6 Ways On How to Buy Bitcoin and Bitcoin Cash on Coinbase.October 2, 2022 2022-10-02 10:00
6 Ways On How to Buy Bitcoin and Bitcoin Cash on Coinbase.
6 Ways On How to Buy Bitcoin and Bitcoin Cash on Coinbase.
Bitcoin and Bitcoin cash is valuable cryptocurrencies you can buy, invest and trade on Coinbase. You must understand the concept of Bitcoin and Bitcoin Cash and how Coinbase functions before we dig into how to buy Bitcoin and Bitcoin Cash on Coinbase.
Table of Content
- What is Cryptocurrency
- What is Bitcoin
- What is Bitcoin Cash
- Coinbase – What You Need to Know
- How to Buy Bitcoin Cash on Coinbase.
- 5. Type in the amount of Bitcoin Cash you want to buy
- 6. Proceed with your purchase
- How to Buy Bitcoin on Coinbase
- 1. Create an Account.
- 2. Verify your Identity
- 4. Click the Buy Panel to Buy your Bitcoin
- Are your Bitcoin and Bitcoin Cash Cryptocurrency Safe in Coinbase
What is Cryptocurrency
Cryptocurrency is a digital currency created by encryption algorithms, which means it can function as a currency and virtual accounting system. Cryptocurrencies function on a blockchain system, which gives them the decentralized ledger system that makes them transparent and safe; it is hard to hack or play down the system. Unlike fiat currencies stored in bank accounts, cryptocurrencies are stored in wallets in the cloud system. You can secure your wallet by activating security protocols like 2FA, biometric login, etc.
There are over 800 cryptocurrencies and over a thousand tokens in the online digital currency space, amongst the numerous digital currencies.
BTC and BCH are two of the most popular cryptocurrencies. Despite being cryptocurrencies, they differ in operation, functions, and characteristics. Let’s look at each separately.
What is Bitcoin
Bitcoin is the mother of all cryptocurrencies. It is the first and the most valuable cryptocurrency on earth. The values of most altcoins are attached to the value of Bitcoin. Bitcoin is operated without any form of central control and relies on peer-to-peer software and cryptography.
Bitcoin was created by Satoshi Nakamoto and was publicly launched in 2009, it was created as an electronic payment system based on cryptographic proof that aids transparency.
Since 2009, Bitcoin’s value has progressively increased. As of 2009, Bitcoin was of no value, and now one 1 BTC equals around $30,200. Unlike fiat currency, there will ever be only 21 million Bitcoin globally, making it a good store of value. Currently, more than 19 million coins are in circulation, and the value keeps increasing. However, the recent crypto crash hand slowed down its value.
What is Bitcoin Cash
Bitcoin Cash (BCH) is a spin-off or altcoin that started as a fork from Bitcoin (BTC). One of the major differences between BTC and BCH is that BTC has a fixed supply of 21 million coins while BCH has an unlimited supply of 1 billion coins.
Another difference is their block size. Bitcoin Cash has a block size of 32MB, while Bitcoin is 1MB. The larger block size of Bitcoin cash contributes to the increased transactions carried out on the Bitcoin Cash network chain. While Bitcoin processes between 3-7 transactions per second due to its block size, Bitcoin Cash possesses the capacity to process as many as 200 transactions per second. The increased transaction speed helps transaction cost per second and simultaneously increases transaction speed and reliability.
However, In November 2018, Bitcoin Cash was split into two cryptocurrencies:
Bitcoin Cash and Bitcoin SV.
Coinbase – What You Need to Know
Coinbase is a US-based digital currency exchange founded in 2013 and headquartered in San Francisco. It was initially focused on Bitcoin and another cryptocurrency trading. Later it expanded to include Ethereum, Litecoin, Ripple, Dash, and others.
Coinbase is a beginner-friendly designed exchange where you can buy, sell, and exchange over 100 cryptocurrencies and has over 98 million users and $256 billion in assets on the platform. It is regarded as the second-best exchange in the world after Binance.
However, Coinbase has an advanced version, Coinbase Pro, which was designed to meet the needs of advanced crypto traders.
Coinbase is a decentralized company that is present in more than 100 countries of the world, has recorded approximately $309 billion per quarter, and has no headquarters.
Another major win of this crypto exchange is that Coinbase has a robust ecosystem that supports 13,000 financial institutions.
Coinbase is available on both mobile and web platforms. For mobile, it is available on both Android and iOS mobile devices.
What are the Pros and Cons of Coinbase
- Beginner Friendly: Coinbase, both the website and mobile app, is beginner-friendly and easy to use and navigate. You won’t have difficulty buying, selling, or storing your funds as a crypto newbie. This is not to say that crypto-advanced traders are left out. Coinbase has an advanced exchange called the Coinbase Pro that is designed to meet an advanced trader’s needs and complex functionality.
- Large cryptocurrencies base: Coinbase supports over 100 currencies, and the numbers keep growing daily.
- Opportunities to build passive income: Coinbase has a feature called earn interest, where you can earn cryptocurrency that can serve as passive income.
- Coinbase Pro offers lower fees: You can easily switch to Coinbase pro and enjoy low trading fees while being exposed to multiple and advanced trading features.
- Limited access to altcoins: Although Coinbase supports an impressive amount of cryptocurrency and tokens, many are still missing. For instance, Binance supports over 600 cryptocurrencies, while Coinbase supports over 100, which is quite limited.
