial liquidity makes it easy to buy/sell BCH.
- Fees – Trade with the Bitcoin Cash exchange that offers low fees for deposits, withdrawals, currency conversion and processing orders. The fee structure must also be transparent as there shouldn't be any hidden fees.
- Transaction speed – Using a cryptocurrency exchange with a fast transaction speed will allow you to buy/sell BCH at the desired rate.
- Account verification – If you are using a centralised exchange, ensure they have an account verification process to ensure your funds' safety. The decentralised exchanges don't usually require account verification.
- Reputation – With many scammers out there, be careful not to register with a scam platform. Open an account with a reliable and reputable Bitcoin Cash exchange to ensure you enjoy the best services.
- Security – The security of the crypto exchange should be one of the first things you look at. A reliable crypto exchange must place security protocols such as two-factor authentication (2FA) and store user funds in a cold storage wallet.
Advantages & Disadvantages of Using a Bitcoin Cash Exchange
Should I Buy or Trade Cryptocurrency?
Your objectives and market knowledge will determine if you trade or invest in Bitcoin Cash. Those who want to hold the cryptocurrency for the long-term and earn profits, in the end, are suited to buying BCH and storing it in a crypto wallet. They are known as investors. However, those who want to leverage the cryptocurrencies' daily price volatility to earn instant profits are known as traders.
Regardless of your budget, it is always recommended to start small and grow from there. Knowledge of the market is key to becoming a successful cryptocurrency trader or investor. As the crypto market becomes more mainstream, additional investment vehicles such as futures, options and CFDs (Contract for Differences) have been introduced to allow people to gain more access to BCH and other digital currencies. Here are the alternative crypto assets you can trade on some exchanges:
- Options: These crypto-assets enable traders to exercise the right to buy or sell BCH at a predetermined price on a specific future date.
- Futures: These trading instruments allow traders to bet on a price at which a crypto trade will be executed in the future. It is a highly risky investment vehicle but comes with high rewards.
- Contracts for Difference (CFDs): These are financial contracts that pay the settlement price differences between the open and closing trades.
3 Steps to Using a Bitcoin Cash Exchange
Step 1: Choose a Bitcoin Cash Exchange
Choosing the right Bitcoin Cash exchange is the hardest part because it involves looking at various exchanges, comparing their features and selecting the one that suits your Bitcoin trading preferences.
Step 2: Signing up with a Bitcoin Cash Exchange
Next step is to register an account with the Bitcoin Cash exchange of your choice. Complete the sign-up and account verification process by providing the required details such as your phone number, KYC documents, name, email address, residential address and more.
Step 3: Deposit the initial amount and start using the Bitcoin Cash Exchange
Trading BCH isn't possible if you don't fund the Bitcoin Cash exchange account you opened. Choose the payment method on the exchange you are comfortable with and deposit funds using either fiat or cryptocurrencies. If the exchange doesn't offer direct BCH purchase, you can buy BTC, ETH, or stablecoins and covert them to BCH.
Bitcoin Cash's position as one of the leading cryptocurrencies means numerous exchanges support it. Hence, buying and selling BCH is an easy task for traders and investors. This article discussed the basics of Bitcoin Cash exchanges and the metrics you can use to judge them. We listed the best Bitcoin Cash exchanges in 2021 and the features they offer to traders.
Frequently Asked Questions
Bitcoin Cash was created from a fork of the Bitcoin blockchain, and it implemented the increased block size of 8MB.
ID verification is necessary on most centralised exchanges as they abide by AML and KYC regulations.
Most BCH exchanges provide Bitcoin Cash wallets to store your BCH. This is perfect for day traders, but investors should move their funds to cold storage wallets for safekeeping.
Always trade with a reputed Bitcoin Cash exchange to reduce the risk of fraud.
Cryptocurrency exchanges aren't the best places to store your Bitcoin Cash. It is best to store your BCH in a cold storage wallet.
Bitcoin Cash is a leading cryptocurrency but it is not available on all crypto exchanges. Some crypto exchanges only allow Bitcoin trading.
The exchanges make money via commissions and fees.
Bitcoin Cash exchanges are legal in most parts of the world but check your local laws before trading.