On our platform we trade several coins, one of them is bitcoin cash (BCH). Perhaps you already know how to store bitcoin, but how do you manage your bitcoin cash safely? In this article we will teach you all the ins and outs on managing your coins and securing your wallet.
Everything about creating a bitcoin cash wallet and finding your bitcoin cash receiving address:
- What’s a bitcoin cash wallet?
- What’s a bitcoin cash receiving address?
- Which bitcoin cash wallet should I choose?
- How do I create a bitcoin cash wallet?
- How do I secure my bitcoin cash wallet?
- How do I receive or send bitcoin cash?
What’s a bitcoin cash wallet?
The entire transaction history of any particular cryptocurrency is stored on the blockchain.
With a wallet you can prove that you are the owner of your coins. You could compare your wallet to a keychain that gives you access to your coins. Technically you don’t even store coins in your wallet. You store the private keys that grant you access to your coins.
- A public key, generally called a receiving address, which is similar to a bank account number. You use this to send bitcoin cash to your wallet.
- A private key, which is like the PIN for your bank account number. Never share your private key with anyone. The private key proves you are the owner of the bitcoin cash that corresponds with the public key.
Already know you want to buy bitcoin, but don’t know where to buy your coins? Use other people’s experience with BTC Direct for reference. Take a look:
What is a bitcoin cash receiving address?
A receiving bitcoin cash wallet address- or public key, is similar to a bank account number: you use it to receive coins. Whilst a bank account number stays the same, a bitcoin cash wallet address can change once you’ve used it for a transaction. This way not all transactions are linked to a single receiving address, a feature which makes the transactions more, but not completely, anonymous.
There are two kinds of bitcoin cash receiving addresses:
- Bitcoin cash was created from a bitcoin hard fork, so its receiving addresses originally had the same format, which looks like this for example: 32uLhn19ZasD5bsVhLdDthhM37JhJHiEE2.
- Since this can be quite confusing, a new format was introduced, in which a bitcoin cash receiving address begins with a ‘q’ or a ‘p’. For example, a receiving address can look like this: pqx5ej6z9cvxc2c7nw5p4s5kf8nzmzc5cqapu8xprq. Sometimes a receiving address begins with ‘bitcoincash:’, making it even more easily recognizable. A common question is how to get a bch address.
Where do you find your bitcoin cash receiving address?
- Log into your BCH wallet.
- Make sure ‘Bitcoin Cash’ is selected if your wallet supports multiple coins.
- Click on ‘Receive’. There you’ll find your receiving address.
Which bitcoin cash wallet should I choose?
There are many wallets that support bitcoin cash. Each type of wallet has its own characteristics and is different in terms of usability and safety. For example- there are online wallets, software wallets and hardware wallets.
Have you just started trading or do you already have experience with cryptocurrency? Do you want to buy a small amount or invest a large sum? In the overview below you can see which wallet is most suitable for your situation:
The online wallet
- Very user-friendly
- Free of charge
- Low maintenance
- Supports bitcoin and bcash
- 2-FA option to secure the wallet
- Private key is saved online. Be careful with amounts over 500 euros
- Supports multiple coins
- Private key is saved slightly more secure on computer instead of online
- Does not have 2-FA option to secure the wallet
- Desktop only
Ledger Nano S
- Safest wallet
- Supports multiple coins
- Offline storage of your private key
- Not very user-friendly
- Needs to be updated (manually) once in a while
How do I create a bitcoin cash wallet?
Have you just started trading cryptocurrency and are you still testing out the technology with a relatively small amount? Then perhaps an online wallet is a good place to start. Online wallets are very user-friendly. A popular choice is BTC.com. This free wallet supports both bitcoin cash and bitcoin. Note: despite the name, BTC.com is a separate platform, not related to BTC Direct.
Follow these steps to create a wallet at BTC.com:
- Go to BTC.com, and select your preferred language.
- Click ‘Wallet’, and you will be redirected to the wallet environment.
- Enter your email address and create a password.
- Click ‘Create new wallet’.
- Save the PDF file, which is a backup of your wallet.
- You are redirected to your wallet.
- Select ‘Bitcoin Cash’ in the dropdown menu on the top left of the page.
Whilst an online wallet is easy to create and very user-friendly, it’s not the safest way of managing your coins. In this video we elaborate on the other possibilities:
How do I secure my bitcoin cash wallet?
Using a hardware wallet is the safest option for managing your bitcoin cash. A hardware wallet is not in constant connection to the internet, significantly reducing the chance of your wallet being compromised. However, there are plenty of other ways to keep your online wallet or software wallet as safe as possible.
Two Factor Authentication
In the safety settings of your wallet you can choose the option Two Factor Authentication (2-FA). This means you log into your wallet with several devices. In addition to your password, a code is required as well. This code could be sent to you by SMS, or through an app such as Google Authenticator. This is useful because potential hackers won’t be able to access your wallet with just your password.
Write down your recovery seed
Regardless of which wallet you’re using, you always have to write down the recovery seed of your wallet. This is a sequence of 24 words, with which you’ll always have access to your coins. Some wallets provide the seed immediately, in others you’ll have to check the settings for the 24 words.
Use pen and paper to write down the recovery seed and store it safely offline. This is the backup for your wallet. Should you ever lose your password, then you’ll be able to access your wallet with the help of your recovery seed. You can even use it to access your coins from a different wallet.
How do I receive or send bitcoin cash?
To receive bitcoin cash, start an order at BTC Direct. Copy the receiving address from your wallet and paste it on the order form.
Sending bitcoin cash is just as easy! Click on ‘Send’ in your wallet. Enter the receiving address you’ve copied from the recipient. Fill in how much you would like to send, and confirm.
For receiving as well as sending bitcoin cash, always copy and paste the receiving address. Do not write or type the address. This lowers the risk of making a mistake. All cryptocurrency transactions are irreversible: once the coins have been sent, there’s no way of getting them back.
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You need a wallet to send or receive bitcoin cash. In your wallet you can find your receiving address. This is the address that you fill in on the BTC Direct order form when you want to buy bitcoin cash.
The right wallet for you depends on your own circumstances. Have you just started trading, or do you already have experience with cryptocurrency? Do you want to buy a small amount, or invest a large sum? The most user-friendly wallet is an online wallet, but this isn’t the safest option there is.
Always write down your recovery seed that consist of 24 words using pen and paper and store it safely. This way you will always have access to your wallet.
Do you have more questions about securing your wallet, or about wallets in general? Feel free to contact us, we’re happy to help!