- High transaction fees: The primary Coinbase exchange platform is known for its high transaction fees.
- Poor customer service: According to public pools, Coinbase has recorded a lot of poor customer service reviews. Their customer base is slow in responding to issues, which can sometimes be pretty annoying.
How to Buy Bitcoin Cash on Coinbase.
1. Create a Coinbase account
To create a Coinbase account, you must download the Coinbase app on either your smartphone or laptop. Sign up and register. To verify your account, you will need a valid ID, and you may have to upload your proof of residence to transact. This may take time, as verifying ID takes longer and the time varies depending on your location.
2. Include a payment method
Coinbase offers multiple payment method boxes, go through them and connect a payment method to your account. It can be a wire transfer, debit, credit card, or bank transfer.
3. Start a trade
Start a trade, and a list of options will be displayed. Click on the “buy” option from the list of options.
4. Select Bitcoin Cash
After clicking on the buy option, search for Bitcoin cash. You can do that by typing Bitcoin cash into the search bar. When you do that, the results pop out, and tap on it.
5. Type in the amount of Bitcoin Cash you want to buy
Using the number pad, tape in the amount of money you want to put into buying the coin, and the system automatically covers it into an equivalent Bitcoin cash amount.
6. Proceed with your purchase
Click on “Preview Buy,” and the details of your purchase will be clearly outlined. Go through it and ensure everything is okay, after which, you can confirm your purchase. That’s it, and you are done, https://learntal.com/crypto-market-analysis-5-different-cryptocurrencies/
How to Buy Bitcoin on Coinbase
Below are the steps on how to buy Bitcoin on Coinbase
1. Create an Account.
Get a Coinbase app on either your phone or computer and sign up for an account.
Ensure you get your proof of identification ready for verification.
2. Verify your Identity
This is very important, as verification helps provide additional security to your account. This goes a long way in preventing theft or fraud.
3. Click on Buy / Sell on the upper right-hand side.
Scroll to the upper right-hand side of the User Interface and click on Buy/Sell
4. Click the Buy Panel to Buy your Bitcoin
You can fund your account with any payment options, buy Bitcoin directly from the online market, or swap a cryptocurrency for Bitcoin. For example, if you have 35 Cardano and you want Bitcoin, you can go to find the ADA/BTC option. Here it will show you how many units of Bitcoin you will get with 35 units of ADA coins.
When you preview it, and it is okay, you can confirm the purchase.
Are your Bitcoin and Bitcoin Cash Cryptocurrency Safe in Coinbase
If you are wondering whether your Bitcoin and Bitcoin Cash Cryptocurrency is safe in Coinbase, it is because Coinbase uses an industry-leading security practice to keep your funds safe. However, you have a role in ensuring your funds are secure. You must not disclose your private keys to anyone or link the passwords to your account to anyone.
Additionally, Coinbase uses bank-standard encryption and security, and all accounts use two-factor authentication. The 2-Factor authentication helps prevent people from logging into your account, except they are physically present with your phone.
Approximately, 98% of customer assets in Coinbase are stored offline using cold storage supported by digital and paper backups. If you know about crypto storage, you will know that cold storage is very safe, almost 100%. In case you don’t know, there are two types of storage in the Crypto space, hot and cold. Hot storage refers to your wallets in an exchange that can only be accessed online. If there is a fraud attempt, hack, or system malfunction, your funds may be at risk. But for, cold storage is unaffected by any form of system malfunctions, hack, or fraud on the exchange.
Despite Coinbase’s strong security features, some users have lost their funds in the hands of hackers and fraudsters. Please use a unique and strong password that no one can easily guess. Also, keep your email and phone private; your account can be penetrated through your email.
One good part about Coinbase is that you can easily manage and monitor your funds. You can decide to HODL or trade your Bitcoin or Bitcoin Cash.
Does Coinbase support Bitcoin Cash?
You can buy, sell, send and receive Bitcoin Cash on your Coinbase app. It supports the trading and investing of Bitcoin Cash (BCH)
Can I use Bitcoin Cash to buy Bitcoin?
Yes, you can use Bitcoin Cash to buy Bitcoin. You can set up an account; fund it with Bitcoin cash through Paypal or other payment methods. Once you have bought your Bitcoin cash, you can use it to buy Bitcoin on the exchange, and you get the Bitcoin value equivalent of your Bitcoin cash.
Is it better to buy Bitcoin on Coinbase or Cashapp?
Cash App offers lower fees for smaller Bitcoin transactions, whereas Coinbase offers lower fees for larger transactions. So the quantity of your transaction can determine which to go with. However, Coinbase Pro offers lower fees for all transactions. You can easily switch to Coinbase Pro anytime.
What is the difference between BTC and BCH?
One of the major differences between BTC and BCH is the block size. Bitcoin maintains a 1 MB block size, with Bitcoin Cash maintaining a 32 MB block size. This means that transactions on BCH are faster and cheaper and can run about 200 transactions in a second. Another difference is their supply rate. Bitcoin has a limited supply of 21 million coins, while Bitcoin Cash has an unlimited supply of over a billion coins.
Before venturing into buying Bitcoin and Bitcoin Cash, you must understand the dynamics of how cryptocurrency functions and the various ways you can earn from owning cryptocurrencies, either through trading or investment.
Originally posted 2022-07-05 13:26:16.