On August 1, a spin-off from the Bitcoin blockchain created the new cryptocurrency Bitcoin Cash. This is a further development of Bitcoin, which can convince above all by faster processing of the transactions and associated lower transaction fees.
Understandably, many investors want to Invest the potential of this new coin and also buy Bitcoin Cash with a credit card. In contrast to bank transfer and some other payment methods, BCC buy with credit card offers the advantage that the coins are usually available immediately. In the following article we show what is special about Bitcoin Cash and what different options are available to trade with the cryptocurrency.
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Bitcoin Cash: General information about the new Altcoin
Bitcoin Cash was created on 1. August 2017 through a spin-off from Bitcoin. A new block was created for the so-called Hard Fork, which was only accepted by the new reference implementation Bitcoin ABC, but not by the Bitcoin software Bitcoin Core. The blockchains of Bitcoin and Bitcoin Cash are therefore identical up to block 478.558.
The reason for the separation from Bitcoin was primarily the limited block size for Bitcoin to 1 MB. With Bitcoin Cash, however, blocks of up to 8 MB are possible, which means that more transactions per second can be carried out. This reduces waiting times and no high fees have to be paid for the transaction to be carried out quickly. If Bitcoin Cash prevails and is used by a large number of previous users, a new increase in block size is also possible, which makes Bitcoin Cash a powerful means of payment
Bitcoin Cash is already the third largest cryptocurrency. Numerous investors see the new cryptocurrency as the means of payment of the future, which is why they are investing in Bitcoin Cash. This can be done via so-called CFDs (Contract for Difference), with which physically no Bitcoin Cash is acquired, but is speculated on the price development. Alternatively, Bitcoin Cash can be purchased at crypto exchanges or at online marketplaces. Buying BCC with credit card is a good way to get Bitcoin Cash directly. The bank transfer and the exchange for Bitcoin are also frequently offered payment methods.
Buy BCC with a credit card: This is how investors can invest in the cryptocurrency
As already mentioned, there are several options to benefit from the price development of Bitcoin Cash. We present the most important of these below:
At a marketplace for cryptocurrencies, participants can buy or sell Bitcoin Cash. Demand and supply determine the price here. Each participant can post their own offer, which can then be accepted by buyers or sellers. It is also possible to react to the already existing offer on the platform and to conclude a trade here.
If you want to pay with VISA credit card when buying Bitcoin Cash or prefer another specific payment method, you should inform yourself in advance, whether this option is offered on the respective platform. Buying Bitcoin Cash with a Mastercard credit card is not possible with every provider. Often only payment by bank transfer or Bitcoin is accepted.
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Online Exchanges for cryptocurrencies work similarly to a marketplace, except that there are no individual offers directly from the users, but Bitcoin Cash can be bought or sold at a price set by the provider. Here, too, customers have to make sure that the payment method they want is offered. With many crypto exchanges, it is also necessary to top up credit with which the trading is then carried out.
Buying Bitcoin Cash with a credit card is possible at many crypto exchanges, but not at all. If you want to pay by credit card, you are therefore limited in the choice of providers. We will go into alternatives to credit card payments later in this article.
CFDs on Bitcoin Cash:
A particularly convenient method of trading with Bitcoin Cash is the purchase of so-called CFDs. The cryptocurrency itself is not acquired, but only a so-called difference contract, the price of which develops in parallel with the associated underlying. The advantage is that no Bitcoin cash wallet has to be created, but the CFDs can be traded directly with the respective broker. Most brokers offer a good selection of payment methods, including credit card payments.
Another advantage when trading via CFDs is that Bitcoin Cash can also be traded leveraged in many cases. As a result, a multiple of the credit stored in the trading account can be used to buy CFDs. With a corresponding price development, the profit increases, but of course this goes hand in hand with a corresponding risk if the price develops unfavorably for the investor. In contrast to the actual purchase of Bitcoin Cash, there is also the option when trading CFDs to speculate on a falling price.
Fees: These costs arise when buying Bitcoin Cash with a credit card
When purchasing cryptocurrencies, you should not only pay attention to the price, which differs from provider to provider. The additional fees, which are incurred when paying, should also be noted. Buying BCC with a credit card has the advantage that the purchased coins are usually immediately available, but is associated with fees on many platforms . Payment by transfer or Bitcoin, on the other hand, is often offered free of charge. Here, users should calculate in advance what costs will arise. Especially if it is not a flat fee but a percentage of the purchase price is deducted when paying, users should consider buying Bitcoin Cash if they do not prefer to use a free payment method.
In addition to the fee charged by the platform, the bank may also charge itself when paying by credit card. The Bitcoin Cash provider has no influence on this. If anything is unclear, users must inform themselves at their bank.
If a deposit is required for the purchase of Bitcoin Cash or the corresponding CFDs, not only that related fees are considered. With CFD brokers in particular, the payment must generally be made in the same way as the deposit, since this is specified in the regulations of the regulatory authorities. Therefore, possible withdrawal fees are relevant when comparing costs.
