The purpose of this post is not to convince you to buy Bitcoin Cash (BCH), its to tell you how to buy BCH if you want it. What I will also tell you is my inside sources claim its still a good time to buy, aka the value will climb higher and keep climbing. With this privy information at my fingertips, I decided to part with £500 to get familiar with the somewhat complex process of obtaining and storing the currency…and hopefully gain some personal wealth while I’m at it.
To give you the background, I posted on Facebook after the BCH price surge about a week ago, asking if I should by BCH ASAP or wait a few days. I could not believe the number of public responses this post generated nor could I believe the number of people who immediately DMed me asking for advice on how they can buy BCH and fast, cursing themselves for failing to buy it earlier while the prices were much lower.
In order to answer everyone’s urgent DMs in one swoop, this post is designed to serve as my “beginners” step-by-step guide on to safely buy and store BCH. Seeing as BCH is in its infancy stage and it will be some time before we’re able to spend it freely, storing your BCH in a “cold wallet” (unless you plan on trading it) is also part of the equation.
I won’t lie, this is not the most straight-forward process on the planet…but trust me, if was able to do it, so can you!
Step 1: Open up an account with Kraken: 5 minutes
Kraken is a Bitcoin exchange on which you can buy, sell and trade BCH, BTC, ETH and more. Opening up an account with this trustworthy exchange is relatively painless, providing you’re able to choose a password that fulfills all their character requirements and you can quickly check your email for a confirmation message.
Step 2: Get verified for Tier 1 and Tier 2: 5 minutes
Once you have an approved and active account with Kraken, before you can deposit, you will be prompted to “get verified” due to KYC/AML requirements. Since I don’t plan on depositing/withdrawing huge sums of money, Tier 1 and Tier 2 verification was more than sufficient and the only personal info required was my name, DOB and address in the UK. Once entering this info, I was cleared to deposit up to $2000 USD (daily deposit limit) in minutes.
Step 2: Deposit EUR/fiat into the exchange: 2-5 days
I personally hold two banks accounts, one in the USA and one in the UK and for the purposes of this transaction, I decided to send EUR from my UK account. (My USA-based sources assure me Kraken is a trustworthy choice for USA account holders as well, although some of the steps below may vary slightly).
Once you’re Tier 2 or more verified (you’ll be notified by email when you are), on the upper left of the Kraken main page you’ll see a “trade” tab, just under the pull-down menu of available currencies for trade. On the right of the “trade” tab you’ll see a “funding” tab, click on this. Now be sure the “deposit” tab is highlighted and under that, the EUR tab is chosen.
There are two choices for depositing in EUR, one is by “SEPA” and the other is by “Wire Transfer”. I chose SEPA because there is no fee when using my UK-based bank (Barclays), essentially it works the same way as sending an international bank wire. The instructions provided by Kraken for how to deposit are clear and the only step I was unsure of was adding the “reference” as my bank does not accept spaces and “.” for this field, so I had to take spaces out and use “krakenDOTcom” instead. Thankfully it worked.
Step 3- “buy” BCH: minutes to hours, depending on what price you ask for
Kraken will inform you by email when your deposit has cleared and you’re all set up to buy/trade. I thought buying was going to be a quick and easy process- just enter the amount of BCH you want to buy and voila- its yours, but no. Its not that easy.
Be sure you’ve chosen BCH/EUR on the pull-down tab from the upper left of the Kraken main page, click the “trade” tab and then choose the “new order” tab below “trade” and next to “overview”. Be sure “buy” is highlighted in green.
Now take a look at the value of BCH in Euros at that particular moment- either check CoinGeek.com’s homepage ticker (be sure to convert from USD to EUR) or check the top of Kraken where it says, “last”, “high” and “low” and assume the value is something close to what is says under “last”. So lets say 1 x BCH is worth 1000 Euro at that moment and you want to spend 500 Euro to buy .5 BCH. Enter “0.5” where it says “amount” next to BCH and enter “1000” where it says “price” next to EUR. “Total Euro” should then read “500” and now you’re ready to hit “Buy BCH with EUR”, sit back and wait.
If nothing happens for a while, you can cancel your order, adjust the “price” a bit higher and send in a new order.
Step 4- Set up a “cold storage” wallet with Electron-Cash: 10 minutes
Once you’re the proud owner of BCH, unless you plan on trading it, you should move the currency into a “cold storage” wallet and I recommend “Electron-Cash”. You’ll need to download the wallet on your computer and the instructions for setting it up are straight forward.
Step 5- Move your BCH to Electron-Cash wallet: 5-10 minutes
Open up your wallet on your computer and go to the “receive” tab. You’ll see a “receiving address” – a series of numbers and letters – and under this you can enter a description & requested amount of BCH if you wish.
On the Kraken site, go back to the “funding” tab, click on the “withdraw” tab and choose BCH from the pull-down. Now you’ll need to click on “+Add Address”, go back to your wallet, click on the clipboard icon next to your receiving address, then paste the address in the required field on Kraken. Enter the amount of BCH you wish to withdraw on Kraken, confirm the withdrawal and wait for the prompt letting you know all has been a success.
Please beware the transaction does not appear instantaneously in your wallet even though Kraken will confirm the transaction has been made. Check your wallet in 5-10 minutes and your BCH will have arrived safely.