What is Bitcoin Cash?
Bitcoin cash is a cryptocurrency is a fork of Bitcoin Classic that was created in August 2017. The main upgrade offered by Bitcoin Cash is an increase of the blocksize limit to 8mb. This effectively allows miners on the BCH chain to process more payments per second. This makes for faster, cheaper transactions and a much smoother user experience. Bitcoin Cash was created to bring back the essential qualities of money inherent in the original Bitcoin software. Over the years, these qualities were filtered out of Bitcoin Core and progress was stifled by various people, organizations, and companies involved in Bitcoin protocol development. The result is that Bitcoin Core is currently unusable as money due to increasingly high fees per transactions and transfer times taking hours to days.
1. Create account on a exchange
The best way to buy Bitcoin Cash in Canada is with a cryptocurrency exchange that accepts CAD.
Create an exchange account
In comparison to other cryptocurrencies buying Bitcoin Cash with an exchange is pretty easy.
If you want to buy Bitcoin Cash, without a account verification delay, and if you want to buy only a small amount ($375 CAD or less) consider using Coinbase it will be the fastest method.
For a comparison of the local exchanges and a more comprehensive guide on how to pick one, see the Exchanges Guide.
Verify and Fund
In order to fund your exchange account you will need to verify your identity. This often involves sending in copies of your drivers license, a utility bill, and in many cases a selfie of you holding your ID. This is normal for local exchanges.
2. Buy your Bitcoin Cash
Once your account is funded all you need to do is place an order to buy. You have two options, a market order or a limit order.
Place an order for Bitcoin Cash on the exchange
The next step is to actually buy Bitcoin Cash. This should be fairly obvious once you have access to your account.
For small or quick-fill orders where setting a limit price may not be of great importance, you can buy using a market order. For larger trades we recommend using a limit order and wait for it to fill at a specific price you desire.
3. Store your Bitcoin Cash in a wallet
It is best practice to store your cryptocurrencies in a wallet that is not hosted with a exchange. If you have more then $1000 in cryptocurrencies you should strongly consider storing the funds in a wallet that is not connected to the internet, a cold wallet (hardware). Each cryptocurrency has it's own wallet.
If you are just getting started you will probably want to use a software wallet. They are typically free and are considered more secure than leaving Bitcoin Cash on the exchanges.
A software wallet we have used in the past is Blockchain. It was easy to use and also supports Bitcoin, and Ethereum.
Feel free to do a google search to research what wallets are available and know what the options are.
Download and install your software wallet. Then withdraw your Bitcoin Cash from your exchange account. It is common for a small fee to be associated with the withdrawal.
The safest way to store Bitcoin Cash, or any cryptocurrency, is with a hardware wallet that is not connected to the internet. This is to prevent it being stolen or hacked from a exchange or a wallet connected to the internet.
A common hardware wallet for Bitcoin Cash is the Ledger Nano S.
Leaving it on an Exchange
This is generally not recommended. However, you might want to do this if you are actively trading and need access to Bitcoin Cash. Be aware you are taking an extra risk. Exchanges have been known to get hacked or disappear.
The advantage of doing this is instant access to your Bitcoin Cash, and saving the fees associated with transactions and withdrawing.
If you are going to be doing this, make sure you have 2 factor authentication enabled and that you are using a reputable exchange.
- Create an account on a local exchange.
- Place a order for Bitcoin Cash
- Send your Bitcoin Cash to a wallet to keep it safe