Security: Keep your eyes open when choosing the provider
Regardless of whether you buy at the BCC with Security is the priority when looking for a suitable provider. Attractive trading rates and low fees Only bring a real benefit if it is also ensured that the secure payment of the purchased coins takes place, or that the credit balance on the account can be reliably paid out.
While brokers are mostly regulated by financial regulators, crypto exchanges and online marketplaces are often unregulated, which entails a certain risk is connected. Here it helps to read the GTC carefully and to take into account the experiences of other users.
Cryptocurrencies should not be permanently on the account with a stock exchange or an online marketplace, but can be managed securely on your own wallet. For the actual trading, only the amount that is really needed has to be paid in.
In our Reviews we compared different brokers, exchange exchanges and crypto exchanges and also took a close look at security. In this way you can find out about the providers that are suitable for you and receive information about how users and their credit are protected.
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Manage cryptocurrencies securely: The wallet
If you want to buy cryptocurrencies, you first need a so-called wallet. The "electronic wallet" stores the cryptographic keys with which users can access their Bitcoin cash balance. A separate wallet is required for each cryptocurrency. Bitcoin Cash cannot therefore be managed together with a wallet for Bitcoin or Etherum, but users must use their own wallet for this purpose. This can be opened at different providers and is usually free.
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For in and Withdrawals from Bitcoin Cash will then indicate the address of the wallet so that the cryptographic information can be sent there. The coins, however, are not themselves on the wallet, but are stored in the blockchain itself.
The management of cryptocurrencies on so-called is particularly secure Paper-wallets. For this purpose, the cryptographic key is written down or printed out using using special software and stored offline. So hackers cannot gain access and you can safely manage Bitcoin Cash. In order to use or trade Bitcoin Cash on the go, wallets for the smartphone are available.
If you trade Bitcoin Cash in the form of CFDs, you need no wallet, because here it is not the cryptocurrency itself, but a difference contract that is acquired. This develops in accordance with the course of Bitcoin Cash, but cannot be used for payment with the cryptocurrency, but can only be sold again at the current rate.
Other payment methods: The alternatives to the credit card in comparison
Not all platforms can be used to deposit the money for trading Bitcoin Cash by credit card. For users who can imagine alternatives to buying Bitcoin Cash with a credit card, we are now presenting the most common payment methods.
The classic bank transfer is offered on almost all platforms that support the exchange of fiat currencies for Bitcoin or corresponding CFDs. This payment method is often free of charge, but has the disadvantage that the deposited money is only credited after one or more days because the banks need this time to process the transaction.
With instant transfer, the amount paid is immediately debited from the bank account and is therefore directly available for trading with Bitcoin Cash. This method can only be used for deposits, withdrawals usually take place with the classic bank transfer.
This is a so-called e- Wallet. The Neteller account can be linked to the bank account or credit card. Alternatively, credit can be deposited directly. Neteller payments are credited within a few seconds. Since the payment can be debited from the credit card, buying Bitcoin Cash with VISA credit card or Buying Bitcoin Cash with Mastercard credit card is possible indirectly via Neteller.
Skrill (formerly Moneybookers) is also an e-wallet, which works similarly to Neteller. Credit can also be deposited here and is directly available to purchase Bitcoin Cash or other cryptocurrencies.
Only a few platforms offer payment via PayPal, Payment can be made particularly securely via the payment provider, since it is not necessary to provide the account details. When buying Bitcoin via PayPal, it is sufficient to enter the email address linked to the PayPal account.
This is a prepaid -Card, which can be purchased at petrol stations and in numerous shops or can also be bought online. Payments are possible anonymously, however a payment via PayPal is not possible, but must be carried out using other methods. Paysafecard is not offered as a deposit option by many platforms.
Bitcoin and other cryptocurrencies:
The exchange of Bitcoin Cash for Bitcoin has become relatively common. Some providers can also deposit and withdraw with various other cryptocurrencies. Some exchange platforms and crypto exchanges even only support cryptocurrency payments. Fiat currencies cannot be traded with these providers at all.
Conclusion: An investment in Bitcoin Cash can be worth it
Bitcoin Cash is a young cryptocurrency, from which investors expect high value growth. As with all coins, it is also not certain with Bitcoin Cash whether this currency will prevail or will decrease in importance over time. Invested money should therefore always be considered as risk capital, in which a total loss is also possible. Nevertheless, many financial experts see the future in the cryptocurrencies, which is why it is worthwhile to grapple with it and invest.
Buy Bitcoin Cash with a credit card is one of many ways to trade crypto coins or to use them for regular payments, for example at various online shops. As an alternative to the actual purchase of Bitcoin Cash, can also be speculated on the course via CFDs. However, investors do not have any real coins here and therefore cannot use them for payments.
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